Students ditching college will lose collective $1T in lifetime earnings: Report
My eLearning World crunches the numbers on economic impact of low enrollment
FOX Business' Lydia Hu surveys the economic losses for students skipping out of college.
The coronavirus pandemic is causing a mass decrease in college enrollment, and it's only a matter of time before greater economic kickback sinks in.
More than one million fewer students are currently enrolled in college compared to before the pandemic, according to National Student Clearinghouse Research Center. Strict COVID protocols on campus and tuition that’s increased five times the rate of inflation are reportedly what's pushing students away from higher education.
National data reveals that only four states account for half of the decrease in enrollment – California, New York, Ohio and Texas. Miami University Dean Jason Lane blamed this pattern on pandemic impact and population makeup.
"Where you see the steepest declines happening tend to be places that may have been hardest hit by the pandemic, places where you saw a significant number of students from populations that tend to be more diverse and underserved first-generation communities," he told FOX Business’ Lydia Hu.
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According to a new study by My eLearning World, students who are ditching college will lose up to $1 trillion in collective lifetime earnings, equating to nearly 600,000 bachelor’s degrees, 180,000 masters and 40,000 doctorates lost.
The potential lost income totaling $1,062,721,400,000, calculated by comparing average income per degree, is bound to have a ripple effect on the entire U.S. economy as low-skilled job opportunities offer stagnant wages and decreased enrollment widens skill gaps.
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Meanwhile, people without higher education are four times more likely of living in poverty, leaning on government assistance and paying 45% less in taxes, according to the College Board Research.
As the $630 billion industry of higher education struggles to fill classroom seats, colleges and universities may be pressed to rethink their barrier to entry.