Finding an affordable but high-quality college can be challenging for low-income and first-generation students. This article presents lists of public and private 4-year colleges, all of which have a low net price and a high graduation rate for low-income students.
Not only are these colleges affordable for low-income students, but the students are likely to graduate with an affordable amount of debt.
Students should consider a variety of colleges before they begin the application process. Historically, students from low-income backgrounds have applied to too few colleges, often enrolling at institutions that are not a good academic, social and financial fit. This leads to suboptimal outcomes like low retention and graduation rates and high debt. Students should cast a wide net. Look at private and public institutions, in-state and out-of-state schools, and small and large colleges. Learn about colleges and universities you have never heard of before.
Every low-income student should consider their in-state public colleges, as those institutions will often be the most affordable option. In-state public colleges are also a good option because low-income students tend to choose colleges that are close to home. Students may be able to save on college costs by living at home with their families instead of on a college campus.
The net price for public colleges is based on the in-state tuition rates. The net price for out-of-state students may be much higher.
Low-income students should also consider private colleges with low net prices and high graduation rates. In some cases, generous private colleges can have a lower net price than some in-state public institutions.
For both public and private colleges, students should aim to have total student loan debt at graduation that is less than their annual starting salary. If total student loan debt is less than annual income, the student should be able to repay his or her student loans in ten years or less.
The lists of public and private colleges were identified using a combination of three factors:
- Affordable. Affordability was based on the one-year net price for students with a family income of $0 to $30,000, using data from the 2013-14 Integrated Postsecondary Education Data System (IPEDS). The net price is the discounted sticker price, the costs that remain after subtracting average grants, scholarships and other gift aid from the total cost of attendance. Only colleges with a net price under $12,500 were included.
- Good Outcomes. Outcomes were based on the 6-year graduation rates for Federal Pell Grant recipients, using data from the Education Trust. The Federal Pell Grant is the largest need-based grant program, awarded mostly to low-income students. Only colleges with 6-year graduation rates of 50% or more were included. This ensures that low-income students at these colleges are more likely to graduate than not.
Some colleges were omitted because the Pell Grant recipient graduation rate data were not available. Examples include Brigham Young University – Provo, Columbia University in the City of New York, Cooper Union and Harvard University.
Several colleges with a reputation for serving low-income students did not satisfy the selection criteria because their net price for low-income students was too high.