RISING ABOVE THE THRESHOLD - How Expansions in Financial Aid Can Increase the Equitable Delivery of Postsecondary Value for More Students - June 2023

Oct 15, 2026

Rising Above the Threshold examines how college affordability and expanded financial aid can improve equitable outcomes for students. Using publicly available data, the report estimates how many colleges deliver a minimum economic return for students, defined as Threshold 0, and evaluates policy interventions to increase equitable value. It frames postsecondary economic and non-economic benefits through an equity-centered value framework and details thresholds linking earnings, mobility, and wealth to investments in education. Recommendations focus on increasing affordability and equitable delivery of postsecondary value.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages28

Reading Time1 h 11 min

AccessFree to download

Introduction

Methodology

How Institutions Perform Against Threshold 0

How Would Financial Aid Expansions Change the Number of Institutions Providing a Minimum Economic Return?

Doubling the Federal Pell Grant

Investing in Free College Programs

Looking Forward: Recommendations to Increase Affordability

Conclusion

Appendix: Technical Documentation and Detailed Methodology

Notes

RISING ABOVE THE THRESHOLD HOW EXPANSIONS IN FINANCIAL AID CAN INCREASE THE EQUITABLE DELIVERY OF POSTSECONDARY VALUE FOR MORE STUDENTS BY KIM DANCY, GENEVIEVE GARCIA-KENDRICK, AND DIANE CHENG JUNE 2023 TABLE OF CONTENTS INTRODUCTION ..................................................... 3 METHODOLOGY .................................................... 5 HOW INSTITUTIONS PERFORM AGAINST THRESHOLD 􀀟 .................. 7 HOW WOULD FINANCIAL AID EXPANSIONS CHANGE THE NUMBER OF INSTITUTIONS PROVIDING A MINIMUM ECONOMIC RETURN? ........... 9 DOUBLING THE FEDERAL PELL GRANT .................................... 9 INVESTING IN FREE COLLEGE PROGRAMS ................................. 11 LOOKING FORWARD: RECOMMENDATIONS TO INCREASE AFFORDABILITY ..................... 14 CONCLUSION ....................................................... 16 APPENDIX: TECHNICAL DOCUMENTATION AND DETAILED METHODOLOGY ............. 17 NOTES ............................................................ 27 RISING ABOVE THE THRESHOLD | 2 INTRODUCTION There is overwhelming evidence that pursuing a college education provides substantial economic and non-economic benefits to students.1 But how much a degree is worth depends heavily on the institution a student attends. Unfortunately, value also is still influenced by a student’s race, income, and gender, due to inequities in our higher education and workforce systems.2 Institutional leaders, federal and state policymakers, and other stakeholders all have a role to play in delivering equitable value: the economic and non-economic benefits that accrue to students, their families, their communities, and society. This report assesses economic value for students by using publicly available data to estimate the number of colleges that provide a minimum economic return for students (defined as “Threshold 0”) and explores policy interventions that would increase equitable value. This analysis builds on the work of the Postsecondary Value Commission,3 which sought to define postsecondary value, measure postsecondary value, and develop an action agenda to expand and improve value, all while centering equity in postsecondary policymaking. The Commission focused on equitable value for Black, Latinx and/or Hispanic, Indigenous, underrepresented Asian American, Native Hawaiian, and Pacific Islander (AANHPI) students, students from low-income backgrounds, and women—as well as the intersectional identities within and across these groups (e.g. , low-income White students and men of color) . Evidence shows that the postsecondary education system currently fails to ensure that these students receive returnson their investments through equitable access, completion, affordability, and workforce outcomes. As part of its work, the Commission developed a framework that conceptualizes the economic and non-economic benefits that postsecondary education can provide to students, their families, our workforce, and society. That framework includes six economic value thresholds that measure individual outcomes and return on investment (Figure 1) . Equitable Postsecondary Value Students experience postsecondary value when provided equitable access and support to complete quality, affordable credentials that offer economic mobility and prepare them to advance racial and economic justice in our society. As defined by the Postsecondary Value Commission RISING ABOVE THE THRESHOLD | 3 FIGURE 1 The Postsecondary Value Framework’s Economic Value Thresholds | 0 | Minimum Economic Return: Students meet this threshold if they earn at least as much as a high school graduate plus enough to recoup their total net price within ten years. | | --- | --- | | 1 | Earnings Premium: Students meet this threshold if they reach at least the median earnings in their field of study, which accounts for expected variations in pay across fields. | | 2 | Earnings Parity: Informed by the University of Texas

FAQs

What is Threshold 0 in the report?

Threshold 0 measures whether students earn at least as much as a high school graduate plus enough to recoup their total net price within ten years.

Why does affordability matter for delivering postsecondary value?

Affordability strongly affects whether students reach Threshold 0, because higher net costs require higher post-college earnings to deliver a minimum economic return.

How does the report evaluate policy interventions like Pell Grant changes?

It explores how financial aid expansions would change the number of institutions providing a minimum economic return, including scenarios such as doubling the federal Pell Grant and investing in free college programs.

Oct 15, 2026

Uploaded by Sophia Brooks