1. Sandy Baum Higher Education Policy Analyst Professor of Economics Emerita, Skidmore College AGB March 2010 Colleges and Students in Difficult Economic Times: Prices, Student Aid, and Student Debt www.agb.org

2. Funding Sources

3. State Tax Appropriations for Higher Education: Total Appropriations in Constant 2008 Dollars (in Millions), Appropriations per Public FTE Student in Constant 2008 Dollars, and Public FTE Enrollment (in Thousands), 1971-72 to 2008-09 Source: The College Board, Trends in College Pricing 2009 3

4. Inflation-Adjusted Endowment Assets per FTE Student at Private Not-for-Profit Four-Year Colleges and Universities Relative to FY2000, FY2000 to FY2008 Sources: The College Board, Trends in College Pricing 2009; NACUBO Endowment Study; Commonfund Institute; NCES, IPEDS; calculations by the authors. Data are from NACUBO and Commonfund Institute where available.

5. Prices

6. Average Published Charges for Undergraduates by Type and Control of Institution, 2009-10 (Enrollment-Weighted) Source: The College Board, Trends in College Pricing 2009; Annual Survey of Colleges.. 6

7. Average Annual Percentage Increase in Inflation-Adjusted Published Prices by Decade, 1979-80 to 2009-10 Source: The College Board, Annual Survey of Colleges; NCES, Integrated Postsecondary Education Data System (IPEDS). 7

8. Distribution of Full-Time Undergraduates at Four-Year Institutions by Published Tuition and Fees, 2009-10 Source: The College Board, Annual Survey of Colleges. 8

9. Average Published Charges for Undergraduates by Carnegie Classification, 2009-10 (Enrollment-Weighted) Source: The College Board, Annual Survey of Colleges. 9

10. What Students Pay

11. Average Estimated Undergraduate Budgets, 2009-10 (Enrollment-Weighted) Source: The College Board, Trends in College Pricing 2009 11

12. Net Price: Published Tuition and Fees, Net Tuition and Fees, and Room and Board in Constant 2009 Dollars, Full-Time Undergraduate Students, 1994-95, 1999-2000, 2004-05 and 2009-10 12 Source: The College Board, Trends in College Pricing 2009; Annual Survey of Colleges.

13. Net Price by Income: Private Four-Year Colleges Net Tuition & Fees, Net Room & Board and Other Costs, and Total Grants in Constant 2007 Dollars by Income Group, Full-Time Dependent Students : 1992-93, 1995-96, 1999-2000, 2003-04 and 2007-08 Sources: The College Board, Trends in College Pricing 2009; NCES, NPSAS, 1993, 1996, 2000, 2004, 2008; U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 2007.;

14. Student Aid

15. Undergraduate Student Aid by Source (in Billions), 2008-09 15 Source: The College Board, Trends in Student Aid 2009

16. Average Institutional Grants and Average Federal plus State Grants per Full-Time Dependent Student by Parent Income Public Institutions, 2007-08 Sources: NPSAS, 1993, 1996, 2000, 2004, 2008; U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 2007. 16 Distribution of Full-Time Dependent Students in Public Institutions by Parent Income, 2007-08

17. Average Institutional Grants and Average Federal plus State Grants per Full-Time Dependent Student by Parent Income and Price Level of Institution, 2007-08 Private Not-for-Profit Four-Year Institutions Sources: The College Board, Trends in Student Aid 2009; NPSAS, 1993, 1996, 2000, 2004, 2008; U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 2007.

18. Only Need-based Aid? Defining need-based aid Ability vs. willingness to pay Does non-need-based aid take dollars out of the pockets of low-income students? Rawls

19. Meeting Full Need Meeting need vs. gapping Packaging Rationing funds / competing priorities

20. No Loan Promises Promises made in better times: Is it always right to keep them? What will be sacrificed to keep these promises? Are there negative externalities for the vast majority of students who must borrow to go to college?

21. How Students Pay

22. Percentage Growth in Mean Family Income by Quintile in Constant 2008 Dollars, 1978–1988, 1988–1998, and 1998–2008 Sources: The College Board, Trends in College Pricing 2009; U.S. Census Bureau, Current Population Survey, Table F-1, Table F-3, and FINC-01; calculations by the authors. 22

23. Distribution of Total Undergraduate Debt by Sector and Type of Degree or Certificate, 2007-08 Source: NPSAS, 2008; The College Board, Trends in Student Aid 2009 23

24. A Problem Temptation to view ethical principles such as equity in admissions and financial aid policies as a luxury we can’t afford in these hard times.

25. The Solution? Thoughtful leadership A balancing act