Importance of Higher Education
A college degree is the key to opportunity and economic success in America today. People with more education tend to have higher salaries, higher savings, more leisure time, and better health/life expectancy. According to the College Board, workers with a bachelor's degree earn 73 percent more than those with only a high school diploma. Over a lifetime, the gap in earnings between those with only a high school diploma and those with a bachelor's degree or higher exceeds $1 million.
The economic returns of higher education are positive not only for the individual, but for the nation and our region as well. College graduates are the primary source of highly skilled professionals for the New England region's workforce. Given our region's increasing reliance on highly skilled professionals, the alignment of education and regional economic growth will continue to be of critical importance. Furthermore, by significantly narrowing the gap between college-going rates of the highest and lowest income students, we could add approximately $250 billion to the United States' Gross Domestic Product.
Opportunity Gap
Today more than six out of ten Americans believe that many qualified and motivated students do not have an opportunity to receive a higher education. Nationwide there is a tremendous opportunity gap between high-income and low-income students. The best-prepared students from the lowest socio-economic quartile have the same chance of attending college as the least-prepared students from the highest quartile. In addition, nearly one-half of all college-qualified low and moderate-income high school graduates do not enroll in a four-year college program. Most Boston Public Schools students and families are in the low-income category. According to BPS, 71% of students qualify for the free or reduced lunch program, which is designed for families at or below the poverty level.
The nation's most selective schools tend to draw their student pool from upper-income students. A 2004 study found that 74% of students at the 146 most selective institutions came from the top income quartile, while only 3% were from the lowest income quartile, and only 10% were from the lower half of the income spectrum. Several of the most selective institutions nationwide have recently announced changes to their financial aid policies that will remove some financial hurdles for low-income students. Harvard, the University of Pennsylvania, Tufts, Swarthmore, and Princeton, among others, have announced they would eliminate loans in their financial aid packages. Harvard has eliminated parent contributions to the cost of education for those with incomes of less than $40,000.
Click on any of the links below to learn more about trends in higher education affordability and efforts to increase access. Looking for details on how ACCESS closes the opportunity gap for Boston’s young people? Visit our Impact page.
