Earning a college education can be the gateway to a brighter future with greater earning potential, improved career options and a strong sense of well-being for graduates. These benefits don’t just impact graduates — they ripple through families and communities, strengthening our society as a whole.
But today only 36 percent of Americans express high confidence in higher education, according to recent polling. This skepticism isn’t unfounded. As college costs rise faster than need-based aid and students manage loan debt, questions about the value of higher education continue to capture public interest.
Yet college is still a wise investment for most students. Data consistently shows that college graduates tend to earn more over their lifetimes than those without a credential. But while many students are better off after their college experience, outcomes can vary widely depending on factors like race, gender, pre-college income and the type of institution attended. That’s why federal and state policymakers, along with institutional leaders, should consider how policies and funding can increase college value by supporting affordability and completion.
Related: Interested in innovations in the field of higher education? Subscribe to our free biweekly Higher Education newsletter.
On the affordability front, bold, targeted action like doubling the maximum award available through the federal Pell Grant would be a game changer for students with low and moderate incomes. That step alone would increase affordability and expand postsecondary value for more than 6 million students. Free college programs are another powerful policy lever, particularly if they are “first-dollar.” First-dollar free college programs effectively provide grant amounts equivalent to full tuition and fees, regardless of other grants and scholarships students receive. In contrast, “last-dollar” free college programs only cover the tuition costs remaining after other grant aid is applied. Our research at the Institute for Higher Education Policy shows that first-dollar free college programs deliver more postsecondary value than last-dollar programs.
Increasing completion rates will also improve postsecondary value for students. Federal policymakers can help by increasing funding for the Postsecondary Student Success Grant (PSSG). Other strategies include smoothing transfer pathways from community colleges, reengaging students who have stopped out, providing financial aid for nontuition costs to help students meet their basic needs and fostering students’ positive experiences and supporting their sense of belonging.
Moreover, data-driven insights can help institutions and policymakers develop targeted strategies that improve the economic returns of higher education for all students. For example, the findings of a study in our recent research series analyzing the relationships between post-college earnings outcomes and key student characteristics such as race, gender and pre-college income tell us that greater financial stability during college is correlated with higher economic returns. This is especially true at four-year public schools, and it highlights the importance of expanding access to emergency aid, promoting financial literacy and enhancing transparency around college costs and financial aid options.
In addition, institutions that rely less on full-time adjunct faculty provide stronger economic returns to students, another recent study found.
Related: What’s a college degree worth? States start to demand colleges share the data.
Some other interesting findings from our research series:
- Community colleges tend to provide greater economic value if they offer baccalaureate programs or are located near four-year colleges, demonstrating the benefit of creating clear pathways for students to attain bachelor’s degrees.
- In Michigan, public four-year universities offer a higher economic return than other types of institutions, but post-college earnings vary by gender, race and ethnicity as well as by students’ credential levels and choices of major. These disparities underscore the need for targeted investments, broadened access to high-paying majors and a commitment to dismantling systemic pay inequities.
- Hispanic students in Texas receive positive postsecondary value, but disparities persist even within Hispanic communities, particularly for students from low-income backgrounds and women, according to a study by the Research Institute at Dallas College, which measured economic returns at more than 500 established and emerging Hispanic-serving institutions.
- Rural-serving institutions may offer slightly lower post-college earnings than urban and suburban institutions. However, rural-serving institutions are typically more affordable, making them crucial for expanding access to the benefits of higher education.
Researchers play a crucial role in identifying inequities and deepening our understanding of college value. Increased transparency about costs and expected earnings can help students and families make better-informed decisions about where to invest their resources.
College leaders can use data to pinpoint areas for improvement within their own institutions, such as costs, financial aid, faculty composition and student support services.
Rebuilding public confidence in higher education requires us to address inequities head-on. Taking an equity-focused, data-driven approach is the first step toward developing strategies that provide social and economic mobility to all students, regardless of background.
Diane Cheng is the vice president of research and policy at the Institute for Higher Education Policy (IHEP), a nonpartisan research and advocacy organization.
Contact the opinion editor at opinion@hechingerreport.org.
This story about college outcomes was produced by The Hechinger Report, a nonprofit, independent news organization focused on inequality and innovation in education. Sign up for our higher education newsletter. Listen to our higher education podcast.
