Tracing the origins of our college affordability crisis
This op-ed originally appeared in Commonwealth by Bahar Akman Imboden.
IN TODAY’S AMERICA, the cost of college is nothing short of staggering. But this was not always so; in 1987, tuition and fees at a public institution in Massachusetts totaled $1,352 annually; equivalent to $3,220 in today’s dollars. This was a time when a summer gig paired with part-time work during the academic year could comfortably foot both tuition bills and living costs.
Fast forward to 2022, tuition and fees have soared by 288 percent (after accounting for inflation), reaching $12,491 per year. When coupled with the ever-increasing cost of living, the financial burden on students is undeniably real. But how did we arrive at this point? This is a question we, at the Hildreth Institute, frequently encounter as experts in higher education.
During the “massification” era (1960-1975), public higher education thrived, tripling in size. With the generous state funding from general tax revenues, institutions became more inclusive, welcoming an increasingly diverse student body.
But by the 1980s, economic constraints and a growing federal deficit shifted the financial burden to the states, pitting public higher education against essential sectors like healthcare, welfare, and infrastructure. This era saw a reluctance at both state and federal levels to sustain the growing costs of higher education for the masses.
By the 1990s, this funding vacuum forced public universities to deviate from their equal access mission. Struggling for funds, they increasingly relied on tuition revenue and philanthropy. Massachusetts’ policymakers adopted the “high tuition/high aid” model, seeking to generate more revenue from increased tuition, while targeting low-income students with more grant aid. Their plan was to let tuition revenues coverup to 35 percentof the total cost of public higher education. This was a significant departure from the national average of 18 percent during that period.
The struggle between reduced state appropriations and the imperative to sustain public higher education resulted in steep tuition and fee hikes, meanwhile grant aid funding failed to keep pace. With every $1 reduction in state appropriations, in-state tuition increased by $0.17 and out-of-state tuition by $0.32.
Between 1988 and 1994 alone, tuition soared by 48 percent, and student fees skyrocketed by an astonishing 240 percent. Despite the intentions to bolster need-based grants, they didn’t materialize as envisioned. Between 1990 and 1992, state scholarship aid plummeted from $77.6 million to just $35 million. This cut was so severe that Massachusetts had to return $2 million in financial aid to the US Department of Education for failing to meet minimum support levels.
Since then, Massachusetts’ higher education has grappled with a misalignment among the three key levers of public higher education finance: appropriations, student financial aid, and tuition/fees-setting. In 1995, as the backlash against high tuition gained momentum among concerned parents and student advocates, the state attempted to limit tuition increases while simultaneously reducing support. This put immense pressure on institutions to either identify new revenue sources or streamline their operations.
Left with few alternatives, larger institutions were able to offset some of their funding shortfall by turning to raising fees instead, and bringing in more out-of-state students, areas they had price setting control over. Community colleges, however, bore the brunt of these policies. Unable to raise prices at the same pace due to their commitment to remain affordable and accessible to low-income students, the lack of funding eroded the very core and quality of our most accessible educational institutions.
For students and their families, these policy shifts meant an increasing reliance on household income and, for a growing number, an increased necessity to take out student loans, which were packaged together with grants as aid. Currently, Massachusetts resident students borrow on average $32,871 to attend a public undergraduate program in the state.
At Hildreth Institute, our research has consistently highlighted the troubling trajectory of our state’s approach to public higher education. We have emphasized the growing barriers to affordability, as well as the complexity of navigating over 40 state grants, scholarships, and tuition waivers required to afford a degree. While these programs were originally designed to judiciously allocate scarce state funds to those in greatest need, they have paradoxically become barriers themselves.
The weight of financial burdens and extensive work commitments dissuades many prospective students, especially those from underserved communities, from pursuing a college degree. Our latest study reveals a concerning trend: an increasing number of students are opting out of pursuing college or are unable to complete their degrees due to the overwhelming issue of affordability. The rising cost of public higher education in Massachusetts is not just a financial burden for students—it is also a threat to their dreams and our state’s economic future.
The proactive efforts of the Board of Higher Education, the Department of Higher Education, and state leaders in pursuing equitable change are commendable, and now is the time for bold decisions. The recent approval of the Fair Share Amendment has provided a timely influx of revenue, part of which is designated for public higher education. This presents a unique opportunity to rethink our public higher education financial system.
To make the most of this moment, we need a comprehensive strategy that provides financial aid that covers not only tuition and fees but also additional expenses like textbooks, transportation, meals, and living costs, which often burden low-income students with heavy debt. This increased state investment in student financial aid should be accompanied by strong funding for institutions and responsible tuition-setting policies.