The Education Trust recently released a report examining the affordability gap for low-income students at public institutions of higher education across the country. The analysis focuses on the affordability gap for students who receive Title IV aid and come from families with annual income below $30,000. It defines the affordability gap as the difference between net price and the income a student would earn by working 10 hours per week at minimum wage. Net price is the average amount students must pay out of pocket after grants and scholarships have been subtracted from the total cost of attendance.
Among the affordability gap findings at public four-year institutions:
- The affordability gap at public four-year institutions exceeds $3,000 in 47 states.
- Only Washington ($2,000), California ($1,100), and New York ($83) leave low-income students with an affordability gap less than $3,000.
- The affordability gap ranges from $12,545 in New Hampshire to $83 in New York. The average affordability gap is $6,550.
- In four states (New Hampshire, South Carolina, Pennsylvania, and Alabama), the affordability gap is over $10,000.
- Low-income students must work an average of 26 hours per week at minimum wage to cover the average affordability gap at public four-year institutions.
- In New Hampshire, Pennsylvania, and Alabama, a student must have a full-time job at minimum wage to cover the affordability gap.
Among the affordability gap findings at public two-year institutions:
- Average tuition and fees at public two-year institutions is $3,700, but the total cost of attendance includes many other factors, including housing, meals, transportation, and textbooks. When factoring in these additional costs, the average cost of attendance is $12,400.
- The average affordability gap at public two-year institutions is $2,605.
- The affordability gap rises to $11,000 in New Hampshire and $7,000 in Vermont.
- Low-income students must work an average of 16 hours per week at minimum wage to cover the average affordability gap at public two-year institutions.
- Only in Rhode Island, New York, California, and Washington are low-income students able to cover the affordability gap and have additional funds left over with a 10 hour a week job at minimum wage.
- Low-income students in New Hampshire must have a full-time job at minimum wage to cover the affordability gap.
