A report by the New America Foundation documents the real price of college for students after all financial aid is factored in. The report shows that at hundreds of state-operated institutions and private, not-for-profit colleges students from low-income families are being asked to pay college costs that are equal or exceed their families’ annual incomes. As a result, these low-income students are left with the choice of dropping out of school or taking on a huge amount of debt.
While the elite private colleges and universities have huge endowments that allow them to cover the total cost of attending for their students from low-income families, the New American Foundation report found that for students from families with incomes below $30,000, two thirds of all private colleges and universities have a net price (costs after all financial aid is included) of at least $15,000.
The report, Undermining Pell: How Colleges Compete for Wealthy Students and Leave the Low-Income Behind, may be downloaded here.