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Student Contribution to the Cost of Higher Education in the United States. Multinational Higher Education Forum March 17, 2006 Paul Lingenfelter, President, SHEEO. Carnegie Commission on Higher Education, 1973. Economic costs, including the net loss of potential income to students. - PowerPoint PPT Presentation
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Student Contribution to the
Cost of Higher Education
in the United States
Multinational Higher Education Forum
March 17, 2006
Paul Lingenfelter, President, SHEEO
Carnegie Commission on Higher Education, 1973Carnegie Commission on Higher Education, 1973
Carnegie Commission on Higher Education, 1973Carnegie Commission on Higher Education, 1973
Monetary outlays for the educational and living expenses of students
Public sources &
philanthropy
Students & parents
Economic costs, including the net loss of potential
income to students
Public sources &
philanthropy
Students & parents
Carnegie Commission on Higher Education, 1973Carnegie Commission on Higher Education, 1973
Equity of opportunity
• Additional public investments in need-based student assistance
• Charging progressively higher fees for advanced undergraduate and graduate instruction
• Developing more progressive tax systems
• Narrowing the “gap” between student costs in public and private institutions
Important developments since 1973Important developments since 1973
U.S. Student Assistance, 2004-2005
Source: College Board
(billions of $) Per FTE
Federal Grants $ 18B $1,413
State Grants $ 6B $471
Institutional Grants $ 24B $1,884
Private Grants $ 8B $628
Federal Tax Credits $ 8B $628
All Grants and credits $ 64B $5,025
Federal Loans/Work $63B $4,946
All Assistance $127B $9,971
Important developments since 1973Important developments since 1973
Growing Tuition and Fees – Constant (2005) Dollars
Source: College Board
Academic YearPrivate
Four-YearPublic
Four-Year
Public
Two-Year
1975-76 $8,026 $1,530 $865
1990-91 $13,663 $2,791 $1,325
2005-06 $21,235 $5,491 $2,191
Important developments since 1973Important developments since 1973
Earnings Premium of a College Degree
1975
2002
Premium above High
School Credential
88%
50%
Important developments since 1973Important developments since 1973
Highest: $7,121
$6,035
Lowest: $5,833
5.0
6.0
7.0
8.0
9.0
10.0
11.0
198
1
198
2
198
3
198
4
198
5
198
6
198
7
198
8
198
9
199
0
199
1
199
2
199
3
199
4
199
5
199
6
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
Pu
bli
c F
TE
En
roll
me
nt
(mil
lio
ns
)
$5,500
$5,700
$5,900
$6,100
$6,300
$6,500
$6,700
$6,900
$7,100
$7,300
Ed
uc
ati
on
al
Ap
pro
pri
ati
on
s p
er
FT
E
Public FTE Enrollment (millions)
Educational Appropriations per FTE (constant $)Recession
Enrollment Growth and Public Higher Education Appropriations per FTEU.S., Fiscal 1981-2005
Source: SHEEO SHEF
Important developments since 1973Important developments since 1973
-0.5 -1
.0
-1.0 -1
.6 -2.1
-2.3 -2
.8
-2.9
-3.0 -3
.3 -3.8
-3.9 -4
.2
-4.2
-4.3
-4.3
-4.4
-4.4 -4
.8
-4.8
-4.8 -5
.1
-5.2
-5.2
-5.3 -5
.6
-5.6
-5.7
-5.7
-5.7
-5.8
-5.8
-5.9 -6
.2
-6.3
-6.5
-6.7
-6.8
-6.9
-7.0
-7.0 -7
.4 -8.0
-8.2 -8
.9 -9.3
-9.3 -9
.8 -10
.5
-10
.7
-12
-9
-6
-3
0
UtahM
ontana
New Hampshire
DelawareNew Jersey
Maine
Maryland
Massachusetts
WisconsinVerm
ontO
hioNorth Dakota
ConnecticutKansas
ArkansasVirginia
NebraskaO
klahoma
MinnesotaColorado
West Virginia
KentuckyM
ichiganArizona
New YorkG
eorgiaHawaiiIllinois
PennsylvaniaAlaska
Rhode IslandU
nited States
New Mexico
CaliforniaIowa
IndianaNorth Carolina
FloridaIdaho
South CarolinaSouth Dakota
Missouri
Washington
OregonTexas
NevadaTennesseeM
ississippiLouisianaAlabam
a
Source: NCHEMS; Don Boyd (Rockefeller Institute of Government), 2005
Projected State and Local Budget Deficits as a Percent of Revenues, 2013
Important developments since 1973Important developments since 1973
Total Educational Revenues per FTE by Component, U.S., Fiscal 1991-2005
Source: SHEEO SHEF
6,7406,358 6,127 6,200 6,406 6,480 6,690 6,891 7,060 7,114 7,121 6,873
6,2915,949 5,833
2,3852,574 2,733 2,824
2,900 3,0023,030
3,0433,045 2,962 2,979
2,990
3,0643,242 3,379
$0
$2,000
$4,000
$6,000
$8,000
$10,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
TuitNet per FTE
EdApprops per FTE
$9,212
$10,100
$9,126
$9126$9212
Diversity Among the StatesDiversity Among the States
State Undergraduate Grant Aid per Undergraduate Student by State, 2003-04
Source: National Association of State Student Grant & Aid Programs
$0
$500
$1,506
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Georg
ia
So
uth
Ca
rolin
a
New
York
New
Je
rsey
Ke
ntu
cky
Pe
nnsy
lvan
ia
Illin
ois
We
st V
irg
inia
India
na
Ve
rmo
nt
Lo
uis
ian
a
Nevad
a
Flo
rida
Wa
shin
gto
n
Min
neso
ta
U.S
.
Nort
h C
aro
lina
Ohio
Calif
orn
ia
Mic
hig
an
Vir
gin
ia
Dela
ware
New
Me
xico
Wis
consi
n
Conn
ectic
ut
Iow
a
Colo
rado
Ark
ansa
s
Main
e
Mass
achuse
tts
Mary
land
Te
nne
ssee
Rhod
e I
sland
Te
xas
Okla
hom
a
Mis
siss
ippi
Mis
souri
Ore
go
n
Ka
nsa
s
Nebra
ska
Idah
o
New
Ham
psh
ire
Mon
tan
a
Nort
h D
ako
ta
Uta
h
Ala
bam
a
Ari
zona
Haw
aii
Wyo
min
g
Ala
ska
So
uth
Da
kota
Non-need Grant
Need Grant
Six Largest States
Diversity Among the StatesDiversity Among the States
Total Educational Revenues per Studentby State, Fiscal 2005
Source: SHEE SHEF
$9,212
$6,898
$14,501
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
$12,000
$13,000
$14,000
$15,000
Ne
w J
ers
ey
Wyo
min
g
De
law
are
Co
nn
ect
icu
t
Ala
ska
So
uth
Ca
rolin
a
Te
nn
ess
ee
Mic
hig
an
Ma
ssa
chu
sett
s
Pe
nn
sylv
an
ia
No
rth
Ca
rolin
a
Rh
od
e I
sla
nd
Ma
ryla
nd
Ma
ine
Ala
ba
ma
Ve
rmo
nt
Ne
vad
a
Ne
w Y
ork
Iow
a
Mis
souri
Ind
ian
a
Min
ne
sota
Ke
ntu
cky
So
uth
Da
kota
Ka
nsa
s
Ge
org
ia
Ari
zon
a
Ha
wa
ii
Vir
gin
ia
Illin
ois
Wis
con
sin
U.S
.
Te
xas
Ore
go
n
Ne
bra
ska
Ida
ho
Mis
siss
ipp
i
Ark
an
sas
Ne
w M
exi
co
Oh
io
We
st V
irg
inia
Mo
nta
na
Okl
ah
om
a
No
rth
Da
kota
Wa
shin
gto
n
Ne
w H
am
psh
ire
Lo
uis
ian
a
Uta
h
Co
lora
do
Flo
rid
a
Ca
lifo
rnia
Six Largest States
Diversity Among the StatesDiversity Among the States
Net Tuition as a Percent of Public Higher Education Total Educational Revenuesby State, Fiscal 2005
Source: SHEE SHEF
37%
77%
13%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
Ver
mon
t
New
Ham
pshi
re
Col
orad
o
Del
awar
e
Mar
ylan
d
Ore
gon
Pen
nsyl
vani
a
Mon
tana
Rho
de Is
land
Mic
higa
n
Sou
th D
akot
a
Indi
ana
Ohi
o
Iow
a
Sou
th C
arol
ina
Ala
bam
a
Virg
inia
Wes
t Virg
inia
Mai
ne
Min
neso
ta
Nor
th D
akot
a
New
Jer
sey
Ten
ness
ee
Mas
sach
uset
ts
Con
nect
icut
Mis
sour
i
Mis
siss
ippi
Kan
sas
Ark
ansa
s
Ken
tuck
y
Wis
cons
in
U.S
.
Ariz
ona
Neb
rask
a
Uta
h
Okl
ahom
a
New
Yor
k
Tex
as
Illin
ois
Loui
sian
a
Flo
rida
Nor
th C
arol
ina
Was
hing
ton
Ala
ska
Idah
o
Nev
ada
Haw
aii
Cal
iforn
ia
Geo
rgia
Wyo
min
g
New
Mex
ico
Six Largest States
Diversity Among the StatesDiversity Among the States
Annual Tuition and Required Fees at Public Flagship Universities by State, 2005-06
Source: 2005-06: Tuition and Fee Rates: A National Comparison, Washington Higher Education Coordinating Board.
$6,172
$3,094
$11,508
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
$12,000
Pennsy
lvan
ia
Verm
ont
New
Ham
psh
ire
Mass
ach
use
tts
New
Je
rsey
Mic
hig
an
Illin
ois
Min
neso
ta
Conn
ect
icut
Mary
land
Ohio
Te
xas
Calif
orn
ia
Mis
souri
Dela
ware
South
Caro
lina
Rhod
e I
sland
Virgin
ia
India
na
Main
e
Wis
consi
n
U.S
.
New
York
Kentu
cky
Iow
a
Nebra
ska
Wa
shin
gto
n
Ark
ansa
s
Kansa
s
Colo
rado
Nort
h D
ako
ta
Te
nne
ssee
Ore
gon
Mon
tan
a
Ala
bam
a
South
Dako
ta
Georg
ia
Nort
h C
aro
lina
Arizo
na
Okl
ahom
a
Lo
uis
ian
a
Mis
siss
ippi
Uta
h
We
st V
irg
inia
New
Me
xico
Idah
o
Ala
ska
Haw
aii
Neva
da
Wyo
min
g
Flo
rida
Six Largest States
Diversity Among the StatesDiversity Among the States
Annual Tuition and Required Fees at Public Community Collegesby State, 2005-06
Source: 2005-06: Tuition and Fee Rates: A National Comparison, Washington Higher Education Coordinating Board.
$780
$2,481
$5,689
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
New
Ham
psh
ire
Wis
consi
n
Min
neso
ta
Verm
ont
Mass
ach
use
tts
Ala
ska
New
York
Nort
h D
ako
ta
South
Caro
lina
Mary
land
Iow
a
Mis
souri
Ohio
Ore
gon
New
Je
rsey
Pennsy
lvan
ia
India
na
Main
e
Ala
bam
a
Conn
ect
icut
Mon
tan
a
U.S
.
Rhod
e I
sland
Wa
shin
gto
n
Colo
rado
Te
nne
ssee
Kentu
cky
Illin
ois
Dela
ware
Okl
ahom
a
Virgin
ia
Uta
h
Ark
ansa
s
Mic
hig
an
Kansa
s
Flo
rida
Lo
uis
ian
a
Idah
o
Nebra
ska
Wyo
min
g
We
st V
irg
inia
Georg
ia
Mis
siss
ippi
Neva
da
Arizo
na
Haw
aii
Te
xas
Nort
h C
aro
lina
New
Me
xico
Calif
orn
ia
Six Largest States
Diversity Among the StatesDiversity Among the States
Enrollment in Public Community Colleges as a Percent of Fall 2004 Headcountby State
Source: IPEDS
36%
58%
0%
10%
20%
30%
40%
50%
60%
Calif
orn
ia
Wa
shin
gto
n
Wyo
min
g
New
Me
xico
Te
xas
Illin
ois
Mis
siss
ippi
Nort
h C
aro
lina
Ore
gon
Arizo
na
New
Je
rsey
Kansa
s
Haw
aii
Mary
land
South
Caro
lina
Iow
a
U.S
.
Virgin
ia
Wis
consi
n
Mic
hig
an
Kentu
cky
Nebra
ska
Ark
ansa
s
Flo
rida
Georg
ia
Min
neso
ta
Okl
ahom
a
Ala
bam
a
Ohio
Colo
rado
Dela
ware
Te
nne
ssee
Conn
ect
icut
New
York
Mis
souri
Lo
uis
ian
a
Rhod
e I
sland
Mass
ach
use
tts
India
na
Nort
h D
ako
ta
New
Ham
psh
ire
Main
e
Pennsy
lvan
ia
Mon
tan
a
Uta
h
Idah
o
We
st V
irg
inia
Neva
da
Verm
ont
South
Dako
ta
Ala
ska
DC
Six Largest States
Diversity Among the StatesDiversity Among the States
Enrollment in Private Institutions as a Percent of Fall 2004 Headcountby State
Source: IPEDS
95%
25%
4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
DC
Mass
ach
use
tts
Rhod
e I
sland
New
York
Pennsy
lvan
ia
New
Ham
psh
ire
Mis
souri
Verm
ont
Conn
ect
icut
Arizo
na
Iow
a
Min
neso
ta
Illin
ois
Te
nne
ssee
Main
e
Ohio
Uta
h
India
na
Flo
rida
U.S
.
Haw
aii
Dela
ware
South
Dako
ta
Nebra
ska
Georg
ia
Colo
rado
Idah
o
New
Je
rsey
Wis
consi
n
Mic
hig
an
Virgin
ia
Mary
land
Nort
h C
aro
lina
Kentu
cky
South
Caro
lina
Ore
gon
Calif
orn
ia
Lo
uis
ian
a
We
st V
irg
inia
Wa
shin
gto
n
Okl
ahom
a
Te
xas
Nort
h D
ako
ta
Ala
bam
a
Kansa
s
Ark
ansa
s
Mon
tan
a
Mis
siss
ippi
Neva
da
New
Me
xico
Wyo
min
g
Ala
ska
Six Largest States
Current ChallengesCurrent Challenges
College Participation by SES Status
Source: Access Denied, Department of Education, February 2001
College Participation By Achievement Test and Socioeconomic
Status Quartile
SES Quartile
Lowest Highest
AchievementQuartile
Highest 78% 97%
Lowest 36% 77%
Current ChallengesCurrent Challenges
Source: U.S. Census Bureau
Year-to-Year Change in U.S. Population, 2002-2020
Current ChallengesCurrent Challenges
Source: Demography and the Future of Higher Education Policy, Richard Fry, April 2001
Non-Hispanic White18%
Asian/Pacific Islander 16%
Non-Hispanic Black16%
Native American1%
Hispanic 49%
New 18-24 Year Olds by Race
Current ChallengesCurrent Challenges
Growth of the For-Profit Sector
Public
75%
Private, not-for-profit
20%
Private, for profit
5%
The Crystal BallThe Crystal Ball
The more things change, the more they stay the same.
The upward spiral in costs will moderate, not end.
The “secular trend” toward higher fees will continue:
the middle class will protect its interests.
The Crystal BallThe Crystal Ball
Enrollments will grow at lower cost, less selective and for-profit institutions.
Need-based financial aid will be combined with academic standards.
No Child Left Behind – If affordable
Paul Lingenfelter
President, SHEEO
paul@sheeo.org
303-541-1605
Contact InformationContact Information
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