Public Universities Remain America’s Best Investment — and They’re More Affordable Than You Think

COMMENTARY

“Colleges aren’t turning out the right kind of student[s].” That was the take offered by Meta CEO Mark Zuckerberg in a recent podcast appearance, where one of the leading voices in the tech industry echoed an argument we’re hearing far too often: college is no longer an investment that pays dividends for students and families.

This narrative — and the funding threats it brings — is misleading. The truth is that public higher education remains the best investment American families can make for their future and the best guarantee of our nation’s economic well-being. 

Worse yet, the conversation is fueling action in Congress that could lead to devastating cuts in higher education, reducing opportunities and graduation rates. This week, the Senate is considering a House budget proposal that would cut more than $350 billion in investment in higher education, including a Pell Grant budget that would reduce or eliminate Pell Grants for over 4 million students, cutting a vital lifeline for middle- and low-income families to make college affordable.

Attending and graduating from a public college remains the surest way to achieve economic success. A 2024 study of 5.8 million Americans revealed that holding a college degree offers better financial returns than the stock market, with a nearly 10% return throughout a person’s working life. Those who earn a four-year degree earn an average of $1.2 million more in lifetime earnings.

These benefits extend to the entire community. Studies show that college graduates are more likely to vote, enjoy better mental and physical health, engage in civic life and volunteer more often in their communities. They are more likely to own their own home and less likely to require public assistance.

Despite these dividends, the narrative that college isn’t affordable is gaining traction. A 2024 Pew survey found that only a quarter of Americans believe a four-year degree is a “very or extremely” important part of preparing for a good job. This is a significant decline from just a decade ago, when earning a college degree was considered a ticket to economic success. 

Stories about the high sticker cost of tuition overlook that few students pay the full cost of attendance when scholarships and financial aid are factored in. In fact, between 1985 and 2023, while the sticker price to attend increased slightly faster than the inflation rate, the net cost grew more slowly. Research from the Association of Public and Land-Grant Universities shows that in-state students at public four-year schools pay under $3,000 in tuition per year, which makes higher education much more accessible than many realize.

These public universities are an exceptionally affordable investment for in-state residents. At the University of California, over half of students graduate without any debt, and those who do average payments that are under $200 a month, less than the payment on a used car. Our average student recoups that debt in just one year of additional income after graduation. There is one important caveat to keep in mind, however: college only pays off when students complete their degrees. 

Furthermore, universities contribute to the country’s financial and physical well-being. Public universities conduct two-thirds of the university research in the United States. Students are at the heart of this work happening at the nation’s public R1 universities. They unlock health discoveries in laboratories, transform ideas into prototypes in engineering classes, and learn how to bring them to consumers in business classes. No experience could better prepare them to be the innovators who will drive the American economy forward.

For eight decades since the end of World War II, investment in higher education has driven prosperity unmatched anywhere or at any time in history. As we confront a new set of global challenges and economic rivals, this is not the moment to retreat from that commitment. It’s a time to increase our investment and make a college education attainable for everyone who wants one. 

Congress must protect Pell Grants and accessible, fair student loan programs that make college affordable for low-income and middle-class students, while preserving the research investments that develop the skills they’ll need for careers.

Higher education leaders must counter the narrative and make the case to students and their families that pursuing a college degree opens doors and expands opportunities.

That’s just what American public universities do. They fuel the American dream, connecting our best and most ambitious minds from every corner of the country and from every background to forge personal achievement and stronger, healthier communities.

It’s a story — and investment — we must protect.

Gary S. May is UC Davis’ seventh chancellor and oversees all aspects of the university’s teaching, research and public service mission. He boldly leads the university to new heights in academic excellence, public service, diversity and upward mobility for students from all backgrounds. He can be found on LinkedIn.