The Future of Student Aid

Sandy BaumSkidmore College and The College Board

MASFAPMarch 2009

Published Tuition and Fees and Room and Board (TFRB) Compared to TFRB Net of

Average Grant and Education Tax Benefits per Full-Time Undergraduate Student,

in Constant (2008) Dollars, 1993-94, 1998-99, 2003-04 and 2008-09

Notes: Net tuition and fees are calculated by subtracting estimated average grant aid plus tax benefits per full-time student in the sector from the published price. Aggregate aid amounts are from Trends in Student Aid 2008. Division of total aid across sectors and between full-time and part-time students is based on the NPSAS, 1993 through 2004.

Source: The College Board, Trends in College Pricing 2008

Ten-Year Trend in Student Aid and Nonfederal Loans Used to Finance

Postsecondary Education Expenses in Constant (2007) Dollars (in Billions), 1997-

98 to 2007-08

Source: The College Board, Trends in Student Aid 2008

Average Aid per Graduate FTE in Constant (2007) Dollars,

1990-91 to 2007-08

Source: The College Board, Trends in Student Aid 2008

Undergraduate Student Aid by Source (in Billions), 2007-08

Nonfederal loans are not included since they involve no subsidy of any kind and are not actually a form of financial aid.

Source: The College Board, Trends in Student Aid 2008

Obama Budget Proposals

Pell Grants

Increase maximum Entitlement Maximum grows CPI + 1%

To do: Application process Simplify formula Work penalty

Total Pell Expenditures (in Millions), Maximum Pell Grant and Average Pell Grant in Constant (2007) Dollars, and Number of

Recipients (in Thousands), 1973-74 to 2007-08

Sources: The Federal Pell Grant Program End of Year Report, 2006-07; The College Board, Trends in Student Aid 2008

Obama Budget Proposals

Student Loans Restructure Perkins Already higher Stafford unsub limits To Do: Repayment protection Targeting subsidies

Proportion of Undergraduate Students Borrowing

Federal Stafford Loans, 1997-98, 2002-03, and 2007-08

Sources:. Loan data are from the U.S. Department of Education, Office of Postsecondary Education, and the National Student Loan Data System (NSLDS).

The College Board, Trends in Student Aid 2008

Distribution of Federal Aid Funds by Sector, 2006-07

Note: Components may not sum to 100% due to rounding.

Source: The College Board, Trends in Student Aid 2008

Distribution of Full-Time Equivalent (FTE) Enrollment, Fall 2006

Note: FTE enrollment is based on a formula that counts a part-time student as approximately one-third of a full-time student. Total FTEs include both graduate and undergraduate students.

Source: Integrated Postsecondary Education Data System.

Obama Budget Proposals

Success Grants

Other to do: Low-income savings program? Simplification, early information,

coordination

Sandy Baumsbaum@collegeboard.org

Rethinking Student Aidwww.collegeboard.org/rethinkingstudentaid