Report on Public Misperceptions of Higher Education Costs and Implications for Sustainable Development Goals

A May 2025 report from Strada indicates that significant public misperceptions regarding the cost of college in the United States are creating substantial barriers to educational access. These findings have direct implications for the achievement of United Nations Sustainable Development Goal 4 (SDG 4), which seeks to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all. The widespread overestimation of tuition and fees may deter qualified individuals from pursuing higher education, thereby hindering progress towards national and global development targets.

Key Findings on Cost Perception vs. Reality

General Affordability Sentiments and SDG 4

The perception of unaffordability is a primary obstacle to achieving SDG 4, Target 4.3, which calls for equal access to affordable and quality tertiary education. Survey data reveals a pervasive belief that higher education is financially unattainable.

• 77% of U.S. adults surveyed believe college is unaffordable.
• 65% somewhat or strongly agree that college is prohibitively expensive, irrespective of a student’s motivation.

Overestimation of Institutional Costs

A critical finding is the significant gap between perceived and actual costs, which undermines informed decision-making—a prerequisite for equitable access to education.

• Community Colleges: A majority of respondents estimated annual costs to be over $10,000, with one in five believing the cost exceeds $20,000. This is a substantial overestimation, as the actual average net price is approximately $6,000 per year. This misperception directly weakens the role of community colleges as an affordable pathway to achieving SDG 4.
• Public Four-Year Institutions: Only 22% of respondents correctly identified the average annual cost to be between $20,000 and $30,000. Approximately 35% incorrectly believed the cost to be $40,000 or more.

Impact on Educational Attainment and Sustainable Development

Barriers to Access and Lifelong Learning (SDG 4)

The report suggests that these financial misperceptions directly influence college-going behavior, leading to a lower rate of postsecondary attainment. This trend impedes progress towards SDG 4, Target 4.4, which aims to increase the number of adults with relevant skills for employment and decent work. With only 54% of U.S. adults aged 25 to 64 holding a postsecondary credential, these barriers represent a systemic challenge to developing a skilled and educated populace.

Exacerbating Inequality and Limiting Economic Opportunity (SDG 1, SDG 8, SDG 10)

The consequences of these misperceptions extend to other core Sustainable Development Goals:

• SDG 10 (Reduced Inequalities): A lack of transparent cost information can disproportionately affect individuals from lower-income and marginalized communities, reinforcing existing socio-economic disparities.
• SDG 8 (Decent Work and Economic Growth): By discouraging enrollment in higher education, these perceptions limit individuals’ access to the improved financial outcomes and decent work opportunities that college degrees often provide.
• SDG 1 (No Poverty): As education is a primary vehicle for social and economic mobility, creating barriers to its access can perpetuate cycles of poverty.

Causal Factors and Recommended Interventions

Systemic Failures in Communication and Transparency

The report identifies the root of the problem as a “systemic failure in the way we price and market college.” This failure is characterized by complex and opaque financial aid systems filled with unfamiliar jargon, which fundamentally obstructs the goal of equitable access central to SDG 4.

Strategic Recommendations for Institutions

To align with the principles of the Sustainable Development Goals, particularly SDG 4, the report suggests several interventions for educational institutions to improve transparency and predictability.

1. Standardize Financial Aid Terminology: Institutions should adopt clear, consistent language to demystify the financial aid process. The College Cost Transparency Initiative, with over 700 participating institutions, is cited as a model for this approach.
2. Reset Tuition “Sticker Prices”: Colleges are encouraged to reset their advertised tuition to more accurately reflect the net price students pay after institutional aid, closing the gap between perception and reality.
3. Embed Price Transparency into Enrollment Strategies: Institutions should proactively communicate what students will pay and the potential return on their investment. This strategy empowers students to make informed decisions, directly supporting the objective of providing equitable and accessible quality education for all.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 4: Quality Education

• The article’s central theme is the affordability and accessibility of tertiary education (college and university) in the U.S. It directly addresses the challenges people face in pursuing higher education due to misperceptions about its cost. The text states, “A large majority of U.S. adults say the cost of attaining a college degree is more expensive than it actually is — a perception that may cause some to forgo education beyond high school.” This connects directly to ensuring inclusive and equitable quality education.

SDG 10: Reduced Inequalities

• The article highlights how systemic issues, such as a complex financial aid process and lack of price transparency, create barriers that can disproportionately affect individuals and prevent equal opportunity. The report points to “a systemic failure in the way we price and market college,” which creates an unequal playing field for prospective students. The finding that “65% somewhat or strongly agreed that college is prohibitively expensive, regardless of how motivated the student is” suggests a belief in a systemic barrier that creates inequality of opportunity.

2. What specific targets under those SDGs can be identified based on the article’s content?

Target 4.3: By 2030, ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university.

• The article is entirely focused on this target. It discusses the barrier that perceived high costs create for accessing tertiary education. The text notes that these misperceptions “can influence key decisions that shape college-going behavior,” directly impacting equal access. The statistic that “just 54% of U.S. adults ages 25 to 64 have a postsecondary credential” illustrates the gap in achieving universal access to tertiary education. The discussion around the “affordability” of community colleges and four-year institutions is central to this target.

Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard.

• The article discusses actions and policies aimed at creating more equal opportunities for students. The financial aid system is described as “complex, multistep and opaque,” which represents a policy practice that leads to inequalities of outcome. The proposed solutions, such as the “College Cost Transparency Initiative” where “over 700 institutions” have standardized financial aid terminology, and the call for colleges to “embed price transparency and predictability into their enrollment strategies,” are actions designed to reduce these inequalities and ensure more equal opportunity for all prospective students.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Indicator for Target 4.3: Participation rate in tertiary education.

• The article provides specific data points that can serve as proxies for this indicator. It states, “About 40% of people do not enroll in college immediately after graduating high school, and just 54% of U.S. adults ages 25 to 64 have a postsecondary credential.” These figures directly measure the level of participation in higher education among the adult population.

Indicator for Target 4.3: Perception of affordability.

• While not a formal UN indicator, the article provides direct data on the “affordable” aspect of the target. It mentions that “77% say college is unaffordable” and that “37% of adults said the cost of college was not affordable at all, and 40% said it was not very affordable.” Tracking this perception over time would measure progress in addressing the affordability barrier.

Indicator for Target 10.3: Number of institutions adopting policies for transparency.

• The article provides a concrete number that can be used as an indicator for progress in promoting policies that ensure equal opportunity. It states that “over 700 institutions have done exactly that through the College Cost Transparency Initiative.” This is a quantifiable measure of the adoption of transparent policies aimed at reducing inequalities.

4. Table of SDGs, Targets, and Indicators

Source: highereddive.com