The Plight Of Poor Students In Us Universities

The number of students enrolled in US colleges and universities has increased dramatically over the past 20 years, with growth fuelled almost exclusively by an influx of students from low-income families and students of colour. In the 2015-16 academic year, about 31% of students were in poverty, up from 29% 20 years earlier. This increase in the number of poor students is particularly pronounced at less selective institutions, with the share of students in poverty at community colleges doubling from 13% in 1996 to 27% in 2016. The presence of college students who live off campus also raises the community's poverty rate.

The number of poor university students in the US is likely wrong

Furthermore, the paper highlights that the number of students in free meal programs is often inflated as districts are incentivized to identify students as eligible, even if it is not accurate. This can lead to a dilution of aid, as resources are spread across a larger group, potentially reducing the support available to those with the greatest needs. The impact of this issue is far-reaching, as nearly half of the states use free and reduced-price meal statistics to allocate funding to high-need students.

The issue of accurately calculating student poverty is crucial, as it directly affects the allocation of resources and the development of policies related to state funding and accountability. Inaccurate measurements of poverty can result in misguided decisions and hinder efforts to provide targeted support to students facing severe economic challenges.

Additionally, the traditional metrics used to determine poverty among university students may not capture the true extent of financial need within this population. The economic background of students is typically assessed based on their family's income-to-poverty ratio, which takes into account family size. However, this method may not fully represent the financial realities of today's university students, who may have diverse sources of income, such as part-time jobs or scholarships.

Moreover, the cost of attendance at universities can vary significantly, and not all students incur the same expenses. For example, online programs are often significantly cheaper than on-campus programs, yet this distinction may not be adequately reflected in poverty calculations. As a result, the net price paid by students, which includes discounts, grants, and scholarships, may be a more accurate indicator of the financial burden faced by low-income students.

In conclusion, the complex and dynamic nature of student finances, along with the varying costs of attendance, underscores the need for more nuanced and accurate measurements of poverty among university students in the US. While challenging, developing more precise metrics will enable policymakers, institutions, and researchers to better understand and address the financial challenges faced by this population.

31% of US university students were in poverty in 2015-16

In the 2015-16 academic year, 31% of US university students were in poverty. This is a notable increase from 21% two decades prior, in the 1995-96 academic year. The overall number of undergraduates in the US has also increased dramatically over the past 20 years, with growth fuelled almost exclusively by an influx of students from low-income families and students of colour.

The rise in poor and minority undergraduates has been most pronounced in public two-year colleges and the least selective four-year colleges and universities. There has been less change at the nation's more selective four-year colleges and universities, where the majority of dependent undergraduates continue to be from middle- and higher-income families.

The economic background of students is based on the family income-to-poverty ratio, which takes family size into account. For instance, for a family of four to be considered in poverty, their income must be below $25,696. The economic situation of dependent students is based on their parents' financial resources, while for independent students, only the student's own income (and any spousal income) is considered.

The increase in the share of dependent students from families in poverty has been most dramatic among less selective institutions. At community colleges, the share of dependent students who are in poverty has doubled from 13% in 1996 to 27% in 2016. The presence of college students who live off campus also raises the community's poverty rate.

The number of students in poverty is likely to be underestimated, as the proportion of students receiving free or reduced-price meals—a metric often used to determine poverty—is misleading and outdated. Researchers have identified more precise ways to quantify poverty, such as using neighbourhood poverty metrics from the National Center for Education Statistics.

Poor students at some colleges pay more than rich students

In the United States, the number of undergraduates at colleges and universities has increased dramatically over the past 20 years, with growth almost exclusively fuelled by an influx of students from low-income families and students of colour. In the 2015-16 academic year, 31% of students were in poverty, up from 29% 20 years earlier.

While the number of poor students is rising, they are not enrolling at the nation's more selective four-year colleges and universities, where a majority of dependent undergraduates continue to be from middle- and higher-income families. The increase in poor and minority undergraduates has been most pronounced in public two-year colleges and the least selective four-year colleges and universities.

The reason for this is that low-income students are not applying to these schools. According to Caroline Hoxby, an economics professor at Stanford, low-income students who are qualified to attend selective schools have a low probability of applying to such schools. However, once they do apply, they are likely to get in, receive a generous financial aid package, and enrol.

At some colleges, students from the lowest-income bracket pay more out of pocket than the wealthiest ones, due to variations in financial aid policies. At 17 colleges and universities in 2020-21, students from families earning under $30,000 paid more in net price than those from families making $110,000 a year or more. The additional amount ranged from $152 at Texas College to more than $5,000 at Brenau University.

The reason for this disparity is that colleges are actively pursuing wealthy students, offering non-need-based merit aid to attract students with money, especially if they are high-performing. Wealthier students tend to perform better on SATs, and students from low-income schools are slightly less likely to graduate compared to students at high-income schools, which affects college rankings.

US colleges have seen a rise in poor students since 1996

The number of undergraduates at US colleges and universities has increased dramatically over the past 20 years, with growth fuelled almost exclusively by an influx of students from low-income families and students of colour. As of the 2015-16 academic year, about 20 million students were enrolled in undergraduate education, up from 16.7 million in 1995-96. Of those enrolled in 2015-16, 47% were non-white and 31% were in poverty, up from 29% and 21% respectively, 20 years earlier.

The rising proportion of undergraduates in poverty does not mirror wider trends in society. The official poverty rate for adults aged 18 to 64 was similar in 1996 and 2016, suggesting that access to college for students from lower-income backgrounds has increased since 1996.

The increase in poor students has been most pronounced at private for-profit colleges, public two-year institutions, and minimally selective and open-admission four-year colleges and universities. At more selective institutions, a growing share of dependent undergraduates are from higher-income families.

The rise in poor students is also reflected in the fact that undergraduates are increasingly likely to borrow to pay for college expenses, with the greatest increase among middle- and higher-income students. In 2016, 39% of middle-income students took out a loan, similar to the borrowing rate of students in poverty (38%). The likelihood of borrowing is now mostly unrelated to income, marking a significant change from the past.

The increase in poor students is also evident in the demographics of enrolled students. The number of female college attendees has nearly doubled since 1976, increasing by 82.9%. Additionally, 20.35% of the student population is Hispanic or Latino, a 483% increase from 1976.

The rise in poor students at US colleges and universities has important implications for policy and practice. It underscores the need for financial aid and support services to ensure that all students have equal opportunities to succeed, regardless of their economic background.

Poor students are more likely to attend less selective colleges

In the US, the number of undergraduate students has increased dramatically over the past 20 years, with growth fuelled almost exclusively by an influx of students from low-income families and students of colour. However, this growth has been concentrated in less selective colleges. According to a Pew Research Center analysis of National Center for Education Statistics data, the rise of poor and minority undergraduates has been most pronounced in public two-year colleges and the least selective four-year colleges and universities. There has been less change at more selective four-year colleges and universities, where a majority of dependent undergraduates continue to come from middle- and higher-income families.

The economic background of students is based on the family income-to-poverty ratio, which accounts for family size. For a given income, larger families are less well-off. The economic situation of dependent students is based on their parents' financial resources, while for independent students, only the student's own income (and any spousal income) is considered.

The increase in the share of dependent students who are in poverty has been most pronounced at private for-profit colleges, public two-year institutions, and minimally selective and open-admission four-year colleges and universities. At more selective institutions, a growing share of dependent undergraduates come from higher-income families.

The type of institution a student attends is important because more selective institutions are associated with better student outcomes. For example, about 40% of undergraduates beginning at public two-year colleges have finished an undergraduate credential within six years, compared to a significantly higher 67% at four-year institutions. More selective institutions devote more resources to a student's education in terms of instructional spending and faculty qualifications. In addition, students graduate at higher rates at more selective institutions, and earnings after college may be higher for students from selective institutions.

The percentage of low-income students enrolled ranges widely among selective institutions, from 6% to over 40%. Some institutions have dramatically increased their representation of students with financial need in recent years. For example, Vassar College increased from 16% to 24%, and the University of California-Santa Barbara increased from 31% to 38%.

Many factors affect an institution's willingness to admit more low-income students. Small liberal arts colleges can make choices that are unique to their circumstances, such as pairing each low-income applicant with a current student mentor. Large research universities may be able to cultivate admissions pipelines from neighbouring school districts with many low-income students. Geography also matters; schools in the Midwest have lower costs of living than East Coast institutions. However, money alone is not dispositive of outcomes. Selective colleges with very different endowment sizes can admit similar percentages of low-income students, particularly if doing so is made an institutional priority.

Selective colleges have an important role to play in encouraging high-achieving, low-income students to apply to their institutions. Here are some recommendations for selective colleges to increase access for high-achieving, low-income students:

• Make clear the true cost of college attendance after financial aid.
• Reduce the costs associated with applying.
• Make the college application process simpler.
• Customise messaging to encourage low-income students to apply.
• Partner with high schools and community-based organisations to target outstanding low-income students.
• In evaluating applications, recognise the barriers low-income students have already overcome.
• Critically examine the admissions process to identify all aspects where low-income students are disadvantaged.
• Remove admissions practices that disadvantage low-income applicants.
• Cultivate the academic abilities of low-income students.
• Expand transfer access for students from community colleges.

Frequently asked questions