State Lawmakers Say Drastic Change Needed to Make College Affordable,

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Colleges need to focus more on career preparation and be transparent about charges, operating costs, and the marketability of programs, said the task force.

For millions of American college students, things can go from bad to worse in a hurry, as they take on long-term debt to finance higher education and earn a degree that, based on labor market demands, isn’t worth the paper it’s printed on.

Data analyzed by a group of state lawmakers across the country indicates that significant changes are needed to the U.S. higher education system—still viewed as the envy of the world—if a college degree is going to remain the best path for long-term financial stability.

“The public discourse on higher education … is filled with anxiety over a host of issues,” stated a recent report from the National Conference of State Legislatures (NCSL) Task Force on Higher Education. “The affordability of higher education tops the list.”

The report was written by 29 legislators and four legislative aids across 32 states. The two-year project, completed in October, provides suggestions to college and university leaders and state and federal lawmakers for making college affordable and worthwhile.

Task force chairs state Sens. Michael Dembrow from Oregon and Ann Millner from Utah discussed the report during a Dec. 20 virtual town hall event and pledged to lobby the federal government and universities to consider its recommendations in the years ahead.

“It also cuts through some of the myths of higher education,” said Dembrow, a Democrat, while applauding the bipartisan effort. “It’s focused on what we can agree on first. I was surprised at how much we agreed.”

Collective student debt in the United States is nearly $1.8 trillion, three times that in 2006, according to the report. The Consumer Financial Protection Bureau found that student debt is also the second-largest form of debt in the nation behind mortgages. One-third of borrowers have debt but no degree, reported the U.S. Department of Education.

The population of undergraduate students declined by 2.4 million students between 2012 and 2022, and the vast majority of students attend public four-year institutions as many community colleges and private schools struggle to stay afloat, according to the report.

Even though tuition and college costs have increased faster than the rate of inflation, the maximum federal Pell Grant award for eligible students has only increased by 10 percent since 2003, to $7,395 this year. And yet, the federal government spends more than $37,000 per student, or 2.5 percent of the U.S. Gross Domestic Product, compared to about $15,500 per K-12 student, the report says.

The report found state education departments can expand dual-enrollment programs so students can earn more college credits while in high school and lessen the amount of time and money needed to complete a degree program after they earn their diploma. Higher education institutions, public and private, can help out with this initiative by being more transparent about what credits earned in high school will be counted toward program completion.

The federal government, meanwhile, should require students to attend annual loan counseling sessions “and know their uptake on aid limits,” the report said.

The report said colleges and universities could be more transparent by sharing their entire operating budgets to note how much employees are paid and why, and to spell out for students the total costs to attend their institutions full-time, not just the “net” total or average price students pay. The total for housing, meal plans, student services, and other items collectively totals far more than tuition.

“Clearly communicate the real price students pay,” it said. “Assess program costs and prices against enrolled students’ income and career earning potential.”

The report also suggests that federal block grants are available for states that are in a better position to invest in college and university programs that are more closely aligned with local and state workforce needs. Employers should be involved in writing courses of study and federally funded work-study programs that make students career-ready.

The report said tuition costs should be reasonable and relative to the college or university’s program cost as well as the students’ incomes, career pathways, and earning potential.

“The federal government, too, has a strong responsibility to enhance the value of degrees,” it said.

Millner, a Republican, encouraged lawmakers in all states to read the report and meet with higher education leaders to discuss changes.

“It builds a foundation to make a plan for higher education to thrive in states,” she said.