Presentation is loading. Please wait.

Presentation is loading. Please wait.

The Consequences of Public College Tuition Inflation for Low-Income and Disadvantaged Students Melissa L. Freeman Ohio University.

Similar presentations


Presentation on theme: "The Consequences of Public College Tuition Inflation for Low-Income and Disadvantaged Students Melissa L. Freeman Ohio University."— Presentation transcript:

1 The Consequences of Public College Tuition Inflation for Low-Income and Disadvantaged Students Melissa L. Freeman Ohio University

2 The Consequences Tuition has been increasing at an alarming rateTuition has been increasing at an alarming rate –21 states have increased by at least 10% in Enrollment has been increasing as wellEnrollment has been increasing as well –15 million students enrolled in –12 million enrolled in public institutions

3 The Consequences A paradoxA paradox Review of the literature about the effects of public tuition inflation on low-income and disadvantaged studentsReview of the literature about the effects of public tuition inflation on low-income and disadvantaged students

4 The Consequences Talented college-ready, low-income students often choose not to go to collegeTalented college-ready, low-income students often choose not to go to college –2 million in first decade of 21 st Century –One factor is public college tuition inflation Rising prices have a chilling effect on low income enrollmentRising prices have a chilling effect on low income enrollment

5 The Consequences This paper reviews the impact that price has onThis paper reviews the impact that price has on –Participation –Aspirations –Institutional choice –Persistence –Post graduation debt –Financial Nexus Model

6 The Consequences Price and participationPrice and participation –Leslie and Brinkman (1988), meta-analysis For every $100 increase there was a drop of.7 percentage points in first time enrollment rateFor every $100 increase there was a drop of.7 percentage points in first time enrollment rate –Heller (1997), follow up For every $100 increase there was a drop of.5 to 1.0 percentage points in first time enrollment rateFor every $100 increase there was a drop of.5 to 1.0 percentage points in first time enrollment rate

7 The Consequences Price and AspirationsPrice and Aspirations –If students view college as unaffordable, they will not prepare. –Hossler, Schmidt, & Vesper (1999) There is a difference between the factors that influence aspirations and those that influence achievementThere is a difference between the factors that influence aspirations and those that influence achievement –Somers, Cofer, & VanderPutten (2002) SES and college costs most influenced aspirationsSES and college costs most influenced aspirations

8 The Consequences Price and Institutional ChoicePrice and Institutional Choice –Low income more likely to attend a two-year college Rising pricesRising prices Shift from need-based aid to merit-based aid by states and loan aid by the fedsShift from need-based aid to merit-based aid by states and loan aid by the feds –The Problem Tuition and fees going up everywhereTuition and fees going up everywhere Many potential four-year graduates stop after completing the two-year degree, dramatically and unnecessarily limiting life chancesMany potential four-year graduates stop after completing the two-year degree, dramatically and unnecessarily limiting life chances

9 The Consequences –Racial segregation among types of public institutions African-American’s attend their first choice less oftenAfrican-American’s attend their first choice less often Attend institutions closer to homeAttend institutions closer to home Chose institution based on lower costChose institution based on lower cost

10 The Consequences Price and PersistencePrice and Persistence –Previously, researchers questioned that price impacted persistence. Upperclassmen less responsive to changes and more committed to completionUpperclassmen less responsive to changes and more committed to completion –St. John, Paulsen, & Starkey (1996) Link between persistence and tuition, subsidies, financial aid and living costsLink between persistence and tuition, subsidies, financial aid and living costs –Heller (2000) For most racial groups, there was a strong correlation between continuing students and priceFor most racial groups, there was a strong correlation between continuing students and price

11 The Consequences Post Graduation DebtPost Graduation Debt –Increasing tuition, reduced need-based aid requires increased reliance on loans. Direct Student Aid Direct Student Aid –50% Grant Aid –47% Loan Aid –2% Work Aid Direct Student Aid— Direct Student Aid— –42% Grant Aid –57% Loan Aid –1% Work Aid

12 The Consequences Low income students are more likely to enroll with grant aid than loan aidLow income students are more likely to enroll with grant aid than loan aid –Loan debt more likely inhibits low income enrollment Borrowing is a much greater burden for low income studentsBorrowing is a much greater burden for low income students Post graduation debt impacts students’ lives long after college, including what career path they may choosePost graduation debt impacts students’ lives long after college, including what career path they may choose

13 The Consequences Financial NexusFinancial Nexus –St. John, Paulsen, & Starkey (1996) Model explains the complex interactions between finance and academic preparation in influencing college choiceModel explains the complex interactions between finance and academic preparation in influencing college choice Financial concerns present barriers at every stage of the college selection process—direct and indirect influence on enrollment behaviorFinancial concerns present barriers at every stage of the college selection process—direct and indirect influence on enrollment behavior Finances shape the expectations and condition the choices of students and families long before they are thinking about collegeFinances shape the expectations and condition the choices of students and families long before they are thinking about college

14 The Consequences Cumulative Consequences for Low-Income StudentsCumulative Consequences for Low-Income Students –Participation Rates –Economic Segregation by Institutional Type –Degree Attainment

15 The Consequences Participation RatesParticipation Rates –Percentage of those who graduate from high school and go on to college. –Low income students are less likely to go –In 2001, participation by income quartile 36.8% for bottom quartile36.8% for bottom quartile 53.9% for second quartile53.9% for second quartile 67.9% for third quartile67.9% for third quartile 78.6% for top quartile78.6% for top quartile

16 The Consequences Participation by MinoritiesParticipation by Minorities –In 1999 Whites = 45.3%Whites = 45.3% Blacks = 39.2%Blacks = 39.2% Hispanics = 31.6%Hispanics = 31.6%

17 The Consequences Economic Segregation by Institutional TypeEconomic Segregation by Institutional Type –Low income students pushed toward 2 year schools –Resulted in the sorting and redistribution of higher education according to economic class

18 The Consequences Degree AttainmentDegree Attainment –Low income students less likely to receive a bachelor’s degree. –In 2001, bachelor’s degree completion by income quartiles 12.2% for bottom quartile12.2% for bottom quartile 22.9% for second quartile22.9% for second quartile 36.2% for third quartile36.2% for third quartile 65.5% for top quartile65.5% for top quartile

19 The Consequences ConclusionConclusion –Despite increased demand for higher education, low income and disadvantaged students still face a myriad of barriers to a higher education –Central to this is the lack of affordability


Download ppt "The Consequences of Public College Tuition Inflation for Low-Income and Disadvantaged Students Melissa L. Freeman Ohio University."

Similar presentations


Ads by Google