One main issue is that students attend school but end up not finishing their degrees.
According to the report, the U.S. ranks in the top five nations for young people attending college, but 16th in the list of students completing their educations.
This is largely credited to financial issues faced while attending school, Reindl said.
"Some students feel they must choose between a job and staying in school," he said.
Ashley Stoddard (sophomore-communication arts and sciences and Spanish) agreed with college financial issues being a major deterrent to earning degrees.
"In Europe, college can be free if you have really good grades... It's too expensive [in the U.S.]," Stoddard said.
Penn State spokeswoman Jill Shockey said Penn State is "consistently making every effort to keep costs at a minimum."
Shockey said that the university is taking several initiatives to keep costs down such as revising budgets and reviewing university costs.
Three hundred students gathered at the state capital Tuesday in a rally organized by the Council of Commonwealth Student Governments (CCSG).
Many speakers focused on the need for an increase in state appropriations from Gov. Ed Rendell's budget as a way to combat high tuition.
CCSG President Jerry Livingston told the assembled crowd Rendell's proposed increase of 1.6 percent to Penn State's appropriation was vastly inadequate and students would pay the difference with higher tuition costs.
Rep. John Yudichak, D-Luzerne, said at Tuesday's rally that it was ridiculous that about two-thirds of Penn State graduates leave college with more than $20,000 in student loans.
Reindl also cited students' preparation in high school as being below what is expected of them in a higher education environment. He added other countries do a better job in preparing their students for schooling.
The report said there are clear gaps in the U.S. between minorities attending college, especially between groups of Caucasian and Asian students and groups of African American, Hispanic and Native American students.
Reindl said minority groups are vital to the success of America because of high growth rates. Their college attendance and success rates are important to economic prospects for both themselves and America, he added.
Edwin Escalet, director of Minority Admissions and Community Affairs at Penn State, said the minority rate at the university -- 13 percent overall -- isn't high by any means, but is on the rise.
"You have to remember that 10 years ago, we were about 6 percent minority, so we're moving forward," Escalet said.
The university is also making outreach efforts via recruitment centers across the state, as well as regionally.
According to the report, Canada leads in degree obtainment with more than 50 percent of people ages 25 to 34 having an associate's degree or higher.
Richard Willie, vice-president academic and provost at Concordia University College of Alberta in Canada, wrote in an e-mail that he believes there are several reasons why Canada does so well.
The country strongly promotes post-secondary education in high school, and university education in Canada is relatively affordable and accessible to most students, he wrote.
Willie also wrote that, "with economies becoming increasingly global in scope, higher education is seen as a priority so that Canadians can stay competitive."
