Biden's Renewed Effort for Tuition-Free Community College Could Transform Personal Finances

President Joe Biden indicated that he was still hopeful about making some college education free when he disclosed the specifics of his Plan B for student loan forgiveness.

Some experts argue that free college, as opposed to loan forgiveness, is a more effective solution to the challenge of college affordability. While a government initiative has not yet taken off, it is likely to get broad support in the future.

The president's efforts to waive student loans have drawn criticism for going beyond his power and just affecting graduates who already owed money on their education.

On the other hand, free college appeals to a wider audience of people who are having difficulty paying for education now rather than later.

However, the Build Back Better Act finally removed the Biden administration's proposal to make community colleges free of tuition for a two-year period in 2021.

Nevertheless, states have been forging forward with plans to enact legislation of their own to make some college tuition-free, even as the White House shifted its attention to student loan forgiveness. According to the most recent count, 35 states had already implemented a program of some kind.

The majority of scholarships are "last-dollar" ones, which means that after financial assistance and other awards are applied, the program covers any remaining tuition and fees. Stated differently, scholarships are awarded to students to pay the portion of tuition not covered by current state or federal aid.

The Issue With Free College

Critics claim that lower-income students already pay close to nothing in tuition at public colleges due to a mix of current subsidies and scholarships.

Additionally, the funds typically do not cover room and board, fees, or books-all expenses that lower-class students find difficult to afford-and community college might not be the springboard to a four-year institution that many people think it is.

According to recent statistics from the National Student Clearinghouse Research Center, the Aspen Institute College Excellence Program, and the Columbia University Community College Research Center, only sixteen percent of community college students continue on to earn a bachelor's degree.

Community college is also already far less expensive. According to the College Board, the average cost of tuition and fees at two-year public institutions for the 2023-2024 academic year is $3,990. As an alternative, the amount is $11,260 each year at four-year in-state public institutions and $41,540 at four-year private colleges.

New Mexico Program

The New Mexico Opportunity Scholarship Act is the most comprehensive tuition-free scholarship program in the nation among all state-based schemes; according to Morgan, "that's our gold star in terms of programs."

The Opportunity Scholarship in New Mexico surpasses most others by providing admission to recent high school graduates as well as returning adult learners, part-time students, and immigrants regardless of their immigration status. (In New Mexico, the typical scholarship winner is a female Hispanic under-25.)

Since state assistance is applied first in New Mexico, private scholarships and federal aid can be used to pay for childcare, books, and room and board in order to partially offset the expense of attending school.

According to Higher Education Department Secretary Stephanie Rodriguez, since the program's establishment in 2022, the state's total college enrollment has climbed by over 7%, reversing more than a decade of decreases.