Higher Education Affordability
General
Slip-Sliding Away: An Anxious Public Talks about Today's Economy and the American Dream (Feb. 2011), Public Agenda
Although there have been signs of economic recovery, this survey found that 40% of Americans indicated that they are struggling “a lot” in the current economy. Long-term issues like paying for college and retirement were of most concern.Investment in State Postsecondary Education - Minnesota, National Center for Higher Education Management Systems (NCHEMS)
This collection of tables shows (1) the cost of postsecondary education for students and the increase in earnings they experience as a result of earning college degrees and (2) state investment in postsecondary education and the impact on the number of college degrees produced.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."The Challenge to States: Preserving College Access and Affordability in a Time of Crisis, PDF (March 2009), National Center for Public Policy and Higher Education
The issues of how America will finance higher education in the 21st century will require a new framework and consensus among taxpayers, public officials, state and federal government, and students and families. But in the immediate crisis, the leadership of governors, legislatures, and governing boards is critical.College Enrollment and Work Activity of 2009 High School Graduates (2010), 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 2009, 70% of 2009 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 43% of women enrolled in college and 41% for males.College Costs
Average Tuition and Required Fees: A Comparison of Public Colleges and Universities in the Midwest and Beyond (PDF), Feb. 2011, Midwestern Higher Education Compact
“It is evident that college has become less affordable for families…as measured by the percentage of average family income that is required to pay for college…however, 'affordability' is a relative term. Related to the question of affordability is the issue of how much families should be expected to pay.”
Trends in College Pricing 2010 (Oct. 2010), College Board
Published in-state tuition and fees at public four-year institutions average $7,605 in 2010-11, $555 (7.9%) higher than in 2009-10. Average total charges, including tuition and fees and room and board, are $16,140, up 6.1%. Published charges do not reflect the prices most students pay. Many students receive institutional discounts and grant aid from other sources.Student Debt and the Class of 2009 (Oct. 2010), Project on Student Debt
"Nationwide, average debt for graduating seniors with loans rose 6% from the previous year to an average of $24,000. State averages for debt at graduation in 2009 ranged from a high of $30,000 to a low of $13,000." Among Minnesota graduates, the average debt was $27,467, the sixth highest nationwide.Squeeze Play 2010: Continued Public Anxiety On Cost, Harsher Judgments On How Colleges Are Run (Feb. 2010), Public Agenda and The National Center for Public Policy and Higher Education
“Six out of 10 Americans now say that colleges today operate more like a business, focused more on the bottom line than on the educational experience of students.” Despite these findings, people remain optimistic about the likelihood that their children will attend college and about the availability of financial aid for those who need it.Facts about Tuition & Fees (2010), Minnesota Office of Higher Education
Since 2000, tuition and required fees at the University of Minnesota, Twin Cities increased by 107%. Within [Minnesota’s State Colleges and Universities system], tuition and fees increased by 70% in the state universities, 79% in community colleges and technical colleges. Average tuition and fees at private liberal arts colleges increased 52%. In contrast, per capita personal income in Minnesota grew by 50% over the same period.Student Aid
Trends in State-Sponsored Student financial Aid: A Comparison of Grant Aid in Midwestern States (PDF) Feb. 2011, Midwestern Higher Education Compact
“The Midwest states employ a variety of strategies in distributing student financial aid and endeavoring to promote more affordable higher education. However, during the decade from FY 1999 to FY 2009, tuition and fee increases in the states’ public institutions significantly outpaced changes in state appropriations for student financial aid.”Trends in Student Aid 2010 (Oct. 2010), College Board
In 2009-2010, undergraduate students received an average of $12,894 in financial aid per full-time equivalent (FTE) student, including $6,083 in grant aid and $5,268 in federal loans. From 1999-00 through 2009-10, grant aid per undergraduate FTE increased an average of 4.2% per year after adjusting for inflation, while federal loans per FTE grew 5.3% a year.Minnesota Students Default on Loans Less, Borrow More, Than College Students Nationally (2010), Minnesota Office of Higher Education
“Fifty five percent of Minnesota undergraduates took out student loans in 2007-2008, compared to 39% of undergraduates across the country, and 47% of undergraduates from Midwestern states. The federal student loan default rate for students attending Minnesota institutions was 3.7%, compared to 7% nationally and 6.6% for peer Midwestern states.”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 2008; Graduation Rates, 2002 and 2005 Cohorts; and Financial Statistics, Fiscal Year 2008 (2010), National Center for Education Statistics
In fall 2008, there were 19.6 million undergraduate and graduate students enrolled in Title IV institutions (those participating in federal student financial aid programs). About 76% of the 2.9 million full-time, first-time undergraduates received some type of financial aid. The four-year graduation rate of all 2002 cohort students enrolled in a bachelor’s degree program was 51% at private not-for-profits, 30% at public institutions and 14% at private for-profit institutions.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.Minnesota State Grant End-of-Year Statistics, Fiscal Year 2009 (2010), Minnesota Office of Higher Education
The Minnesota State Grant Program, the state's largest financial aid program, provided $143 million to more than 84,000 Minnesota undergraduates in 2008-2009.Facts about Financial Aid (2010), Minnesota Office of Higher Education
"Minnesota undergraduates received $1.07 billion in grants and $1.65 billion in student and parent higher education loans in Fiscal Year 2009 (2008-09 academic year). They earned an additional $38 million from federal and state work study jobs.Appropriations to Higher Education
What Will Happen to State Budgets When the Money Runs Out? (2009) National Center for Higher Education Management Systems
“State governments face budget gaps that will exceed $100 billion in the 2009-10 fiscal year and by some estimates could exceed $350 billion over the 2.5-year period through the end of the 2010-11 state fiscal year. Fortunately for states, the federal stimulus package (the “American Recovery and Reinvestment Act of 2009”) contains significant aid for states…including $54 billion in a State Fiscal Stabilization Fund to help stave off cuts states might otherwise make to public education… Unfortunately for states, most if not all of this aid will be temporary. Will it tide states over until the recovery comes?”
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
United States Personal Savings and Debt Trends (2010), Minnesota Private College Research Foundation
Key findings show that: 1) personal savings have dropped since their high in the early 1980s, 2) The last two years have shown a slight rebound in savings, pushing this indicator above the 10]year average, but still far behind the 30 and 50]year averages, and 3) Household debt has slowly grown and now far exceeds personal savings.
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