As the world continues to be plagued by notoriously difficult times, the financial strain on families prevents students from having the opportunity to earn their college degree. During these strenuous times, 56% of students say they can no longer afford their tuition.
Secondary education of any kind often requires an immense financial commitment, one which is simply unattainable for a majority of students. College tuition continues to increase and income rates fail to climb at a rate capable of keeping up, leaving students with no option but to pursue a career without a degree.
While success is not out of the question, the quest to find financial stability without a college education becomes much more of a challenge, especially if one takes on the financial burdens of an entire family as the primary income earner. New Mexico has taken measures to supposedly relieve some financial strain with the Opportunity Scholarship Act.
The disparity between pay with a college degree and lesser education is evident: Those who have graduated high school but do not hold a college degree make an average of $37,024 per year and have an unemployment rate of 4.6%. Those with a bachelor’s degree earn an average of $61,996 per year and also have a noticeably lower unemployment rate at 2.5%.
The discrepancy between earnings with a high school diploma and a college degree easily determines the level of financial freedom a household has. PEW Trusts stated, “Households in the lower income tier spent considerably less than their middle- and upper-income counterparts on discretionary items, such as food away from home and entertainment,” as core spending absorbed such a large portion of their income.
As necessary spending controls the majority of lower-income budgets, savings are limited and households have no means of paying the hefty price of college tuition. The cycle continues, and new generations have limited opportunities to work their way towards a higher economic status without the opportunity to attend college.
New Mexico aims to end poverty cycles and to provide students with an opportunity to attend college with the Opportunity Scholarship Act. The proposed bill waives tuition for students attending in-state public schools, tribal schools and community colleges. New Mexico will join New York, Indiana and Washington as the only states offering four-year free college tuition.
PVHS counselor Valerie Tucker doubts a similar bill would be passed in Iowa because the college-going rate is above the national average, but expects a loan-forgiveness program would boost the college completion rate here.
“If anything, I think that there would have to be more of a loan-forgiveness program once you’ve completed [college] to try to increase the completion rate,” she stated. “There’s a very wide gap between college-going rate in Iowa and completion of a degree program within six years.”
Senior Emily Hoskins believes a free-tuition bill would also be constructive for students who hope to pursue additional schooling after college. “There are three kids in my family, and at least two of us think that we want to go to some type of school after college,” she stated. “If college tuition was free, money wouldn’t be such a factor when people want to go to more schooling after.”
The Biden administration hopes to propose a similar tuition bill to New Mexico’s, allowing for in-state tuition and community colleges to have free tuition nationwide for families making less than $125,000 per year. Analysts claim a movement such as this could boost the GDP by $136 billion as an increase in disposable income would immediately boost the economy and result in long-term benefits.
While the presumed economic benefits are apparent, critics are skeptical about the investment in a free in-state tuition bill. In 2019, the Department of Education calculated that offering free in-state tuition would cost approximately 79 billion dollars. While this large sum initially appears unattainable, free in-state tuition would have only aggregated to approximately 1.8% of the federal spending of 4.4 trillion dollars in 2019.
In a world filled with financial disparity and an increasing pay gap, earning a college degree holds importance like never before. As New Mexico takes steps towards equal opportunity and equality, many students and lawmakers hope the federal government will work towards creating a similar bill to provide students nationwide with prospects of success, regardless of their financial status.
