Undergraduate finances: Net prices and cumulative borrowing

Tricia Grimes

Shefali V. Mehta

Minnesota Office of Higher Education

July 2006

National Association of Student Financial Aid Administrators

(NASFAA) Conference, July 5-8, 2006 in Seattle, Washington

July 2006 Minnesota Office of Higher Education 2

• The national study has provided useful information on how students pay for college since 1986

• The 2004 study provided data for detailed state-level analysis for 12 states

• More than 1,000 variables on the financial situation, demographics, performance, and attendance of students

• Data was retrieved using the National Center for Education Statistics (NCES) online Data Analysis System (DAS)

http://www.nces.ed.gov/dasol

The National Postsecondary Student Aid Study (NPSAS)

July 2006 Minnesota Office of Higher Education 3

California Illinois New York

Connecticut Indiana Oregon

Delaware Minnesota Tennessee

Georgia Nebraska Texas

12 Oversampled States in the NPSAS Survey

July 2006 Minnesota Office of Higher Education 4

• Today’s presentation will focus on the U.S. and the 12 states with regards to specific aspects of undergraduate finances:

– Tuition and required fees

– Student budgets (as stated by the institutions)

– Net prices: The student budget less the total grants received

– Cumulative borrowing: The total amount borrowed in the course of undergraduate study

Undergraduate finances

Overview of the 12 states

Basic demographic information

July 2006 Minnesota Office of Higher Education 6

Enrollment by institutional sector

10%-53%8%29% Texas

7%-41%17%35% Tennessee

8%-50%9%32% Oregon

6%-32%33%30% New York

7%-29%27%36% Nebraska

6%-43%17%33% Minnesota

6%-30%17%48% Indiana

8%-56%17%18% Illinois

7%-46%10%37% Georgia

5%-42%17%36% Delaware

6%-29%33%32% Connecticut

11%-64%7%19% California

9%8%40%13%30%U.S.

Others or attended

more than one school

Private for-profit

Public 2-year

Private not-for-profit 4-

yearPublic 4-year

July 2006 Minnesota Office of Higher Education 7

Percent who applied for aid

Percent of undergraduates who applied for federal aid

75% 70%61% 60% 60% 59% 59% 58% 57% 55% 53% 49%

44%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Min

neso

ta

New

Yor

k

Indi

ana

Del

awar

e

Geo

rgia

Neb

rask

aU.S

.

Ten

ness

ee

Ore

gon

Conne

ctic

ut

Tex

as

Illin

ois

Cal

iforn

ia

July 2006 Minnesota Office of Higher Education 8

Income distributions by dependent status

Income distributions ranked by median

$45,100$24,100$10,900$86,000$51,500$28,300New York

$56,500$27,400$11,100$89,800$53,600$26,200California

$43,400$24,500$11,300$90,100$55,000$30,400Georgia

$46,200$24,700$11,000$88,800$57,000$29,400Texas

$50,200$27,700$12,800$82,500$57,600$37,700Nebraska

$54,900$32,700$17,400$95,200$58,200$34,000Delaware

$49,900$24,500$9,000$88,600$59,200$35,600Oregon

$53,000$26,600$11,600$85,200$61,000$33,700Tennessee

$55,100$30,400$13,700$91,500$61,200$36,200Illinois

$62,700$30,800$14,200$94,700$66,500$39,600Connecticut

$51,200$28,700$11,500$98,600$67,100$42,200Indiana

$55,600$30,700$14,800$93,200$67,800$39,600Minnesota

$50,100$26,500$12,700$90,000$58,200$32,500U.S.

75th %50th %25th %75th %50th %25th % 

Independent (residents)Dependent (residents)  

July 2006 Minnesota Office of Higher Education 9

Median income for dependent, resident students

Median income for dependent students attending in their state of residence

$51,

500

$53,

600

$55,

000

$57,

000

$57,

500

$57,

600

$58,

200

$59,

200

$61,

000

$61,

200

$66,

500

$67,

100

$67,

800

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

New

Yor

k

Cal

iforn

ia

Geo

rgia

Tex

asU.S

.

Neb

rask

a

Del

awar

e

Ore

gon

Ten

ness

ee

Illin

ois

Conne

ctic

ut

Indi

ana

Min

neso

ta

July 2006 Minnesota Office of Higher Education 10

Tuition and fees in the 12 states

Tuition and fees ranked by median

$6,300$2,200$1,700 Delaware$2,000$320$180 California

$6,000$2,500$550 California$3,200$1,100$540 Texas

$5,100$3,200$2,600 Georgia$3,100$1,400$590 Georgia

$4,800$3,500$1,700 Texas$5,200$1,500$630 Illinois

$9,300$3,800$3,200 Nebraska$3,900$1,900$910 Tennessee

$10,000$3,900$3,100 Tennessee$5,000$1,900$650 Oregon

$7,700$4,400$3,300 Minnesota$6,600$2,300$1,100 Delaware

$11,000$5,000$1,800 Illinois$5,800$3,000$1,300 Indiana

$7,000$5,300$4,200 Oregon$4,100$3,100$1,300 Nebraska

$17,000$5,400$3,800 Indiana$5,800$3,400$1,700 Minnesota

$18,000$5,700$4,300 New York$11,000$4,300$2,300 New York

$24,000$6,800$5,000 Connecticut$18,000$5,000$1,500 Connecticut

$9,800$4,800$2,800U.S.$5,400$2,300$790U.S.

75th %50th %25th % 75th %50th %25th % 

Undergraduates attending full-time, full yearAll undergraduates

July 2006 Minnesota Office of Higher Education 11

Median tuition and fees

Median tuition and fees for full-time, full year undergraduates

$2,2

00$2

,500

$3,2

00

$3,5

00$3

,800

$3,9

00$4

,400

$4,8

00

$5,0

00$5

,300

$5,4

00

$5,7

00 $6,8

00

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

Del

awar

e

Cal

iforn

ia

Geo

rgia

Tex

as

Neb

rask

a

Ten

nesse

e

Min

nesot

a US

Illin

ois

Ore

gon

India

na

New

York

Conn

ectic

ut

July 2006 Minnesota Office of Higher Education 12

Overall borrowing in the 12 states

Ranked by percent who borrowed

$5,50016% California

$5,30025% Illinois

$5,70025% Georgia

$5,80026% Texas

$5,70030% Delaware

$6,80034% Connecticut

$5,80034% Oregon

$5,20037% Tennessee

$5,60039% Indiana

$6,00040% New York

$5,00046% Nebraska

$6,10049% Minnesota

$5,80035%U.S.

Total loans

Percent who

borrowed 

Total loans (95% confidence

intervals)

$5,700$5,30017%14%

$5,600$5,00027%23%

$6,000$5,40027%23%

$6,000$5,60028%25%

$6,400$5,00033%27%

$7,600$6,00036%32%

$6,200$5,50036%33%

$5,400$5,00038%35%

$5,900$5,30040%37%

$6,400$5,70042%38%

$5,200$4,70048%43%

$6,400$5,80051%48%

$5,900$5,70035%35%

Percent who borrowed

(95% confidence intervals)

Net prices in the U.S. and 12 states

Undergraduate tuition and fees,

students budgets and net prices

July 2006 Minnesota Office of Higher Education 14

Average tuition and fees: All full-time, full year students

Average tuition and fees for full-time, full year undergraduates

$4,5

70

$5,0

30

$5,3

80

$5,8

40

$6,2

90$7

,230

$7,5

90

$7,7

00

$7,7

70

$8,1

00

$8,7

80 $10,

800

$13,

900

$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

$28,000

Del

awar

e

Tex

as

Cal

iforn

ia

Geo

rgia

Neb

rask

a

Ten

nesse

e

Illin

oisU.S

.

Min

nesot

a

Ore

gon

India

na

New

York

Conn

ectic

ut

Connecticut and New York have the highest

average tuition and fees, but they have the

largest percent of students enrolled in the private 4-year sector.

July 2006 Minnesota Office of Higher Education 15

Average student budgets

Average student budget for full-time, full year undergraduates

$11,

500

$14,

500

$15,

200

$16,

000

$16,

200

$16,

600

$17,

000

$17,

200

$17,

300

$17,

300

$18,

300

$20,

000 $2

4,10

0

$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

$28,000

Del

awar

e

Tex

as

Neb

rask

a

Geo

rgia

Cal

iforn

ia

Illin

ois

Ten

nesse

eU.S

.

Min

nesot

a

Ore

gon

India

na

New

York

Conn

ectic

ut

July 2006 Minnesota Office of Higher Education 16

Average net prices

Average net prices (student budget less grants) for full-time, full year undergraduates

$9,6

70$1

0,80

0

$11,

400

$11,

800

$12,

900

$13,

000

$13,

000

$13,

600

$13,

900

$13,

900

$14,

100

$15,

100 $1

9,40

0

$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

$28,000

Del

awar

e

Neb

rask

a

Tex

as

Geo

rgia

Illin

ois

Cal

iforn

ia

Ten

nesse

eU.S

.

India

na

Min

nesot

a

Ore

gon

New

York

Conn

ectic

ut

The average net prices are $2,000-$5,000 lower

than the stated prices.

Net prices for middle- and low-income students attending in their state of residence in the U.S. and 12 states

Undergraduate tuition and fees,

students budgets and net prices in the

public 2-year and public 4-year sectors

July 2006 Minnesota Office of Higher Education 18

Public 4-year tuition and fees: residents

Average tuition and fees for low- and middle-income resident, full-time, full-year undergraduates

$3,3

10

$3,5

80

$3,7

60

$3,8

20

$3,9

60$4

,460

$4,7

10

$4,8

10

$4,8

30$5

,430

$5,4

60

$5,7

00

$11,

000

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Geo

rgia

Ten

nesse

e

Tex

as

Cal

iforn

ia

Neb

rask

aU.S

.

Indi

ana

New

York

Min

nesota

Illin

ois

Ore

gon

Conne

ctic

ut

Del

awar

e

July 2006 Minnesota Office of Higher Education 19

Public 4-year student budget: residents

Average student budgets for low- and middle-income resident, full-time, full-year undergraduates in the public 4-year sector

$12,

800

$13,

200

$13,

400

$13,

600

$14,

000

$14,

100

$14,

100

$14,

100

$15,

000

$15,

000

$15,

300

$15,

500 $1

9,70

0

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Neb

rask

a

Geo

rgia

Ten

ness

ee

New

Yor

k

Min

neso

taU.S

.

Indi

ana

Tex

as

Illin

ois

Ore

gon

Cal

iforn

ia

Conne

ctic

ut

Del

awar

e

July 2006 Minnesota Office of Higher Education 20

Public 4-year net prices: residents

Average net price for low- and middle-income resident, full-time, full-year undergraduates

$8,7

00$9

,280

$9,2

90

$9,7

20

$9,7

30

$9,7

60

$10,

100

$10,

300

$10,

500

$10,

700

$11,

500

$11,

800

$13,

600

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

New

York

Geo

rgia

Neb

rask

a

Illin

ois

Indi

ana

Cal

iforn

iaU.S

.

Tex

as

Min

nesota

Ten

nesse

e

Conne

ctic

ut

Ore

gon

Del

awar

e

July 2006 Minnesota Office of Higher Education 21

Public 2-year tuition and fees: residents

Average tuition and fees for low- and middle-income resident, full-time, full-year undergraduates in the public 2-year sector

$616

$1,3

20$1

,570

$1,5

80

$1,7

00

$1,8

10

$1,8

50

$1,8

90$2

,110

$2,1

80 $2,5

50 $2,9

90$3

,270

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Cal

iforn

ia

Tex

as

Neb

rask

a

Geo

rgia

Del

awar

e

Ten

ness

eeU.S

.

Illin

ois

Conne

ctic

ut

Indi

ana

Ore

gon

New

Yor

k

Min

neso

ta

July 2006 Minnesota Office of Higher Education 22

Public 2-year student budget: residents

Average student budgets for low- and middle-income resident, full-time, full-year undergraduates in the public 2-year sector

$7,3

90 $9,1

30$9

,860

$9,9

50

$10,

100

$10,

200

$10,

600

$10,

700

$10,

700

$10,

900

$11,

000

$12,

100

$13,

500

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

Del

awar

e

Tex

as

Neb

rask

a

Cal

iforn

ia

Illin

oisU.S

.

Conne

ctic

ut

New

York

Ten

nesse

e

Ore

gon

Geo

rgia

Indi

ana

Min

nesota

July 2006 Minnesota Office of Higher Education 23

Public 2-year net prices: residents

Average net prices for low- and middle-income resident, full-time, full-year undergraduates in the public 2-year sector

$6,4

60

$6,5

90$7

,300

$7,4

00

$7,5

10

$7,7

70

$7,9

60

$8,0

60

$8,0

70

$8,2

60$8

,780

$9,1

60 $10,

800

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

Tex

as

Del

awar

e

Neb

rask

a

New

York

Ore

gonU.S

.

Ten

nesse

e

Geo

rgia

Illin

ois

Cal

iforn

ia

Conne

ctic

ut

Indi

ana

Min

nesota

Cumulative borrowing in the U.S. and 12 states

Cumulative borrowing by graduating

seniors

July 2006 Minnesota Office of Higher Education 25

Median cumulative borrowing

Median cumulative borrowing for graduating seniors

$15,

000

$15,

000

$16,

000

$17,

000

$17,

000

$17,

000

$17,

000

$17,

000

$17,

000

$18,

000

$18,

000

$18,

000

$19,

000

$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

Ore

gon

Cal

iforn

ia

Del

awar

e

Tex

as

Neb

rask

a

Illin

ois

Geo

rgia

Conn

ectic

utU.S

.

Ten

nesse

e

Min

nesot

a

India

na

New

York

The cumulative borrowing amounts are similar and all have large confidence intervals.

July 2006 Minnesota Office of Higher Education 26

Average cumulative borrowing

Average cumulative borrowing for graduating seniors

$16,

200

$16,

500

$17,

700

$18,

000

$18,

500

$18,

800

$19,

100

$19,

200

$19,

900

$20,

300

$20,

800

$20,

800

$17,

300

$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

Neb

rask

a

Del

awar

e

Cal

iforn

ia

Ore

gon

Connec

ticut

Tex

as

Illin

ois

India

naU.S

.

Ten

nesse

e

Min

nesota

Geo

rgia

New

York

July 2006 Minnesota Office of Higher Education 27

Percent of graduating seniors who borrowed

Percent of graduating seniors who borrowed

72%

56% 56%

77%

62% 64% 63% 61% 66%71%

76%65% 67%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Neb

rask

a

Del

awar

e

Cal

iforn

ia

Ore

gon

Connec

ticut

Tex

as

Illin

ois

India

naU.S

.

Ten

nesse

e

Min

nesota

Geo

rgia

New

York

July 2006 Minnesota Office of Higher Education 28

• Data can be retrieved from the website:

http://www.nces.ed.gov/dasol

• For tutorials and technical assistance:

http://nces.ed.gov/dasol/help/

• For help with tables:

http://www.nces.ed.gov/dasol/help/tables.asp

Retrieving NPSAS Data

July 2006 Minnesota Office of Higher Education 29

Contact information

For questions or comments, please contact us:

Tricia Grimes, Tricia.Grimes@state.mn.us

Shefali Mehta, Shefali.Mehta@state.mn.us

The End

Thank you!