There is overwhelming evidence that pursuing a college education provides substantial economic and non-economic benefits to students. But how much a degree is worth depends heavily on the institution a student attends. Unfortunately, value also is still influenced by a student’s race, income, and gender, due to inequities in today’s higher education and workforce systems.
Institutional leaders, federal and state policymakers, and other stakeholders all have a role to play in delivering equitable value: the economic and non-economic benefits that accrue to students, their families, their communities, and society. This report from the Institute for Higher Education Policy assesses economic value for students by using publicly available data to estimate the number of colleges that provide a minimum economic return for students and explores policy interventions that would increase equitable value.
Among the report’s policy recommendations:
- Double the Pell Grant. This would provide additional need-based grant aid to low- and moderate-income students.
- Invest in first-dollar free college programs. A first-dollar approach increases affordability and as a result, postsecondary value, and ensures that students with the highest levels of financial need receive additional aid. First-dollar programs have a substantially greater impact on postsecondary value than last-dollar programs.
- Fund non-tuition expenses for students from low-income backgrounds. Funding transportation, health care, and child-care expenses reduces affordability barriers for students and can help facilitate college completion.
- Avoid narrow restrictions on eligibility for student aid. Eligibility for need-based financial aid—whether in the form of Pell Grants, other grant aid, or free college programs—should be as inclusive as feasible. When funds are scarce, they should be targeted based on financial need.
- Invest in four-year pathways. Free college programs are often limited to public two-year institutions, but these programs would reach more students were they expanded to include public four-year colleges. Investments to support affordability at four-year institutions will avoid stratification within postsecondary education and ensure the equitable delivery of postsecondary value.
- Provide support for completion. Federal and state policymakers should fund completion support aimed at decreasing time to degree and increasing completion rates.