Undergraduates in Minnesota: Who are they and how do they finance their education? Tricia Grimes Shefali Mehta Minnesota Office of Higher Education November

Undergraduates in Minnesota: Who are they and how do they finance their education?

Tricia Grimes

Shefali Mehta

Minnesota Office of Higher Education

November 2005

November 2005 Minnesota Office of Higher Education, Data Source: NCES NPSAS, 2003-2004

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• What are the characteristics of Minnesota’s undergraduate student population?

• What is the financial situation facing Minnesota’s undergraduates?

– Price of attendance after grants– Annual and cumulative borrowing– Types of loans borrowed

• How do these characteristics differ across sectors?

Policy Questions


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• National Postsecondary Student Aid Study (NPSAS) for 2003-2004

• Data was retrieved using the National Center for Education Statistics (NCES) online Data Analysis System (DAS) at:

http://www.nces.ed.gov/dasol

Source of Data

Undergraduate Student Demographics in Minnesota

Demographic Variables Included in the NPSAS Data


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Minnesota: Enrollment by Institutional Sector

Public 4-year, 32%

Private not-for-profit 4-year,

16%

Public 2-year, 41%

Private for-profit, 5%

Others or attended more

than one school, 6%


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Minnesota: Dependency Status by Institutional Sector

Dependent Status of Undergraduates

59%

43%

71% 76%

41%

57%

29% 24%

0%

20%

40%

60%

80%

100%

Total Public 2-year Public 4-year Private not-for-profit4-year

Institutional sector

Dependent Independent

While the public 2-year sector has more independent students, more than 70% of the undergraduates in both 4-year sectors are dependent students.


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Minnesota: Age by Institutional Sector

Age of Undergraduates in Minnesota

64%51%

75% 79%

14%

18%

13% 9%21%

31%

13% 12%

0%

20%

40%

60%

80%

100%



15-23 years old 24-29 years old 30 years old or above

The public 2-year sector has an older population.


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Minnesota: English is Not the Primary Language

Undergraduates for whom English is not the primary language spoken at home

12% 13% 11% 11%6% 6% 6% 6%

0%

20%

40%

60%

80%

100%

Total Public 2-year Public 4-year Private not-for-profit4-yearInstitutional sector

U.S. Minnesota

In all three sectors, 6% of undergraduates said that they come from homes where English is not the primary language.


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Minnesota: Hours Employed per Week

Hours worked per week by undergraduates in Minnesota

17%

9%

16%

21%

14%

23%

0%

10%

20%

30%

40%

50%

Did not work < 10 hours 10-19 hours 20-29 hours 30-39 hours 40 hours +

Hours worked per week

Total Public 2-year Public 4-year Private not-for-profit 4-year

Only 17% of Minnesota’s undergraduates report that they do not work. Students at public 2-year institutions work the most hours each week.


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Minnesota: Students with Children by Sector

Undergraduate Students With Children

21%

33%

10% 12%8%

12%

3% 5%

0%

20%

40%

60%

80%

100%



Students with dependent children Single-parent independent students

About 1 out of 5 undergraduates has children.


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Minnesota: Parents’ Educational Attainment

Undergradutes by Their Parents' Educational Attainment

26%36%

19% 17%

31%

35%

32%

20%

41%

27%

47%

62%

0%

20%

40%

60%

80%

100%



No college Some college BA or more

About 1 in 4 undergraduates is the first generation to attend college.

The majority of parents in both 4-year sectors have at least some college.


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Minnesota: Parents’ Place of Birth

Undergradutes by Their Parents' Place of Birth

89% 91% 89% 87%

9% 7% 8% 10%3%3%2%3%

0%

20%

40%

60%

80%

100%



Both parents were born in the US One parent was born in the USBoth parents were not born in the US


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U.S. and Minnesota: Racial and Ethnic Demographics

Race/ethnicity of undergraduates in the U.S. and Minnesota

63%

14% 13%6%

1% 3%

85%

6%2% 5%

1% 2%0%

20%

40%

60%

80%

100%

White Black orAfrican

American

Hispanic orLatino

Asian AmericanIndian or

Alaska Native

Other, morethan one race

Race and ethnic groups

U.S. Minnesota


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Minnesota: Racial and Ethnic Demographics by Sector

Race/ethnicity of Undergraduates in Minnesota

85%

6%2% 5%

1% 2%0%

20%

40%

60%

80%

100%

White Black orAfrican

American

Hispanic orLatino

Asian AmericanIndian or

Alaska Native

Other, morethan one race

Race and ethnic groups

Total Public 2-year Public 4-year Private not-for-profit 4-year

Net Prices for Postsecondary Institutions

Student Budgets and Net Prices (Student Budgets Minus Total Grants) for Full-time, Full-Year Undergraduate Students


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Minnesota

Mean Student Budget and Net Prices of Full-Time, Full Year Undergraduate Students

$16,700 $16,300$18,100

$19,800

$15,900 $16,000$14,200

$10,300$12,200

$14,900$17,800

$12,200 $13,400 $12,300

$0

$10,000

$20,000

$30,000

< $30,000 $30,000-$59,999

$60,000-$89,999

$90,000 + < $20,000 $20,000-$39,999

$40,000+

Average student budget Average net price

------------Dependent students' parents' income------------ Independent students' income


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Minnesota: Public Four-Year Institutions

Mean Student Budget and Net Prices of Full-Time, Full Year Dependent Undergraduate Students in the Public 4-Year Sector

$13,600 $13,500$14,300

$14,500

$8,950$11,100

$13,500 $13,900

$0

$10,000

$20,000

$30,000

< $30,000 $30,000-$59,999 $60,000-$89,999 $90,000 +

Dependent students' parents' income



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Minnesota: Public Two-Year Institutions

Mean Student Budget and Net Prices of Full-Time, Full Year Undergraduate Students in the Public 2-Year Sector

$12,600 $12,900$14,300

$14,800$14,700 $15,200 $14,000

$9,190$11,300

$13,600 $14,300$11,200

$13,000 $12,100

$0

$10,000

$20,000

$30,000

< $30,000 $30,000-$59,999

$60,000-$89,999

$90,000 + < $20,000 $20,000-$39,999

$40,000+



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Minnesota: Private Not-for-Profit Four-Year Instit.

Mean Student Budget and Net Prices of Full-Time, Full Year Dependent Undergraduate Students in the Private Not-For-Profit 4-Year Sector

$29,400$27,100$27,800$28,300

$14,600 $15,800$18,000

$24,600

$0

$10,000

$20,000

$30,000

< $30,000 $30,000-$59,999 $60,000-$89,999 $90,000 +

Dependent students' parents' income


Annual Borrowing

Average Annual Borrowing by Undergraduates


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Minnesota: Public 4-Year Sector

Average annual borrowing for full-time, full year undergraduates by year of enrollment in the Minnesota public 4-year sector

$6,370$5,830

$6,940 $6,850

71% 69%

89%

77%

$0

$2,000

$4,000

$6,000

$8,000

$10,000

1st year 2nd year 3rd year 4th year

0%

20%

40%

60%

80%

100%

Average loan Percent who borrowed


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Minnesota: Private Not-For-Profit 4-Year Sector

Average annual borrowing for full-time, full year undergraduates by year of enrollment in the Minnesota private nfp 4-year sector

$6,940

$8,250$7,040

$8,920

77% 79%

63%

76%

$0

$2,000

$4,000

$6,000

$8,000

$10,000

1st year 2nd year 3rd year 4th year

0%

20%

40%

60%

80%

100%

Average loan Percent who borrowed


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Percent of full-time, full year students borrowing loans by institutional sector

38%

17%

48%

37%

52%

53%

8%

0%

1%

16%

1%

7%

3%

6%

19%

14%

23%

44%

27%

32%

29%

12%

25%14%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

MN

U.S.

MN

U.S.

MN

U.S.

Stafford subsidized Stafford unsubsidized State loans Private (alternative) loans

Pu

bli

c 2-

year

P

ub

lic

4-ye

ar

P

riva

te n

ot-

for-

pro

fit

4-ye

ar

U.S. and Minnesota: Type of Loans Borrowed


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Percent of full-time, full year dependent students borrowing in MN (2000)

70%

50%

35%

9%10% 8%4%

11%

26%

12%12%

32%

19%13%

6%

17%

0%

20%

40%

60%

80%

100%

< $30,000 $30,000-$59,999 $60,000-$89,999 $90,000 +

Stafford subsidized Stafford unsubsidized Private loans State loans

Minnesota: Borrowing in 2000


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Percent of full-time, full year dependent students borrowing in MN (2004)

53%

60%

49%

14%11% 11%

15%12%

23%18%

5%

32%

44%

18% 18%21%

0%

20%

40%

60%

80%

100%

< $30,000 $30,000-$59,999 $60,000-$89,999 $90,000 +

Stafford subsidized Stafford unsubsidized Private loans State loans

Minnesota: Borrowing in 2004


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Minnesota: Types of Loans Borrowed by Sector

Percent of Full-time, Full Year Students Borrowing Loans

44%

38%

48%52%

16%

8%

16%12%

7%

19%23%

32%

44%

32%

25%

14%

0%

20%

40%

60%

80%

100%

Total for all sectors Public 2-year Public 4-year Private not-for-profit 4-year

Stafford subsidized Stafford unsubsidized State loans Private (alternative) loans


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Private Loans Borrowed by Full-time, Full year Students

$6,200$5,600

$8,440

$4,110

12%7%

14%19%

$0

$2,000

$4,000

$6,000

$8,000

$10,000

Total for all sectors Public 2-year Public 4-year Private not-for-profit4-year

0%

20%

40%

60%

80%

100%

Average private loan amounts Percent who borrowed private loans

Minnesota: Private Loans Borrowed by Sector

About 20% of undergraduates in the private not-for-profit 4-year sector borrow private loans.


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Minnesota: State Loans Borrowed by Sector

State Loans Borrowed by Full-time, Full Year Students

$3,830$3,620

$4,680

$3,470

16%

8%

25%

16%

$0

$2,000

$4,000

$6,000

Total for all sectors Public 2-year Public 4-year Private not-for-profit4-year

0%

20%

40%

60%

80%

100%Average state loan amounts Percent who borrowed state loans

25% of undergraduates in the public 4-year sector borrow state loans.

Cumulative Borrowing

Cumulative Borrowing by Graduating Seniors


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Cumulative Borrowing for Graduating Seniors Attending Postsecondary Institutions

$17,900 $16,900 $18,200 $17,800$21,600 $21,000 $19,400

72%68%

64%

76%72%

57%53%

$0

$10,000

$20,000

$30,000

< $30,000 $30,000-$59,999

$60,000-$89,999

$90,000+ < $20,000 $20,000-$39,999

$40,000+

Tota

l loa

n am

ount

0%

20%

40%

60%

80%

100%

Average borrowed Percent who borrowed

----------Dependent students' parents' income----------- ------Independent students' income-----

National Data

More than half of the students in the highest income category borrow.


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Minnesota

Cumulative Borrowing for Graduating Seniors

$20,300$22,200 $21,300 $20,400

$17,300

76%72%

89%

65%

80%

$0

$10,000

$20,000

$30,000

Total Under $30,000 $30,000-$59,999 $60,000-$89,999 $90,000 and above

Income categories

0%

20%

40%

60%

80%

100%

Average borrowed Percent who borrowed

The majority graduate with an average of $20,000 in loans.

Summary


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• The NPSAS data provides some previously unavailable data.

• The data has limitations, such as small sample sizes for some areas, which can lead to large standard errors and statistically insignificant estimates.

• However, the NPSAS data provides much valuable information and increases the understanding of several key variables

Summary


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– The net prices faced by those in the lower income groups are a substantial share of their incomes.

– A large number of students borrow as undergraduates, even those in the highest income category ($90,000+).

– Within each sector, the total amounts borrowed do not vary across the income categories.

Summary: Observations


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• Data can be retrieved from the website:

http://www.nces.ed.gov/dasol

• For tutorials and technical assistance:

http://nces.ed.gov/dasol/help/

• For help with tables:

http://www.nces.ed.gov/dasol/help/tables.asp

Retrieving NPSAS Data


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Minnesota Information from the National Postsecondary Student Aid Study 2003-2004

Percent of undergraduates with selected characteristics, by institutional sector

Total Public Four-Year

National Minnesota National Minnesota

Percent of undergraduates who:

Were Dependent Students 50% 59% 66% 71%

Lived on campus 14% 20% 25% 31%

Lived with parents 24% 15% 20% 8%

Were 30 years old or older 26% 21% 13% 13%

Were married 21% 21% 14% 12%

Had children 25% 21% 13% 10%

Were single parents 13% 8% 6% 4%

Reported a disability 11% 9% 10% 7%

Were first generation to attend college 34% 26% 26% 19%

. . . . .

. . . . .

. . . . .

Large Table with Socioeconomic Characteristics


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If you have questions or comments, please contact

– Tricia Grimes ([email protected])

OR

– Shefali Mehta ([email protected])

Further Information

Documents

Undergraduates in Minnesota: Who are they and how do they finance their education? Tricia Grimes Shefali Mehta Minnesota Office of Higher Education November