PHOENIX, AZ, Jan 31 (MARKET WIRE) --
The United States continues to fall behind other major industrialized nations
in terms of the percentage of the population with a college degree, according
to a recent series of joint studies released by the National Center for Higher
Education Management Systems and Jobs for the Future.
Currently ranked tenth among industrialized countries in the percentage of
25-34-year-olds holding an associate's degree or higher, the U.S. is
projected to slip further, ranking near the bottom in the percentage of
entering students that complete a degree program. Notably, the U.S. now
stands as one of the only countries where older adults are more educated than
younger adults.
At the current rates of degree attainment, the U.S. will produce
approximately 48
million new undergraduate degrees by 2025 -- 16 million fewer degrees than the
64
million it would need to match leading nations Canada, Japan, and South Korea in
the percentage of adults with a college degree (estimated at 55 percent) and to
meet emerging national workforce needs. To make up the gap, the U.S. would need
to
produce an additional 781,000 college graduates a year -- a 37 percent increase
over
current levels.
Only eight states are currently on track to reach the level of educational
attainment
needed by 2025 to compete with the best performing nations and meet workforce
demands.
COLLEGE COSTS OUTPACE INFLATION
The studies, conducted as part of the Making Opportunity Affordable project,
note
that college affordability is increasingly affecting accessibility. Even when
adjusted
for inflation, tuition and fees at four-year public universities have risen 24
percent over the past five years, according to the Trends in College Pricing
2006 report by the College Board.
The result has been that lower- and middle-class families have been
struggling
more to pay for college, with fewer low-income students enrolling and two-thirds
of college students graduating with debt. Today, the average student borrower at
a public college or university owes $17,250 in student loans; 10 years ago, the
average borrower attending a public institution graduated owing $8,000 in
student
loans, after adjusting for inflation.
The studies project that, in order to expand the percentage of its adult
population with college degrees, the U.S. will need to increase college
accessibility for low-income students, as well as for continuing education
students
and for students in minority groups that have been traditionally underserved in
higher
education.
COLLEGE FUNDING OPTIONS FOR STUDENTS AND PARENTS
In an effort to increase college accessibility for lower-income students,
Congress
passed the College Cost Reduction Act of 2007. The bill, which went into effect
on October 1, increases the maximum federal Pell Grant award and is set to cut
interest rates on subsidized federal college loans in half over the next five
years.
Students who don't demonstrate enough financial need to qualify for
subsidized federal college loans or a federal Pell Grant could still qualify
for low-cost, low-interest unsubsidized federal Stafford student loans. Students
aren't required to make any payments on their Stafford student loans while
they're
still in school (at least half time). Non-need-based low-interest federal
college loans are also available for qualifying parents of undergraduates.
Students whose education-related costs exceed their available federal
financial
aid may consider private student loans. While private student loans may provide
the additional financial assistance some students need, since federal student
loans
generally offer more attractive terms than private student loans, it's
strongly recommended that students and their parents look to available federal
financing options first.
About NextStudent
NextStudent, Federal Lender Code 834051, is dedicated to helping students
and
their families find affordable ways to pay for college. NextStudent offers
one-on-one
education finance counseling and has a portfolio of highly competitive
education finance products and services, including a free online
scholarship search engine, federally guaranteed parent and student loans,
private student loans, both federal and private student loan consolidation
programs, and college savings plans.
For more information about NextStudent and its student loan programs, please
visit
our website at NextStudent.com.
Contact:
Phil Tannenbaum
Email Contact
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