Earlier this week, the American Institutes for Research (AIR) released a report revealing that an alarming number of students did not finishing their college education. The findings, which focused on one year and one graduating class, concluded that close to 50% of students who entered college did not graduate within six years.
This percentage has proven to be incredibly costly for the government, which estimates around $4.5 billion in lost income and potential income taxes. The reasoning being that these students – who entered college in 2002 but did not graduate by 2010 – earned less income, resulting in a loss of hundreds of millions in federal and state tax revenues. On top of that, these students found themselves in debt without the necessary resources to get out of it
“Students who start college and don’t graduate incur large personal expenses,” said Mark Schneider, a vice president at AIR. “They have paid tuition, they have taken out loans, they have changed their lives and they have failed in one of the biggest goals they have ever set for themselves.”
President Barack Obama and his administration continue to stress the importance that students earning a college degree will have on the future of the economy. The government believes a properly educated workforce will be more equipped to deal with the uncertain economic times that lay ahead.
Find out more on the importance of college vs. today’s economic hardships.