Higher education frequently found itself in the national spotlight this past year. As concerns around the cost of a credential continue to surge, college administrators, policymakers and the sector’s countless stakeholders are working aggressively to conquer the changing postsecondary landscape.
However, several reports over the past year have cast doubt on some commonly held beliefs about higher ed. Here are two big concepts to reconsider.
Myth 1: College costs are the No. 1 culprit detracting young students from entering higher ed
As interest in career and technical education rises, higher education’s detractors may point to the costs of postsecondary credentials. However, a survey of 8,000 high school students from the Princeton Review found that less than a tenth prioritized affordability when choosing a college. Instead, the majority were interested in finding a college that fit their career interests. While debt was parents’ and college applicants’ top concern in pursuing higher education, 99% still believed college was worth it.
While cost may not be the top detractor for young students, there is cause for concern about what may be fueling Gen Z’s disinterest. A Gallup poll in August found that 43% percent of today’s K12 students hoped to pursue something other than college after high school. The top reasons why included a lack of confidence in their ability to succeed and classroom disengagement.
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In fact, students today are paying and borrowing less to cover their net tuition price thanks to increases in financial aid over the past 20 years, per College Board. These state and federal appropriation increases lead us to our next myth.
Myth 2: States aren’t investing in higher ed
Three 2024 reports reveal how federal and state higher ed funding increased in recent years:
- State Higher Education Finance (“Trends in State, Local, Student, and Grant Shares of Education Revenues“): Public higher education appropriations rose nearly 4% beyond inflation in 2023. Education appropriations increased for the 11th straight year, rising $1,247 per full-time equivalent from 2020 to 2023.
- College Board (“Trends in College Pricing and Student Aid 2024”): Federal appropriations and government grants and contracts per student increased by 38% at public doctoral institutions between 2016-17 and 2021-22, after adjusting for inflation. At the state and local level, funding per student has increased consecutively from the 2012-13 academic year to 2021-22, after adjusting for inflation.
- CATO Institute (“State Disinvestment in Higher Education Is Still a Myth“): Despite intermittent cuts, state funding over the past 40 years has risen by about $48 per student per year after adjusting for inflation.
