Dec. 3, 2008

49 States Get F In College Affordability

As Economy Worsens, Only California (Barely) Passes Independent Survey

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(CBS/AP)  An independent report on American higher education flunks all but one state when it comes to affordability - an embarrassing verdict that is unlikely to improve as the economy contracts.

The biennial study by the National Center for Public Policy and Higher Education, which evaluates how well higher education is serving the public, handed out Fs for affordability to 49 states, up from 43 two years ago. Only California received a passing grade in the category, a C, thanks to its relatively inexpensive community colleges.

The report card uses a range of measurements to give states grades, from A to F, on the performance of their public and private colleges. The affordability grade is based on how much of the average family's income it costs to go to college.

Almost everywhere, that figure is up, according to the survey. Only two states - New York and Tennessee - have made even minimal improvements since 2000, but they're still considered to be failing. Everywhere else, families must fork over a greater percentage of their income to pay for college. In Illinois, the average cost attending a public four-year college has jumped from 19 percent of family's income in 1999-2000 to 35 percent in 2007-2008, and in Pennsylvania, from 29 percent to 41 percent.

For public four year colleges average tuition has skyrocketed from $1,600 a year 20 years ago to nearly $7,000 a year now. Private school tuition has shot up from $8,000 to $25,000 a year, as CBS News' Kelly Wallace reports.

Low-income families have been hardest hit, Wallace reports. Families making less than $19,000 a year are now paying a whopping 57 percent of their incomes for college, compared to 39 percent in 1999. The share for middle class families making less than $90,000 also climbed from 18 to 25 percent. For families making more than $90,000 a year, the cost rose the least - from 7 to 9 percent of annual income.

And that's after accounting for financial aid, which is increasingly being used to lure high-achieving students who boost a school's reputation, but who don't need help to go to college.

"For a long time, we just thought about the poor," National Center for Public Policy and Higher Education Chairman Jim Hunt told Wallace. "But now many middle class students just can't go. The tuition is too high."

The problem seems likely to worsen as the economy does, said Patrick Callan, the center's president.

Historically during downturns, "states make disproportionate cuts in higher education and, in return for the colleges taking them gracefully, allow them to raise tuition," Callan said. "If we handle this recession like we've handled others, we will see that this gets worse."

Scott Cristal of Columbia, Mo., said he wasn't surprised by the study's findings. Cristal, who has sent two daughters to college and has another two yet to pay for, said that he is trying to expand his business to help pay the tuition bills, but that it's been hard because of the slowing economy.

"We're going to play it by ear, be optimistic, hope for the best and just ride it out as best we can," Cristal said. "I think that's what everybody in America's doing right now."

States fared modestly better in other categories such as participation, where no state failed and about half the states earned As or Bs - comparable to the report two years ago. One reason for the uptick is that more students are taking rigorous college-prep courses, the study found. In Texas, for instance, the percentage of high schoolers taking at least one upper-level science course has nearly tripled from 20 percent to 56 percent.

But better preparation for college hasn't translated into better enrollment or completion, with only two states - Arizona and Iowa - receiving an A for participation in higher education.

And the discrepancy in enrollment between states is still great: Forty-four percent of young Iowans are in college, while just 18 percent of their counterparts in Alaska - one of three states to get an F in the category - are enrolled.

Callan said the United States is at best standing still while other countries pass it in areas like college enrollment and completion. And as higher education fails to keep up with population growth, the specter lurks of new generations less educated than their Baby Boomer predecessors.

"The educational strength of the American population is in the group that's about to retire," Callan said. "In the rest of the world it's the group that's gone to college since 1990."

In related news:

Harvard University says its endowment has tumbled $8 billion in the four months since the end of the last fiscal year.

The estimated 22 percent decline is the school's sharpest endowment drop in modern history. The endowment was valued at $36.9 billion on June 30.

According to a letter to deans from university heads, Harvard must take a "hard look" at staffing levels and compensation. They're also forecasting a 30 percent drop for the fiscal year ending in June 2009.

The school has said its U.S. stock portfolio and foreign equity portfolio had taken hard hits recently. The school's endowment is the largest in higher education.

The university's president warns that the estimated drop may be conservative because some money managers that have yet to report figures.

© MMVIII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
Add a Comment See all 48 Comments
by wl7bzh December 4, 2008 11:01 AM EST
Actually, Louisiana has a scholarship program open to all students who achieve a certain point average and ACT score. The cost to go to college is very reasonable for those who commit to study. Most students who work in school and study for the ACT receive the scholarship. All three of my children did and nearly of of my friends children. The program is called TOPS and was started by an oil Executive Mr. Taylor as a limited program, it worked so well, Mr. Taylor encouraged the state to adopt the program.

Posted by rmwhitman at 08:46 PM : Dec 03, 2008


Yea, I lived in Louisiana. What percentage of students graduating can meet the requirement?

Better yet what is the adult illiteracy rate?
Reply to this comment
by yongamerica December 4, 2008 4:15 AM EST
Turning college sports into the industry it is today takes massive monetary resources. Most college varsity students aren''t just given a full ticket, they are given a first class golden ticket.

Meanwhile US universities cater more and more to foreign students turning State Supported Universities into degree industries for foreign countries.

And then the Bill Gates of the corporate world goes before congress and begs for more H1B technical visas because supposedly, there aren''t enough qualified US citizens to take the jobs.

Why is it easier to get a sports scholarship than a technical scholarship?
Reply to this comment
by caliengineer December 4, 2008 3:53 AM EST
Obama''s idea of a gap year is idiotic. The percentage of people who take a year off and then actually attend college as they planned is very small.
Reply to this comment
by drew30319-2009 December 4, 2008 3:46 AM EST
College is free in GA - funded by the lottery. Great idea & it''s paid off well.
Reply to this comment
by brian9194x December 4, 2008 1:50 AM EST
Online Poker

It really amazes me at the lengths people will go to in this country. I know there is corruption but on this level, a card game, is amusing. The NFL should be ashamed of themselves and people like you should be ashamed of yourself. Everything you and others claim is contradicted by the exemption of online fantasy fball, horse betting, and lottery. This isn''''''''t even about online poker, its about constitutional rights and corruption. Also everything you claim even though its false would be fixed by regulation. The point is that you just want online poker gone. That''''''''s fishy to anyone with a brain.

Point proven.

Oh and playing online poker in the good old USA, is LEGAL. You can read the law for yourself.
Reply to this comment
by rhs648 December 4, 2008 1:47 AM EST
One great change I hope President Obama endorses quickly is that of having a gap year between high school and college. Designed to be a service year each student would have the opportunity to choose from a wide variety of options both near and far from home. College credit would apply and some students may choose not to continue on to college but stay with their volunteer job in a paid position.

Posted by Puzzler125

Why waste a year? I might not have gone to college if there was a break between high school and college or if it would take five years instead of four and I have two degrees in addition to college. One of my sons is a doctor. Four years of college, four years of medical school, one year of internship, and four years of residency. That is thirteen years of education beyond high school. He certainly would not want a year tacked onto that.
Reply to this comment
by sepa2 December 4, 2008 1:23 AM EST
Any body see those surchages due to high oil prices coming down. Every one is going for big money. Health bussiness (no longer a care), terrorism economy (with a flavor of patriotism), financial sector (already in trouble due to greed. Why anyone expecct colleges to be any different? Curious to know whetre all the money goes.
Reply to this comment
by incog-nito December 4, 2008 12:53 AM EST
I thought there was 57 States?

Posted by republic76 at 09:34 PM : Dec 03, 2008

Har har. Now get over the election and move along.
Reply to this comment
by downsteamjim December 4, 2008 12:12 AM EST
And the answer is, "Raise tuition!"
Reply to this comment
by puzzler125 December 3, 2008 11:53 PM EST
One great change I hope President Obama endorses quickly is that of having a gap year between high school and college. Designed to be a service year each student would have the opportunity to choose from a wide variety of options both near and far from home. College credit would apply and some students may choose not to continue on to college but stay with their volunteer job in a paid position.
Reply to this comment
by incog-nito December 3, 2008 11:47 PM EST
Maybe they''ll start offering courses that Americans will need in the coming years, courses like "Foraging and Scavenging", "Guerrilla Warfare Tactics", and "Post-Apocalypse Survival".
Reply to this comment
by rmwhitman December 3, 2008 11:46 PM EST
Actually, Louisiana has a scholarship program open to all students who achieve a certain point average and ACT score. The cost to go to college is very reasonable for those who commit to study. Most students who work in school and study for the ACT receive the scholarship. All three of my children did and nearly of of my friends children. The program is called TOPS and was started by an oil Executive Mr. Taylor as a limited program, it worked so well, Mr. Taylor encouraged the state to adopt the program.
Reply to this comment
by rhs648 December 3, 2008 10:44 PM EST
I think it''s appropriate to cut college funding over public school funding. If public schools are failing, a child will never succeed in college, even if they can afford it. Colleges should cut out unnecessary programs and majors they use to boost their own coffers-like liberal arts! What exactly do you do with that when you graduate? College is one of the biggest scams a young adult falls for, and unfortunately now because of this, it''''s absolutely critical to have a degree to stand out (even if it''''s in said liberal arts or some other unrelated to the job degree).

Posted by spadeisspade

Many studies over the years have shown that college graduates generally earn more than high school graduates. High School graduates generally earn more than high school drop outs. As long as employers want to hire college graduates, it will pay for students to go to college. This does not mean that everyone who graduates college is smart, has common sense, or even applies what they were taught.
Reply to this comment
by cbscrash072 December 3, 2008 10:02 PM EST
Knowledge is power. Degrees are over rated. I have met some really stupid people with degrees. Apparently the only requirement for a degree is the ability to pay or have someone else pay for you.
Reply to this comment
by spadeisspade December 3, 2008 10:01 PM EST
I think it''s appropriate to cut college funding over public school funding. If public schools are failing, a child will never succeed in college, even if they can afford it. Colleges should cut out unnecessary programs and majors they use to boost their own coffers-like liberal arts! What exactly do you do with that when you graduate? College is one of the biggest scams a young adult falls for, and unfortunately now because of this, it''s absolutely critical to have a degree to stand out (even if it''s in said liberal arts or some other unrelated to the job degree).
Reply to this comment
by incog-nito December 3, 2008 9:48 PM EST
Oh well. Knowledge is probably overrated anyway.
Reply to this comment
by denn034 December 3, 2008 9:42 PM EST
This report was issued by the National Center for Public Policy and Higher Education. Here''s the contact information as per their web site: THE NATIONAL CENTER''s office in San Jose, CA, San Jose Office, 152 North Third Street, Suite 705,San Jose, California 95112, Telephone: 408-271-2699, FAX: 408-271-2697, EMail: center@highereducation.org. That''s right, this biased national center is headquartered in the one state that didn''t get an F. Now, that''s biased and raises serious questions about the approach taken in grading. Never accept things at face value people!!!!!

Reply to this comment
by evian_ycnan December 3, 2008 9:33 PM EST
This is why I plan to home school my children through grad school.

Posted by patrik1974 at 06:24 PM : Dec 03, 2008

Home schooling -- still the best way to be sure your kids never know more than you.
Reply to this comment
by patrik1974 December 3, 2008 9:24 PM EST
This is why I plan to home school my children through grad school.
Reply to this comment
by ptruth2 December 3, 2008 9:16 PM EST
kamsack50 - you must not be aware of all the programs that serve minority groups. There''s so many. The only problem with them is that they are racist. They are only offered to blacks and hispanics. There are many poor whites. If you want to complain about something, complain about the lack of fairness in college aid to poor people of any color or ethnic group, and not about lack of aid to minorities, who get it all. That''s what he liberal education industry has created - racist aid policies that should never be tolerated by any eductaed person who really believes that all people deserve an even break.
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