The American educational reformer Horace Mann famously referred to education as the “great equalizer” of all our conditions. But for many Americans, the equalizing power of higher education remains largely accessible only to those who can afford it. Educational disparities between low- and high-income college students—sometimes referred to as the income achievement gap—have been evident for decades and continue to grow. In short, access, opportunity, and success in higher education are all strongly associated with a student’s level of income.
A 2015 study by the Pell Institute reported that in 2012, 81% of 18 to 24 year olds from the highest income quartile were enrolled in postsecondary schools, whereas only 45% were from the lowest. These disparities are also seen in graduation rates. The same research found that in 2013, 77% of people between the ages of 18 and 24 in the highest income quartile had obtained a bachelor’s degree, compared to only 9% in the lowest.
Can these inequalities be explained by individual student deficiencies, such as lack of persistence, determination, merit, or ability? Or is it more likely that there are other structural factors, such as financial constraints, that prohibit low-income students from higher educational engagement and achievement?
A wealth of research seems to suggest the latter. According to students, economic factors are much more important in influencing educational participation and outcomes. For instance, a survey conducted by Public Agenda indicates that the primary reason students drop out of college is because of financial reasons. The study found that 54% of former college students identified the need to go to work and make money as a major reason for not completing their program. Additionally, 31% of respondents also cited not being able to afford tuition and fees as a major reason for dropping out. Similarly, a Pew Research Center study found that 67% of 18-34 years olds said the need to support family was their reason for not going to college, and 48% indicated not being able to afford school as a reason for dropping out.
Indeed, there is abundant evidence to support college students’ struggles against financial burdens. First of all, the cost of tuition and fees has shot up almost 1,200% since the late 1970s, increasing at more than five times the rate of inflation. Secondly, despite these skyrocketing costs, the value of the Pell grant, which most low-income students greatly depend on, has decreased significantly. In fact, the maximum Pell award amount for 2014-15 ($5,730) is actually slightly less than it was in 1976-77 ($5,842) when adjusted for inflation. Not only has it not kept pace with inflation, but, because of soaring tuition and fees, the Pell grant only covers 27% of the average total cost of college for a student, whereas in 1975 it covered 67%.
The impact of the rising cost of college, coupled with the declining value of the Pell grant, are harmful enough on their own. But the damages are further exacerbated when taken in light of increases in income inequality driven by a declining minimum wage. Consequently, low-income students are working more hours for less pay not only to stay in school, but just to make ends meet. To put it another way, study time is often sacrificed for work time—due to necessity, not choice.
Ultimately, excessive financial pressure reduces the probability of accessing and succeeding in college and beyond. Research has shown that low graduation rates and high dropout rates contribute to maintaining cycles of unskilled workers, unemployment, and poverty. Without equal opportunities to attaining higher education, not only are students’ chances for social mobility hindered and pathways out of poverty barred, but society as a whole suffers decreases in productivity, development, and innovation. Only by removing financial obstacles impeding access and success to college can we hope to realize education as the great equalizer it should be.
