Getting more for our financial aid bucks: New blog series on college savings

Two weeks ago, the College Board issued new reports on student aid and college pricing. The findings? Tuition is rising, and financial aid isn’t keeping up. According to their numbers, 60 percent of college students will graduate with debt, with the average graduate carrying over $26,000 worth.

Importantly, loans aren’t just a costly prospect for students, they’re a significant obligation of tax dollars. In 2012, the federal government spent almost $175 billion on all financial aid programs, the bulk of which went toward supporting student loans.

There’s little doubt that a college degree remains one of the strongest determinants of economic mobility and success in an uncertain labor market, so when it comes to student loans, we often think that the ends justify the means. But as low-and moderate- income students continue to be priced out of a postsecondary education, and those that do earn their degree are saddled with thousands of dollars in debt before they even earn their first paycheck, it’s important to ask whether or not we’re getting our money’s worth from the existing financial aid system. 

In an event on Thursday, Asset Building Program Senior Fellow Willie Elliott will explore the nexus of education, student debt, and asset building to probe this question and propose an alternate vision that could extend a more inclusive, equitable, and sustainable path to college to more students by promoting savings. We encourage folks to participate by viewing online from 1-3 pm EST.

Beginning tomorrow, we are pleased to feature a series of blog posts from Melinda Lewis, Policy Director of the Assets and Education Initiative at the University of Kansas, that will preview some of the themes from the event, including how student loans undermine educational attainment and post-graduation financial wellbeing, displace the ability to develop other financial assets, and present a framework for transitioning away from a debt-dependent from of college financing. Please come back tomorrow for our first installment.