For Janelle Bell, a 39-year-old working mother, earning a degree was not financially or personally possible. Her priority was to support her family with just her $30,000 annual income. Drowning in $40,000 in student loan debt, she was forced to drop out of college and work full time.
Janelle’s story is all too familiar across the United States: after failing out of college, she landed a low-paying job and struggled to make ends meet. About 40 million Americans drop out of college without a degree, historically seen as a golden ticket to the middle class.
However, even with a degree, many people do not achieve financial prosperity.
Data from a quarter of higher education institutions shows that after 10 years of enrollment, the average salary for college students is lower than the average salary for high school graduates.
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A recent survey found that a majority of Americans (56%) don’t think a college degree is worth the cost. College enrollment decreased by 8 percent from 2019 to 2022, with Americans “needing and wanting more options than just a college degree to lead a fulfilling life.” It sends a clear message. The average price of tuition at private and public universities has increased more than 130% over the past 20 years, and who can blame them?
These factors lead Americans like Janelle to seek alternative paths to the middle class.
While college enrollment has declined over the past decade, the number of apprenticeships has increased by more than 50 percent, and nearly half of American workers now say they have some type of alternative qualification. It’s clear that Americans want affordable, fast and flexible options with a high return on investment.
Policymakers must respond to this overwhelming shift in public opinion and begin to help Americans afford these college options.
One approach would be to expand the federal Pell Grant program to give Americans greater ownership over their education and the financial freedom to pay for alternative programs that could lead to a better life.
Since its charter in 1965, Pell has awarded need-based federal financial aid to more than 80 million low-income students to pay for college. In the 2022-23 academic year, 34% of undergraduate students received a Pell Grant.
However, research shows that Pell students graduate at an 18 percentage point lower rate than non-Pell students. In short, the large number of Pell Grant recipients does not translate into a significant increase in the number of low-income Americans earning college degrees.
As it stands, the program has not achieved its original goals. That’s why it’s time to update this nearly 60-year-old federal program to meet the educational needs and demands of today’s Americans.
During his State of the Union address, President Biden said he intends to “continue to increase Pell Grants for working- and middle-class families” to keep college affordable. His fiscal year 2025 budget proposal includes a $2.1 billion increase in federal funding as part of his administration’s plan to double the maximum Pell Grant amount by 2029.
But this is not enough. We must also expand this access to Americans like Janelle who must pay for educational options other than short-term degrees.
Related: Opinion: Here’s why an expensive college education shouldn’t be the only path to career success
Thankfully, the bipartisan Workforce Pell Act is scheduled for a full vote in the House this year and would expand the Pell Grant program to include affordable and flexible short-term career education programs.
The bill would also create standards to ensure these programs provide the training needed for today’s most in-demand industries and meet employers’ hiring requirements.
Giving Americans more access to educational routes without the high cost of a four-year degree will create a new, more diverse and skilled talent pool for employers looking for high-demand jobs. You will be able to connect easily.
This modern talent pool will benefit the entire economy. For example, manufacturing is still recovering from the pandemic and in need of skilled talent. The National Association of Manufacturers recently predicted that approximately 2.1 million manufacturing jobs could be lost by 2030.
Many of these jobs require training beyond a high school diploma, and short-term programs have proven successful in filling that gap. This is especially important as more sectors become increasingly technology-driven. For example, data analysis and digital skills are urgently needed, but we know these can be quickly acquired through non-degree programs.
The median salary for someone in the U.S. with just a high school diploma and no college experience is just over $44,000, but that doesn’t cover the roughly $4,300 a month a single person needs to cover today’s living expenses.
Our latest wage-earnings analysis shows that Americans who complete programs at our national workforce development nonprofit earn higher wages than U.S. high school graduates without a college degree. I’m here.
In a study of program graduates from 2018-22, University of Virginia researchers found that over three months after completion, learners’ average annual wages increased by more than 92%, from $26,000 to $50,000. I discovered.
These are life-changing wage increases that will allow families to buy long-term homes, allow parents to move from two jobs to one, and allow Americans to pay for basic health care. You can do it like this.
After completing her training and landing a job with us, Janelle received a 66% annual pay increase and is now a successful technical project coordinator making $50,000 per year. Her career promises continued upward mobility, opening up new financial opportunities that seemed unattainable just a few years ago, allowing her and her family to thrive.
It is possible for Americans to transition from low-wage jobs to family-sustaining work. Imagine how many more lives could be transformed if we empowered more people to access federal Pell aid to pay for these pathways.
A college degree should remain one of the many study options available to Americans who want to further their education. But the time is now for policymakers, workforce development leaders, and businesses to advocate for lower-cost, shorter-term educational opportunities, and that starts with passing the bipartisan Workforce Pell Act.
Connor Demand Yauman and Rebecca Tabor Stehelin Merit America.
This story about college options produced by hechinger reporta nonprofit, independent news organization focused on inequality and innovation in education.. Apply Hechinger Newsletter.
