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ERIC Number: ED523102
Record Type: Non-Journal
Publication Date: 2011-Aug
Pages: 16
Abstractor: ERIC
Reference Count: N/A
The High Cost of Low Graduation Rates: How Much Does Dropping Out of College Really Cost?
Schneider, Mark; Yin, Lu
American Institutes for Research
President Obama has set an ambitious goal for the nation: By the year 2020, the United States will have the highest proportion of adults with college degrees in the world. The Obama administration sees the successful completion of postsecondary education as essential to American competitiveness. Governors likewise see the economic future of their states as dependent on the development of a highly educated workforce that can compete with other states and other nations. There also are more immediate reasons for elected officials to want more college graduates. College graduates earn, on average, far more than college dropouts, and these higher earnings translate directly into higher income tax payments that can help solve growing fiscal problems at the federal and state levels. But colleges and universities are now graduating only slightly more than half the students who walk through their doors. Much of the cost of dropping out is borne by individual students, who may have accumulated large debts in their unsuccessful pursuit of a degree and who forfeit the higher earnings that accrue with a bachelor's degree. This report shows the high costs of low college graduation rates in terms of lost income and in lower tax receipts for federal and state governments. Appended are: (1) Annual State Income and Tax Losses for College Dropouts from the 2002 Entering Bachelor's Degree Cohort; and (2) Present Value of Lifetime State Income and Tax Losses for College Dropouts from the 2002 Entering Bachelor's Degree Cohort. (Contains 5 tables and 19 footnotes.)
American Institutes for Research. 1000 Thomas Jefferson Street NW, Washington, DC 20007. Tel: 202-403-5000; Fax: 202-403-5001; e-mail:; Web site:
Publication Type: Reports - Descriptive
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: American Institutes for Research
Identifiers - Location: United States