collegeaffordability.urban.orgUnderstanding College Affordability - Urban Institute

Understanding College Affordability What Is College? Institutions Students The Cost of Educating Students Institutional Subsidies Appropriations Endowments Prices and Expenses Tuition and Fees Room and Board Student Budgets Forgone Earnings Net Price Financial Aid Financial Need Grant Aid Federal Grant Aid State Grant Aid Institutional Grant Aid Other Grant Aid Tax Benefits Covering Expenses Pre-college Income Savings Working during College Borrowing Time to Degree State Policies After College Employment after College Variation in Earnings Student Debt Loan Repayment and Default Breaking Even Student Profiles About the Project Research and Resources Chart Index Understanding College Affordability How Students, Institutions, and the Public Pay for Higher Education Rising concerns over college tuition and student debt, combined with the widespread conviction that a degree is essential for a middle-class lifestyle, have led to a sense that college in the United States has become "unaffordable." But what does affordability actually mean? Learn about the project What Is College? Nonprofit or for profit, public or private, two-year or four-year—colleges, much like the students who attend them, come in all shapes and sizes. Institutions Students The Cost of Educating Students Tuition and fees cover only a fraction of what an education actually costs. How do institutions fund the rest? Subsidies Appropriations Endowments Prices and Expenses Tuition is the most obvious expense facing college students, but it’s far from the only budget item they must consider when planning for college. Tuition and Fees Room and Board Student Budgets Forgone Earnings Net Price Financial Aid Financial aid helps students and families pay tuition, fees, and other expenses associated with going to college. Where does that aid come from, and which students get it? Financial Need Grant Aid Federal Grant Aid State Grant Aid Institutional Grant Aid Other Grant Aid Tax Benefits Covering Expenses How do students fill the financial gap between the financial aid they’re offered and the full cost of attending college? Pre-college Income Savings Working during College Borrowing Time to Degree State Policies After College College affordability isn’t just about the resources available when a student enrolls. How well the investment of time and money pays off is just as important. Employment after College Variation in Earnings Student Debt Loan Repayment and Default Breaking Even Going to college is an investment. How long will it take to break even on that investment? Breaking Even Explore Student Profiles College affordability is different depending on who you are, where you come from, and where you go. Explore these student profiles to better understand how different circumstances and decisions affect different students. Independent Low-Income Dependent Lower-Middle Income Dependent Upper-Middle Income Dependent Upper-Income Dependent About Research and Resources Chart Indexes Privacy Terms of Service Home page photo by Jon Lovette/Getty Images. © April 2017 Urban...