Making College Affordable SARA GOLDRICK-RAB Professor of Educational Policy Studies & Sociology University of Wisconsin-Madison

Fraction of Birth Cohort Completing College, by Family Income Bailey & Dynarski 2011

Bachelor’s Degree Attainment High School Sophomores’ Math Test Scores

Unemployment Rate in 2014 Source: Bureau of Labor Statistics Degree Completion Matters

Associate Degrees Pay Off

Family IncomeCommunity College Net Price/Year% of Income Low ($21,000)$8,30040% Moderate ($52,000) $11,30022% Middle ($81,000)$13,30016% High ($142,000)$14,00010% Annual Cost of Attending Community College Minus All Grants, By Family Income (Dependents)

Percentage Change in Inflation-Adjusted Mean Family Income by Quintile: , , and

At community colleges: –Percent receiving state aid fell from 40 to 25% –Net price in constant dollars as % of income rose from just over 30% to just over 40% At public 4-years: –Percent receiving state aid fell from ~55 to ~45% –Net price in constant dollars as % of income rose from just over 30% to just over 40% Pell Recipients Btw

What Do Pell Recipients Do?

1 st Year Borrowing Among Pell Recipients

1. Low-income people who must take on debt in order to attend college 90% of Pell Recipients who graduate have debt 2. Debt and no degree 1 in 3 Pell Recipients in public higher education leave with no degree and debt averaging $9,000 The Real Debt Problems

Students need to focus on school to succeed –Paying for college gets in the way Competition for time Insufficient materials & other resources –Uncertainty diminishes motivation Punitive approaches backfire –Demand performance? Students go slower, take easier classes –Coaching seems to work better Effort Matters

Reducing the Price Works Experimental Impact of Offering the Wisconsin Scholars Grant to Students Beginning at Public Universities Goldrick-Rab, et al. 2016

Evidence from Texas & Tennessee suggests the need for simple messaging & lower upfront prices –Induce new students to try college or return to college –Focus on populations who without college will be a strain on other systems– unemployment, benefits –But paying for completion means going beyond tuition Lower Price & Simplicity

First Degree for Free Simple & transparent Focused Fresh start –New, clear compact –Incentives stated upfront A New Compact

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