Accessible college enrollment that meets every student where they are at requires closing the affordability gap. When students are able to attend and successfully graduate from college and apply their degrees, local and national economies benefit long term.
Kim Dancy
Director of Research, Institute for Higher Education Policy
College has long been a pathway to opportunity. Earning a degree can lead to higher wages, greater economic mobility, more stable careers, and better overall well-being. It also fuels our local, state, and national economies; supports a skilled workforce; and contributes to a stronger tax base. But while the benefits of higher education are clear, the cost of getting there remains a challenge for many students.
For too many, affordability is a barrier. There is a persistent gap between what college costs and what students and families can realistically pay. Even with financial aid, many students face “unmet need” — the portion of costs left uncovered by grants, savings, or income.
This gap is greatest for students with the fewest financial resources. Pell Grant recipients, who come from low-income backgrounds, often still face thousands of dollars in remaining costs each year. First-generation college students, who may lack both financial resources and access to guidance about navigating college costs, are also more likely to experience these challenges.
The reality of “affordability”
To make college possible, students often piece together funding from a variety of sources. Many take out loans, work while enrolled, or rely on support from parents and loved ones. For some, this patchwork approach makes college manageable. But for many others, it creates real strain.
Students tell us what this looks like in practice. Some work long hours to cover basic expenses and have less time to study. Others take on significant debt or choose between paying for school and meeting everyday needs like housing and food. These experiences make clear that affordability is not just about tuition. Affordability shapes how students experience college and whether they make it to graduation.
Despite these challenges, college value remains strong. On average, college graduates earn more over their lifetimes and experience better overall economic well-being than those without a degree. Our research also shows that most colleges and universities provide a minimum economic return for students, meaning that, over time, the financial benefits outweigh the costs.
Solutions for the future
These benefits extend beyond individuals. When more people earn college degrees, communities see higher employment rates, stronger local economies, and increased tax revenues. Higher education is not just an individual investment — it’s a public good.
Ensuring that more students can access these benefits requires making college more affordable. Targeted federal investments in need-based aid, such as strengthening Pell Grants, can help reduce the financial burden on students with the greatest need. Expanding targeted free college programs and other state and local supports can also help close the gap between what college costs and what students can afford.
The value of a college degree is clear. Every day, students and families make sacrifices to pursue that opportunity, investing their time, energy, and resources in the hope of a better future. When more students can afford to earn a degree, the benefits extend far beyond campus. Stronger communities, a healthier economy, and a more prosperous American future depend on it.
