In August 2022, Morning Consult surveyed 4,420 adults regarding college affordability and value. One question asks, “In your opinion, how easy or difficult do you think it is for someone like you to afford paying for a college education currently in the US?” The results are telling
Overall, 49% of respondents said it would be very difficult for someone like them to pay for a college education. The survey included adults of all ages. A higher proportion of women (55%) said it would be difficult for them to pay for college, while 42% of men agreed with that sentiment.
Generationally, fewer Gen Z respondents identified college affordability as problematic than respondents of any other generation. Gen X respondents (probably many of whom are paying for a Gen Z household member to attend college) registered the highest agreement with the difficulty of affording a college education.
Respondents who reported income that exceeded $100,000 were least likely to view paying for college as very difficult. That suggests that college attendance is paid for using disposable income. According to the Bureau of Economic Analysis (BEA), the average annual disposable income (as of Q3 2022) was $55,912. Disposable income is defined as after-tax (or net) income. With an average monthly net income of $4,659 per month, it is easy to see why most respondents thought that college affordability would be challenging.
Even considering highly affordable community college tuition, the lower the adult learner’s household income is, the harder it is to justify college attendance financially. Women, whose incomes are typically lower than those of men, were most likely to say that paying for college would be difficult.
College affordability looks different based on income
Looking at another interesting BEA data point – the personal savings rate – it is easy to see why saving for college can be difficult. The average personal savings dropped nearly 70% between Q3 2021 and Q3 2022. Currently, the average personal savings is less than $510. The significant drop in personal savings suggests that people are using previously saved cash to counter the effects of higher inflation. It also suggests that their savings is not nearly enough to pay for community college attendance.
It would be nice if the WCC Trustees considered the financial circumstances of the average adult learner when they raise tuition and/or fees. Most adults, regardless of gender, age, religious persuasion, political beliefs, or income level, think college is unaffordable. In this case, perception goes a long way toward making decisions. When adult learners perceive college as being difficult to afford, they don’t attend.
Instead of just passing the cost of a tuition and/or fee increase to students, Trustees should fully consider the impact of tuition increases on enrollment. Especially since the people recommending the tuition increases are those making more than $100,000 per year. (You know, the same ones who are least likely to find paying for college to be difficult.)
Photo Credit: Damian Gadal , via Flickr
