Running head: AFFORDABILITY OF HIGHER EDUCATION

Affordability of Higher Education

Cheryl DePaolo
Georgia Southern University

AFFORDABILITY OF HIGHER EDUCATION

Abstract
Affordable education has been a challenge in higher education since the Colonial Era. Federal
financial aid, scholarships, and grants do not alleviate the pressure that students face when trying
to pay for a college education. The challenge to make college more affordable is paramount.
Affordability is extremely significant to higher education today, as it has been since the Colonial
Era, and the United States, as a country, needs to offer a resolution to our students in order to
remain globally competitive.

Tuition increases, decreased financial aid, and a sluggish economy are factors that are
fueling a decrease in student enrollment. According to College Board and Census data, the
average tuition at a public four-year college has increased by more than 250 percent over the past
three decades, while incomes for typical families grew by only 16 percent. (The White House,
2013)

One of the challenges facing higher education is affordability.

This challenge is

paramount. Affordability is extremely significant to higher education today, as it has been since
the Colonial Era. This paper will discuss President Obamas higher education reform plan, along

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with scholarship programs, and financial aid programs. It will also discuss the implications of
decreased affordability of higher education on students.
Dependence on government subsidies and funding can be traced back to the Colonial Era.
Bridge tolls, surcharges on licenses, tobacco poundage, lottery proceeds, and gifts of land were
among the varied and sundry subsidies colonial governments relied upon for collegiate funding
(Thelin, 2004, 2011, p. 13). Funding a college education is not an easy feat. Students and
universities rely on multiple resources in order to accomplish their goal. Federal aid is still one
of the means that is sought after in todays higher education environment.

For example,

President Obama has made historic investments in college affordability, increasing the
maximum Pell Grant award for working and middle class families by more than $900, creating
the American Opportunity Tax Credit, and enacting effective student loan reforms eliminating
bank subsidies and making college more affordable (The White House, 2013). These steps are
just some of the ways that federal funding can make college financially possible.
According to President Obamas new plan, financial aid will be tied to college
performance. He will propose legislation to give colleges a bonus based on the number of Pell
students they graduate, as well as requiring students to complete a certain percentage of their
classes before receiving continued funding. (The White House, 2013) The purpose of this plan is
to help students have an affordable education and to obtain their degree. This plan will promote
degree completion in a reasonable time frame, thereby reducing overall student debt.
The President will measure college performance through a new ratings system so
students and families have the information to select schools that provide the best value. And
after his ratings system is well established, Congress can tie federal student aid to college
performance so that students maximize their federal aid at institutions providing the best value
(The White House, 2013). This measurement, although positive in theory, could potentially have
an adverse effect on the students aid. For example, if a student chooses to attend college close

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to home to avoid housing costs, and that college does not score particularly high on the ratings
scale, the student could potentially lose aid dollars. One would hope that every college and
university would want to score high in the ratings so as to maximize their funding, so perhaps it
will not be an issue.
Another bill that was approved in March 2010 was the Student Aid and Fiscal
Responsibility Act (SAFRA) which included $2 billion over four years for the Community
College and Career Training Program. (Boggs, 2011) This program will provide funds to
community colleges and other higher education institutions to create and expand programs that
serve dislocated workers. (Boggs, 2011) As companies downsize and layoff their employees,
there is increased need for training programs for dislocated workers. These programs will help
to fuel the economy with newly trained professionals. Programs like this promote education, as
well as increase productivity by re-training workers for new careers. These programs are a winwin for all involved.
Financial aid is more than Pell Grants. For example, the Benefits Access for College
Completion program assists students at community colleges with basic needs such as assistance
with child care, groceries, and rent. According to Ingeno (2013), More than 70 percent of
students who drop out of community colleges cite financial burdens and work obligations as their
main reasons. The participating community colleges are linking students with groceries, rent
assistance, and childcare assistance, as well as making them aware of benefits they may not have
known they were eligible for, such as Medicaid and food stamps Programs such as this one
allow the student to focus on their studies, as well as take care of their basic needs, and if
applicable, their family. This program is primarily funded by corporate donations and is just one
way that corporations can be helpful in collaborating with colleges to assist with college funding.
College affordability has been an issue for much of time. For example, colleges in the
South during the post-Civil War period saw economic devastation. The College of William and

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Mary in Virginia came up with a solution to the students lack of money. They relied on an
annual state subsidy that provided funding for undergraduates who pledged to teach someday in
the states public schools (Thelin, 2004, 2011, p. 172). This subsidy could be compared to the
TEACH grant of today. The Teacher Education Assistance for College and Higher Education
(TEACH) grant provides up to $4000 per year to students who are planning on a career in
teaching. As a condition of receiving this stipend, the student agrees to teach in a high-need
field, or at a school that serves students from low-income families for a period of at least four
years. (Federal Student Aid)
Scholarship programs have also existed since the Colonial Period. For example, churches
played a big part in philanthropy during this period. The American Education Society distributed
scholarship awards to needy young men enrolling in small colleges in New England and the
Middle Atlantic area. (Thelin, 2004, 2011) One estimate is that at the hilltop colleges of
Amherst or Williams College, as many as 25-40 percent of students were receiving some form of
missionary fund scholarship (Thelin, 2004, 2011, p. 63). There are numerous scholarship
programs available to students today. Students that qualify for scholarships are not required to
pay them back. Typically, as long as the student fulfills the requirements of the scholarship,
there is no repayment necessary. These programs are a fabulous way to offset tuition, and there
is a multitude to choose from.
One scholarship program available in Pennsylvania is a grant-matching fundraising
program. Muhlenberg College in Allentown, PA is matching gifts of at least $25,000 to establish
endowed scholarships. The college has set aside $10 million in matching funds for this program.
(Kennedy, 2013)

According to Muhlenberg College President Randy Helm, Endowed

scholarships ensure that the college will be able to provide to those who need aid for generations
to come (Kennedy, 2013).

AFFORDABILITY OF HIGHER EDUCATION

Another scholarship program in Michigan, called The Kalamazoo Promise, guarantees

full college scholarships to potentially every graduate of the Kalamazoo Public Schools. (MillerAdams, 2011) This scholarship program is funded by a group of anonymous donors and has
already increased enrollment in Kalamazoo Public Schools, as well as intensified efforts to create
a strong college-going culture within the schools. These anonymous donors have spent $25
million on scholarships for more than 2,000 graduates in the first five years of the program.
(Miller-Adams, 2011)
In Buffalo, New York, there is a Say Yes to Education scholarship. The 74 colleges and
universities in the SUNY and CUNY system, along with 40 private schools have signed on to
provide free tuition to Buffalo public school students who qualify. (Tan, 2013)

These

scholarships provide gap funding that covers the difference between a colleges tuition and
whatever other financial aid grants or scholarships a student receives (Tan, 2013).
Another important historical aspect of college funding was The Morrill Land Grant Act
of 1862. The Morrill Land Grant Act of 1862 was pivotal in helping colleges fund advanced
instructional programs. The federal government provided each state with a portion of federal
lands that was proportionate to the number of congressional representatives. The idea was that
the state government was then required to dedicate land sale proceeds to establishing collegiate
programs in such useful arts as agriculture, mechanics, mining, and military instruction
(Thelin, 2004, 2011, p. 76). Many of these programs and colleges are still in existence today.
One of the most successful provisions of the Morrill Act was required military training for male
undergraduates, and connections with programs such as the Reserve Officer Training Corps
(ROTC). (Thelin, 2004, 2011, p. 78) Thanks to the Morrill Act, and the military training
program, there are scholarships available to students who are interested in joining ROTC in
college. The scholarships are available to those who qualify and commit to serving eight years in

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the Army, or four years in the Army and four years with the Individual Ready Reserve (IRR).
(ARMY ROTC)
Other programs that can assist students with higher education opportunities are dual
enrollment options that are offered at the high school level. Junior and senior high school
students can attend approved college courses and obtain college credits while also satisfying high
school requirements. This program is available at little to no cost to the student. This allows the
student to be college and career ready. (Dual Enrollment/Dual Credit Programs for High
School Students)
The increases in tuition prices have made access to higher education impossible for most
students today.

Even with scholarship assistance, grants, and financial aid, many students still

struggle to attend college. The president made the point that in an increasingly competitive
world economy, the economic strength of the United States depends on the education and skills
of its workers, and that, in the coming years, jobs requiring at least an associate degree are
projected to grow twice as fast as those requiring no college experience (Boggs, 2011, p. 8). It
is imperative that higher education become more affordable so that the United States can
compete in the world economy. In order to facilitate higher education affordability, President
Obama will challenge leaders in states, philanthropy, and the private sector to make their own
commitments to improve college value while reducing costs (The White House, 2013).
State funding plays a large part in student tuition and fees. According to Alexander
(2011), an NCES study on college costs and prices showed that state general fund
appropriations was by far the most significant factor in determining public college and university
resident tuition rates. Lower cost/high tax effort states like California, North Carolina, West
Virginia, and Kentucky have sought to keep student tuition and fees at a reasonable level in
exchange for maintaining above-average state tax support. Historically, with lack of regular
support, American colleges perpetually depended on tuition payments and donations as well as

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subsidies to operate (Thelin, 2004, 2011, p. 13). By increasing state support, tuition payments
can potentially be decreased.
Philanthropy has played a part in higher education for centuries. During the Colonial
Era, many devout Christians made generous donations to support educating the savage American
Indians. (Thelin, 2004, 2011) In todays economy, philanthropy still plays a major part in higher
education. In fact, those universities that raise more funds have the ability to achieve more and
surpass their competitors on many fronts, including rankings, student enrollment and retention,
grants, and faculty recruitment (The Influence of Philanthropy on American Higher Education,
2011). Perhaps, with increased donor funds, universities can offer additional grants, or decreased
student fees in order to make college more affordable. There are some universities that have
very wealthy athletic clubs. Arguments have been made that perhaps the athletic clubs can pay a
fee to the university for use of the school logo, name, and affiliation to help with educational
programs. (Thelin, 2004, 2011)
According to Thelin (2004, 2011), colonial colleges managed to survive despite their lean
budgets. They were fiscally conservative, and owed their survival to their tireless fund-raising
efforts. Perhaps, colleges today can learn from their historical ancestors and by working
together with corporations, private donors, and state and federal agencies formulate a plan to
make college more affordable. Guidance counselors and financial aid officers can also play a
part by assisting the student in finding scholarships and grants that can offset tuition cost.
Students can work hard at getting good grades, so that they can qualify for these scholarships.
Making college affordable is a team effort.
participation.

Its success is contingent on every members

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References
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to Equal Educational Opportunity in Addressing the Rising Costs of a College
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ARMY ROTC. (n.d.). Retrieved November 22, 2013, from www.goarmy.com:
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Boggs, G. R. (2011, June 6). The American Community College: From Access to
Success. About Campus , pp. 2-10.
Dual Enrollment/Dual Credit Programs for High School Students. (n.d.). Retrieved
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Ingeno, L. (2013, July 10). Short Term Help, Lasting Payoff. Retrieved November 21,
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10

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