How Much Would Free College Cost?

Report Highlights. The maximum annual cost of universal free college is equivalent to 1.07% of the federal budget ($6.75 trillion for FY2024).

The cheapest free college program (Last-Dollar Tuition-Free) would cost $28 billion in the first year, equivalent to 0.41% of the federal budget.
A First-Dollar Tuition-Free program would cost a total of $800 billion over 11 years; it would cost $58 billion the year it is implemented.
A zero debt program (Debt-Free) would cost $75.0 billion in its first year.
The first-year cost of 100% free college would be equivalent to 31% of the current federal student aid budget.

Annual Cost of by Program Type
Type of Program	First Year Cost (in billions)	Subsequent 10-Year Average Annual Cost (in billions)
Last-Dollar Tuition-Free	$28.0	$38.70
First-Dollar Tuition-Free	$58.0	$74.20
Debt-Free	$75.0	$75.0+

Categories of Free College Programs

Several different approaches to free college exist. As a result, the cost of free college varies wildly based on the program. These programs include Last-Dollar Tuition-Free, First-Dollar Tuition-Free, and Debt-Free.

The least expensive program for the government would be the Last-Dollar Tuition-Free program.
The most expensive program to the government would be the Debt-free program.
The College for All Act proposes to double the maximum Pell Grant to $12,990 specifically so that students can use it to pay for room and board.
Similarly, the American Family Plan proposes to increase the maximum Pell Grant award by $1,475.

Pie chart: Distribution of Funds from a Last-Dollar Tuition-Free Plan by Income Bracket according to the Peter G. Peterson Foundation

Last-Dollar Tuition-Free Programs

Under this program, the government pays the remaining tuition fees (excluding the cost of room and board) after grant aid has been applied. While Last-Dollar Tuition-Free programs require more administrative effort, they more closely identify a student’s level of financial need.

If tuition totaled $10,000 and grant aid covered $4,000, the government would pay the remaining $6,000.
The Tennessee Promise program is a real-life implementation of the Last-Dollar program.
The majority of tuition-free programs being implemented across the states are Last-Dollar programs.
The Last-Dollar Tuition-Free program would cost the federal government $27.8 billion the year it is implemented.
After 11 years, the Last-Dollar Tuition-Free program would cost the federal government $415 billion.

Pie chart: Distribution of Funds from a First-Dollar Tuition-Free Plan (with no income restriction) by Income Bracket according to the Peter G. Peterson Foundation

First-Dollar Tuition-Free Programs

Under this program, the government would pay for the full cost of tuition before grant aid is applied. While First-Dollar Tuition-Free programs are streamlined and require less administrative work to implement, the grants may not accurately reflect each student’s financial need.

If tuition totaled $10,000, the government would pay the full $10,000.
The $4,000 grant aid could go to room and board expenses instead.
Note that in this example, the government paid $4,000 more than it would in the Last-dollar Tuition-Free program.
The Kalamazoo Promise in Michigan state was a real life implementation of a First-dollar Tuition-Free program.
The First-Dollar Tuition-Free program would cost the federal government $58.2 billion the year it was implemented.
After 11 years, the First-Dollar Tuition-free program would cost the federal government $800 billion.

Pie chart: Distribution of Funds from a Last-Dollar Plan by Race or Ethnicity according to the Peter G. Peterson Foundation

Debt-free Programs

If tuition totaled $10,000 and room and board totaled $15,000, the government would fund the whole $25,000.
The Debt-free College Act would cost an estimated $95.4 billion.
A Debt-free program would cost the federal government $75 billion the year it was implemented.
The Debt-free College Act includes extra costs beyond making the cost of attendance free such as renovation and construction of new facilities.

Pie chart: Distribution of Funds with First-Dollar Plan* by Race or Ethnicity according to the Peter G. Peterson Foundation

Beneficiaries of Free College

Depending on the program implemented, free college may benefit lower income students over wealthier students. The majority of the beneficiaries will be White, but free college is projected to have a significant impact on minority communities as well.

25% of the funds from a First-Dollar program would benefit students living in the bottom income quartile.
13% of the funds from a Last-Dollar program would benefit students living in the bottom income quartile.
While 53% of students at public colleges and universities are white, white students would represent an estimated 66% of a Last-Dollar program and 54% of a First-Dollar program with an income restriction.
Hispanic/Latinx students represent 21% of public college students but 13% of Last-Dollar recipients and 19% of First-Dollar recipients.
Black students represent 14% of public college students, 10% of Last-Dollar recipients, and 14% of First-Dollar recipients.
Asians represent 6% of public college students, 7% of Last-Dollar recipients, and 8% of First-Dollar recipients.
Multiracial students represent 4% of public college students, 3% of Last-Dollar recipients and 4% of First-Dollar recipients.
Students of other races represent 1% of public college students, less than 1% of Last-Dollar recipients and 1% of First-Dollar recipients.
29% of the funds for the American Family Plan’s free college program would go to students living in the bottom income quartile.

States with Free College

A popular type of free college in the 21^st century has been free tuition at the community college level in certain states. These experimental programs may mirror how free college could be implemented on the nationwide level.

The state of Tennessee uses a last-dollar program to cover the cost of tuition for residents pursuing their associate’s degree.
The Tennessee Promise program covers the cost of college tuition for students attending Tennessee community colleges.
The original America’s College Promise proposal was based off of the Tennessee Promise program.
The Oregon Promise program covers the cost of college tuition for students attending Oregon community colleges.
Eligibility for The Oregon Promise program is dependent on the student’s Student Aid Index (SAI).

First-Year Cost of Free College Programs by State
State	First-Dollar (in millions)	Last-Dollar (in millions)
Alabama	$933	$406
Alaska	$91	$45
Arizona	$1,070	$534
Arkansas	$520	$152
California	$6,008	$1,448
Colorado	$1,049	$561
Connecticut	$599	$325
Delaware	$141	$92
District of Columbia	$14	$4
Florida	$2,217	$701
Georgia	$1,612	$566
Hawaii	$170	$70
Idaho	$221	$94
Illinois	$3,314	$2,214
Indiana	$1,293	$637
Iowa	$541	$314
Kansas	$587	$328
Kentucky	$811	$289
Louisiana	$962	$301
Maine	$169	$71
Maryland	$1,204	$743
Massachusetts	$1,207	$706
Michigan	$2,696	$1,563
Minnesota	$1,122	$669
Mississippi	$440	$112
Missouri	$875	$370
Montana	$138	$92
Nebraska	$316	$117
Nevada	$313	$164
New Hampshire	$226	$153
New Jersey	$2,361	$1,517
New Mexico	$273	$65
New York	$3,180	$1,183
North Carolina	$1,507	$526
Ohio	$2,317	$1,260
Oklahoma	$592	$194
Oregon	$689	$393
Pennsylvania	$2,984	$2,077
Rhode Island	$154	$75
South Carolina	$971	$426
South Dakota	$150	$91
Tennessee	$1,005	$302
Texas	$5,544	$2,501
Utah	$589	$317
Vermont	$115	$73
Virginia	$2,062	$1,352
Washington	$1,382	$711
West Virginia	$265	$83
Wisconsin	$1,079	$703
Wyoming	$53	$13

Private Free College Programs

Few schools run free tuition programs for students with low income and low expected family contribution. Several of these programs require part-time work in exchange for free tuition (excluding other costs of attendance).

Alice Lloyd College (KY) offers free tuition for students who reside in Central Appalachia.
30% of the free tuition program funding at Alice Lloyd College comes from gifts and bequests.
37% of the free tuition program funding at Alice Lloyd College comes from Financial Aid Grants for students.
The University of New Hampshire has the Granite Guarantee financial aid program that covers tuition for all 4 years of an undergraduate degree.
To be eligible the student must be a New Hampshire resident and an incoming first-year student or a transfer student.
24% of first-year students at The University of New Hampshire qualified for the Granite Guarantee program
Brown University’s free college tuition program covers the tuition of students whose families make less than $125,000 annually.
In addition, Brown University has another program for students whose families make less than $60,000 annually – this program fully covers tuition, books, and room and board.
Texas A&M University has the Aggie Assurance program which covers tuition for students whose families make under $60,000 annually.

College For All Act

The College For All Act proposes free college tuition at all community colleges, public 4-year colleges, and tribal colleges. The purpose of the act is to eliminate tuition fees for students from families making under $125,000 and to reduce the cost of attendance by doubling the maximum Pell Grant award.

The estimated total cost of the College For All Act is $700 billion.
The program shares the cost of tuition between the federal government (75%) and the state/Indian governments (25%).
Tribal colleges with a majority population of low-income students would only be responsible for 5% of the cost to eliminate tuition.
The federal government would provide at least $48 billion annually to state and tribal governments to cover free undergraduate tuition.
Of the $700 billion total cost, $1.3 billion would be earmarked for low-income students at private non-profit colleges that serve minorities.
The proposed funding for this plan is a separate bill that taxes Wall Street speculation on stock trades by 0.5%; the tax is intended to raise $2.4 trillion for the funding of this program.

America’s College Promise Act

This act, originally proposed in 2015, was reintroduced to Congress in 2021 and again in 2023.

As with the College For All Act, America’s College Promise proposes sharing the cost of tuition between the federal government (75%) and the state/Indian governments (25%).
The America’s College Promise Act of 2021 estimates that parts of its own program will continue to cost $2.52 trillion annually after 2031.
The act would also create an annual formula grant program called the Student Success Fund (SSF); $1 billion would be apportioned to this program each year.
The Student Success Fund (SSF) doles out grants to states using evidence-based strategies aimed at ensuring student success.
Under the first 4 years of the SSF, states would receive federal grants totaling 75% of their program costs, 50% of their program costs for the 5th and 6th year, 25% for the 7th and 8th years, and no more grant aid for the 9th and 10th year.

Doughnut chart: Distribution of Funds from the American Family Plan by Income Bracket according to the Georgetown University Center of Education

The American Family Plan

The American Family Plan (AFP) proposed free college tuition at community colleges, historically black colleges, tribal colleges, and other minority serving institutions. The proposed plan’s funds were to come from a federal, state, and Indian tribal partnership.

The estimated total cost of the AFP is roughly $1.8 trillion.
$109 billion of the AFP’s total cost would go to funding two years of free community college.
$84 billion of AFP costs would go to the Pell Grant program.
$62 billion of AFP costs would go to grants for programs that help low income students complete community college.
$39 billion of AFP costs would be earmarked for two (2) years of free college for students enrolled in a minority serving college who also come from families with less than $125,000 in annual household income.