Student loan debt in the United States exceeded $1.7 trillion in 2021.
Moreover, while the recently announced extension of student loan payments by President Biden provides some relief for some of these borrowers, it does not address the issue of making secondary education more affordable in the first place.
However, there are programs that make higher education affordable.
More than a dozen states and numerous cities and counties participate in “Promise Programs” initiatives.
Some have merit or income requirements, while others provide book stipends and other financial assistance.
In general, Promise Programs offer free college tuition to recent local high school graduates at institutions in a specific geographic region.
Since the program’s inception in 2007 in Kalamazoo, Michigan, researchers have been studying its results.
The following are some of their findings regarding the impact of promise programs on enrollment and their respective communities.
Free college tuition increases enrollment among some marginalized groups.
In 2020, the American Education Research Association published a study analyzing 33 Promise programs that provided tuition assistance to community colleges.
In colleges participating in the Colleges with Promise program, black and other minority enrollment increased the most.
Initial enrollment increased by 47% for black men and 51% for black women for the first time.
According to the study, enrollment of Hispanic males and females increased by 40% and 52%, respectively.
Additionally, Promise programs reduce the number of student loans taken out.
A study of the statewide Tennessee Promise program revealed that borrowing for first-year, full-time community college students was reduced by more than 40 percent, and loans were up to $360 less than before the program was implemented.
“These free college programs are only intended to cover the types of charges that appear on your bill, such as tuition and mandatory fees.
They are beneficial for students, but they may only cover 50 percent or less of the total cost for a student and, by extension, their family to attend college, according to Taylor Odle, an educational policy researcher at the University of Wisconsin-Madison.
This data indicates that promises covered a significant portion of a student’s bill.
However, because so many students in Tennessee are eligible for the Tennessee Promise, some of them still take out student loans.
And, by definition, it must cover what the promise does not.
Therefore, we’ve made significant progress, but we haven’t completely eliminated the need to borrow.
On average, black graduates owe $25,000 more in student loan debt than their white counterparts.
As a result, as enrollment increases for black and other minority students, the need for loans decreases, allowing groups disproportionately affected by student loan debt to become less reliant on debt while pursuing higher education.
Promise programs enhance the attractiveness of communities.
It has been demonstrated that the presence of a Promise Program makes an area more desirable, particularly when residency or enrollment in local school districts are eligibility requirements.
According to Michelle Miller-Adams, a researcher at the Upjohn Institute for Employment Research who studies tuition-free college programs, students who received tuition-free college are more likely to remain in or return to the Kalamazoo region than students who did not receive tuition-free college.
In fact, according to a 2015 study conducted by her colleagues at the Upjohn Institute, eight communities with Promise Programs saw a decrease in out-migration, resulting in a population that was 1.7% larger than it would have been without the free-tuition incentive.
However, there are some criticisms of the promise programs.
Community colleges have lower graduation rates than four-year institutions.
According to a study conducted by the Community College Research Center at Columbia University, 80% of incoming community college students intend to transfer to a four-year institution and earn a bachelor’s degree.
However, only 25 percent of students transfer to a four-year institution, and only 17 percent earn a bachelor’s degree.
Critics of promise programs are concerned that these programs divert 4-year eligible students into the community college pathway, which statistically means that these students are less likely to earn a degree.
A study published by the National Student Clearinghouse Research Center revealed that 68 percent of students who started at a public 4-year institution completed a degree, while 43 percent of students who started at a community college completed a 2- or 4-year degree.
“A vast majority of community college students are adults.
They are employed and have families.
Numerous obstacles prevent students from concentrating on their college success.
Therefore, additional support and a very simple message about this being affordable and tuition-free can significantly improve the outcomes of community college.”
Miller-Adams said.
Students with middle to high incomes benefit the most.
One-fourth of Promise programs are administered as full-fund scholarships.
This means that Promise program funds are applied to tuition before state and federal aid, such as Pell grants.
This allows students to spend the additional financial aid funds on books, housing, and other expenses.
However, the majority of Promise programs are last-dollar versions, so students only receive promise dollars after all state and federal aid has been applied.
“It is significantly less expensive to implement promise programs.
Meredith Billings, a college affordability researcher at Sam Houston State University, told the PBS NewsHour, “This also means that students, most likely low-income students, are probably not receiving any additional funds.”
And instead, some of the benefits are likely to accrue to students with middle or high incomes who are not eligible for federal or state aid.
Critics of the last-dollar approach argue that first-dollar programs would be more beneficial to low-income students.
“Promise programs only cover tuition and fees, and they frequently rely on students’ Pell Grants to cover a portion of that.
This means that students no longer have access to Pell Grants to cover the total cost of college, such as room and board, transportation, and books.
Miller-Adams said.
“The costs of attending college extend far beyond tuition and fees.
Many people in the United States cannot afford it at this time.”