Concerns about the rising cost of college and growing student loan debt have intensified in recent years, with 85% of non-enrolled adults citing affordability as a key barrier (Gallup & Lumina Foundation, 2024) and a third of currently enrolled college students agreeing that their "institution charges too much for an undergraduate…

This report examines state-funded loan forgiveness and conditional grant programs, designed to alleviate student loan debt and address workforce shortages in high-need fields. These service-contingent programs incentivize graduates to work in targeted occupations or underserved areas in exchange for debt relief.

Over the last two years the Midwestern Higher Education Compact (MHEC) staff conducted a thorough program review to determine the current relevance and value of the Midwest Student Exchange Program (MSEP). This culminated in the report "Student Reciprocity Programs and MSEP in the 21st Century" (ED627191) which utilized historical MHEC…

In 1994, the Midwestern Higher Education Compact (MHEC) joined its sister compacts in offering a regional student reciprocity and tuition exchange opportunity known as the Midwest Student Exchange Program (MSEP). The program allowed students from one MHEC state to attend an institution at a reduced tuition rate in another MHEC state when the…

Student loans can help fill cost gaps created by insufficient grants, scholarships, and family income in funding a postsecondary education. Whereas receipt of grant aid does not require repayment, student loans must be repaid with interest. Loans provide students with additional choices, such as living independently (instead of living with parents…

This brief examines two types of state service-contingent aid programs: conditional grants/loans and loan forgiveness. Conditional grant or loan programs provide a financial award to currently enrolled students and, in exchange for receipt of the award, students must fulfill certain service or work requirements after graduating from college. Loan…

After decades of making minor tweaks to the U.S. financial aid system, there is a need to develop truly novel approaches to paying for college. Until now, the goal of financial aid has been narrowly framed as providing young adults with enough money to pay for college while minimizing the short-term burden to taxpayers. Because of this narrow…

In an era in which public postsecondary institutions increasingly face budget constraints, the state residency of students has become an important factor in complex decisions on tuition-setting policies and enrollment management. This report examines the current trends and impact of out-of-state tuition premiums -- defined as the additional amount…

As the price of a public college education has risen at well above the rate of inflation for decades, college affordability has become a key concern in public policy discussions. At the same time, recent high school graduates from lower-income and middle-income families are nearly 20 percentage points less likely to enroll in college the following…

The Midwestern Higher Education Compact (MHEC) helps improve access to postsecondary education through the Midwest Student Exchange Program (MSEP). The MSEP serves as the Midwest's largest multi-state tuition reciprocity program. Nearly 100 colleges and universities in Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, North…

Teacher preparation refers to a "state-approved course of study, the completion of which signifies that an enrollee has met all the state's educational or training requirements for initial certification or licensure to teach in the state's elementary or secondary schools" (Department of Education, 2016, p. 6). The widespread concern for…

The Midwestern Higher Education Compact (MHEC) helps improve access to postsecondary education through the Midwest Student Exchange Program (MSEP). The MSEP serves as the Midwest's largest multi-state tuition reciprocity program. Nearly 100 colleges and universities in Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, North…

Grant aid -- whether based on financial need, merit, or a combination therein -- is the primary form of financial aid awarded by states. States use grant aid to encourage academic preparation, enhance access to postsecondary education, affect students' choice of college, support persistence, and reduce out-of-state migration. State grant aid…

Higher education makes important contributions to the betterment of society and to the lives of individuals. On a societal level, higher education supplies an educated citizenry and workforce. For individuals, higher education provides an opportunity for personal development, fulfillment, and economic mobility. States play a large role in helping…

The widespread notion of a general student debt "crisis" creates an exaggerated image of the problems associated with borrowing for college and diverts attention from the serious difficulties some students and former students face. A disproportionate amount of attention goes to the $1.5 trillion dollars in outstanding student debt.…