Perception versus reality

Most people who go to college finish with a degree

Perception

45 percent of Americans believe most people who go to college finish with a degree.

Reality

Without better data, it is difficult to answer this question definitively. We do know that about 60 percent of full-time, first-time students at four-year institutions completed a bachelor’s or equivalent degree within six years, and that 33 percent of full-time, first-time students at two-year institutions completed a credential within three years.

While some research suggests that just over half of students complete a certificate or college degree within six years, it is difficult to get a true picture of national graduation rate data. Because of a federal ban on collecting comprehensive, student-level data and a decades-old graduation rate definition established by Congress, the Department of Education collects data on graduation rates only for first-time, full-time students. The growing ranks of part-time students and transfer students are, therefore, not included in the graduation rates that colleges and universities report, nor are students who transfer from a two-year institution to a four-year college to complete their degrees. Recent bipartisan legislation in both the House and the Senate, called the College Transparency Act, would establish a secure, privacy-protected data network to answer this college completion question, among many others.

The Department of Education’s graduation rate definition measures the share of those first-time, full-time students who graduate within 150 percent of the expected time to completion. Those data reveal that graduation rates are too low among both two- and four-year institutions, and that they vary significantly across institutions—suggesting academic supports for students and educational quality are not the same at all schools. Accurate measures of graduation are especially critical for students to understand, given how important college completion is to ultimate post-college success. For example, adults with degrees have lower rates of unemployment and higher wages than those with only a high school diploma, and borrowers who drop out before earning a degree are three times more likely to default on their loans. Given how important college completion is to ultimate post-college success—adults with degrees have lower rates of unemployment and higher wages than those with only a high school diploma, and borrowers who drop out before earning a degree are three times more likely to default on their loans—accurate measures of graduation are especially critical for students to understand.

Students pay the majority of the costs (tuition, room & board, etc.) involved in their higher education

Perception

70 percent of Americans believe students pay the majority of costs involved in higher education.

Reality

Dependent students pay 32.8 percent of costs at two-year colleges, 51.1 percent at public four-year colleges, and 74.5 percent at private four-year colleges.

Source: Jason Delisle, Shifting Burdens: How Changes in Financial Aid Affected What Students and Families Paid for College from 1996 to 2012 (Washington, DC: New America, April 2016).

Whatever the reason, rising costs across the board have not necessarily translated to students paying for a greater share of their education. For students attending public institutions, most pay about half of the total costs of their education, while those at community colleges pay less than one-third. In percentage terms, the share of education costs paid by students, regardless of institution type, has either declined or stayed relatively constant between 1996 and 2012.

While many sources of aid flow directly to students, others are distributed to the schools they attend or through tax deductions and credits, making these financial supports less visible to students and the general public. At the same time, tuition costs have continued to increase, making it tempting to attribute this to declining government support. In some cases, this may be true. However, it is also the case that the costs of providing higher education are increasing across the board—meaning that even if total government resources expand, students and families may still have to contribute more.

A 2016 study by New America evaluated the share of funding from all potential sources with respect to the total costs of providing education, including institutional expenditures and student living costs. Our analysis found that while per-student funding has dropped at the state level, federal aid has more than offset this decline, particularly for low- and middle-income students. Yet in inflation-adjusted dollar terms, students and their parents are still paying more than they were 20 years ago.

The reasons for this increase are hotly debated. Many have argued that one reason is the increased availability of federal financial aid. Somewhat paradoxically, this reasoning contends that additional federal resources—such as Pell Grants and student loans—coupled with the well-publicized economic returns of a college degree, have enabled institutions to raise their prices in response. Others have suggested that costs have increased for less pernicious reasons: because the cost of hiring and retaining faculty and administrative staff has grown, with no comparable savings from the use of online and other innovative delivery models. In such a scenario, even as federal grants and tax credits increase, it may not be enough to keep pace with the higher costs of providing education. Still others say the rise of luxury amenities increases living costs at many of the most expensive private schools.

Government currently pays less than half the costs associated with higher education

Perception

59 percent of Americans believe government pays less than half of costs involved in higher education.

Reality

Government sources make up about 65.2 percent of costs at two-year colleges, 41.8 percent of costs at public four-year colleges, and 13.6 percent at private four-year colleges.

Source: Jason Delisle, Shifting Burdens: How Changes in Financial Aid Affected What Students and Families Paid for College from 1996 to 2012 (Washington, DC: New America, April 2016).

Last year, 59 percent of Americans believed that government pays less than half the costs associated with higher education. This year, the number of respondents who believe government pays less than half the costs increased to 64 percent, a significant difference.

The reality is that government sources make up about 65.2 percent of costs at two-year colleges, 41.8 percent of costs at public four-year colleges, and 13.6 percent at private four-year colleges.

There are more students in two-year associate degree and technical programs than there are in four-year bachelor's degree programs

Perception

50 percent of Americans believe there are more students in two-year and technical programs than there are in four-year bachelor degree programs.

Reality

Half of Americans think that there are more students in two-year and technical programs than there are in four-year, bachelor’s programs. In fact, approximately 40 percent of undergraduates in America enroll in either a public or private four-year institution, around 38 percent in a public two-year, and 13 percent in a for-profit. (Source: NPSAS:12)

Table 1:

The average college student is 20 years old

Perception

64 percent of Americans believe the average college student is 20 years old.

Reality

The average college student is 26.4 years old. Even though the majority of undergraduates in the U.S. are less than 24, one in five college students today are 30 years old or more.

People who complete an apprenticeship earn an average starting wage of $50,000 year

Perception

46 percent of Americans believe that those who complete an apprenticeship program earn an average starting wage of $50,000.

Reality

According to the Department of Labor, the average apprenticeship graduate earns $50,000 a year. While a little less than half of Americans got this right, when asked whether apprenticeships and skills-training programs prepare students for a good standard of living, a large majority (90 percent) believe they do. This should not be a surprise: Apprentices are more likely to be employed than traditional graduates of higher education, they make higher starting salaries, and they have little to no education debt. But currently there is only a tiny number of apprentices compared with the total number of students enrolled in higher education. Connecting apprenticeships more tightly to our education system can help scale these programs.

New America’s previous survey work also found that the American public widely supports investment in apprenticeships. Eighty-three percent of respondents believe government funding for apprenticeships should be increased. And that support crosses party lines. Ninety-three percent of Democrats and 73 percent of Republicans favor additional spending on these programs. A majority of respondents also believe that an apprenticeship is the best way to prepare for a career.