A college degree can be a magical key to higher earnings, making it especially beneficial for students from low-income families. What describes the American Dream better than a rags-to-riches story?
College creates a sort of equality in its graduates: low-income and high-income students have similar earnings outcomes after graduating from the same college. This level playing field gives low-income students equal chances of ending up in higher income brackets. The economic mobility granted to low-income students is the reason college is necessary in today’s economy.
But how do low-income students maximize that mobility?
It isn’t news that the school you attend affects your earnings after college. Ivy League colleges produce higher earning graduates on average than other colleges. (In fact, Ivy League graduates are earning, on average, double what graduates of other schools are earning 10 years after graduating.) Low-income students who attend Ivy Leagues schools experience greater mobility in earnings than those from other schools.
But the problem is that low-income students are far less likely to attend Ivy League schools, which may be a result of poor communication about financial aid and fear of outrageously high education price tags. Only 3 percent of enrolled students at the nation’s most competitive colleges are from low-income families.
Thankfully, middle-tier colleges, like state colleges, still provide mobility while providing much easier access for low-income students. According to a study from earlier this year called “Mobility Report Cards: The Role of Colleges in Intergenerational Mobility,” the highest rated college for mobility is Vaughn College of Aeronautics and Technology, followed by CUNY Bernard M. Baruch College and City College of New York.
Ivy League schools don’t fare so well. Even though they provide the most dramatic mobility, the poor accessibility for low-income students means fewer students experience the mobility. The truth is that less selective schools, like state schools, have comparable mobility while offering greater accessibility.
Options are available to help
Most people do not realize that there are programs designed to help those who may be struggling with their student loan payments. Thousands of borrowers have trusted Ameritech Financial to be their advocate. Click here to find out what options are available. Our services could help you get back on track.Get Started Learn More