View in EDS

How College Affordability Has Changed for Different Families. Upjohn Institute Policy and Research Brief

Saved in:
Bibliographic Details
Title: How College Affordability Has Changed for Different Families. Upjohn Institute Policy and Research Brief
Language: English
Authors: Peter Hinrichs (ORCID 0000-0002-4375-035X), W.E. Upjohn Institute for Employment Research
Source: W. E. Upjohn Institute for Employment Research. 2025.
Availability: W. E. Upjohn Institute for Employment Research. 300 South Westnedge Avenue, Kalamazoo, MI 49007-4686. Tel: 888-227-8569; Tel: 269-343-4330; Fax: 269-343-7310; Web site: http://research.upjohn.org/upjohn_publications/
Peer Reviewed: N
Page Count: 6
Publication Date: 2025
Document Type: Reports - Research
Education Level: Higher Education
Postsecondary Education
High Schools
Secondary Education
Descriptors: Paying for College, Educational Finance, Parent Financial Contribution, College Students, College Bound Students, Student Financial Aid, Need Analysis (Student Financial Aid), Higher Education, Financial Aid Applicants, Race, Socioeconomic Status, Ability, Student Loan Programs, Income
Assessment and Survey Identifiers: National Postsecondary Student Aid Study (NCES), Panel Study of Income Dynamics
DOI: 10.17848/pb2025-84
Abstract: College is a worthwhile investment for many people. Research shows that attending college is associated with a variety of benefits, including higher earnings, a lower chance of being unemployed, greater job satisfaction, and better health (Oreopoulos and Salvanes 2011). However, these benefits come at a cost. As many current and prospective college students and their families are well aware, attending college can be quite expensive. Even though many people may benefit from attending college, there is the question of who can actually afford it (Levine 2022). One measure of affordability comes from the Free Application for Federal Student Aid (FAFSA), which many institutions use to make offers of financial aid to prospective students. Families provide information on income, wealth, and family structure, and a formula estimates how much the family can afford to pay toward college. This estimate, traditionally called the Expected Family Contribution (EFC), has recently been renamed the Student Aid Index (SAI). A perhaps simpler measure of affordability is the share of income a family pays for college. For this report, the author uses data on students and their families to examine trends in the EFC, the share of income families pay for college, and other measures of college affordability, focusing on how these trends vary across groups defined by income, parental education, and race or ethnicity. The author also examines how potential alternatives to the EFC formula would affect affordability measures across groups. The author finds that the EFC (in dollar terms) is highest and has risen fastest in recent years for families in the top quarter of the college-going income distribution. As wealth and income have risen for the top income quartile, EFCs have risen in tandem. By contrast, the author finds that the share of income families pay for college (in percentage terms) is highest for families in the bottom quarter of the distribution. Families in the lowest income quartile on average contribute approximately two-thirds of their family income per student per year for college, paying with a combination of cash and loans. Moreover, proposed changes to the EFC formula intended to reduce perceived inequity would not necessarily have the intended effect.
Abstractor: As Provided
Entry Date: 2025
Accession Number: ED675560
Database: ERIC
FullText Text:
  Availability: 0
Header DbId: eric
DbLabel: ERIC
An: ED675560
AccessLevel: 3
PubType: Report
PubTypeId: report
PreciseRelevancyScore: 0
IllustrationInfo
Items – Name: Title
  Label: Title
  Group: Ti
  Data: How College Affordability Has Changed for Different Families. Upjohn Institute Policy and Research Brief
– Name: Language
  Label: Language
  Group: Lang
  Data: English
– Name: Author
  Label: Authors
  Group: Au
  Data: <searchLink fieldCode="AR" term="%22Peter+Hinrichs%22">Peter Hinrichs</searchLink> (ORCID <externalLink term="https://orcid.org/0000-0002-4375-035X">0000-0002-4375-035X</externalLink>)<br /><searchLink fieldCode="AR" term="%22W%2EE%2E+Upjohn+Institute+for+Employment+Research%22">W.E. Upjohn Institute for Employment Research</searchLink>
– Name: TitleSource
  Label: Source
  Group: Src
  Data: <searchLink fieldCode="SO" term="%22W%2E+E%2E+Upjohn+Institute+for+Employment+Research%22"><i>W. E. Upjohn Institute for Employment Research</i></searchLink>. 2025.
– Name: Avail
  Label: Availability
  Group: Avail
  Data: W. E. Upjohn Institute for Employment Research. 300 South Westnedge Avenue, Kalamazoo, MI 49007-4686. Tel: 888-227-8569; Tel: 269-343-4330; Fax: 269-343-7310; Web site: http://research.upjohn.org/upjohn_publications/
– Name: PeerReviewed
  Label: Peer Reviewed
  Group: SrcInfo
  Data: N
– Name: Pages
  Label: Page Count
  Group: Src
  Data: 6
– Name: DatePubCY
  Label: Publication Date
  Group: Date
  Data: 2025
– Name: TypeDocument
  Label: Document Type
  Group: TypDoc
  Data: Reports - Research
– Name: Audience
  Label: Education Level
  Group: Audnce
  Data: <searchLink fieldCode="EL" term="%22Higher+Education%22">Higher Education</searchLink><br /><searchLink fieldCode="EL" term="%22Postsecondary+Education%22">Postsecondary Education</searchLink><br /><searchLink fieldCode="EL" term="%22High+Schools%22">High Schools</searchLink><br /><searchLink fieldCode="EL" term="%22Secondary+Education%22">Secondary Education</searchLink>
– Name: Subject
  Label: Descriptors
  Group: Su
  Data: <searchLink fieldCode="DE" term="%22Paying+for+College%22">Paying for College</searchLink><br /><searchLink fieldCode="DE" term="%22Educational+Finance%22">Educational Finance</searchLink><br /><searchLink fieldCode="DE" term="%22Parent+Financial+Contribution%22">Parent Financial Contribution</searchLink><br /><searchLink fieldCode="DE" term="%22College+Students%22">College Students</searchLink><br /><searchLink fieldCode="DE" term="%22College+Bound+Students%22">College Bound Students</searchLink><br /><searchLink fieldCode="DE" term="%22Student+Financial+Aid%22">Student Financial Aid</searchLink><br /><searchLink fieldCode="DE" term="%22Need+Analysis+%28Student+Financial+Aid%29%22">Need Analysis (Student Financial Aid)</searchLink><br /><searchLink fieldCode="DE" term="%22Higher+Education%22">Higher Education</searchLink><br /><searchLink fieldCode="DE" term="%22Financial+Aid+Applicants%22">Financial Aid Applicants</searchLink><br /><searchLink fieldCode="DE" term="%22Race%22">Race</searchLink><br /><searchLink fieldCode="DE" term="%22Socioeconomic+Status%22">Socioeconomic Status</searchLink><br /><searchLink fieldCode="DE" term="%22Ability%22">Ability</searchLink><br /><searchLink fieldCode="DE" term="%22Student+Loan+Programs%22">Student Loan Programs</searchLink><br /><searchLink fieldCode="DE" term="%22Income%22">Income</searchLink>
– Name: SubjectThesaurus
  Label: Assessment and Survey Identifiers
  Group: Su
  Data: <searchLink fieldCode="SU" term="%22National+Postsecondary+Student+Aid+Study+%28NCES%29%22">National Postsecondary Student Aid Study (NCES)</searchLink><br /><searchLink fieldCode="SU" term="%22Panel+Study+of+Income+Dynamics%22">Panel Study of Income Dynamics</searchLink>
– Name: DOI
  Label: DOI
  Group: ID
  Data: 10.17848/pb2025-84
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: College is a worthwhile investment for many people. Research shows that attending college is associated with a variety of benefits, including higher earnings, a lower chance of being unemployed, greater job satisfaction, and better health (Oreopoulos and Salvanes 2011). However, these benefits come at a cost. As many current and prospective college students and their families are well aware, attending college can be quite expensive. Even though many people may benefit from attending college, there is the question of who can actually afford it (Levine 2022). One measure of affordability comes from the Free Application for Federal Student Aid (FAFSA), which many institutions use to make offers of financial aid to prospective students. Families provide information on income, wealth, and family structure, and a formula estimates how much the family can afford to pay toward college. This estimate, traditionally called the Expected Family Contribution (EFC), has recently been renamed the Student Aid Index (SAI). A perhaps simpler measure of affordability is the share of income a family pays for college. For this report, the author uses data on students and their families to examine trends in the EFC, the share of income families pay for college, and other measures of college affordability, focusing on how these trends vary across groups defined by income, parental education, and race or ethnicity. The author also examines how potential alternatives to the EFC formula would affect affordability measures across groups. The author finds that the EFC (in dollar terms) is highest and has risen fastest in recent years for families in the top quarter of the college-going income distribution. As wealth and income have risen for the top income quartile, EFCs have risen in tandem. By contrast, the author finds that the share of income families pay for college (in percentage terms) is highest for families in the bottom quarter of the distribution. Families in the lowest income quartile on average contribute approximately two-thirds of their family income per student per year for college, paying with a combination of cash and loans. Moreover, proposed changes to the EFC formula intended to reduce perceived inequity would not necessarily have the intended effect.
– Name: AbstractInfo
  Label: Abstractor
  Group: Ab
  Data: As Provided
– Name: DateEntry
  Label: Entry Date
  Group: Date
  Data: 2025
– Name: AN
  Label: Accession Number
  Group: ID
  Data: ED675560
PLink https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=eric&AN=ED675560
RecordInfo BibRecord:
  BibEntity:
    Identifiers:
      – Type: doi
        Value: 10.17848/pb2025-84
    Languages:
      – Text: English
    PhysicalDescription:
      Pagination:
        PageCount: 6
    Subjects:
      – SubjectFull: Paying for College
        Type: general
      – SubjectFull: Educational Finance
        Type: general
      – SubjectFull: Parent Financial Contribution
        Type: general
      – SubjectFull: College Students
        Type: general
      – SubjectFull: College Bound Students
        Type: general
      – SubjectFull: Student Financial Aid
        Type: general
      – SubjectFull: Need Analysis (Student Financial Aid)
        Type: general
      – SubjectFull: Higher Education
        Type: general
      – SubjectFull: Financial Aid Applicants
        Type: general
      – SubjectFull: Race
        Type: general
      – SubjectFull: Socioeconomic Status
        Type: general
      – SubjectFull: Ability
        Type: general
      – SubjectFull: Student Loan Programs
        Type: general
      – SubjectFull: Income
        Type: general
      – SubjectFull: National Postsecondary Student Aid Study (NCES)
        Type: general
      – SubjectFull: Panel Study of Income Dynamics
        Type: general
    Titles:
      – TitleFull: How College Affordability Has Changed for Different Families. Upjohn Institute Policy and Research Brief
        Type: main
  BibRelationships:
    HasContributorRelationships:
      – PersonEntity:
          Name:
            NameFull: W.E. Upjohn Institute for Employment Research
      – PersonEntity:
          Name:
            NameFull: Peter Hinrichs
    IsPartOfRelationships:
      – BibEntity:
          Dates:
            – D: 25
              M: 04
              Type: published
              Y: 2025
          Titles:
            – TitleFull: W. E. Upjohn Institute for Employment Research
              Type: main
ResultId 1