A Lose-Lose Situation: Federal Under-Funding of Higher Education

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"What purpose does student aid serve when there is no college to attend?"

While I have shared many articles in the past few weeks about the financial burdens of students and the harm of the student-debt crisis, this article from the Chronicle of Higher Education expresses a different side to the story: the importance of financing the institutions themselves.

This is an idea that I've looked at before with articles about under-financed HBCUs in America. The same could be said about many community colleges; about many small, rural colleges.

The story starts in the 1960s with the passing of the 1965 Higher Education Act, which prioritized "government-backed student loans over direct support to colleges." It was immediately apparent that there was a huge gap in the funding needs of smaller, private colleges and larger, state schools or elite private institutions.

Student enrollment and tuition inflation have both ballooned since the 1960s. But as the article says, "State and federal support for higher education has declined sharply since the 1970s, when tuition rates at public and private institutions began the steady climb that really only made headlines in the Great Recession."

We find ourselves in a tragic feedback loop. Because state and federal support for higher education has declined drastically, these institutions were forced to raise their tuition on students drastically. This, in turn, makes it harder for families to afford higher education, which makes it harder for colleges and universities to keep their doors open. It's a lose-lose situation for everyone.

Unless the government acts now to ease the burden on both students and schools, higher education as we know it is unsustainable. This means investing in community colleges, HBCUs, and minority-serving institutions. This means guaranteeing that tuition is affordable for all students. Lastly, this means recognizing that creating more equitable higher education will create more equity in all aspects of life with the COVID-19 pandemic.

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