• 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
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
Fortune Secondary Logo
  • 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

Successphilanthropy
Dolly Parton’s philanthropy inspiration is her father who couldn’t read or write: ‘I saw how crippling that could be’
By Sydney LakeFebruary 27, 2026
2 hours ago
Personal Financewealth management
The Great Wealth Transfer is already happening as millennials hitting their ‘Peak 35’ are richer than ever
By Catherina GioinoFebruary 27, 2026
3 hours ago
jack dorsey
AILayoffs
Block CEO Jack Dorsey lays off nearly half of his staff because of AI and predicts most companies will make similar cuts in the next year
By Jake AngeloFebruary 27, 2026
3 hours ago
Spencer Rascoff, chief executive officer of Match Group Inc
SuccessGen Z
Match Group’s CEO set up an employee hotline where staff can DM him anytime—and one Gen Zer’s feedback even changed how he runs the business
By Emma BurleighFebruary 27, 2026
5 hours ago
Man sitting at a desk managing multiple devices at one time
SuccessCareers
Workers are making over $1 million by secretly holding down multiple gigs—and they’re doing it all within the 40-hour workweek
By Preston ForeFebruary 27, 2026
6 hours ago
SuccessProductivity
Japanese companies are paying older workers to sit by a window and do nothing—while Western CEOs demand super-AI productivity just to keep your job
By Orianna Rosa RoyleFebruary 27, 2026
6 hours ago

Most Popular

placeholder alt text
Innovation
An MIT roboticist who cofounded bankrupt robot vacuum maker iRobot says Elon Musk’s vision of humanoid robot assistants is ‘pure fantasy thinking’
By Marco Quiroz-GutierrezFebruary 25, 2026
2 days ago
placeholder alt text
Success
Jeff Bezos says being lazy, not working hard, is the root of anxiety: ‘The stress goes away the second I take that first step’
By Sydney LakeFebruary 25, 2026
2 days ago
placeholder alt text
Economy
Trump claims America is ‘winning so much.’ The IMF agrees, adding that Trump’s trade policies are the only thing holding it back from even more
By Tristan BoveFebruary 26, 2026
1 day ago
placeholder alt text
Success
Gen Z Olympic champion Eileen Gu says she rewires her brain daily to be more successful—and multimillionaire founder Arianna Huffington says it really does work
By Orianna Rosa RoyleFebruary 25, 2026
2 days ago
placeholder alt text
Economy
It’s more than George Clooney moving to France: America is becoming the ‘uncool’ country that people want to move away from
By Nick LichtenbergFebruary 27, 2026
13 hours ago
placeholder alt text
Commentary
'The Pitt': a masterclass display of DEI in action 
By Robert RabenFebruary 26, 2026
1 day 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.