Debt vs. Degrees: Why College Costs Perpetuate Economic Inequality

The cost of a college education in the United States has reached staggering heights, creating a barrier to opportunity that disproportionately affects those from lower-income backgrounds. Once heralded as a pathway to socioeconomic mobility, higher education is increasingly becoming a luxury that excludes many who stand to benefit the most. For families struggling to make ends meet, the prospect of affording tuition is daunting, and for students who do take on the financial burden, the repercussions can reverberate for decades.

The rise in tuition costs over the past few decades is nothing short of alarming. Between 1990 and 2018, tuition at public four-year institutions increased by 178% after adjusting for inflation. Meanwhile, median family income has not kept pace, leaving families to shoulder a growing financial gap. For affluent households, this cost may represent a strain, but for low- and middle-income families, it consumes a disproportionate share of their earnings. Many are forced to choose between pursuing education or enduring long-term financial hardship.

Financial aid programs, ostensibly designed to level the playing field, often exacerbate existing inequities. The formulas that determine eligibility for federal aid exclude crucial measures of wealth, such as home equity and retirement savings. This means that families with substantial hidden wealth, often white households, benefit disproportionately, while lower-income and minority families are left to face the brunt of college costs. These structural biases in financial aid allocation serve to widen the racial wealth gap, ensuring that education remains out of reach for many.

Selective colleges, those institutions that act as gateways to prestigious careers and opportunities, offer little solace. These universities have long been criticized for enrolling low numbers of students from disadvantaged backgrounds. While these students often meet the academic standards for admission, the financial and informational barriers they face are insurmountable. The result is an economic homogeneity that mirrors and perpetuates existing inequalities. Without intervention, these institutions risk solidifying themselves as exclusive bastions of privilege rather than engines of upward mobility.

For those who do manage to enroll, the path to a degree is often paved with debt. Student loans have become a lifeline for millions, but they carry a heavy price. Borrowers, particularly those from marginalized communities, face years of repayments that limit their ability to build wealth. For Black and Latino students, who are more likely to take on debt and in larger amounts, the impact is devastating. Instead of leveling the playing field, student debt serves to deepen economic divides, delaying milestones like homeownership and perpetuating generational poverty.

The issue of rising college costs is not merely an economic problem—it is a moral one. Higher education should be an engine of opportunity, but instead, it is entrenching inequality in ways that affect individuals, families, and entire communities. Without bold, systemic reforms to make higher education more affordable and accessible, the American dream of upward mobility will remain a distant hope for too many.

This crisis demands our attention because the stakes extend far beyond individual students. Education is the foundation of innovation, civic engagement, and economic growth. When access to education is restricted by cost, society as a whole suffers. Addressing this issue is not just about helping individuals; it’s about safeguarding the future of a nation that prides itself on opportunity. We must care because to ignore this problem is to accept a society where birthright, not merit, determines one’s potential. The time for change is now.