• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
LeadershipEducation

The case for Obama’s State of the Union free college proposal, in 6 charts

Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Down Arrow Button Icon
Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Down Arrow Button Icon
January 20, 2015, 9:33 PM ET
Video Poster

During his seventh address to Congress Tuesday night, President Barack Obama re-upped his free community college proposal.

In addressing the nation, President Obama said he would send Congress a “bold new plan to lower the cost of community—to zero.” He noted that 40% of college student choose community college. “Some are young and starting out. Some are older and looking for a better job. Some are veterans and single parents trying to transition back into the job market,” he said. “Whoever you are, this plan is your chance to graduate ready for the new economy, without a load of debt.

The President’s plan, first announced on January 8, would make two years of community college free for students of any age who earn a C+ average, attend school at least half-time, and are making “steady progress” toward their degree. The program would be available at community colleges with academic programs whose credits transfer to local public four-year college and universities.

President Obama’s proposal comes after a period in which state governments—during and after the Great Recession—decreased their total direct support of public higher education institutions. In an October 2014 study, the Center for American Progress reported that between fiscal years 2008 and 2012, state funding across the entire higher education system declined from 29.1% of total revenue to 22.3%.

A report from The College Board shows a steady decline in state support of higher education as measured by funding per $1,000 in individual residents’ personal income.

Screen Shot 2015-01-20 at 4.10.58 PM

The Center for American Progress says the dip in education spending has been the “primary driver” of the increasing net price of college. “Decreases in state funding have led to increases in tuition, with families carrying the cost,” the Center wrote in its report.

Screen Shot 2015-01-20 at 4.12.54 PM

Likewise, The College Board reports that the inflation-adjusted sticker price of tuition and fees at public two-year community colleges is 2.5 times as much as it was 30 years ago.

Screen Shot 2015-01-20 at 4.30.57 PM

It should be noted that since 2008-2009 students who attend public two-year colleges have received enough grant aid and tax benefits to cover published tuition and fees, plus a portion of other expenses.

Screen Shot 2015-01-20 at 4.37.12 PM

When grants and aid are accounted for, community college is relatively affordable already. That’s one of the major criticisms of Obama’s proposal. And while the plan will cover tuition for two years, it won’t make a dent in community college students’ other expenses, like the nearly $8,000 they must fork over for housing and the $1,700 they pay for transportation.

Still, the realignment of revenue from state funding to tuition is still crushing low- and middle-income students. In states with the greatest college funding reductions, students are paying the most at two-year and four-year institutions.

Screen Shot 2015-01-20 at 4.48.02 PM

The Center’s study concludes that, in the last decade, states’ disinvestment from public education and its subsequent fallout have contributed to a dip in public college attendance among students from low- and middle-class households.

Screen Shot 2015-01-20 at 4.55.38 PM

President Obama’s free community college plan aims to address that dip in attendance. If enacted, it will reignite state spending on higher education—federal funds will pay for three-quarters of the average cost of community college but states must cover the rest—with the ultimate goal of making sure that “community college is accessible for everybody.”

About the Author
Claire Zillman
By Claire ZillmanEditor, Leadership
LinkedIn iconTwitter icon

Claire Zillman is a senior editor at Fortune, overseeing leadership stories. 

See full bioRight Arrow Button Icon

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

Future of WorkTech
Nvidia’s CEO says AI adoption will be gradual, but when it does hit, we may all end up making robot clothing
By Marco Quiroz-GutierrezMarch 20, 2026
44 minutes ago
NewslettersCEO Daily
Inside the Fortune CEO Initiative dinner: Debt worries, diplomacy, and a chance to have a ‘good debate’
By Diane BradyMarch 20, 2026
52 minutes ago
fabio
CommentaryLoneliness
Why my $150 million startup thinks it can solve the $406 billion loneliness problem
By Fabio BinMarch 20, 2026
2 hours ago
Courtesy of Samyr Lainé
Arts & EntertainmentMark Zuckerberg
Meet Mark Zuckerberg’s college roommate. He’s an Olympian-turned-VC exec who now invests in your favorite celebrity businesses
By Jacqueline MunisMarch 20, 2026
3 hours ago
PoliticsPolitics
Jack Schlossberg says his grandfather JFK would be ‘alarmed’ by how far America has fallen on the world stage
By Rachel VentrescaMarch 20, 2026
3 hours ago
SuccessColleges and Universities
The graduate who racked up the biggest student loan in UK history owes more than $420,000—even pricier than the average British home
By Orianna Rosa RoyleMarch 20, 2026
3 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.