a framework to understand college access and affordability at the national, state and institutional...
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A Framework to Understand College Access and Affordability at the National, State and Institutional Levels
TAIR Conference 2008, GalvestonTrish Norman, University of Texas SystemRoy Mathew, University of Texas at El Paso
Overview
College Access Enrollment State Appropriations Tuition and Fees Financial Aid and Net Price Institutional Initiatives
College Access
Most agree broad access to higher education is a
worthy goal. to remain globally competitive, more
Americans must be educated Lifelong learning is becoming an
integral part of higher education
Source: Thinking Outside the Box
College Access - Beginnings
Higher Education Act of 1965 – Access to Higher Education became a primary theme of federal policy
Focus to serve all students Federal BEOG Grants – primary tool
for providing access to low income students
Source: Thinking Outside the Box
College Access – TodayShared Responsibility Nationally
Federal (Pell) Grants Subsidized Loans
State Grants Need vs. Merit based
Institutional Initiatives Tuition Guarantees and Set Asides Flat Rate Tuition
Enrollment Growth
3,028
4,767
2,467
3,662
5,728
3,533
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2-year public 4-year public 4-year private
Full-time Equivalent Fall Enrollment
1996 2005
(in thousands)
+20.9%
+20.2%
+43.2%
Source: Digest of Higher Education Statistics, NCES
State Appropriations
In the past, some “states used low tuition as a
primary tool for assuring access”
However, with more students attending college,
“Higher Education has became more costly as
share of the available public resources.”
Source: Thinking Outside the Box
State Appropriations
Sources: Grapevine (Illinois State University); The College Board (Trends in College Pricing)
State Appropriations
State Appropriations have not kept up
with enrollment growth and hit a 25-year
low of $5,825 per FTE student in FY05.
Source: Tuition at Public Colleges and Universities: Policy Trends and Projections
Tuition & Fees, Nationally
Average T&F in Constant (2006)
Dollars
Change
Institution Type 1996-97 2006-07 Amount Percent
Two-Year Public $ 1,899 $ 2,272 $ 373 20%
Four-Year Public $ 3,856 $ 5,836 $ 1,980 51%
Four-Year Private $ 16,843 $ 22,218 $ 5,375 32%
Source: Trends in College Pricing 2006
Tuition & Fees by Region
4-year Public Universities
Average T&F in Constant (2006) Dollars
Change
Region 1996-97 2006-07 Amount Percent
New England $ 5,593 $ 7,658 $ 2,065 37%
Midwest $ 4,230 $ 7,075 $ 2,845 67%
Middle States $ 5,067 $ 6,860 $ 1,793 35%
National $ 3,856 $ 5,836 $ 1,980 51%
Southwest $ 2,800 $ 5,462 $ 2,662 95%
South $ 3,143 $ 4,739 $ 1,596 51%
West $ 3,355 $ 4,646 $ 1,291 38%
Source: Trends in College Pricing 2006
Revenues per FTE Student
Source: State Higher Education Executive Officers (SHEEO)
Educational Revenues per FTE Student, FY06
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000
State Appropriations/FTE
Net
Tui
tion
/FT
E
TX IL
CA
OH
PA
MI NJ
US NY
FL GA
NC
UT System – Revenue TrendsRevenue Trends by Source per Full-Time Equivalent Student
U. T. System Academic Institutions (Inflation-Adjusted Dollars) Fiscal Years 2002 - 2006
$4,560
$5,850$5,310
$4,980 $4,800 $4,960
$3,510 $3,660$3,920
$4,430
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2002 2003 2004 2005 2006
State appropriations Tuition and Fees
Source: UT System
Tuition and Fees, 10 Most Populous States
Texas and the 10 Most Populous StatesAverage Annual Tuition & Fees in Current Dollars
Four Year Public Universities
$2,778
$3,338
$3,882
$4,173
$4,553
$4,982
$6,810
$7,017
$7,399
$9,194
$9,302
0 2,000 4,000 6,000 8,000 10,000
Florida
Georgia
North Carolina
California
Texas
New York
Ohio
Michigan
Illinois
Pennsylvania
New Jersey
2002-03 2006-07*First-time, Full-time Undergraduate Students Source: IPEDS 2006
Texas ranks 7
Total Price of Attendance10 Most Populous States
Texas and the 10 Most Populous StatesAverage Annual Total Price of Attendance
Current Dollars, Four Year Public Universities
$13,221
$14,004
$14,391
$14,776
$16,434
$16,721
$17,821
$18,157
$19,112
$20,413
$21,919
0 5,000 10,000 15,000 20,000 25,000
North Carolina
Florida
Georgia
Texas
New York
Michigan
California
Illinois
Pennsylvania
Ohio
New Jersey
2002-03 2006-07*First-time, Full-time Undergraduate Students Source: IPEDS 2006
Texas ranks 8
Financial Aid (Federal)
Reauthorization of the Higher Education Act (1992)
Expanded eligibility for financial aid Raised loan limits Introduced
Unsubsidized Loans Tax Credits
Financial Aid (Federal)
Undergraduate Student Awards 1995-96 2005-06
Grants 48% 42%
Loans 51% 52%
Work Study 2% 1%
Ed. Tax Benefits n/a 5%
Source: Trends in College Pricing 2006
Financial Aid (Federal)
Average Aid per Recipient
in Constant (2005) Dollars
1995-96 2005-06 % Change
Pell Grants $ 1,946 $ 2,354 21%
Loans (undergraduates only)
Stafford Subsidized $ 3,761 $ 3,074 - 18%
Stafford Unsubsidized $ 3,574 $ 3,398 - 5%
PLUS $ 7,411 $ 9,984 35%
Federal Education Tax Benefits $ 885 (98-99) $ 668 -25%
Source: Trends in College Pricing 2006
Financial Aid (Texas)
Source: IPEDS
Percent of First-time, Full-time UndergraduateStudents Receiving State Grants
77
6055
67
42 44 4538 37
55
3437
2729
383941424244
596163
79
0
30
60
90
GA NY MI FL NC IL PA NJ CA US TX OH
2001-02 2004-05
Financial Aid (UT System)
The University of Texas SystemProportion of Undergraduate Financial Aid
8.54.8
1.67.8
16.8
3.91.2
53.0
19.6
12.4
52.2
18.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Loans Federal State Institutional Private Work Study
FY 2003 FY 2007
%
Source: UT System Institutions
Net Price
An estimate of how much students and
their families actually pay for college:
Net Price = published price minus
average financial aid and tax benefits
Understanding Net Price
Net Price (of Tuition & Fees)(example of an individual student paying the average T&F, receiving the average Pell Grant and subsidized loan)
Tuition & Fees $ 5,836Pell Grants - 2,354Subsidized Loan - 3,074
-----------Net Price $ 408% Discount 93%
Understanding Net Price
Net Price (of Total Price of Attendance)(example of an individual student paying the average Total Price
ofAttendance and receiving the average Pell Grant and subsidizedloan)
Tuition & Fees $15,937Pell Grants - 2,354Subsidized Loan - 3,074
-----------Net Price $10,509% Discount 34%
Net Price
The Condition of Education, 2007
Total Price of Attendance4-year Public Unversity
$8,700 $8,800 $9,300
$0
$5,000
$10,000
$15,000
$20,000
1989-90 1999-2000 2003-04
Net Price Grants Loans
$ 10,900
$13,600$15,100
Net Price by Income
The Condition of Education, 2007
Average Net Price by Income Level4-year Public University
$6,200$8,200
$9,300$10,500
$6,000
$8,700$10,000
$11,600
$0
$3,000
$6,000
$9,000
$12,000
Low Income Lower MiddleIncome
Upper MiddleIncome
High Income
1989-90 1999-2000 2003-04
UT System Initiatives
Tuition Set Asides Flat Rate Tuition Tuition Rebates Discounted Tuition for off-peak hours Guaranteed Tuition Rates
UT System – Need-Based Grant Aid
Source: U.T. System Institutions
Full-time Undergraduate Students with Need-Based Grant Aid
AY 2006-07
% Receiving Average Grant Avg % Discount
Arlington 39.0% $6,160 94.8%
Austin 46.7 6,300 78.5
Brownsville 69.7 2,581 62.3
Dallas 33.6 4,398 57.2
El Paso 46.7 5,361 100.0
Pan American 71.6 4,264 100.0
Permian Basin 46.9 3,700 79.4
San Antonio 43.7 4,228 62.8
Tyler 42.6 4,565 88.0
System Average 47.8% $5,120 77.9%
UT System – Net PriceAverage Net Academic Cost and Percent Discount
based on All Full-time Undergraduate Students, AY 2006-07
Average Net Academic Cost
Average Percent Discount
Arlington $4,096 37.0%
Austin 5,084 36.6
Brownsville 2,340 43.5
Dallas 6,214 19.2
El Paso 2,860 46.7
Pan American 1,211 71.6
Permian Basin 2,922 37.3
San Antonio 4,886 27.4
Tyler 3,245 37.5
System Average $4,127 37.2%Source: U.T. System Institutions
Summary College enrollment increasing State appropriations not keeping up Increase in Tuition & Fees to offset
funding Financial Aid supplementing cost at
varying levels of need UT System efforts to ensure Access
and Affordability
Sources Blanco, C., Jones, D, Longanecker, D. and Michelau, D. Thinking
Outside the Box: Policy Strategies for Readiness, Access and Success. Western Interstate Commission for Higher Education, March 2007.
Digest of Higher Education Statistics: 2006. NCES, U.S. Department of Education.
The Condition of Education 2007. Total and Net Access Price of Attending a Postsecondary Institution. NCES, U.S. Department of Education, 2007.
Tuition at Public Colleges and Universities: Policy Trends and Projections. American Association of State Colleges and Universities, June 2006.
Trends in College Pricing 2006 and Trends in Student Aid 2006. CollegeBoard, 2006.
State Higher Education Executive Officers (SHEEO). State Higher Education Finance Data & Figures (SHEF) FY 2006.
Integrated Postsecondary Education System (IPEDS). NCES, U.S. Department of Education.