What Free Won’t Fix: Too Many Public Colleges are Dropout Factories

Tamara Hiler & Lanae Erickson Hatalsky

Public colleges and universities play an essential role in unlocking the doors of higher education for many Americans. Today, more than 6.8 million students attend four-year public institutions, making up nearly two-thirds of the entire bachelor’s degree-seeking population in the United States.1 Close to two-thirds of all students attending these schools take out student loans in order to finance their education, with the average loan-holding student finding themselves more than $20,000 in debt four years later.2 And American taxpayers spend more than $10 billion dollars a year on federal Pell grants to help more than 2.7 million low- and moderate-income students attending these institutions afford a postsecondary education.3

This investment is one most Americans are willing to make—in part because of the irrefutable economic benefits gained in our modern economy by those who earn a college degree.4 But our analysis of the Department of Education’s College Scorecard data reveals that not all four-year public schools are giving students, or taxpayers, a good return on their investment. In fact, at many of these institutions, first-time, full-time students are not graduating, a large number are unable to earn wages higher than the typical high school graduate, and many cannot pay back the loans they’ve taken out.