College affordability is a growing concern in the U.S. And it’s no wonder: College prices have exceeded inflation for more than three decades, and the average American BA graduate leaves college with about $29,000 in debt, up from just about $18,000 only a decade ago.
Economists say that 60% of working-age Americans will need high-quality degrees, certificates or other postsecondary credentials if we are going to meet our workforce needs. But right now only about 40% of the population meets this threshold—well behind other developed countries. If America is going to compete in the global market for talent, it needs an affordable college system.
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The thing is, nobody seems to know what an affordable education means. Does it have to be completely free in order for it to be affordable? Are we to go back to the days where college could be paid for with summer jobs? Should people be expected to save for college? If so, how much?
Sometimes it’s not even clear what “free college” means. In places like Tennessee, which has a smart plan in place, it refers only to tuition and fees. Thanks to financial aid such as federal Pell Grants, most community colleges are already effectively tuition-free for low-income students. However, college students incur costs far beyond tuition and fees. Expenses such as room and board, food, housing, transportation, and child care—as well as educational expenses such as books and laptops—are often insurmountable burdens for students.
The best way to start developing an affordable system is to create tools for identifying what it looks like. We need simple, straightforward ways of describing what “affordable” means to those students and their families. Think about it. When you pay for college, it ultimately comes down to what you’ve saved, how much your family can contribute from income, and how much you can earn while in school. Those three factors are what we should be most focused on when it comes to determining college affordability.
To develop a more talented America, more students will need to complete their postsecondary education. “Free college” might help, but it won’t assure that college is truly affordable for those who need it, and it won’t get us there on its own.
Jamie Merisotis is president and CEO of Lumina Foundation, a private foundation with the goal to expand student access to and success in higher education.