Today, in order to cover the average cost of attending a four-year public college, students from families making $30,000 or less would need to spend 93 percent—nearly all—of their total family income, according to an analysis of College Board data. To cover the cost of a two-year college, these students would need to spend nearly two-thirds of their family’s total income. At the same time, grant aid—including the federal Pell Grant—has not kept up with rising costs. Taken together, these trends mean that the average debt held by bachelor’s degree recipients grew by about 56 percent over a 15-year period, well outpacing inflation.
A new report features six papers from leading researchers that examine how policymakers can make debt-free college a reality.
Collectively, the papers outline the current college financing landscape, discuss potential policy options for reducing reliance on debt, and examine specific components that could be addressed as part of a larger federal-state funding partnership to achieve debt-free college for all students across the country.