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Some other considerations for whether and how much we should fund colleges are taxpayer benefits and benefits to local economies:
https://www.rand.org/pubs/research_briefs/RB9461/index1.html
https://www.brookings.edu/research/what-colleges-do-for-local-economies-a-direct-measure-based-on-consumption/
https://www.rand.org/pubs/research_briefs/RB9461/index1.html
RAND researchers examined how taxpayers benefit from increases in students' educational attainment. Using statistical modeling and national data, they analyzed how increases in educational attainment are associated with tax revenues, funds for social support and insurance programs, and spending on incarceration. The researchers found that, for all racial/ethnic groups, an increase in a student's educational attainment — for example, completing high school rather than dropping out — is associated with substantial value for taxpayers over time.
https://www.brookings.edu/research/what-colleges-do-for-local-economies-a-direct-measure-based-on-consumption/
With these benefits in mind, this brief finds the following:
- The average bachelor’s degree holder contributes $278,000 more to local economies than the average high school graduate through direct spending over the course of his or her lifetime; an associate degree holder contributes $81,000 more than a high school graduate.
- The quality of colleges greatly affects the size of these benefits. High value-added four-year colleges contribute $265,000 more per student to local economies than low-value added four-year colleges. The contribution is $184,000 for high value-added two-year colleges.
- Sixty-eight percent of alumni from two-year colleges remain in the area of their college after attending, compared to 42 percent of alumni from four-year colleges. High-value added colleges are no more or less likely to retain students in their metropolitan area.
- State and local governments, as well as their taxpayers, have a very strong incentive to boost college attendance and completion, especially at higher quality institutions. Risk-sharing of federal student loans—based on value-added principles—is one promising approach to promoting greater economic returns for students and taxpayers.