Louisiana was one of 14 states where college dropouts and those that did not graduate within six years lost more than $100 million in income, and the state government missed out on $4 million in taxes as a result, according to a report by the American Institutes for Research.
American Institutes found that 493,000 of the 1.1 million full-time students who began pursuing bachelor’s degrees in 2002 had not graduated within six years. The result? In 2010 alone, the students lost $3.8 billion in income, while the federal government missed out on $566 million in income taxes, and states weren’t able to collect more than $164 million in state income taxes.
The numbers in Louisiana: $107 million in lost income, $16 million in lost federal income taxes, and $4 million in lost state income taxes.
“These findings represent just one year and one graduating class. Therefore, the overall costs of low graduation rates are much higher since these losses accumulate year after year,” Mark Schneider, a vice president at AIR who co-authored the report, said in a news release. “This is just the tip of the iceberg. While this report focuses on only one cohort of students, losses of this magnitude are incurred annually by each and every graduating class.”