sandy baum higher education policy analyst professor of economics emerita, skidmore college agb...

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  • Slide 1
  • Sandy Baum Higher Education Policy Analyst Professor of Economics Emerita, Skidmore College AGB March 2010 Colleges and Students in Difficult Economic Times: Prices, Student Aid, and Student Debt www.agb.org
  • Slide 2
  • Funding Sources
  • Slide 3
  • State Tax Appropriations for Higher Education: Total Appropriations in Constant 2008 Dollars (in Millions), Appropriations per Public FTE Student in Constant 2008 Dollars, and Public FTE Enrollment (in Thousands), 1971-72 to 2008-09 Source: The College Board, Trends in College Pricing 2009 3
  • Slide 4
  • Inflation-Adjusted Endowment Assets per FTE Student at Private Not-for-Profit Four-Year Colleges and Universities Relative to FY2000, FY2000 to FY2008 Sources: The College Board, Trends in College Pricing 2009; NACUBO Endowment Study; Commonfund Institute; NCES, IPEDS; calculations by the authors. Data are from NACUBO and Commonfund Institute where available.
  • Slide 5
  • Prices
  • Slide 6
  • Average Published Charges for Undergraduates by Type and Control of Institution, 2009-10 (Enrollment-Weighted) Source: The College Board, Trends in College Pricing 2009; Annual Survey of Colleges.. 6
  • Slide 7
  • Average Annual Percentage Increase in Inflation-Adjusted Published Prices by Decade, 1979-80 to 2009-10 Source: The College Board, Annual Survey of Colleges; NCES, Integrated Postsecondary Education Data System (IPEDS). 7
  • Slide 8
  • Distribution of Full-Time Undergraduates at Four-Year Institutions by Published Tuition and Fees, 2009-10 Source: The College Board, Annual Survey of Colleges. 8
  • Slide 9
  • Average Published Charges for Undergraduates by Carnegie Classification, 2009-10 (Enrollment-Weighted) Source: The College Board, Annual Survey of Colleges. 9
  • Slide 10
  • What Students Pay
  • Slide 11
  • Average Estimated Undergraduate Budgets, 2009-10 (Enrollment-Weighted) Source: The College Board, Trends in College Pricing 2009 11
  • Slide 12
  • Net Price: Published Tuition and Fees, Net Tuition and Fees, and Room and Board in Constant 2009 Dollars, Full-Time Undergraduate Students, 1994-95, 1999-2000, 2004-05 and 2009-10 12 Source: The College Board, Trends in College Pricing 2009; Annual Survey of Colleges.
  • Slide 13
  • Net Price by Income: Private Four-Year Colleges Net Tuition & Fees, Net Room & Board and Other Costs, and Total Grants in Constant 2007 Dollars by Income Group, Full-Time Dependent Students : 1992-93, 1995-96, 1999-2000, 2003-04 and 2007-08 Sources: The College Board, Trends in College Pricing 2009; NCES, NPSAS, 1993, 1996, 2000, 2004, 2008; U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 2007.;
  • Slide 14
  • Student Aid
  • Slide 15
  • Undergraduate Student Aid by Source (in Billions), 2008-09 15 Source: The College Board, Trends in Student Aid 2009
  • Slide 16
  • Average Institutional Grants and Average Federal plus State Grants per Full-Time Dependent Student by Parent Income Public Institutions, 2007-08 Sources: NPSAS, 1993, 1996, 2000, 2004, 2008; U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 2007. 16 Distribution of Full-Time Dependent Students in Public Institutions by Parent Income, 2007-08
  • Slide 17
  • Average Institutional Grants and Average Federal plus State Grants per Full-Time Dependent Student by Parent Income and Price Level of Institution, 2007-08 Private Not-for-Profit Four-Year Institutions Sources: The College Board, Trends in Student Aid 2009; NPSAS, 1993, 1996, 2000, 2004, 2008; U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 2007.
  • Slide 18
  • Only Need-based Aid? Defining need-based aid Ability vs. willingness to pay Does non-need-based aid take dollars out of the pockets of low-income students? Rawls
  • Slide 19
  • Meeting Full Need Meeting need vs. gapping Packaging Rationing funds / competing priorities
  • Slide 20
  • No Loan Promises Promises made in better times: Is it always right to keep them? What will be sacrificed to keep these promises? Are there negative externalities for the vast majority of students who must borrow to go to college?
  • Slide 21
  • How Students Pay
  • Slide 22
  • Percentage Growth in Mean Family Income by Quintile in Constant 2008 Dollars, 19781988, 19881998, and 19982008 Sources: The College Board, Trends in College Pricing 2009; U.S. Census Bureau, Current Population Survey, Table F-1, Table F-3, and FINC-01; calculations by the authors. 22
  • Slide 23
  • Distribution of Total Undergraduate Debt by Sector and Type of Degree or Certificate, 2007-08 Source: NPSAS, 2008; The College Board, Trends in Student Aid 2009 23
  • Slide 24
  • A Problem Temptation to view ethical principles such as equity in admissions and financial aid policies as a luxury we cant afford in these hard times.
  • Slide 25
  • The Solution? Thoughtful leadership A balancing act