The wage difference between college and high school graduates, or the “college wage premium,” grew during the pandemic. On average, recent college graduates earn $52,000 per year compared to the $30,000 earned by those with only a high school diploma. Nevertheless, an increasing number of teenagers are deciding to forego college despite the documented financial benefits. Nationally representative surveys of high school students conducted over the last few years indicate that the cost of higher education is the primary reason why.
It’s hard to blame teenagers for wanting to avoid the crushing debt that’s dominating headlines and impacting the lives of older generations. It’s also important to recognize that skipping a traditional four-year college isn’t necessarily a bad thing. Opting for a career and technical education (CTE) program offers plenty of benefits, including boosted income and a chance to develop valuable soft skills. The industry-recognized credentials associated with career pathways have proven to be valuable to both students and employers. Work-based learning opportunities like those in Rhode Island and Delaware can open the door to well-paying jobs and in-demand careers. And the Wall Street Journal recently reported that more students are taking advantage of apprenticeships, which offer workers on-the-job learning experience with pay, job-related classroom training, and the chance to earn a credential—all at little or no cost.
The catch is that in many places—including Ohio—there are access barriers and unanswered questions about program quality. The Buckeye State has prioritized strengthening education-to-workforce opportunities in recent years, but there are still thousands of students who lack access to or knowledge of available career pathways. (A mere 8 percent of students in the class of 2021 earned enough points in Ohio’s industry credentialing system to graduate based on their career experience and technical skill.) And while state leaders have improved overall data transparency, Ohio still doesn’t link K–12, post-secondary, and workforce outcomes. Without these data, it’s impossible to determine which of Ohio’s CTE programs and career pathways are valuable alternatives to a four-year degree.
Between the steep cost of higher education on one hand and CTE access and quality issues on the other, many young people end up adrift after graduating from high school. Strategic adjustments to state policy could give them the information and support they need to get back on track. In fact, the governor’s recently released budget recommendations contain several proposals that, if strengthened and passed, could lay the groundwork for some much-needed improvements. Let’s take a look.
Increasing support for graduates
DeWine has proposed establishing an office called ApplyOhio within the Ohio Department of Higher Education. It would be responsible for coordinating efforts to support Ohioans in “accessing a pathway to a post-secondary education after graduating high school.” Although state institutions of higher education are mentioned, the language also explicitly mentions Aspire programs (which provide free services to help adults acquire a variety of skills), Ohio Technical Centers (independently operated CTE centers that offer training and credentials for in-demand jobs), and other post-secondary institutions. In other words, ApplyOhio will be responsible for helping people access all types of post-secondary education, not just a traditional four-year degree. ApplyOhio would also help with efforts aimed at increasing the state’s Free Application for Federal Student Aid (FAFSA) completion rate, improving the post-secondary admissions process, and recruiting Ohioans with some college credit but no degree to re-enroll in higher education.
At first glance, this might seem like just another layer of bureaucracy. But it’s actually a strategic move with two potentially huge benefits. First and foremost, it makes the state directly responsible for serving a population—recent high school graduates who aren’t enrolled in college—that typically gets overlooked. If the ApplyOhio office works as intended, it could step in and fill a massive void. In fact, the office could even partner with K–12 schools to ensure that students are more aware of their options before they graduate, thereby smoothing the often-bumpy transition. Second, re-engaging adults who already have some post-secondary education under their belts is crucial. For the individuals who are re-engaged, earning a credential or degree could vastly improve their job prospects and quality of life. And for employers, the talent pipeline will improve and expand. That’s a win-win that could significantly boost the state’s economy in the short- and long-term.
Investing in and improving CTE programs and infrastructure
One of the biggest headlines of DeWine’s budget is his increased investment in CTE programs and industry-recognized credentials. He’s proposed investing $26 million on industry-recognized credentials for high schoolers in both FY 2024 and 2025 and a whopping $50 million in new funding for CTE equipment during both fiscal years. DeWine’s budget would also require the Ohio Department of Education to increase the number of in-demand CTE programs across the state, and incentivize schools and businesses to offer work-based learning opportunities to thousands of students.
These are solid steps in the right direction, but the state can and should do more. A recently published brief from ExcelinEd and Ohio Excels offers four recommendations. The first, establishing a biennial return on investment analysis, would allow policymakers to identify which pathways are aligned with employer demand; evaluate student participation and outcomes for each program; and determine whether current offerings deliver on federal, state, and local investment.
Increasing awareness of college affordability
According to the Dayton Daily News, the cost of first-year tuition and fees at Ohio’s public universities rose about 4 percent between the fall of 2021 and 2022. That’s less than inflation, which went up by more than 8 percent, but an increase nonetheless. At most of Ohio’s public universities, a full year of tuition can cost between $10,000 and $13,000. On-campus housing can add, on average, about $12,401. Additional and unavoidable expenses, like textbooks, hike the price up even further. For example, U.S. News & World Report estimates that the total cost at Ohio State University for the 2021–22 academic year—an amount that includes tuition and fees, room and board, books, supplies, transportation, and personal expenses—was approximately $29,368 for in-state students. Financial aid and scholarship funds, though, brought the average cost down to roughly $18,165 for in-state students who receive need-based aid.
Eighteen thousand a year for four years isn’t cheap, but it’s definitely more manageable than $29,368. That’s why FAFSA is so crucial. By filling out this free form, students and families can apply for the grants, scholarships, and loans from federal, state, and local sources that make college more affordable. Many colleges and universities also use FAFSA to determine eligibility for their own institution-specific grants. To get a true picture of what higher education costs, families need to know how much aid is available—which means they need to fill out FAFSA.
Unfortunately, as of March 3, only 44 percent of Ohio’s class of 2023 had completed the form. It’s likely that a good chunk of students opted not to complete the form because they don’t plan to attend college and thus don’t believe they need financial aid. But given that affordability is one of the primary reasons why students are choosing not to attend college, it should worry policymakers that so many students are unaware of the financial assistance that would be available to them if they chose to enroll. This information could change the post-graduation plans for hundreds, even thousands, of teenagers. That includes high-achieving students from traditionally underserved backgrounds who would excel in college but don’t apply or enroll because they assume it’s out of their financial reach, as well as first-generation or low-income students who would benefit from the long-term financial boost of a college degree.
To increase FAFSA completion numbers, DeWine has proposed requiring every student to provide evidence of having completed and submitted the form in order to graduate. (He tried to pass a similar measure in the previous budget, but failed to get legislators on board.) There would be some exceptions, including allowing a parent or guardian to exempt their student by notifying the school that they won’t be completing and submitting the form. But for most students, FAFSA would no longer be optional. This seemingly small change would have an outsized impact, as it would raise awareness about the financial aid that’s available to students, and could push high schools to offer more assistance to families who are confused about how, when, or why to use FAFSA.
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In Ohio, far too many recent high school graduates are struggling to find their place. The cost of higher education seems to be keeping students away from college campuses. Meanwhile, state leaders can’t guarantee that career pathways and CTE programs with the potential to be a viable alternative to a four-year degree are as accessible and high-quality as they should be. In his budget, Governor DeWine has proposed a variety of initiatives that could help address these problems. For the sake of younger Ohioans and the long-term health of Ohio’s economy, lawmakers would be wise to heed these proposals and build on them.
