According to a recent series of joint studies released by the National Center for Higher Education Management Systems and Jobs for the Future, the United States continues to fall behind other major industrialized nations in the percentage of its population that holds a college degree.
And as college costs continue to outpace inflation, college affordability is progressively becoming an issue of accessibility, with lower- and middle-class families struggling to handle the rising cost of college and increasingly having to rely on student loans.
What Lies Ahead for the U.S.
For years, the U.S. was leading the rest of the world in the percentage of adults holding a college degree, but the U.S. now only ranks 10th among industrialized nations in the percentage of 25–34-year-olds with an associate’s degree or higher, according to the Organisation for Economic Cooperation and Development.
And the U.S. stands to lose even more ground against competing nations, ranking near the bottom in the percentage of new college students that complete their degree program. Notably, the U.S. is now one of the only countries in the world where older adults are more educated than younger adults.
The College Degree Gap
By 2025, if current college graduation trends hold steady, the U.S. will be 16 million college degrees short of the 64 million it would need to match leading countries Canada, Japan, and South Korea, where an estimated 55 percent of adults will hold a college degree. To make up that 16-million degree gap by 2025, the U.S. would need to produce an additional 781,000 college graduates a year — a 37-percent increase over current levels.
An Evolving Job Market
The reports draw attention to the fact that, as the U.S. continues to shift from manufacturing and farming to a more service- and information-based economy, the number of jobs requiring a bachelor’s degree or higher will outpace jobs requiring less than a bachelor’s degree, with high-skill jobs that require advanced learning already making up almost half of all domestic job growth.
The “degree gap” not only puts the U.S. at a disadvantage against other industrialized countries, but it leaves this country with a workforce that may not be able to meet the emerging demands of the changing job market.
Rising College Costs Affecting Accessibility
In order to expand the percentage of its adult population with college degrees and keep pace with other industrialized nations and the needs of its own job market, say the reports’ authors, the U.S. will need to increase college affordability and accessibility for low-income students, as well as for other groups that have been historically underserved in higher education.
Tuition and fees at four-year public universities have risen 24 percent over the past five years, and 32 percent over the last 10, even when adjusted for inflation, according to the 2006 Trends in College Pricing report by the College Board,
The joint studies, conducted as part of the MakingOpportunityAffordable.org project, contend that rising tuition and college costs have had a measurable effect on lower- and middle-class families, with fewer low-income students enrolling in college and a larger percentage of students graduating in debt.
Two-thirds of college students are now graduating with debt, with the average student borrower at a public college or university owing $17,250 in student loans. Ten years ago, the average borrower attending a public institution graduated owing only $8,000 in student loans, after adjusting for inflation.
Know ALL Your College Financing Options
Even with college costs on the rise, there are financing options, in addition to college loans, that can still help make a college education affordable for you and your family. Some college loans and almost all scholarships are deadline-sensitive, so start planning early to secure the most funding possible.
1. Submit your Free Application for Federal Student Aid (FAFSA.ed.gov).
You’ll need to submit your FAFSA each year in order to qualify for need-based federal financial aid such as Pell Grants, Perkins student loans, and subsidized Stafford student loans.
The U.S. Department of Education will accept your FAFSA until June 30, but some schools and states have earlier deadlines, so make sure you check with your financial aid office. Some schools, particularly those with rolling admissions programs, award their limited need-based federal grants and student loans on a first-come, first-served basis, so the earlier you get your FAFSA in, the better.
1. Search for FREE money in scholarships and grants.
Educational institutions, government groups, for-profit and non-profit organizations offer millions of dollars in scholarships every year, both with and without regard to financial need, and there’s bound to be one that’s right for you.
The more scholarship and grant money you get, the more you may be able to reduce your need for student loans. Start searching early, so you can meet as many scholarship application deadlines as possible.
If you’re not sure where to start looking for scholarships, try NextStudent’s award-winning Scholarship Search Engine. This online database lists more than 5.9 million individually awarded scholarships valued at over $16 billion — and is completely FREE to use.
1. Take advantage of federal financial aid.
Even if you don’t demonstrate enough financial need on your FAFSA to qualify for a Pell grant, work-study, or need-based subsidized student loans, you could still get federal financing with non–need-based federal student loans.
Low-cost unsubsidized Stafford student loans are available to both undergraduate and graduate students without a credit check or demonstration of financial need.
Low-interest, credit-based federal student loans are also available to qualifying parents of undergraduates to help them cover up to 100% of their child’s cost of attendance.
1. Get any additional financial assistance you need with private student loans.
Even after grants, scholarships, and college loans, you may still have education-related costs that exceed your available federal financial aid. If you need additional financial aid, private student loans may be able to give you the financial assistance you’re looking for.
NextStudent Private Student Loans have no application fees or deadlines, so you can apply free, all year-round. Applying online or over the phone is fast and easy, and once you’ve completed your application, you could receive your money in as little as five business days.
Remember, though, that federal student loans generally offer more attractive terms than private student loans, so always look into your federal financing options first.
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