State Support of Higher Education Provides Short- and Long-Term Student Benefits

October 6, 2020

Share this

Title: State Investment in Higher Education: Effects on Human Capital Formation, Student Debt, and Long-Term Financial Outcomes of Students

Authors: Rajashri Chakrabarti, Nicole Gorton, and Michael F. Lovenheim

Source: Federal Reserve Bank of New York

A new report from the Federal Reserve Bank of New York reinforces the value of state support in producing positive outcomes for public college students. The study analyzes the financial outcomes for two-year and four-year students up to their mid-30s.

The results indicate that state appropriation increases are typically passed on to students through lower tuition in the four-year sector and through price and quality in two-year colleges.

Findings also relay that increased state support leads to lower debt and shortened time-to-degree among students at four-year institutions. In the two-year sector, state appropriation increases lead to increased educational attainment, as well as lower likelihood of delinquency and default on student debt. Further, state support increases are tied to car and home ownership, in addition to higher credit scores.

Click here to read the report.

—Anna Marie Ramos

If you have any questions or comments about this blog post, please contact us.

Keep Reading

CSU Innovations In Developmental Education Will Support Those Who Need It Most

California State University is preparing to implement a host of policy changes that will improve student achievement and lead to more Californians earning a high-quality degree in less time—including a revamp of the support structure for underprepared students in need of skill development.

January 16, 2018

Indigenous Perspectives on Native Student Challenges in Higher Education

Success for Native American students requires that higher education be responsive to the unique values, needs, and perspective each student brings to campus. Robin Zape-tah-hol-ah Minthorn gives a primer on where colleges and universities can begin.

January 28, 2020

What Can Colleges and Universities Do to Support the Mental Health of Their Student-Athletes?

The demands of the college experience can place significant stress on student-athletes, which can in turn impact their mental heatlh. How can higher education leaders, coaches, and faculty work together to address these challenges?

November 3, 2023