Presentation on theme: "Cost of Education – a Significant Factor Affecting Enrollment Prepared by: Elaine L. Rivera August 2009."— Presentation transcript:
Cost of Education – a Significant Factor Affecting Enrollment Prepared by: Elaine L. Rivera August 2009
UTPA Costs are lower than national and state, but significant for our student population Average cost of attendance for public universities in 2008-09 was $18,326. Average FY 2009 cost of attendance for UTPA students living off campus was $16,820, and $13,266 for those living with parents.
Average T&F Comparisons AVERAGE FULL TIME TUITION & FEES (enrollment weighted) PUBLIC FOUR-YEAR UNIVERSITIES, 2007-08 AND 2008-09 Source: The College Board & UTPA 2008-092007-08% Change National$6,585$6,1856.5% Texas$6,894$6,4377.1% UTPA (based on 14 hr. enrollment) $4,968$4,6736.3%
Average Estimated Undergraduate Cost of Attendance, 2008-09 (Enrollment-Weighted) Other Expenses Transportation Books & Supplies Room & Board Tuition & Fees Source: College Board – Trends in Higher Education Series
Cost – a significant factor The majority of students enrolled in higher education are enrolled at lower cost institutions. Educational expenses comprise a significant portion of family income for low income families.
Distribution of Full-Time Undergraduates at Four-Year Institutions by Published Tuition and Fees, 2008-09 Source: College Board – Trends in Higher Education Series
Full-Time Dependent Student Net Tuition and Fees and Net Cost of Attendance As a Percentage of Family Income, 1992-93 and 2003-04 Sources: NPSAS: 1993 and 2004; U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 1992 and 2003; calculations by authors.
The average family income of our financial aid students in FY2008 was $28,526 with 46% having less than $20,000 family income. 68% have less than $30,000 family income.
Pell Grant and Texas Grants are the major sources of gift aid for UTPA students Approximately 68% of UTPA students receive some form of financial aid. Approximately 52% of UTPA students receive Pell Grants. Approximately 28% of UTPA students qualify for Texas Grant. Funding is insufficient to award all eligible students.
Pell Grant and Texas Grants are the major sources of gift aid for UTPA students Of the 12,158 students awarded need-based aid in FY2008 (fall/spring), 9,059 students (75%) were Pell eligible (economically disadvantaged). Of the Pell eligible students, 5,620 (62%) had a zero Expected Family Contribution (EFC). These students qualified for the maximum Pell Grant award based on their enrollment hours.
Pell Grant and Texas Grants are the major sources of gift aid for UTPA students Number of students receiving Texas Grant Award in FY09: 4,963 Average Texas Grant Award in FY09: $4,744.47 Number of students receiving both Pell and Texas Grant in FY09: 4,501 Average Pell Grant award in FY09: $3,425.35
Trends in Student Aid There are not sufficient financial aid funds to cover 100% of students’ financial need. Usually cost of attendance increases outpace the availability of financial aid funds because the growth in financial aid funding does not keep up with the annual increases in education expenses.
National Trends in Student Aid State Grant funding has remained relatively flat Pell Grants have not kept up with rising education costs The most significant growth in funding has come from student loan programs
Ten-Year Trend in Funds Used to Finance Postsecondary Education Expenses in Constant (2007) Dollars (in Billions), 1997-98 to 2007-08 Source: College Board Trends in Higher Education Series
Maximum Pell Grant As a Percentage of Tuition and Fees and Room and Board, 1987-88 to 2007-08 Source: College Board Trends in Higher Education Series 2007
Buying Power of Pell Grant Has Steadily Decreased at UTPA Pell Grant funding remained flat from FY03 through FY07. Nevertheless, the maximum Pell Grant fully covered T&F for 15 hours up through FY06. T&F outpaced value of Pell Grant beginning in FY07 even with modest increases in Pell Grant.
Growth of Stafford, PLUS, and Nonfederal Loan Dollars in Constant (2007) Dollars (in Billions), 1997-98 to 2007-08 Nonfederal Loans PLUS Loans Unsubsidized Stafford Loans Subsidized Stafford Loans Source: College Board Trends in Higher Education Series 2007
Loan Volume at UTPA Has Tripled Since Fall 2000 There was a 22% increase in total amount borrowed from FY08 to FY09.
Unmet Need and Gaps There is a significant gap between cost of attendance and grant aid. The gap is covered with self-help aid and expected family contribution (EFC). Lower income students are able to contribute very little from family resources. The only other alternative is working and/or borrowing more.
Average Cost of Attendance & Unmet Need of FY2008 UTPA Awardees Average Cost of Attendance $13,181 Less: Average EFC $ 1,925 Average Financial Need $11,256 Less: Average Award, including loans $ 7,712(69%) Equals: Average Unmet Financial Need $ 3,544 (31%) **Note: We met on average ~ 69% of students’ financial need in FY08.
Average Institutional, and Federal and State Grants per Full-Time Dependent Student at Public Four-Year Colleges and Universities by Family Income Quartile in Constant (2006) Dollars, 2003-04 Source: NPSAS
UTPA Award Package Composition by Family Income Level Two-thirds of UTPA financial aid recipients fall into the first 3 income groups. These students have the largest unmet need, even with student loans.
Financial Aid at UTPA FY2008 FINANCIAL AID AWARDS SOURCEGRANTSLOANSSCHOLARSHIPSWAIVERSWORK STUDYTOTAL FEDERAL $31,750,422.53 $33,655,755.96 $ 1,564,877.45 $1,096,578.00 $68,092,988.20 INSTITUTIONAL $ 5,278,936.99 $ 6,905,634.98 $ 110,599.36$1,075,093.09 $13,032,358.71 PRIVATE $ 1,150.00 $ 1,687,660.71 $ 1,688,810.71 STATE $20,598,821.00 $ 728,095.00 $ 116,341.90 $6,518,313.92 $ 125,688.00 $28,399,811.27 TOTAL $57,628,180.52 $34,385,000.96 $10,274,515.04 $6,628,913.28 $2,297,359.09 $111,213,968.89
Growth of Financial Aid at UTPA Note: The 2008-09 estimated total does not include waivers.