COMMENTARY: Tuition-free college is critical to our economy (2024)

COMMENTARY: Tuition-free college is critical to our economy (1)

Credit: Allison Shelley/The Verbatim Agency for American Education

To rebuild America’s economy in a way that offers everyone an equal chance to get ahead, federal support for free college tuition should be a priority in any economic recovery plan in 2021.

Research shows that the private and public economic benefit of free communitycollege tuition would outweigh the cost. That’s why half of the states in the country already have some form of free college tuition.

The Democratic Party 2020 platform calls for making two years of community college tuition freefor all students with a federal/state partnership similar to the Obama administration’s 2015 plan.

It envisions a program as universal and free as K-12 education is today, with all the sustainable benefits such programs (including Social Security and Medicare) enjoy. It also calls for making four years of public college tuition free, again in partnership with states, for students from families making less than $125,000 per year.

The Republican Party didn’t adopt a platform for the 2020 election, deferring to President Trump’s policies, which among other things, stand in opposition to free college. Congressional Republicans, unlike many of their state counterparts, also have not supported free college tuition in the past.

However, it should be noted that the very first state free college tuition program was initiated in 2015 by former Tennessee Gov. Bill Haslam, a Republican. Subsequently, such deep red states with Republican majorities in their state legislature such as West Virginia, Kentucky and Arkansas have adopted similar programs.

Establishing free college tuition benefits for moreAmericans would be the 21st-century equivalent of the Depression-era Works Progress Administration initiative.

That program not only created immediate work for the unemployed, but also offered skills training for nearly 8 million unskilled workers in the 1930s. Just as we did in the 20th century, by laying the foundation for our current system of universal free high school education and rewarding our World War II veterans with free college tuition to help ease their way back into the workforce, the 21st century system of higher education we build must include the opportunity to attend college tuition-free.

California already has taken big steps to make its community college system, the largest in the nation, tuition free by fully funding its California Promise grant program. But community college is not yet free to all students. Tuition costs — just more than $1,500 for a full course load — are waived for low-income students. Colleges don’t have to spend the Promise funds to cover tuition costs for other students so, at many colleges, students still have to pay tuition.

At the state’s four-year universities, about 60% of students at the California State University and the same share of in-state undergraduates at the 10-campus University of California, attend tuition-free as well, as a result of Cal grants, federal Pell grants and other forms of financial aid.

But making the CSU and UC systems tuition-free for even more students will require funding on a scale that only the federal government is capable of supporting, even if the benefit is only available to students from families that makes less than $125,000 a year.

It is estimated that even without this family income limitation, eliminating tuition for four years at all public colleges and universities for all studentswould cost taxpayers $79 billion a year, according to U.S. Department of Education data. Consider, however, that the federal governmentspent $91 billionin 2016 on policies that subsidized college attendance. At least some of that could be used to help make public higher education institutions tuition-free in partnership with the states.

Free college tuition programs have proved effective in helping mitigate the system’s current inequities by increasing college enrollment, lowering dependence on student loan debt and improving completion rates, especially among students of color and lower-income students who are often the first in their family to attend college.

In the first year of the TN Promise, community college enrollment in Tennessee increased by 24.7%, causing 4,000 more students to enroll. The percentage of Black students in that state’s community college population increased from 14% to 19% and the proportion of Hispanic students increased from 4% to 5%.

Students who attend community college tuition-free also graduate at higher rates. Tennessee’s first Promise student cohort had a 52.6% success rate compared to only a 38.9% success rate for their non-Promise peers. After two years of free college tuition, Rhode Island’s college-promise program saw its community college graduation rate triple and the graduation rate among students of color increase ninefold.

The impact on student debt is more obvious. Tennessee, for instance, saw its applications for student loans decrease by 17% in the first year of its program, with loan amounts decreasing by 12%. At the same time, Free Application for Federal Student Aid (FAFSA) applications soared, with 40% of the entire nation’s increase in applications originating in that state in the first year of their Promise program.

Wage inequality by education, already dreadful before the pandemic, is getting worse. In May, the unemployment rate among workers without a high school diploma was nearly triple the rate of workers with a bachelor’s degree. No matter what Congress does to provide support to those affected by the pandemic and the ensuing recession, employment prospects for far too many people in our workforce will remain bleak after the pandemic recedes. Today, the fastest growing sectors of the economy are in health care, computers and information technology. To have a real shot at a job in those sectors, workers need a college credential of some form such as an industry-recognized skills certificate or an associate’s or bachelor’s degree.

The surest way to make the proven benefits of higher education available to everyone is to make college tuition-free for low and middle-income students at public colleges, and the federal government should help make that happen.

•••

Morley Winograd is president of the Campaign for Free College Tuition. Max Lubin is CEO of Rise, a student-led nonprofit organization advocating for free college.

The opinions in this commentary are those of the author. Commentaries published on EdSource represent diverse viewpoints about California’s public education systems. If you would like to submit a commentary, please review ourguidelinesandcontact us.

COMMENTARY: Tuition-free college is critical to our economy (2024)

FAQs

How would free college tuition affect the economy? ›

The benefits of free college include greater educational access for underserved students, a healthier economy, and reduced loan debt. Drawbacks include higher taxes, possible overcrowding, and the threat of quality reduction.

Why should college tuition be free? ›

Free College Could Help Lessen the Current Inequality Gap

And some even have to drop out because they do not have the ability to pay for tuition for all four years. In fact, over 50% of students drop out of public universities because they can't afford it!

What are the negative effects of free college tuition? ›

In general, the “pros” of free are: having better access to education, the elimination of student debt, increased graduation rates, and an opportunity to explore your passions/interests. The “cons” include: overcrowding, wasted opportunities, and money.

How does college education affect the economy? ›

Education tends to raise productivity and creativity, as well as stimulate entrepreneurship and technological breakthroughs. All of these factors lead to greater output and economic growth.

What are the pros and cons of free college tuition? ›

Pros of Free College Programs
  • Increased Accessibility. ...
  • Economic Benefits. ...
  • Social and Societal Impacts. ...
  • Reduction in Student Debt. ...
  • Cons of Free College Programs. ...
  • Financial Strain on Government Budgets. ...
  • Potential Quality Concerns. ...
  • Economic Concerns.

Does free college decrease inequality? ›

In practice, free college programs are often regressive and can do more to exacerbate inequality than solve it. While the design of the particular program matters, free college initiatives nearly always fail to address the needs of low-income students and shift resources to the upper middle class.

How can free college improve society? ›

This springs up the question, “Should higher education be free?" In different types of economies, as college students graduate without debt, this would give them the ability to earn, save and spend immediately, which could stimulate the economy.

Why should college be free argumentative essay? ›

If college can be free, more students would go to school and to get a higher degree for themselves. Then after graduating college without debt, students can be able to think about their own life such as doing business, buying house, etc. Also a better - educated population can make positive effect on the society.

Why shouldn't college be free thesis statement? ›

Argumentative Essay Free College

If higher education at public schools becomes free, it might appear to devalue a college diploma. It might also lead to students cutting more classes or not trying because they don't have to “get their money's worth” when they aren't paying for anything.

Why would free college be bad for the economy? ›

With “free college,” still more of our limited resources would be drawn into higher education, but the cost would be spread out over the taxpaying public. Second, people usually don't put as much care or effort into things they get for free as they do with things they are paying for.

How is college tuition negatively impacting society? ›

Today's graduates are also less likely to start businesses because their debt causes them to avoid financial risks. These behaviors affect the growth of our economy. The Federal Reserve estimates that student debt reduces the GDP by . 05% per year.

What would happen if community college was free? ›

We found that free community college would increase the number of people graduating with associate degrees, but it would also likely decrease the number of people completing bachelor's degrees because students would shift away from four-year schools in favor of free tuition.

How do colleges contribute to the economy? ›

According to the Association of Governing Boards of Universities and Colleges, these “institutions are the largest employers in 10 states and two-thirds of America's largest cities.” Universities also serve as purchasers, business and technology incubators, patent producers, and magnets for international students.

What is the economic value of college education? ›

Overview. The typical college graduate earns an estimated $650,000 more than the typical high school graduate over the course of a 40-year work life, according to a new analysis of census and college cost data by the Pew Research Center.

Is college worth the cost, pros, and cons? ›

A college degree is a great investment for many students, but it's not the slam dunk that it once was. A college degree is still correlated with higher earnings and greater wealth, but the cost is considerable and rising. Depending on your intended profession, you might consider an alternative education path.

How do colleges benefit the economy? ›

California's community colleges generate $128.2 billion in economic activity, an amount equal to approximately 4.2% of California's total gross state product, according to a new study that examined a wide range of factors such as payroll, job creation and alumni's improved standard of living.

How would free college decrease student debt? ›

Consider a student with a $3,000 Pell Grant who uses $1,000 to pay tuition expenses and the remaining $2,000 for living expenses. She also borrows $5,000 for living expenses. The free-college plan can reduce her borrowing by only $1,000 because that is the amount by which her Pell Grant increases.

Would making college free increase taxes? ›

Eliminating tuition at all public colleges and universities would cost at least $79 billion a year, according to the most recent Department of Education data, and taxpayers would need to foot the bill. That is a lot of money, but it is a smart and humane investment, and could be more affordable than you think.

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