The Debate Over Anti Tuition Fees: Weighing the Pros and Cons

Student loan debt in the United States has grown enormously in recent years and is now one of the largest forms of consumer borrowing in the country. The cost of college-and resulting debt-is higher in the United States than in almost all other wealthy countries, where higher education is often free or heavily subsidized. As of July 2024, student loan debt in the United States stood at $1.8 trillion. In all, some 46 million Americans have student loan debt.

The question of whether to eliminate or significantly reduce tuition fees has become a focal point of debate. The arguments for and against anti-tuition fees are multifaceted, encompassing economic, social, and educational considerations.

The Rising Cost of Higher Education and Student Debt

Student debt has more than doubled over the last two decades. Borrowers collectively owed more than $1.6 trillion in federal student loans. Adding private loans brings that amount above $1.7 trillion, so that total student debt exceeds debt from auto loans and credit cards. Only home mortgage debt, at more than $12 trillion, is larger. Student debt is growing as more and more students attend college. The cost of college-and resulting debt-is higher in the United States than in almost all other wealthy countries, where higher education is often free or heavily subsidized. States pulled back funding for public universities and colleges in the wake of the 2008 financial crisis.

The increasing financial burden of higher education has led to a situation where students are coming out of college already buried under a mountain of debt before they have a chance to start their careers. The average student loan debt was about $38,375, with students paying about $2,636 each year in interest on loans that take an average of 20 years to pay off.

Arguments in Favor of Anti-Tuition Fees

Enhanced Educational Opportunity and Equity

Proponents of anti-tuition fees argue that higher education should be a right, not a privilege. Tuition-free college would help decrease student debt. The rapid rise of tuition has limited access to higher education, which is essential in today’s workforce. Making college tuition-free would level the playing field, providing equal opportunities for individuals from all socioeconomic backgrounds to pursue higher education.

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According to College Promise, only 12% of low-income students earned a four-year degree by age 25 as of 2021, compared to 70% of high-income students. This barrier remains especially problematic for low-income, underrepresented minority, and first-generation students, all of whom have comparatively low degree attainment rates. Eliminating tuition fees would remove a significant financial barrier, allowing more students to access higher education and improve their life chances.

Economic Benefits of an Educated Population

A more educated population benefits individuals and the economy. Free college leads to greater completion rates, which would result in a more educated population. Earning a degree can result in as much as a 25% wage increase within a year of graduating. College graduates earn almost twice as much annually as high school graduates. On average, those with a college degree can expect to make $1.2 million more over a lifetime than those without.

Widespread degree attainment benefits society as a whole. Because degree-holders earn more, they pay more taxes. They are also less likely to rely on government support such as unemployment benefits, Medicaid, and housing subsidies, to name a few. All told, the Association of Public and Land-Grant Universities estimates each college graduate represents a net gain to society of $381,000 over a lifetime. A more educated citizenry could lead to technological innovations, medical breakthroughs, new industries, and the creation of jobs, bolstering our economy.

Reduced Student Loan Debt and Economic Stimulus

Tuition-free college would obviously help reduce that burden. Students might still require loans for living expenses and related costs, but it certainly would amount to less. Student loan debt now constitutes more than one-third (34.3%) of non-housing debt, outpacing auto loans and credit cards. In a 2021 poll by the National Association of Realtors, 60% of millennials said student loans were preventing them from buying a house. A 2020 study by the American Enterprise Institute estimated that free college would reduce new borrowing by $177 billion between 2020 and 2030, a reduction of 15% over the otherwise projected amount.

Student loan debt can hinder economic growth by delaying milestones such as purchasing a home, getting married, and starting a family. Eliminating tuition fees would alleviate this burden, freeing up individuals to invest in the economy and pursue their financial goals.

Freedom to Pursue Passions and Interests

Removing the tuition burden changes the ROI calculus. Sure, it doesn’t mean that religion, education, and psychology majors will earn more in their careers, especially to start, but their debt-to-income ratios will change. Free of that debt burden, would more students choose majors according to their passions and be less concerned about earning enough to pay back loans? Would more students opt for the liberal arts instead of more “practical” pursuits such as business and engineering?

With more majors in those fields, perhaps universities would be less likely to eviscerate programs and eliminate faculty positions when state budgets tighten. Having a full array of liberal and fine arts courses enriches the curriculum not only for majors but for all students who wish to explore new areas of inquiry.

Historical Precedent and Success

Our society and economy have benefited from tuition-free college in the past. Nearly half of all college students in 1947 were military veterans, thanks to President Franklin D. Roosevelt’s signing of the G.I. Bill in 1944 to ensure that military service members, veterans, and their dependents could attend college tuition-free. The G.I. Bill allowed 2.2 million veterans to earn a college education and another 5.6 million to receive vocational training, all of which helped expand the middle class. An estimated 40 percent of those veterans would not have been able to attend college otherwise. Recipients of G.I. Bill benefits generated an extra $35.6 billion over 35 years and an extra $12.8 billion in tax revenue, resulting in a return of $6.90 for every dollar spent.

The beneficiaries of the free tuition contributed to the economy by buying cars and homes, and by getting jobs after college, while not being burdened by college debt. The 1944 G.I. Bill paid for the educations of 22,000 dentists, 67,000 doctors, 91,000 scientists, 238,000 teachers, 240,000 accountants, 450,000 engineers, three Supreme Court justices (William Rehnquist, John Paul Stevens, and Byron R. White), three presidents (Richard Nixon, Gerald Ford, and George H.W. Bush).

Arguments Against Anti-Tuition Fees

Funding and Financial Sustainability

Free college means it’s no cost to students, but it’s not free for the colleges. They still require tuition income, or some form of substitute, to operate. Where do these funds come from? A primary concern is where the money would come from to fund tuition-free college. Biden wanted the government to pay. through a federal-state partnership. Higher taxes means everyone pays for “free” college. The estimated cost of Senator Bernie Sanders’ free college program was $47 billion per year, and it had states paying 33 percent of the cost, or $15.5 billion.

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Opponents argue that taxpayers would bear the burden of subsidizing tuition, while other college costs would remain high. According to David H. Feldman and Robert B. Neal McCluskey, director of the Cato Institute’s Center for Educational Freedom, calculated that free college funded by tax dollars would cost every adult taxpayer $1,360 a year, or $77,500 over a lifetime. This raises questions of fairness and whether it is appropriate for those who do not attend college to subsidize the education of others.

Another option is to underwrite tuition costs through lottery proceeds. For more than 30 years, Georgia has funded its HOPE Scholarship program, which provides scholarship assistance to state residents, through its lottery. But unless a new lottery materializes specifically aimed at raising revenue to cover tuition costs, states would have to divert lottery funds already earmarked for other priorities. Bernie Sanders wants Wall Street to pay. His “speculation tax” on stock transactions would raise $2.4 trillion over 10 years, making those who “nearly destroyed the economy” during the Great Recession foot the bill for free college and student loan debt cancellation.

Additional Costs Beyond Tuition

Tuition constitutes only part of college costs. Fees, room and board, books, travel, and related expenses can become significant financial burdens, costing more than $16,000 per year on average in 2022. For low-income students, even a “free” college opportunity can be out of reach.

Even with tuition fees eliminated, students would still face significant expenses for fees, room and board, books, and other necessities. This means that students would still have large debts. Tuition accounts for just under 20 percent of the average community college student’s budget, which runs $20,570 annually on average.

What’s more, current programs based on the “last-dollar” model, which cover tuition after all federal aid is applied, benefit wealthier students more than low-income students, per The Hechinger Report. Pell Grant-eligible students already cover tuition costs at community colleges with those funds, so they don’t actually realize savings like non-Pell students do. Wil Del Pilar, vice president of higher education policy at the Education Trust, calls free college “a false promise.”

Another option is the “first-dollar” approach, which waives tuition regardless of federal aid, allowing Pell students to use those funds to cover additional costs. Yet those programs remain the exception to the rule nationwide.

Potential Decline in Educational Quality

Tuition-free college doesn’t necessarily equate to a better education. In fact, it may diminish quality. Tuition-free college could lead to overcrowding and require universities to expand infrastructures, add faculty, and bolster student services to accommodate enrollment growth. But governments have a history of underfunding programs, raising the question of whether federal or state funds would keep pace with enrollment increases and related expenses. If not, the entire academic enterprise could suffer.

If state colleges couldn’t expand to accommodate growth, they might instead become far more selective in the face of exploding demand for free education, turning away thousands of applicants. In that case, does free college truly achieve its goal of a more educated populace?

Misallocation of Resources and Lack of Accountability

Colleges don’t necessarily have to be free. But they should be better funded and become more efficient. According to The Wall Street Journal, public universities “spend like there’s no tomorrow.” The Journal’s analysis revealed that spending at the median flagship state university rose 38% between 2002 and 2022, resulting in a 64% price increase for the average student.

Salary increases, along with rising costs for utilities and employee benefits, to be certain, but also swanky dorms and student centers, enviable athletic facilities, and bloated administrations. “These places are just devouring money,” Holden Thorp, former chancellor at the University of North Carolina at Chapel Hill, told the Journal. “Universities need to focus on what their true priorities are and what they were created to do.” The Journal also notes public colleges face little accountability for their burgeoning budgets.

Tuition-free college attracts students who really shouldn’t be in college, wasting public money and decreasing college completion rates. States with Free College Programs Countries with Free College jurisdiction details of fees covered by the government. Jack A. “Students will enroll at a ‘free college’ and borrow money for the cost of attendance. Then, they will drop out and have a student loan-but no skills. Brilliant,” quipped Vince Norton, managing partner at Norton Norris, a campus marketing company.

Alternative Approaches to Addressing College Affordability

Targeted Aid and Income-Driven Repayment Plans

Some college leaders say that rather than offer broad tuition discounts, colleges should target relief to needy students. Reducing the bills of those who can afford to pay, including well-off international students, could reduce the pot of money colleges have to put toward high-demand services, such as expanded online offerings and mental health resources.

Many colleges reported increased operating expenses as they quickly ramped up online offerings following the onset of the pandemic. Since online learning is here to stay, many schools continue to invest heavily in technology to prepare for future terms. Targeted relief may allow colleges to help the students who need it the most, while still expanding academic offerings and essential student support services.

Systemic Reforms and Increased Accountability

Some analysts say the perception that college is the only path to a well-paying job drives up demand and harms students who could be better served by other forms of education. In recent years, politicians from both major parties, including former President Trump, have advocated increasing access to career and technical education (also known as vocational education) as an alternative to college. Indeed, enrollment in trade programs has increased since 2020, even as enrollment at two- and four-year public institutions is yet to recover from the pandemic.

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