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 2006Minnesota Office of Higher Education2 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) The National Postsecondary Student Aid Study (NPSAS)

July 2006Minnesota Office of Higher Education3 CaliforniaIllinoisNew York ConnecticutIndianaOregon DelawareMinnesotaTennessee GeorgiaNebraskaTexas 12 Oversampled States in the NPSAS Survey

July 2006Minnesota Office of Higher Education4 Todays 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 2006Minnesota Office of Higher Education6 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 2006Minnesota Office of Higher Education7 Percent who applied for aid

July 2006Minnesota Office of Higher Education8 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 2006Minnesota Office of Higher Education9 Median income for dependent, resident students

July 2006Minnesota Office of Higher Education10 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 2006Minnesota Office of Higher Education11 Median tuition and fees

July 2006Minnesota Office of Higher Education12 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% 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 2006Minnesota Office of Higher Education14 Average tuition and fees: All full-time, full year students 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 2006Minnesota Office of Higher Education15 Average student budgets

July 2006Minnesota Office of Higher Education16 Average net prices 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 2006Minnesota Office of Higher Education18 Public 4-year tuition and fees: residents

July 2006Minnesota Office of Higher Education19 Public 4-year student budget: residents

July 2006Minnesota Office of Higher Education20 Public 4-year net prices: residents

July 2006Minnesota Office of Higher Education21 Public 2-year tuition and fees: residents

July 2006Minnesota Office of Higher Education22 Public 2-year student budget: residents

July 2006Minnesota Office of Higher Education23 Public 2-year net prices: residents

Cumulative borrowing in the U.S. and 12 states Cumulative borrowing by graduating seniors

July 2006Minnesota Office of Higher Education25 Median cumulative borrowing The cumulative borrowing amounts are similar and all have large confidence intervals.

July 2006Minnesota Office of Higher Education26 Average cumulative borrowing

July 2006Minnesota Office of Higher Education27 Percent of graduating seniors who borrowed

July 2006Minnesota Office of Higher Education28 Data can be retrieved from the website: For tutorials and technical assistance: For help with tables: Retrieving NPSAS Data

July 2006Minnesota Office of Higher Education29 Contact information For questions or comments, please contact us: Tricia Grimes, Shefali Mehta,

The End Thank you!