Rising Cost of College Shutting Doors

Rekha Basu of the Des Moines Register has a column today called College Costs Shutting Doors about the issue of rising college costs and how affects the common Iowan.

Basu writes about the income gap of those that can afford attending college is growing...

The fact that it's gotten harder than ever to pay for college has caused a disturbing change in the demographics of incoming college students. Today's are about 60 percent richer in household income than the population average, according to a new study. That means the gap between those who can and can't afford college is growing. And it means that income inequality is bound to intensify since college graduates earn on average 60 percent more than those without a degree.

Basu discusses our Debt for Diploma system and the decline in financial aid that hurts middle class families...

At the same time, college aid has fallen. The number of grants as a proportion of student aid has declined each year since 2001, with states also allocating less money to higher education since then.

That leaves students taking on major debt. Grinnell students typically leave with $16,744 in loans to pay back; it's nearly double that much at Iowa State University.

Federal policy changes have also upset the balance, benefiting upper-income families at the expense of lower-income ones; 43 percent of the education tax credits and about 70 percent of the benefits of the federal tuition tax deduction go to taxpayers with incomes of $50,000 or more.

So basically it comes down to...

Rising college tuition + less financial aid = more students that graduate with a ton of student loan debt.

More student loan debt just gives students another reason to leave Iowa after graduating. These students leave Iowa for higher paying jobs elsewhere.

and

Rising college tuition + less financial aid = fewer students being able to afford to attend college.

This is what Tamara Draut, author of Strapped: Why America's 20- and 30- Somethings Can't Get Ahead, calls downsizing your dreams. Students who get decent grades in high school, but aren't good enough for scholarships, are forced to forgoe getting a 4 year degree. These students then might attend a community college for 2 year degrees or not go to college at all because they are priced out of the system.

Basu concludes...

As a nation, we're in grave danger of intensifying the gap between the wealthy and those just making it, when the one reliable means to equality - a higher education - sits so high out of reach.