When It Comes to College Costs, Middle-Class Kids Are not making it

[texaspg]

https://www.yahoo.com/news/comes-college-costs-middle-class-kids-still-screwed-232900216.html

http://www2.gse.upenn.edu/irhe/sites/gse.upenn.edu.irhe/files/Natl_Affordability2016.pdf

The study by researchers at Vanderbilt University, the University of Pennsylvania, and the Institute for Research in Higher Education found that since 2008, overall college affordability has fallen 45 states, owing in part to slashed state spending on higher education in the years during and since the Great Recession.

As a result, low- and middle-income earners in certain states now must spend as much as 76 percent of their annual income to pay a student’s tuition and expenses at a four-year public school, according to the study, The 2016 College Affordability Diagnosis. Things aren’t any better at the community college level, where some households with income of $30,000 or less are likely to pay as much as 61 percent of their earnings for costs at a two-year public school.

[garland]

^Not negating this overall–at all, but wouldn’t a low income qualify for Pell, which should cover community college tuition?

[TomSrOfBoston]

A few posters here on CC claim that they are low income, their parents only earn $100,000/year.

[garland]

I’m talking about the quote, which referred to under 30,000–actual low income.

[texaspg]

From the published report:

For states with a high percentage of students enrolled in public two-year colleges, families in
the bottom income quintile would be required to pay, on average, from 26 percent of their income
(in Hawaii) to 62 percent of family income (in Minnesota) in order to enroll in this sector. For
those families earning between $30,001 and $48,000 per year, between 13 percent (Hawaii)
and 29 percent (Minnesota) of family income would be required to enroll in public two-year
institutions. Families earning from $48,001 to $75,000 a year would be required to pay from
11 percent (in Mississippi) to 22 percent (in Minnesota) of income in order to enroll in this
sector in 2013.

They are defining tuition, room board and books as the costs.

Educational Expenses = tuition + room/board +
books – all financial aid as a percent of family
income

[ucbalumnus]

@garland

Not negating this overall–at all, but wouldn’t a low income qualify for Pell, which should cover community college tuition?

Depends on the state. For example, community colleges in New Hampshire cost $200 per credit for New Hampshire residents. For a typical 30 credit academic year, the $6,000 tuition exceeds the maximum Pell grant.

[mackinaw]

I’m not questioning the figures concerning costs of higher education.

But many people do not pay those costs out of current income. They save money in the years leading up to college enrollment. It’s those who do not or cannot save who are especially impacted by the rising costs.

[mathyone]

We don’t expect people to pay for large purchases–houses, cars–out of pocket, and no one seems to find that surprising, so I don’t understand why people expect to pay college costs without saving up for it or taking out loans like they did for other major expenses.

[garland]

@ucbalumnus --okay, that would leave, I think, a 300 dollar gap. I’m not saying that’s good. At all. But it’s probably not 61% of their income.

And counting room and board for CC seems odd. Very few people “board” at community colleges.

[ucbalumnus]

True, most community college students commute from home. But living at home and commuting is not zero cost, although some parents treat it as such because the costs are spread around other household budget items and therefore hidden and anchored in existing budget. There are also books and supplies costs.

[Marian]

But living at home and commuting is not zero cost, although some parents treat it as such

A colleague of mine has a child who will be starting community college in the fall. The costs are far from zero because his attendance at community college means that the family has to acquire one more car. Mass transit won’t get him where he needs to go.

[Overtheedge]

The figures in the study for SC are misleading because they fail to take into account several widely utilized scholarship programs for in-state students.

Scholarships for 4 yr institutions include:
Palmetto Fellows ($6700 -$7500 annually for 4 years), LIFE ($5000 annually/4 yrs), and Hope ($2800/1st year only).

in state students at 2 year institutions typically receive Lottery Tuition Assistance ($1200 per semester for full time or $100 per crest hour for part-time).

The SC Need Based Grant provides additional aid to the poorest students.

Total tuition and fees at our local CC for 15 credit hours after Lottery Tuition Assistance is $1340 (tri-county residents) and $1616 (in state, but out of district). 95% of students received grant aid, with average grant aid @$5230. 64% received a Pell grant with an average award of $4711.