Help from parents and guardians is central to financing a college education for most students. That help can take many forms, everything from free or cheap room and board to tuition contributions.
A new study from Sallie Mae and the Ipsos polling organization, How America Pays for College 2024, found that “nearly all families (88%) believe college is an investment in their child’s future, and 79% are willing to stretch financially to get there. Six in 10 families (59%) had a plan to pay for college before the student enrolled, matching an all-time high.”
While Mom and Dad may want to help, the practical reality is that few households can simply write a check to cover college costs, especially if there’s more than one child who needs financial assistance.
The typical US household income was $74,580 in 2022, but — according to the College Board — published tuition and fees for full-time undergraduate students looked like this for 2023-24:
- $11,260 for a public four-year in-state school,
- $29,150 for a public four-year out-of-state institution,
- $41,540 for a private, nonprofit university, and $3,990, and
- $3,990 for a public two-year in-district community college.
Actual tuition and fees can be lower as a result of grants and scholarships, but the numbers above at least give some sense of college costs.
We often equate quality with price, but the low-cost educational option is getting increased attention. Two-year community colleges are not just filling an educational niche, they’re becoming an in-demand, common-sense alternative to four-year programs.
“Americans,” said Gallup in a 2024 poll, “express greater confidence in community colleges than in four-year colleges and universities on each of seven aspects of higher education, including affordability, quality, and the student experience. The broader pattern may be partially explained by cost and value concerns with four-year colleges and universities. While 58% of Americans say they have a great deal or quite a lot of confidence in two-year institutions providing an affordable education, 11% say the same about four-year schools.”
Gallup added that “Americans also express significant doubt about the value of a four-year degree, as 81% say they have some or very little confidence that four-year schools provide an education that is worth the cost. Just 18% have a great deal or quite a lot of confidence that a four-year degree is worth it. This compares with more than half of Americans (55%) who are confident in the value of community colleges.”
Student preferences are reflected in enrollment trends. According to the National Student Clearinghouse Research Center, undergraduate enrollment increased by 359,000 in spring 2024. Of this number, 55% of the new students enrolled in community colleges.
Why the growing interest in community colleges?
Money, of course, is a central issue. A four-year college can be great, but finances count and not everyone can afford the cost of more expensive options.
Expenses include not just tuition and fees, but also housing, food, transportation, and other costs. The result is that at the end of the second quarter, student debt amounted to $1.58 trillion nationwide.
That was more than credit card debt ($1.14 trillion) and almost as much as auto financing ($1.63 trillion), according to the Federal Reserve Bank of New York.
It’s possible to live at home and offset many expenses by studying at a local two-year college. Most importantly, local schools can deliver solid results.
First, community college students can get degrees and professional certificates that open employer doors, especially when combined with internships that provide practical training and introductions.
Second, community colleges can be seen as a first step toward a four-year degree, a step with significant cost advantages. According to the Community College Survey of Student Engagement (CCSSE) at the University of Texas, 83% of community college students had an interest in transferring to a four-year program.
However, only 32% actually transferred and, of these, about half obtained a bachelor’s degree within six years. In comparison, “the overall 6-year graduation rate for first-time, full-time undergraduate students who began seeking a bachelor’s degree at four-year degree-granting institutions in fall 2014 was 64%,” according to the National Center for Educational Statistics.
Why were there not more transfers and four-year graduations?
One possible answer is that some community college students already have jobs and career paths after two years of training. Their plans changed.
There are – after all – some two-year degrees that pay $100,000 or more, according to Payscale.com. A 2023 survey by the Bill & Melinda Gates Foundation of individuals aged 18 to 30 who did not complete or never enrolled in a 2-year or 4-year college program, found that they “see and select other paths that are shorter, cheaper, and/or more directly linked to specific job opportunities.”
In effect, many people see a community college education as a way to get where they want to go in less time and at a lower cost. As a Pew study from earlier this year found, among adults surveyed, “roughly half (49%) say it’s less important to have a four-year college degree today in order to get a well-paying job than it was 20 years ago.”