Tags: college | graduation | failure | billions

Study: College Graduation Failure Leads to Lost Billions

Monday, 22 Aug 2011 09:47 AM

By T.M. Golub

More than 40 percent of incoming college freshmen will not graduate within six years, costing billions of dollars in lost earnings as well as millions of dollars in lost tax revenue, according to a new study from the American Institutes for Research (AIR).
The study was conducted on more than 1.1 million full-time students entering college in 2002 seeking bachelor degrees. Of this total, close to 500,000 did not graduate within six years thereby costing a combined $4.5 billion in lost earnings and tax revenue never collected.
In itemizing, the 493,000 students starting their studies in 2002 and not graduating within six years lost roughly $3.8 billion in income in 2010 alone, which accounts for $566 million not collected by the federal government in tax revenue on that combined income figure.
“These findings represent just one year and one graduating class. Therefore, the overall costs of low graduation rates are much higher since these losses accumulate year after year,” said Mark Schneider, a vice president at AIR who co-authored the report, “The High Cost of Low Graduation Rates: Taxpayers Lose Millions.”

While the Obama administration has been actively encouraging more students to seek college degrees in order to build up a highly skilled workforce to compete in a global economy, the study uncovers the potential financial implications of this policy.
“Students who start college and don’t graduate incur large personal expenses. They have paid tuition, they have taken out loans, they have changed their lives and they have failed in one of the biggest goals they have ever set for themselves,” said Schneider. “Taxpayers have paid billions of dollars in subsidies to support these students as they pursue degrees they will never earn, and as a nation, we incur billions in lost earnings and lost income taxes each year.”


© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Cory McCloskey: Weatherman Keeps Cool as Glitch Puts Temps in the 1000s

Friday, 30 Jan 2015 15:36 PM

Cory McCloskey, a weatherman at Fox 10 in Phoenix, didn’t even break a sweat this week when his live weather map malfunc . . .

Balloonists' World Distance Record: Pair Smashes Old Milestone

Friday, 30 Jan 2015 15:16 PM

Two balloonists broke a world record Thursday for the longest distance flown in a helium balloon, surpassing the previou . . .

Roseanne Barr: Bill Cosby's Sexual Assault Accusations Are No Surprise

Friday, 30 Jan 2015 14:42 PM

Roseanne Barr has weighed in on the sexual assault scandal surrounding Bill Cosby, telling "Access Hollywood" this week  . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved