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The Postsecondary Undergraduate Population: Student Income and Demographics (CRS Report for Congress)

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Release Date April 12, 2019
Report Number R45686
Report Type Report
Authors Joselynn H. Fountain
Source Agency Congressional Research Service
Summary:

Since the 1950s and the creation of the first federal student aid programs, one aim of federal higher education policy has been to promote access to postsecondary education, particularly for students with financial need. In recent years, the federal government has annually made available more than $100 billion in federal grants, loans, and work-study funds to millions of students to help cover the cost of higher education. As Congress continues to focus on expanding access to postsecondary education through federal student aid policies, understanding various characteristics of the population enrolling in postsecondary education may be useful for policy deliberations. This report focuses on the income of the undergraduate student population. It analyzes (1) how the income distribution of the undergraduate population has changed over time; (2) the relationship between student income and certain student demographics, such as race and dependency status; and (3) how the income distribution of the undergraduate population compares with that of the population of persons who do not have a postsecondary degree. Major findings presented in this report include the following: The number and proportion of low-income students has increased in more recent years, even as total enrollment has decreased. Low-income student enrollment has increased at a faster pace than the nation's population of low-income persons. The majority of students enrolling in postsecondary education have incomes below 200% of the poverty guidelines. Independent undergraduate students who have sometimes been labeled as "non-traditional" constitute a large portion of enrolled postsecondary students and tend to have lower income than more "traditional" students. Nonwhite students account for nearly 50% of the undergraduate student population, and they tend to have lower income than white students. The majority of low-income students attend community colleges and a disproportionately high share attend private for-profit institutions. The changing composition of the student population could have implications for federal policies designed to promote access to postsecondary education. In particular, policymakers face consideration of whether federal policies could play a role in encouraging students at various income levels to enroll at the highest performing types of schools. Policymakers also face consideration of the extent to which Higher Education Act programs are designed to support the success of non-traditional and minority students.