A r c h i v e d  I n f o r m a t i o n

Commissioner's Statement (Part 4 of 6)

Are more young people going to college?

In 1992, the rates of attainment in higher education for U.S. men and women were among the highest in the world (Indicator 23). [11] This is an indication that higher education is broadly accessible in the United States in comparison to other countries. It is also an indication of the rewards to college attendance. Even though college graduates have faced a difficult labor market over the past few years, their job opportunities and earnings are much better than those of high school graduates. The earnings advantage has grown stronger throughout the l980s, particularly for males (Indicator 34).

It is not surprising that despite a rapid rise in tuition levels (Indicator 7) more high school graduates are choosing to go immediately to college after high school graduation (Indicator 9). It should be noted, however, that enrollments do not always translate into completions.

Although, more students are going on to college after high school, the data show that it is very common for college students to enroll, leave, possibly return, and not finish within the expected period of time. [12] For example, in 1990, only one-quarter of first-year community college students were enrolled in some form of higher education the next year. And, about one-fifth of second-year community college students transferred to 4-year colleges or universities (Indicator 10).

Noncompletion is not necessarily an indication of failure or a waste of resources. Often students, particularly in the 2-year sector, enter and withdraw from college because of economic opportunities, or they may have begun a program with limited objectives that they were able to achieve. Also, many students attend part time, which can extend the time it takes them to complete a program. Nevertheless, the high rates of noncompletion and interrupted attendance may indicate that students do not have enough information about the actual skills in demand in the labor market before making decisions regarding their education. Moreover, they may have unrealistic views as to how much time, effort, and money will be needed to complete postsecondary education programs and acquire these skills.

High levels of participation in higher education are made possible by generally low tuition levels at public institutions and a financial aid system that is primarily based, particularly the federal component, on need. Average tuition and fees are also much lower at public institutions, where four out of five students are enrolled, than they are at private institutions (Indicators 8 and 36).

But to attend postsecondary education on a full-time basis requires that the student not only pay the direct costs of education but also finance living expenses. For example, the total cost a student had to finance, including both educational and living expenses, was about $9,200 for dependent full-time students attending public 4-year institutions in 1992-93. Total aid, including grants, loans, and work-study, reduced the amount that needed to be financed to $7,300. In addition, most financial aid is sensitive to family income, so this net cost was lowest ($5,070) for students from low income families and highest ($8,879) for those from high income families.

                    Tuition     Total       Net                     and fees     cost       cost                     --------    ------     ------ Public 2-year       $1,072      $6,410     $5,717 Public 4-year        2,947       9,187      7,326 Private 4-year      11,004      17,301     11,552 

Although net cost varies a great deal with family income, the question remains whether it varies enough to make higher education equally affordable to all students. One way to answer this question is to estimate unmet need as net cost less "expected family contribution;" this is generally considered a reasonable and affordable amount for the family and student to contribute toward the cost of higher education, and it is also used by the student financial aid system. For dependent undergraduates attending 4-year colleges, unmet need is greater, especially when compared to family income, for students from low income families than for those from high income families. It appears that by this test, at least, higher education is still more difficult for students from low and lower middle income families to afford than for those from upper middle and high income families.

                        Net cost        Unmet need                     ---------------    ---------------                     Public  Private    Public  Private Family income       4-year  4-year     4-year  4-year -------------       ------  -------    ------  -------    All              $7,326  $11,552    $1,952   $4,171  Less than $27,000    5,070    5,872     3,132   4,425 27,000-44,999        6,426    8,590     2,429   4,980 45,000-59,999        7,598   10,407     1,784   4,204 60,000 or more       8,879   15,752       836   3,633 

Clearly, the increasing enrollment rates and rising tuition costs are profoundly affecting the nature of higher education. First, colleges are providing much remedial instruction to students who arrive with weak academic skills. [13] This may indicate that more students who once would not have considered continuing on to higher education are now enrolling, even though they must take remedial courses. Second, the percentage of full-time college students who report working more than 20 hours a week has increased since the early 1980s (Indicator 51). Although working during the school year leaves less time for students to concentrate on their studies or to participate in extracurricular activities, some of the experience that students gain from working may benefit them after graduation. There is evidence, however, that working long hours while in college may reduce a student's likelihood of completing college or lengthen the time it takes for those who do complete it. Third, there is some evidence that college students are feeling increasingly stressed by the demands placed on them. [14]

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[Are more young people finishing high school?]

[What do we know about the quality of schools?]