The real crisis in American higher education is that our best colleges never see a large chunk of our smartest students.
In an important recent study, the economists Caroline Hoxby and Christopher Avery found that very few high achievers from low-income families ever apply to top colleges, and that the missing applications from these kids largely explain why they're underrepresented at our leading universities.
At first glance, poor students' reluctance to aim for the Ivy League might seem to make sense. After all, there's no way the typical low-income family can afford tuition of $50,000 a year. But in reality, they don't have to pay anything for these schools.
Leading private universities such as Harvard, Yale, Princeton or Stanford work hard to counter the lack of income diversity on their campuses. In recent years, they have adopted policies reducing the costs of tuition, room and board for middle-class and low-income students all the way to zero. Qualified students who settle for less-selective colleges often end up paying more to do so.
Irrational as it may seem to sell oneself so short, the behavior is strikingly pervasive.
Hoxby and Avery systematically studied the college applications of all high-achieving students in the U.S., zeroing in on those who earned at least an A-minus grade point average and scored in the top decile on college admissions exams. They found that high-achieving kids from high- income families applied to colleges much as any good guidance counselor would recommend, aiming for a few top-tier "reach" schools, a handful of "match" schools, and one or two "safety" schools, where admission was pretty much guaranteed.
Similarly qualified students from low-income families followed a completely different pattern. Most didn't apply to any selective college or university, and some didn't apply to college at all. Too often, the best schools they approached should have been their safety schools. They effectively gave up a chance for upward mobility the day they sent in their college applications.
The result is that university admissions officers see a very skewed picture of their potential students. Among applicants to selective colleges, high-achieving, high-income students outnumber their low-income peers by 15 to 1, leading colleges to perceive the latter as a rare species. But this is wrong. The true ratio of high-income to low-income high achievers is roughly 2.5 to 1, according to Hoxby and Avery.