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Is College Unaffordable? - In Brief

December 1, 2005


Ron Wirtz Editor, fedgazette
Is College Unaffordable? - In Brief

Getting Schooled

  • Rapidly rising tuition has students, parents and policymakers concerned about the affordability of a college education. They point to lagging state appropriations and a steady increase in student loans and overall debt as signs that college affordability—and access—is being compromised, particularly for students of modest means.

  • Trends suggest otherwise. Enrollment is increasing for students of all incomes, mostly because financial aid has kept pace.

  • And while many bemoan the debt accrued by students, research shows that borrowing can actually have a positive effect on persistence and graduation rates. Moreover, debt repayment after graduation remains affordable for the large majority of students.

Is College Unaffordable? [complete article]

Ron Wirtz
Editor, fedgazette

Ron Wirtz is a Minneapolis Fed regional outreach director. Ron tracks current business conditions, with a focus on employment and wages, construction, real estate, consumer spending, and tourism. In this role, he networks with businesses in the Bank’s six-state region and gives frequent speeches on economic conditions. Follow him on Twitter @RonWirtz.