What if I told you that the federal government spends billions of tax dollars every year on higher education institutions that leave most of their students earning below the average high school graduate? Would you believe it?
Well, it’s true. Last year, the government disbursed $22.6 billion to 2,076 institutions that left more than half their students earning less than their high school graduate peers. And, unfortunately, that’s just the tip of the iceberg. Some institutions showed nine out of 10 students earning below this amount.
Even with $120 billion flowing to institutions every year, the federal government has limited safeguards in place to ensure that most federally funded institutions help students graduate, earn a decent living, and pay down their loans over time. Yet, these institutions remain eligible to receive federal funds, with little regard as to whether they are actually leaving students better off after they attend.1
Completion Outcomes
One of the most important outcomes in higher education is whether students who enter an institution ultimately leave with an award or degree in hand. Not only are those who complete likely to earn substantially more during their lifetime (84% more for a bachelor’s degree holder), they are also three times less likely to default on their student loans after they attend.2 Earning a college credential is still a critical steppingstone for most to enter today’s middle-class.