Giving Compass' Take:

• Holly Kuzmich argues that the middle class needs innovative, rather than free, college to grow and succeed.

• How can funders help colleges to innovate to better serve Americans? 

• Learn about funding free colleges. 

Colleges and universities in the United States are at a crossroads. While a postsecondary education’s importance continues to grow, many institutions face significant financial pressures, and students are taking longer to graduate and doing so with increasing debt.

As the United States gears up for the next presidential election, we will hear more calls for investments in financial aid and erasing student debt. Some solutions can be found in public policy, but at their core, colleges and universities need an innovative approach to serving their students and preparing them for our economy.

Warning signs have been on the horizon, starting with college enrollment declining while the demand for postsecondary education has increased. Undergraduate enrollment decreased between 2010 and 2016 from 18.1 million to 16.9 million students. Yet Georgetown University’s Center on Education and the Workforce reports that two-out-of-three jobs require at least some education or training beyond high school.

Enrollment decreases have occurred nationwide, but they have been pronounced in the industrial Midwest and the Northeast. Loss of students means loss of tuition revenue and state support, further exacerbating the financial challenges. In fact, state financial support for higher education grew by only 1.6 percent from 2017 to 2018, which was down from a 4.2 percent increase the prior year. Eight in 10 undergraduates attend a public college or university, so state support is vital to their operations.

With these factors in play, it is no surprise that the cost of attendance is up and student debt has increased. The Federal Reserve reported earlier this year that outstanding student debt has reached an all-time high of $1.5 trillion. As many as one in six graduates will leave school with debt that exceeds their income.

Amid these pressures, policymakers are proposing to make college free for all students or erase the student debt of college graduates. These ideas can sound tempting, but paying for such lofty proposals is a major roadblock. Taking on that level of public support is unsustainable.

Luckily, several college and university presidents are leading the way on innovation. They are managing costs and putting their colleges on good financial footing. More important, they are better serving students and preparing them for life after college.

Read the full article about going beyond free college by Holly Kuzmich at InsideSources.