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.