Cost Effectiveness: Are
Four-Year Universities
Better Than Community
Colleges?
Christopher Marsilio
UNIV 200 MWF 12-1250
4/14/2015
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Four year universities have taken a lot of flak for the constant increasing tuition costs
every year. This has made two-year institutions look like the “golden child” due to the low
tuition cost and the possibility of transferring to a four year institution after two years of
education. However, this may not be the case. Four-year universities, while sometimes heavy on
the wallet, can guarantee a more cost effective return on the career of its graduates. In fact, it can
guarantee about $13,000 more salary than those who graduate from a community college. In
addition, four-year university students have a higher rate of graduation than those enrolled that
tow-year institutions. Now, this is not to say that four-year universities are perfect. In fact,
community colleges have their own pros that make them very appealing to students who do not
have solid financial backgrounds. Two-year universities create an educational system for
students to thrive even if they are tight on money. They also can form partnerships with
businesses to allow students to gain certificates in certain fields of work. This program not only
appeals students, but adults as well. It allows adults to return to school to gain a certain
certificate, even if they have already graduated from a four-year institution. While this is a good
way for community colleges to positively affect the future of its students and adults in terms of a
career, four-year universities have the advantage in terms of average salary. This is due to the
difference in degrees. An associate’s degree is not valued as much as a bachelor’s degree, and
statistics prove that a bachelor’s degree results in more revenue. This leads to the assertion that
four-year universities have a greater return on the overall future of its students than that of a
community colleges.
Four-year universities have a greater return on the job search of its graduates than that of
community colleges. A bachelor’s degree will equate to a larger income than that of an
associate’s degree. Upon analyzing data from the U.S. Department of Labor, Breakthrough
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Collaborative stated that, “The average annual median income for adults who have associate’s
degrees is approximately $13,000 less per year than adults who have bachelor’s degrees
($32,900 vs. $45,700), or $500,000 less in estimated lifetime earnings” (Breakthrough 2002).
Upon reviewing the average income of an associate’s degree and a bachelor’s degree, it is
evident that a bachelor’s degree equates to more income than a two-year graduate with an
associate’s degree. Bachelor’s degrees are obtained from four-year institutions so that would
validate the fact that they have a greater impact on a graduate’s career path than a graduate of a
community college. The other factor is that upon finishing community college, students can
choose to transfer to a four-year institution which adds two years onto the timeframe to obtain a
bachelor’s degree. This would add more student debt and time it takes to find a solid career path
putting them at a disadvantage with their peers who attended a four-year institution immediately
after high school. While there is an opportunity for community college students to transfer to a
four-year university, many of them do not take that opportunity. There are a few reasons why
students would not want to transfer after two years. This is because the students lose motivation
while attending community college, as well as, the issue that they attended the institution
because their high school grades were not up to par. However, poor work ethic is not the only
reason why students choose to avoid four-year institutions. This other factor is due to the
financial backgrounds of the students’ families
Community college attracts students who are not looking to complete a bachelor’s
degree. The graduation percentage of community colleges is far less than that of four year
universities. The main goal of two-year institutions is to provide a cheaper alternative where
students can enroll for two years and then transfer to a four-year institution to pursue a better
degree. However, Breakthrough Collaborative analyzed data from the National Center for
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Education Statistics and found that, “39% of students at community colleges who intended to
pursue bachelor’s degrees left school without completing a degree or certificate program”
(Breakthrough 2008). After viewing this data, one should question whether community colleges
are necessary if almost half of the enrolled students are not graduating from the system. Students
do not need to factor a two-year institution into their future if they are not planning on obtaining
a degree of any sort To continue with the topic of graduation, another factor that is affecting the
low rate of graduation, from two-year institutions, is the ease of attending community colleges.
The low price of community colleges attracts students who do not have proper work habits.
One concern that has been evident about community colleges is that students view it in their future,
so they do not work to their full potential during their high school career. Unfortunately, this
appears to be true. Researchers: Sandy, Gonzalez, and Hilmer found information that “Students
who first attended 2-year institutions tend to have lower grades in high school, and lower SAT
scores, which is consistent with the view that 2-year colleges attract and enroll lower quality
students” (Hilmer 2006). Basically, the low cost tuition and a lack of a G.P.A. minimum makes
community colleges attractive to students who are not necessarily striving for high standards. This
is troublesome because there are students enrolled in community colleges who are working
towards success, but the lower standard students are decreasing the credibility of two-year
institutions. This places four-year institutions in a better light, when it comes to the debate on
which institution is more cost effective. With all of this said, not every student, within the thirtynine percentile of non-graduates, have poor work ethic. This is not the only academic issue with
community colleges that is affecting its cost effectiveness. This issue is environment.
The environment of community college causes students’ attainment level to decrease.
Throughout the two years of community college, it appears evident that students lose motivation
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to succeed. This is due to the teacher-student relationships. The teachers do not have the exact
resources that are found in four-year institutions which makes the task a lot harder for students to
have the same education as a four-year college. This has been shown to affect the attainment rate
of students in two-year institutions. Researchers Kane and Rouse analyzed the attainment rate of
two year institutions and reported that “with so few students living on campus, peer effects are not
as strong as on four year campuses and because transferring from a two year to a four year college
can be difficult and burdensome” (Rouse 99). As they stated, the attainment rate could actually
depend on relationships with other students. If students enrolled at two year universities are not
enveloped in a college experience, then they may not take their work as seriously as those who are
enrolled in a four year university. This does not necessarily apply to every community college. In
fact there is a possible argument that places two-year institutions back into a positive light.
Community colleges are a cost effective way for students with poor financial situations to
find success. The low rate tuition of community colleges allows students to attend and obtain a
degree that they may not be able to afford at a four-year university. Upon analyzing a report done
by the ISAC (Illinois Student Assistance Commission) group, I found information regarding why
students choose not to attend four-year institutions. The ISAC group recorded that “76% of
students in Illinois do not attend college because they cannot afford it” (ISAC). This is becoming
a dilemma as we are seeing the middle class of the United States is starting to shrink. The
community colleges have been on the rise because of this dilemma. With a tuition averaging
$2,713 (2011), community colleges are very appealing to those who dream of success, but
cannot afford a four-year university. While the evidence above is singled from one state, it
successfully mirrors the issue that students are facing throughout the United States and places
two-year institutions in a positive light. Yes, it is true that community colleges do not have the
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same level of cost effectiveness as the likes of four-year universities, but it is cost effective for
those who cannot afford another educational outlet. Community colleges are also cost effective
in the fact that they have begun to partner with other companies to help educate their students in
career fields.
Community colleges have begun to partner with corporations to give their students
experience in fields that they would have been exposed to at four year universities. The idea
behind these partnerships is to help students, who will only obtain associate’s degrees, gain
expertise in certain career fields in hopes that they are able to compete with graduates of fouryear universities. Henry Kasper gave an example of a partnership from Arizona. He explained
that:
Another partnership is being created between the Maricopa Community College District
in Arizona and the International Genomics Consortium, a nonprofit genetic research
group in Maryland. Arizona colleges recently committed $2.5 million to local community
colleges, hoping to convince the nonprofit to relocate to Phoenix. The funds will be used
to train students from the district’s 10 community colleges. (Kasper 2002-03)
This is appealing to students because they are able to receive training for a low cost as opposed
to the increased tuition of a four-year university. The results of these training partnerships speak
for themselves. Upon analyzing data from The National Center for Education Statistics, Henry
Kasper reported that “between the years 1999-2000, 54,819 of the students were given
certificates in the fields of health professions and related sciences” (Kasper 2002-03). The
amount of students able to obtain expertise, from community colleges, in medical fields is
extremely compelling because students are able to positively affect their future for a low,
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affordable cost. To add to this topic, Brianna Boyington, from The U.S. News and World Report,
agrees with Henry Kasper’s statements. She stated that:
Community colleges can link with businesses in the community and create programs that
can help students learn about a specific field that they want to get into. This is important
because these students are paying substantially lower prices in comparison to four year
universities so the money they are spending is potentially being returned in the form of job
experience. (Boyington)
She analyzed the partnership from a country-wide view, rather than from one state, but Kasper
and Boyington basically had the same point of view, just at different levels. They both believe
that this partnership idea is a way to make two-year universities into cost effective institutions.
Boyington also brings up the idea that these partnerships are in fact paying students back in
terms of a career. And at an affordable cost too. Now adding to the topic of affordable costs and
strengthening the arguments from community colleges, they have begun to create a free tuition
for all two-year institutions in the United States.
The cost effectiveness of community colleges could increase when free tuition is installed
into the United States’ educational system. President Barack Obama has been pushing for a
program to create free two-year college tuition for all students who qualify. This is an effort to
encourage more students to graduate at least a minimum degree and maybe even transfer into a
four-year university. Even though a two-year university is not necessarily as cost effective as a
four year university, this does not mean that a student should avoid attending a two-year
institution. In fact, upon analyzing the potential income surrounding a college degree, the Labor
Department concluded that, “a two year degree will equate to a twenty thousand dollar income
advantage over a high school diploma” (CBS News 2015). A four-year university is definitely a
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good decision for students who are looking for a solid future, but a two-year university could
easily lead to a positive future for those who are not in a good financial situation.
Many students graduate with associate’s degrees and move on to successful jobs. Upon
researching this particular point of view, an interesting argument emerged. Students who
graduate with associates degrees are able to pursue career paths in very solid fields. One that
stood out was liberal arts. Basically, this particular research by Henry Kasper was supporting
community colleges as a positive option instead of attending a four year university. He was
arguing that community colleges did not necessarily have to be for young students looking for a
degree. Adults can use this as an outlet to obtain certain job certificates to pursue a particular
career path. While this may be true, it is not particularly challenging four year institutions
because the argument is more in regards to young students trying to obtain a degree. But this
does not mean that two-year universities are not on the same level as four-year universities.
There are many aspects of community colleges that hint to the fact that they are beginning to
increase their credibility. With that said, graduates of four-year institutions are still much better
off than community college graduates when looking for a career. Surprisingly, this is not just
because of a bachelor’s degree. There is another factor that places four-year universities over
two-year institutions in terms of cost effectiveness. This factor is internships.
Four-year institutions offer internships that look extremely good on the resume of
graduates. I was reading into an article written by Lee Harvey, of the Centre for research into
Quality at the University of Central England in Birmingham, and I came across an interesting
point of view. He argues that, “Although graduate jobs are expanding, so is the supply of
graduates. In addition, many employers are also looking for various types of experience. Hence a
degree is no guarantee of a job, let alone a career, and should only be seen as reaching 'first-base'
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in the recruitment process” (Harvey 2000). These experiences that he is referring to are
internships. He believes that having an internship on one’s resume will increase the chance of
obtaining a solid career. Internships are abundant in four-year universities, as long as, a student is
willing to apply for one. Two-year universities do have partnerships with companies, and that
could be seen as experiences needed to find a solid career. However, obtaining a bachelor’s
degree, or master’s degree from a four-year institution and having experiences from internships
could place one over a graduate of a community college. This is an important example of why
the cost effectiveness of four-year institutions is above that of a community college. In a sense,
four-year universities pay for themselves if a student is willing to pay the high tuition cost.
Harvey is not necessarily against a community college based on the article he wrote, but he is
clearly alluding to the fact that four-year universities have the funding and are offering solid
internships to its students in order to succeed as they look for a career. Two-year universities,
with smaller campuses and less funding, are not able to give the same opportunities to its
students.
The funding differences are definitely an advantage for the four-year institutions in terms
of meeting the needs of students. It is easy to say that four-year institutions are the alpha when it
comes to the cost effectiveness of the two categories of colleges, but there is an obvious reason
for this. They are bringing in more revenue than two-year institutions because their tuition is
increased. This leaves community colleges at a constant disadvantage in terms of resources.
However, with the resources they have, community colleges are making the most of their
materials. Henry Kasper touched on this topic in his article. He talked about how community
colleges are constantly trying to keep up with the current teaching methods. Whether it’s through
the material or the technology used. Unfortunately for community colleges, they are always
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looking to compete with four-year universities which have large amounts of funding to dispose
of in any way they need. This leads to better technology within their campuses. This ensures a
greater education for their students and only validates the assertion that a four year university has
a greater return on a student’s future. A more cost effective institution. However, Henry Kasper
believes that community colleges are doing just fine. He stated that, “Community colleges have
taken note. Reacting to technological and other changes, community colleges continue to test
their flexibility as they strive to address changing educational and training needs” (Kasper 200203). Hopefully, community colleges will continue to find ways to be as innovative as possible
and continue to compete and remain a good outlet for education. Although, there will always be
a debate on which institution is more cost effective, one factor will always remain the same.
Four-year universities and community colleges have had a very solid deal that allows two-year
students to transfer into a four-year university if they have a decent G.P.A.
If utilized correctly, the bond between the two institutions can help a student in the long
run. I have had people in my extended family attend a community college before proceeding to
transfer into a four-year university. They worked hard during their stint at a community college
and then were able to transfer into a very reputable four-year university in Maine. This is an
example of how the system can be used correctly. Unfortunately, as the data has shown, the
graduation rate from community colleges is very low as we see many students leave without a
degree. This is why the debate on the cost effectiveness of the two programs exists. Data shows
that students lose their focus and attainment in community college and then choose not to
advance on to a four-year program. Not only does this seemingly lower the reputation of
community colleges, but it increases the reputability of four-year universities because less
students who do not have as much motivation are attending their institutions. Until there is a
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major increase in the graduation/transfer rates at community colleges, there will always be the
gap in the comparison between community colleges and four-year universities.
A four year university is the most cost effective way, than that of a two-year institution,
to ensure a solid career. Four year universities offer a minimum degree that guarantees an
average of $13,000 more than those who graduate from a two-year university. This displays the
appeal of four-year universities. While the cost can be a burden to some families, the return of
the tuition onto a graduate’s future is almost guaranteed to be positive. This is a decision that
most students would not want to miss out on. In addition, the environment of four year
universities adds to the drive of its students. In response to an environment surrounded by peers
who are also striving to succeed, students of four-year institutions are shown to have a higher
attainment level throughout the duration of their college career. Two-year universities do not
appear as successful. In fact it was reported, by researchers Kane and Rouse, that the lack of
students living on campus at two-year institutions is one of the causes of the thirty-nine percent
non-graduation rate. This is very compelling because it displays that there could be a flaw in the
community college education system that is causing students to lose motivation. The idea behind
two-year universities is to allow students to attend college for a low price and then hopefully
transfer into a four-year institution. However, if students are losing motivation, who is to say that
they would want to continue on to a four-year college. Especially, with the high rate of students
not graduating from community college. Although it appears as if community colleges should
not be considered when looking at evidence, there are some arguments that defend these twoyear institutions. They partner with major corporations to ensure that their students can gain
some expertise in certain fields. This could potentially be very instrumental in increasing the
success of a future for students who cannot afford four-year universities. Community college
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students have a chance to practice in fields such as liberal arts and medical, which could give
them an opportunity to compete with bachelor’s degree graduates. The four-year university’s
answer to the partnerships are internships. Internships are abundant in four-year institutions and
greatly increase a graduate’s resume. This is a potential game changer when it comes to the
debate between four-year and two-year institutions. While it is evident that four-year universities
have an edge on community colleges in terms of cost effectiveness towards a career, two-year
universities are still trying to increase their reputation and seem to be doing so in a successful
manner. I believe that both types of institutions have their pros and cons, but four-year
universities have the advantage on funding and the edge on the prestige of its degree. This is why
four-year universities are the more cost effective of the two institutions and have a greater return
on the future of its students.
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Works Cited
Boyington, Briana. "4 Types of People Who Benefit From Community College." U.S. News and
World Report. N.p., 29 Jan. 2015. Web. 11 Feb. 2015
Breakthrough Collaborative. "Breakthrough White Pages: Four Year Colleges vs. Community
Colleges." Breakthrough Collaborative. N.p., n.d. Web. 11 Feb. 2015
CBS NEWS. "Obama to Propose Two Free Years of Community College." CBSNews. CBS
Interactive, 9 Jan. 2015. Web. 2 Feb. 2015.
Gonzalez, Arturo, and Michael Hilmer. "Alternative Paths to College Completion: Effect of
Attending a 2-year School on the Probability of Completing a 4-year Degree."
Economics of Educational Review. By Jonathon Sandy. 5th ed. Vol. 25. N.p.: Elsevier,
n.d. 463-71. Print.
Kane, Thomas J., and Cecilia E. Rouse. The Journal of Economic Perspectives. 1st ed. Vol. 13.
N.p.: American Economic Association, n.d. Print. The American Economic
Association.
Kasper, Henry T. "The Changing Role of Community College." Www.bls.gov. Occupational
Outlook Quarterly, Winter 2003. Web.
Lee Harvey (2000) New Realities: The relationship between higher education and employment,
Tertiary Education and Management, 6:1, 3-17, DOI
Rouse, Cecilia E. The American Economic Review. By Thomas J. Kane. 3rd ed. Vol. 85. N.p.:
American Economic Association, n.d. 600-14. Print.