In the months following the 2018 election, the “free college for all” movement appeared to be on its deathbed. “Bernie Bros” across the country had buried the dream of debt-free college alongside their “Feel the Bern” bumper stickers and had surrendered the socialistic promise to the ash heap of history.
At the same time, however, free community college programs have gained steam in blue and red states alike. Currently 17 states offer tuition-free community college programs for high school graduates. While these programs have unquestionably provided unique opportunities to motivated students, politicians have not stopped debating the overall effectiveness of free college.
With the national student loan debt totaling $1.56 trillion, it’s clear something is very wrong with our higher education system. But according to a recent study, the removal of all debt from the equation may not be the best solution.
Benjamin Marx, an assistant professor of economics at the University of Illinois at Urbana-Champaign, and Lesley Turner, an assistant professor of economics at the University of Maryland, College Park, tested whether reducing borrowing helps or hurts students.
Using data from the 2015-16 academic year at a random, unnamed community college, the researchers actually identified several academic benefits for community college students who took out loans to pay for their education.
“The loans helped students take more classes, but that doesn’t seem to be the only or main effect,” Marx told Inside Higher Ed. “Students actually did better in their classes when they had a student loan.”
Data revealed that students who borrowed academically outperformed their peers who did not borrow. These students earned an average of 3.7 additional credits and had higher grade-point averages. They also were more likely to transfer to a four-year institution one year after receiving the loan offer from their school.
As common sense would suggest, Marx and Turner discovered that having some skin in the game challenges students to take their studies seriously. With the financial assistance provided by a loan, they can also take more classes to stay on track and finish their studies quickly.
“[A] student knows they have to repay a loan in the future, and they take their studies seriously,” he said. Loans also provide students with additional financial resources, which means they don’t have to spend as many hours working to earn money and can take more classes instead so they can graduate quickly.
Marx and Turner conclude that student debt “may help facilitate success for students, especially those who lack other resources that could be used to cover costs associated with college attendance.”
In other words, college debt can be good in moderation. Tens of thousands of dollars worth? Not so much.
Brendan Pringle (@BrendanPringle) is writer from California. He is a National Journalism Center graduate and formerly served as a development officer for Young America’s Foundation at the Reagan Ranch.
