As someone deeply involved in higher education research, I’ve seen firsthand the growing skepticism around the value of a college degree. You’ve probably noticed it, too—headlines from The New York Times and The Wall Street Journal questioning whether the ever-rising cost of tuition is worth the supposed benefits of earning a degree. That skepticism is reflected in recent surveys, like Gallup polls showing a drop in public confidence in higher education, from 48 percent in 2018 to just 36 percent in 2023.
Despite overwhelming evidence that higher education boosts employment opportunities and lifetime earnings, this “return on investment” (ROI) isn’t equally distributed. Students from low-income backgrounds often attend institutions with lower ROI, raising a critical question: is college really worth it for everyone?
Affordability is a huge issue, especially for marginalized communities. As of 2023, U.S. student loan debt hit a mind-boggling $1.73 trillion, and the burden falls disproportionately on Students of Color. Black women, in particular, are carrying the heaviest load of student debt. This inequity impacts their ability to build wealth, buy homes, and achieve financial stability. And it makes me wonder—how do we restore faith in higher education when the returns aren’t equally felt?
I believe part of the solution lies in expanding how we define value in higher education. While the financial return on investment is a significant benefit for students, we risk overlooking the other intrinsic gains when we narrow our focus. At The Pell Institute, with support from the Lumina Foundation, we have been actively engaging in this important conversation, examining the holistic value of college through the experiences of Black, Latinx, and Indigenous students. Our research builds on existing studies that demonstrate the far-reaching benefits of a college education, including enhanced critical thinking, improved health outcomes, and greater civic engagement, further reinforcing these findings.
The feedback we’re hearing is clear. Students find tremendous personal, social, and professional value in their college experiences. In fact, 90 percent of those we surveyed reported feeling more confident, self-aware, and skilled at engaging with diverse perspectives because of their college experiences. They’re not just thinking about financial gains—they’re thinking about how their education will help them make a difference in their communities. That’s a value that transcends economics.
Building strong social networks also came up repeatedly. Four out of five students said they gained valuable connections with peers and faculty, which opened doors to future opportunities. This isn’t something we can measure in dollar signs, but it’s a critical part of why education matters.
So, how do we move forward? Yes, we absolutely need to address the affordability crisis—doubling the Pell Grant, expanding free college programs, and freezing tuition are all necessary steps. But we also need to look at programs like TRIO that provide comprehensive support to students beyond academics. These initiatives help build the confidence, networks, and skills students need to thrive, both during and after college.
Higher education has the potential to deliver on America’s promise of social and economic mobility, but we need to rethink what we mean by “value.” Financial returns are important, but so is the holistic development of students. Only then can we start to close the equity gaps in our system.
It’s time to broaden the conversation about what higher education really offers and to ensure that its value is truly accessible to all. The full essay “Bridging the ROI Gap: Adding Holistic Discourse to the Paradox of Postsecondary Value” was originally published in the latest edition of Indicators of Higher Education Equity in the United States 2024: 50-Year Historical Trend Report. It continues to show increasing inequity of opportunity, with the result that many students, especially low-income students, are excluded from a realistic chance to earn a college degree.