Higher Education Affordability
General
Campus of dreams: Bill it, and they will come? (Nov. 2009), Federal Reserve Bank of Minneapolis
The cost of higher education has risen steadily for decades, but so have the benefits. This article takes an in-depth look at the history of tuition and fees, enrollment by income and the value proposition for attaining a college degree.Inequalities At The Outset: Identifying Factors That Affect Parents’ Perceptions Of Paying For College PDF (Aug. 2009), Deborah M. Warnock
"It is important to study parents’ perceptions about their ability to pay for their child’s education early on, because these beliefs may influence the probability that their child takes the necessary steps to prepare for and enroll in college. ...I find that middle-and upper income whites are less likely to report seeing no way of paying for college than are middle- and upper-income Asians, Hispanics, and African-Americans."Is college opportunity slipping away? (Aug. 2008) National Center for Public Policy and Higher Education
"People are aware that financial aid is available (mostly in the form of loans), but 78% agree, either strongly (60%) or somewhat (18%), that students have to borrow too much to pay for higher education. As a result of these cost increases, the percentage of people who believe that many qualified individuals do not have access to a higher education has also been rising steadily over the last decade, up from 45% in 1998 to 62% in 2007."College Enrollment and Work Activity of 2008 High School Graduates (2009), U.S. Department of Labor, Bureau of Labor Statistics
Information on school enrollment and work activity is collected in the Current Population Survey. Results show that in October 2008, 69% of 2008 high school graduates were enrolled in colleges or universities. The labor force participation rate (the proportion of the population with a job or looking for work) was 46% of women enrolled in college and 36% for males.College Costs
Student Debt and the Class of 2008 (Dec. 2009), Project on Student Debt
"Nationwide, average debt for graduating seniors with loans rose from $18,650 in 2004 to $23,200 in 2008, or about six% per year. State averages for debt at graduation in 2008 ranged from highs near $30,000 to a low of $13,000." Among Minnesota graduates, the average debt was $25,558, the sixth highest nationwide.Trends in College Pricing 2009 (Oct. 2009), College Board
Published in-state tuition and fees at public four-year institutions average $7,020 in 2009-10, $429 (6.5%) higher than in 2008-09. Average total charges, including tuition and fees and room and board, are $15,213, up 5.9%. Published charges do not reflect the prices most students pay. About one-third of full-time students pay without the assistance of grant aid.Squeeze Play 2009: The Public’s Views on College Costs Today (Jan. 2009), Public Agenda and The National Center for Public Policy and Higher Education
"For increasing numbers of Americans, a crucial facet of the American Dream appears to be at risk. A solid majority consider a college degree an indispensable ticket to the middle class. At the same time, even more people believe college is financially out-of reach for many qualified students."Facts about Tuition & Fees (2006), Minnesota Office of Higher Education
During the 1990s, tuition and required fees at the University of Minnesota, Twin Cities increased by 82 percent. Within [Minnesota’s State Colleges and Universities system], tuition and fees increased by 64 percent in the state universities, 65 percent in community colleges, and 58 percent in technical colleges. Average tuition and fees at private liberal arts colleges increased 71 percent. In contrast, per capita personal income in Minnesota grew by 50 percent over the same period.Student Aid
Trends in Student Aid 2009 (Oct. 2009), College Board
In 2008-09, undergraduate students received an average of $10,185 in financial aid per full-time equivalent (FTE) student, including $5,041 in grant aid and $4,585 in federal loans. From 1998-99 through 2008-09, grant aid per undergraduate FTE increased an average of 3.4% per year after adjusting for inflation, while federal loans per FTE grew 4% a year.2007–08 National Postsecondary Student Aid Study (NPSAS:08): Student Financial Aid Estimates for 2007–08 (Apr. 2009), National Center for Education Statistics
This is the most comprehensive, nationally representative survey of student financing of postsecondary education in the U.S. Findings show that 66% of all 2007-08 undergraduates received some type of financial aid; the total average amount was $9,100. The report describes the percentages of students receiving various types of financial aid and average amounts received, by type of institution attended, attendance pattern, dependency status, and income level.Enrollment in Postsecondary Institutions, Fall 2007; Graduation Rates, 2001 and 2004 Cohorts; and Financial Statistics, Fiscal Year 2007 (2009), National Center for Education Statistics
In fall 2007, there were 18.7 million undergraduate and graduate students enrolled in Title IV institutions (those participating in federal student financial aid programs). About 73% of the 2.8 million full-time, first-time undergraduates received some type of financial aid. The graduation rate of all 2001 cohort students enrolled in a bachelor’s degree program was 36% after four years and 57% after six years.Undergraduate Financial Aid Estimate for Six States: 2007-08 (Oct. 2009), National Postsecondary Student Aid Study, National Center for Education Statistics
About 85% of in-state undergraduates in Minnesota work while enrolled, including 24% who worked 35 or more hours per week during the 2007-08 academic year (Table 5.12). The majority of all undergraduates work while enrolled regardless of their attendance status, family income or institution type.State Grant Program Data (2008), Minnesota Office of Higher Education
The Minnesota State Grant Program, the state's largest financial aid program, provided more than $148 million to 83,246 Minnesota undergraduates in 2007-2008.High School Students’ Perceptions of Local, National, and Institutional Scholarships, (2008) Laura W. Perna, University of Pennsylvania
"The relative absence of attention in the financial aid literature to local, national, and college scholarships is surprising, given the prevalence of this source of aid. ...schools should explore ways to increase their capacity to provide financial aid counseling in general, and about scholarships in particular, by both increasing counseling resources at the school and developing relationships with other organizations."Facts about Financial Aid (2008), Minnesota Office of Higher Education
Minnesota undergraduates received $864 million in grants and $1.2 billion in student and parent higher education loans in Fiscal Year 2007 (2006-07 academic year). They earned an additional $40 million from federal and state work study jobs.Appropriations to Higher Educaton
State Shortfalls Projects to Continue Despite Economic Gains; Long-Term Prospects for Higher Education No Brighter PDF 146 KB, (2006), Dennis Jones, National Center for Higher Education Management Systems (NCHEMS)
The National Center for Higher Education Management Systems projects that Minnesota will face a fiscal shortfall of 4.4 percent of revenue by 2013. "These continuing financial pressures will limit appropriations to higher education." "The result for higher education will be increased competition for what resources remain, intensified by the greater growth in demand for state services other than higher education."State and Local Support for Higher Education (2007) National Center for Higher Education Management Systems (NCHEMS)
A Bigger Bang for the Public Buck: Achieving Efficiency and Equity in Higher Education PDF 319 KB, (2002), Jenny B. Wahl, Minnesota Private College Research Foundation
"What is the best way to fund higher education so people make choices that yield socially efficient and equitable results and that use public dollars wisely? Economic theory, as well as overwhelming evidence, clearly suggests a cost-based-tuition, needbased- aid approach. The alternative—a low-tuition, taxpayer-financed approach—leads to large subsidies to students from middle- and high-income families, too little education for youths from low-income families, lower quality of education, and wasted public funds."Family Savings
Personal Savings & Disposable Income, U.S. 1966-2006, PDF 49 KB, (2007), Bureau of Economic Analysis, Minnesota Private College Research Foundation
Even as costs rise, families are saving less money than in the past, and thus may have fewer resources available to pay for college. In 2004, Americans saved just 1.2% of their disposable personal income, the lowest level of personal savings in any year since the Great Depression. In 2006, they saved negative 1%.College Savings Plans Network Program Statistics (2008)
As of March 31, 2008 55,592 accounts had been established under the Minnesota 529 college savings plan. The value of funds in these accounts is just over $638 million.
(Click on graphic to view at larger size.)
Undergraduate Financial Aid Estimate for Six States: 2007-08 (Oct. 2009), National Postsecondary Student Aid Study, National Center for Education Statistics
