Student Contribution to the Cost of Higher Education in the United States

Student Contribution to the

Cost of Higher Education

in the United States

Multinational Higher Education Forum

March 17, 2006

Paul Lingenfelter, President, SHEEO

Carnegie Commission on Higher Education, 1973Carnegie Commission on Higher Education, 1973


Monetary outlays for the educational and living expenses of students

Public sources &

philanthropy

Students & parents

Economic costs, including the net loss of potential

income to students

Public sources &

philanthropy

Students & parents


Equity of opportunity

• Additional public investments in need-based student assistance

• Charging progressively higher fees for advanced undergraduate and graduate instruction

• Developing more progressive tax systems

• Narrowing the “gap” between student costs in public and private institutions

Important developments since 1973Important developments since 1973

U.S. Student Assistance, 2004-2005

Source: College Board

(billions of $) Per FTE

Federal Grants $ 18B $1,413

State Grants $ 6B $471

Institutional Grants $ 24B $1,884

Private Grants $ 8B $628

Federal Tax Credits $ 8B $628

All Grants and credits $ 64B $5,025

Federal Loans/Work $63B $4,946

All Assistance $127B $9,971


Growing Tuition and Fees – Constant (2005) Dollars

Source: College Board

Academic YearPrivate

Four-YearPublic

Four-Year

Public

Two-Year

1975-76 $8,026 $1,530 $865

1990-91 $13,663 $2,791 $1,325

2005-06 $21,235 $5,491 $2,191


Earnings Premium of a College Degree

1975

2002

Premium above High

School Credential

88%

50%


Highest: $7,121

$6,035

Lowest: $5,833

5.0

6.0

7.0

8.0

9.0

10.0

11.0

198

1

198

2

198

3

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

Pu

bli

c F

TE

En

roll

me

nt

(mil

lio

ns

)

$5,500

$5,700

$5,900

$6,100

$6,300

$6,500

$6,700

$6,900

$7,100

$7,300

Ed

uc

ati

on

al

Ap

pro

pri

ati

on

s p

er

FT

E

Public FTE Enrollment (millions)

Educational Appropriations per FTE (constant $)Recession

Enrollment Growth and Public Higher Education Appropriations per FTEU.S., Fiscal 1981-2005

Source: SHEEO SHEF


-0.5 -1

.0

-1.0 -1

.6 -2.1

-2.3 -2

.8

-2.9

-3.0 -3

.3 -3.8

-3.9 -4

.2

-4.2

-4.3

-4.3

-4.4

-4.4 -4

.8

-4.8

-4.8 -5

.1

-5.2

-5.2

-5.3 -5

.6

-5.6

-5.7

-5.7

-5.7

-5.8

-5.8

-5.9 -6

.2

-6.3

-6.5

-6.7

-6.8

-6.9

-7.0

-7.0 -7

.4 -8.0

-8.2 -8

.9 -9.3

-9.3 -9

.8 -10

.5

-10

.7

-12

-9

-6

-3

0

UtahM

ontana

New Hampshire

DelawareNew Jersey

Maine

Maryland

Massachusetts

WisconsinVerm

ontO

hioNorth Dakota

ConnecticutKansas

ArkansasVirginia

NebraskaO

klahoma

MinnesotaColorado

West Virginia

KentuckyM

ichiganArizona

New YorkG

eorgiaHawaiiIllinois

PennsylvaniaAlaska

Rhode IslandU

nited States

New Mexico

CaliforniaIowa

IndianaNorth Carolina

FloridaIdaho

South CarolinaSouth Dakota

Missouri

Washington

OregonTexas

NevadaTennesseeM

ississippiLouisianaAlabam

a

Source: NCHEMS; Don Boyd (Rockefeller Institute of Government), 2005

Projected State and Local Budget Deficits as a Percent of Revenues, 2013


Total Educational Revenues per FTE by Component, U.S., Fiscal 1991-2005

Source: SHEEO SHEF

6,7406,358 6,127 6,200 6,406 6,480 6,690 6,891 7,060 7,114 7,121 6,873

6,2915,949 5,833

2,3852,574 2,733 2,824

2,900 3,0023,030

3,0433,045 2,962 2,979

2,990

3,0643,242 3,379

$0

$2,000

$4,000

$6,000

$8,000

$10,000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

TuitNet per FTE

EdApprops per FTE

$9,212

$10,100

$9,126

$9126$9212

Diversity Among the StatesDiversity Among the States

State Undergraduate Grant Aid per Undergraduate Student by State, 2003-04

Source: National Association of State Student Grant & Aid Programs

$0

$500

$1,506

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

Georg

ia

So

uth

Ca

rolin

a

New

York

New

Je

rsey

Ke

ntu

cky

Pe

nnsy

lvan

ia

Illin

ois

We

st V

irg

inia

India

na

Ve

rmo

nt

Lo

uis

ian

a

Nevad

a

Flo

rida

Wa

shin

gto

n

Min

neso

ta

U.S

.

Nort

h C

aro

lina

Ohio

Calif

orn

ia

Mic

hig

an

Vir

gin

ia

Dela

ware

New

Me

xico

Wis

consi

n

Conn

ectic

ut

Iow

a

Colo

rado

Ark

ansa

s

Main

e

Mass

achuse

tts

Mary

land

Te

nne

ssee

Rhod

e I

sland

Te

xas

Okla

hom

a

Mis

siss

ippi

Mis

souri

Ore

go

n

Ka

nsa

s

Nebra

ska

Idah

o

New

Ham

psh

ire

Mon

tan

a

Nort

h D

ako

ta

Uta

h

Ala

bam

a

Ari

zona

Haw

aii

Wyo

min

g

Ala

ska

So

uth

Da

kota

Non-need Grant

Need Grant

Six Largest States


Total Educational Revenues per Studentby State, Fiscal 2005

Source: SHEE SHEF

$9,212

$6,898

$14,501

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

$13,000

$14,000

$15,000

Ne

w J

ers

ey

Wyo

min

g

De

law

are

Co

nn

ect

icu

t

Ala

ska

So

uth

Ca

rolin

a

Te

nn

ess

ee

Mic

hig

an

Ma

ssa

chu

sett

s

Pe

nn

sylv

an

ia

No

rth

Ca

rolin

a

Rh

od

e I

sla

nd

Ma

ryla

nd

Ma

ine

Ala

ba

ma

Ve

rmo

nt

Ne

vad

a

Ne

w Y

ork

Iow

a

Mis

souri

Ind

ian

a

Min

ne

sota

Ke

ntu

cky

So

uth

Da

kota

Ka

nsa

s

Ge

org

ia

Ari

zon

a

Ha

wa

ii

Vir

gin

ia

Illin

ois

Wis

con

sin

U.S

.

Te

xas

Ore

go

n

Ne

bra

ska

Ida

ho

Mis

siss

ipp

i

Ark

an

sas

Ne

w M

exi

co

Oh

io

We

st V

irg

inia

Mo

nta

na

Okl

ah

om

a

No

rth

Da

kota

Wa

shin

gto

n

Ne

w H

am

psh

ire

Lo

uis

ian

a

Uta

h

Co

lora

do

Flo

rid

a

Ca

lifo

rnia

Six Largest States


Net Tuition as a Percent of Public Higher Education Total Educational Revenuesby State, Fiscal 2005

Source: SHEE SHEF

37%

77%

13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

Ver

mon

t

New

Ham

pshi

re

Col

orad

o

Del

awar

e

Mar

ylan

d

Ore

gon

Pen

nsyl

vani

a

Mon

tana

Rho

de Is

land

Mic

higa

n

Sou

th D

akot

a

Indi

ana

Ohi

o

Iow

a

Sou

th C

arol

ina

Ala

bam

a

Virg

inia

Wes

t Virg

inia

Mai

ne

Min

neso

ta

Nor

th D

akot

a

New

Jer

sey

Ten

ness

ee

Mas

sach

uset

ts

Con

nect

icut

Mis

sour

i

Mis

siss

ippi

Kan

sas

Ark

ansa

s

Ken

tuck

y

Wis

cons

in

U.S

.

Ariz

ona

Neb

rask

a

Uta

h

Okl

ahom

a

New

Yor

k

Tex

as

Illin

ois

Loui

sian

a

Flo

rida

Nor

th C

arol

ina

Was

hing

ton

Ala

ska

Idah

o

Nev

ada

Haw

aii

Cal

iforn

ia

Geo

rgia

Wyo

min

g

New

Mex

ico

Six Largest States


Annual Tuition and Required Fees at Public Flagship Universities by State, 2005-06

Source: 2005-06: Tuition and Fee Rates: A National Comparison, Washington Higher Education Coordinating Board.

$6,172

$3,094

$11,508

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

Pennsy

lvan

ia

Verm

ont

New

Ham

psh

ire

Mass

ach

use

tts

New

Je

rsey

Mic

hig

an

Illin

ois

Min

neso

ta

Conn

ect

icut

Mary

land

Ohio

Te

xas

Calif

orn

ia

Mis

souri

Dela

ware

South

Caro

lina

Rhod

e I

sland

Virgin

ia

India

na

Main

e

Wis

consi

n

U.S

.

New

York

Kentu

cky

Iow

a

Nebra

ska

Wa

shin

gto

n

Ark

ansa

s

Kansa

s

Colo

rado

Nort

h D

ako

ta

Te

nne

ssee

Ore

gon

Mon

tan

a

Ala

bam

a

South

Dako

ta

Georg

ia

Nort

h C

aro

lina

Arizo

na

Okl

ahom

a

Lo

uis

ian

a

Mis

siss

ippi

Uta

h

We

st V

irg

inia

New

Me

xico

Idah

o

Ala

ska

Haw

aii

Neva

da

Wyo

min

g

Flo

rida

Six Largest States


Annual Tuition and Required Fees at Public Community Collegesby State, 2005-06

Source: 2005-06: Tuition and Fee Rates: A National Comparison, Washington Higher Education Coordinating Board.

$780

$2,481

$5,689

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

New

Ham

psh

ire

Wis

consi

n

Min

neso

ta

Verm

ont

Mass

ach

use

tts

Ala

ska

New

York

Nort

h D

ako

ta

South

Caro

lina

Mary

land

Iow

a

Mis

souri

Ohio

Ore

gon

New

Je

rsey

Pennsy

lvan

ia

India

na

Main

e

Ala

bam

a

Conn

ect

icut

Mon

tan

a

U.S

.

Rhod

e I

sland

Wa

shin

gto

n

Colo

rado

Te

nne

ssee

Kentu

cky

Illin

ois

Dela

ware

Okl

ahom

a

Virgin

ia

Uta

h

Ark

ansa

s

Mic

hig

an

Kansa

s

Flo

rida

Lo

uis

ian

a

Idah

o

Nebra

ska

Wyo

min

g

We

st V

irg

inia

Georg

ia

Mis

siss

ippi

Neva

da

Arizo

na

Haw

aii

Te

xas

Nort

h C

aro

lina

New

Me

xico

Calif

orn

ia

Six Largest States


Enrollment in Public Community Colleges as a Percent of Fall 2004 Headcountby State

Source: IPEDS

36%

58%

0%

10%

20%

30%

40%

50%

60%

Calif

orn

ia

Wa

shin

gto

n

Wyo

min

g

New

Me

xico

Te

xas

Illin

ois

Mis

siss

ippi

Nort

h C

aro

lina

Ore

gon

Arizo

na

New

Je

rsey

Kansa

s

Haw

aii

Mary

land

South

Caro

lina

Iow

a

U.S

.

Virgin

ia

Wis

consi

n

Mic

hig

an

Kentu

cky

Nebra

ska

Ark

ansa

s

Flo

rida

Georg

ia

Min

neso

ta

Okl

ahom

a

Ala

bam

a

Ohio

Colo

rado

Dela

ware

Te

nne

ssee

Conn

ect

icut

New

York

Mis

souri

Lo

uis

ian

a

Rhod

e I

sland

Mass

ach

use

tts

India

na

Nort

h D

ako

ta

New

Ham

psh

ire

Main

e

Pennsy

lvan

ia

Mon

tan

a

Uta

h

Idah

o

We

st V

irg

inia

Neva

da

Verm

ont

South

Dako

ta

Ala

ska

DC

Six Largest States


Enrollment in Private Institutions as a Percent of Fall 2004 Headcountby State

Source: IPEDS

95%

25%

4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

DC

Mass

ach

use

tts

Rhod

e I

sland

New

York

Pennsy

lvan

ia

New

Ham

psh

ire

Mis

souri

Verm

ont

Conn

ect

icut

Arizo

na

Iow

a

Min

neso

ta

Illin

ois

Te

nne

ssee

Main

e

Ohio

Uta

h

India

na

Flo

rida

U.S

.

Haw

aii

Dela

ware

South

Dako

ta

Nebra

ska

Georg

ia

Colo

rado

Idah

o

New

Je

rsey

Wis

consi

n

Mic

hig

an

Virgin

ia

Mary

land

Nort

h C

aro

lina

Kentu

cky

South

Caro

lina

Ore

gon

Calif

orn

ia

Lo

uis

ian

a

We

st V

irg

inia

Wa

shin

gto

n

Okl

ahom

a

Te

xas

Nort

h D

ako

ta

Ala

bam

a

Kansa

s

Ark

ansa

s

Mon

tan

a

Mis

siss

ippi

Neva

da

New

Me

xico

Wyo

min

g

Ala

ska

Six Largest States

Current ChallengesCurrent Challenges

College Participation by SES Status

Source: Access Denied, Department of Education, February 2001

College Participation By Achievement Test and Socioeconomic

Status Quartile

SES Quartile

Lowest Highest

AchievementQuartile

Highest 78% 97%

Lowest 36% 77%


Source: U.S. Census Bureau

Year-to-Year Change in U.S. Population, 2002-2020


Source: Demography and the Future of Higher Education Policy, Richard Fry, April 2001

Non-Hispanic White18%

Asian/Pacific Islander 16%

Non-Hispanic Black16%

Native American1%

Hispanic 49%

New 18-24 Year Olds by Race


Growth of the For-Profit Sector

Public

75%

Private, not-for-profit

20%

Private, for profit

5%

The Crystal BallThe Crystal Ball

The more things change, the more they stay the same.

The upward spiral in costs will moderate, not end.

The “secular trend” toward higher fees will continue:

the middle class will protect its interests.

The Crystal BallThe Crystal Ball

Enrollments will grow at lower cost, less selective and for-profit institutions.

Need-based financial aid will be combined with academic standards.

No Child Left Behind – If affordable

Paul Lingenfelter

President, SHEEO

[email protected]

303-541-1605

Contact InformationContact Information

Documents

Student Contribution to the Cost of Higher Education in the United States