The National College Attainment Network’s (NCAN) Growing Gap research analyzes the landscape of unaffordability at community colleges and public bachelor’s-granting institutions across
the country. Our findings add clarity to the consensus that college is not affordable for students in the US – and particularly for those from low- or moderate-income backgrounds.
This Midwest spotlight report compares the Great Lakes states of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin.
Context
In the national landscape of college affordability, the Midwest emerges as a particularly unaffordable region. This trend is driven in large part by public colleges and universities’ dependence on tuition as a source of revenue, which shifts the burden
of higher education funding onto students and deepens existing financial barriers for Pell Grant recipients and other students from low- and moderate-income backgrounds.
On average, public postsecondary institutions in the Midwest rely more on net tuition revenue for funding than public institutions do in other regions of the country. (Net tuition revenue refers to the remaining tuition cost a student pays after financial
aid has been applied. High net tuition revenue usually indicates an unaffordable college option for low- or middle-income families.) In 2023, nearly half (49.7%)
of the funding for public postsecondary education in the Midwest was brought in from net tuition revenue, compared to 30.8% in the West, 40% in the South, and 41.8% in the Northeast.
Nationally, about 40% of total education funding comes from tuition revenue, on average, up from 21% in 1980. Among the Midwestern Great Lakes states, this percentage, known as “student share,” ranges from 29% in Illinois, to 63% in Indiana, on average. In Indiana, Michigan, Minnesota, Ohio, and Wisconsin, the majority of public higher education funding comes from net tuition revenue.
While unaffordability persists in the Midwest, states have made strides towards improving the affordability of higher education through recent policy movement.
In 2022, Governor Gretchen Whitmer (D) signed the Michigan Achievement Scholarship into law, increasing access to financial aid for students
at community colleges, bachelor’s-granting institutions, and career training programs. The Achievement Scholarship is a last-dollar, renewable grant, available to Michigan residents with a Student Aid Index (SAI) of 30,000 or less, at public or private
institutions. In academic year 2023-24, nearly 29,000 students received a Michigan Achievement Scholarship, with
an average grant amount of almost $4,000. The majority of scholarship recipients (17,500) attended a public bachelor’s-granting institution.
Over the summer, state legislators in Illinois introduced an ambitious bill that would redesign the funding formula for public colleges and universities, to provide
“adequate and equitable” appropriations for institutions, based on their particular makeup and the unique needs of their student bodies. The formula was devised and recommended by the Illinois Coalition on Equitable University Funding in March of this year, before state senators formalized the recommendation in a proposed bill in July. If passed, SB 3965 would increase state funding to prevent tuition hikes and fill funding gaps between flagships and regional institutions, to improve widespread college affordability for low- and middle-income students in Illinois.
This fall, Minnesota launched the North Star Promise – a last-dollar scholarship program, which covers remaining tuition and fees costs for Minnesota residents from
families with an adjusted gross income below $80,000, at public institutions and tribal colleges. The North Star Promise program is available to students in both bachelor’s degree and community college degree programs, and aims to reduce financial
barriers, boost college enrollment, and strengthen workforce development and career advancement for Minnesotans. An estimated 15,000 students are expected to benefit from North Star Promise scholarship funds this year.
The policies introduced and implemented in Michigan, Illinois, and Minnesota, lay the groundwork for other states looking to increase the affordability of higher education and reduce the financial barriers to access, through state policy initiatives.
While a lack of affordability persists generally among public postsecondary institutions, NCAN’s research highlights variance in the affordability landscape at the state level. In our sample, the Midwestern states differ dramatically by average affordability
gaps and margins, and the percentages of affordable community colleges and public bachelor’s-granting institutions. The following state-level research findings examine these nuances and explore the college accessibility and attainment implications
for low- and moderate-income students in the Great Lakes states.
State-Level Findings
Illinois (n = 54)
In our sample, 26% of community colleges were affordable.
On average, 58% of public bachelor’s-granting institutions were affordable.
The average affordability gap at community colleges was $2,041.
At public bachelor’s-granting institutions, students had an average aid surplus of $91.
Illinois stands out among other Great Lakes states with nearly double the percentage of affordable public bachelor’s-granting institutions than the national average (33%) and an average funding surplus of $91, as opposed to an affordability gap of $1,690,
nationally. On average, according to the NCAN model, students’ financial needs are being met by the combination of grants, loans, federal work study, and student earnings used to cover the cost of attendance at public bachelor’s-granting institutions
in the state. Illinois was the only state in our Great Lakes sample with aid surpluses, on average, at bachelor’s-granting institutions.
Illinois, notably, has the lowest student share values among the Great Lakes states, and has since 1980. Student share has decreased steadily in Illinois for the last several years, with only 30% of the state’s education revenue coming from net tuition
revenue in 2022. This relatively low student share likely plays a significant role in achieving a more affordable landscape of higher education access – particularly at public bachelor’s-granting institutions, in Illinois.
The state performed less well when examining community college affordability in our sample, with the greatest average affordability gap among Great Lakes states ($2,041,) and one almost ten times the national average of $287. Additionally, while nearly
half of community colleges in the U.S. were affordable (49%,) only about a quarter of community colleges in Illinois were affordable in this year’s sample.
Indiana (n = 12)
In our sample, 100% of community colleges in Indiana were affordable.
Only 18% of public bachelor’s-granting institutions were affordable, on average.
On average, students at Indiana community colleges receive sufficient funding to cover the cost of attendance, with an aid surplus of $2,225.
At public bachelor’s-granting institutions, the average affordability gap was $2,121.
Due to the relatively small number of Indiana institutions with complete data in our sample, these findings may not be representative of the broader college affordability landscape in the state. Indiana only had one community college will full data in
our sample, which was affordable, and significantly more so than the average community college in the US. The aid surplus of $2,225 for students at the community college in our sample was the greatest average surplus seen among Great Lakes states
for institutions in that sector.
On average, Indiana’s public bachelor’s-granting institutions demonstrated greater affordability gaps ($2,121) than seen nationally ($1,690.) A smaller proportion of public bachelor’s-granting institutions (18%) are affordable in Indiana, as compared
to the national average of 33%. Among our Great Lakes sample, Indiana has the third lowest percentage of affordable bachelor’s-granting institutions, after Wisconsin (0%) and Ohio (6%). These statistics are likely driven by Indiana’s dependence on
tuition prices as a major revenue stream to fund public colleges and universities in the state. For the last couple of years, 63% of Indiana’s total education revenue has come from net tuition revenue – the highest student share among Great Lakes
states.
Michigan (n = 40)
In our sample, 52% of community colleges in Michigan were affordable.
Only 24% of public bachelor’s-granting institutions were affordable.
At Michigan community colleges, students had an average aid surplus of $317.
At public bachelor’s-granting institutions, the average affordability gap was $2,445.
Michigan community colleges in our sample were, on average, more affordable than those nationally, with an aid surplus of $317 – ranking 3rd for average community college affordability among the Great Lakes states. The percentage of community colleges
(52%) in Michigan was also slightly higher than the national average (49%). On average, community colleges in Michigan are more affordable than those nationally, and there are a higher percentage of affordable community colleges in the state than
in the country.
Public bachelor’s-granting institutions in Michigan performed less well in our sample, with only a quarter of institutions meeting the “affordable” mark, compared to about a third, nationally. On average, Michigan public bachelor’s-granting institutions
were less affordable than those nationally, with an average affordability gap of $2,445, compared to $1,690. Given Michigan’s notably high student share value (61% in 2022,) it is likely that this average gap is driven by dependence on students for
net tuition revenue to fund public colleges and universities in the state. An increase in higher education appropriations in Michigan would likely help to drive this gap down and lower the average cost of college for Michigan students.
Minnesota (n = 37)
In our sample, 44% of community colleges in Minnesota were affordable.
A quarter (25%) of public bachelor’s-granting institutions were affordable.
The average affordability gap at community colleges was $108.
The average affordability gap at public bachelor’s-granting institutions was $1,539.
On average, the affordability of Minnesota institutions was closest among the Great Lakes states to the statistics observed nationally. In our sample, community colleges in Minnesota had smaller average affordability gaps ($108) than the national average
gap of $287, but a slightly smaller percentage of the state’s community colleges were affordable (44%) compared to nationally (49%). This means that on average, students in Minnesota have more financial need met at community colleges than students
nationally, but that a smaller percentage of affordable institutions exist, on average, in the state than in the country. The small average affordability gap of $108 at Minnesota community colleges in our sample suggests that relatively minor increases
in need-based state financial aid could play a significant role in shifting the affordability landscape in the state.
Similarly, the affordability gaps at public bachelor’s-granting institutions in the state ($1,539) were slightly smaller than national average gap ($1,690,) but a smaller proportion of institutions in that sector were affordable (25%) compared to the
average percentage in the U.S. (33%) Again, the NCAN model suggests that on average, bachelor’s-granting institutions are slightly more affordable for Minnesota students than those nationally, but a smaller proportion of affordable institutions exists
in the state than in the US.
Ohio (n = 32)
In our sample, 75% of community colleges in Ohio were affordable.
Only 6% of public bachelor’s-granting institutions were affordable.
At Ohio community colleges, students had an average aid surplus of $2,086.
The average affordability gap at public bachelor’s-granting institutions was $4,401.
Ohio, on average, performed well in the community college sector in this year’s Growing Gap analysis. Among Great Lakes states, Ohio had the second-highest percentage of affordable community colleges in our sample (75%,) and the second-highest average
aid surplus ($2,086) in our sample. While Ohio was beat out in the percentage of affordable community colleges by Indiana, it is important to note that Indiana’s small sample size (one institution) likely impacted this statistic.
Ohio performed less well when examining the landscape of public bachelor’s-granting institutions in the state. Only 6% of Ohio’s public bachelors-granting institutions were affordable, on average – a significantly lower proportion than observed nationally
(33%.) The average affordability gap for public bachelor’s-granting institutions was $4,401 in Ohio – more than twice the national average gap observed for institutions in that sector ($1,690). Ohio had the largest average affordability gap for public
bachelor’s-granting institutions among the Great Lakes states, and the second lowest percent of affordable institutions.
Wisconsin (n = 28)
In our sample, 20% of Wisconsin community colleges were affordable.
There were no affordable public bachelor’s-granting institutions.
The average affordability gap at community colleges was $805.
The average affordability gap at public bachelor’s-granting institutions was $3,592.
The Growing Gap data present a broadly unaffordable higher education landscape in Wisconsin. In our sample, Wisconsin had the smallest percentage of affordable community colleges and public bachelor’s-granting institutions among the Great Lakes states
– 29 and 33% lower than the national averages for the respective sectors.
The average affordability gap at Wisconsin’s public bachelor’s-granting institutions ($3,592) was the second largest among the Great Lakes states and about twice the average affordability gap for public bachelor’s-granting institutions in the US. The
average affordability gap at community colleges ($805) was the second largest gap seen among community colleges in the Great Lakes states, and also, notably larger than the national average ($287).
Although Wisconsin institutions do not perform particularly well when it comes to college affordability in this year’s sample, student share in the state remains relatively low in comparison to other Great Lakes states. In 2022, Wisconsin’s student share
was the second lowest among the Great Lakes states, at 44%, and only two percentage points higher than the national average.
For more information about NCAN’s affordability analysis, you can explore the full 2024 Growing Gap report, as well as our updated state profiles, interactive
data dashboard. Questions? Please reach out to Louisa Woodhouse, Senior Policy Associate,
at woodhouse@ncan.org.
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