Expanding Enrollments and Contracting State Budgets

The Great Recession heightened a growing conflict in the United States between expanding enrollments in postsecondary education and contracting public budget support. Weak labor market conditions during the Great Recession encouraged college enrollments, with much of the increase in enrollment occurring outside the most selective institutions. While federal aid policies, including the Pell grant, became more generous, dramatic reductions in state budget allocations made it difficult for colleges and universities to maintain programming and accommodate student demand. As a result, the Great Recession has accelerated the cost-shifting from public subsidies to individual payments in higher education.