undergraduate finances: net prices and cumulative borrowing tricia grimes shefali mehta minnesota...

Undergraduate Finances: Net Prices and Cumulative Borrowing

Tricia Grimes

Shefali Mehta

Minnesota Office of Higher Education

October 2005

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

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• What is the net price of attendance for students in different income groups? How do net prices differ across states and sectors?

– Net price is calculated using the student budget, as given by the student’s institution, minus the total grants received by the student.

– Total grants include those from federal, state, institutional and private sources.

• What are the cumulative borrowing amounts for graduating seniors? How do they differ across states and 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


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California Illinois New York

Connecticut Indiana Oregon

Delaware Minnesota Tennessee

Georgia Nebraska Texas

12 Oversampled States in the NPSAS Survey

Net Prices for Postsecondary Institutions

Student Budgets and Net Prices (Student Budgets Minus Total Grants) for Full-time, Full-Year Undergraduate Students Attending in Their State of Residency


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Mean Student Budget and Net Prices (Student Budget Minus Total Grants) of Full-Time, Full Year Undergraduate Students

$16,100 $16,600$17,400

$20,000

$15,600 $16,300 $16,300

$10,000$12,800

$14,600$17,400

$11,600 $13,400 $15,000

$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+

Student budget (attendance adjusted) Student budget minus all grants

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

National data


7

Illinois

Mean Student Budget and Net Prices of Full-Time, Full Year Undergraduate Students Attending in Their State of Residency

$15,700$14,800 $14,900

$18,900

$14,300 $15,000 $15,100

$8,770$11,200 $12,600

$16,400

$9,990 $11,600$13,600

$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+


------------Dependent students' parents' income------------ Independent students' income or spouse's


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Indiana


$15,500 $15,900$15,600

$16,600

$14,300

$7,650$11,200

$13,000 $13,700$9,590

No estimates due to small sample size

$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+




9

Minnesota


$15,800 $15,300$17,700

$18,200

$16,100 $16,000$14,400

$9,760$11,700

$14,900 $16,200$12,300 $13,400 $12,200

$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+




10

Nebraska


$15,300$14,100

$15,000$13,600

$12,600

$8,890 $10,000 $11,600 $10,200 $9,200No estimates due to small sample size

$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+




11

Mean Student Budget and Net Prices of Full-Time, Full Year Undergraduate Students Attending Public 4 Year Institutions

$13,800 $13,900$14,300

$14,800$15,000 $15,100 $15,100

$8,170$11,200 $12,700 $13,500

$10,900 $12,500 $14,200

$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+



National Data: Public Four-Year Institutions


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Illinois: Public Four-Year Institutions

Mean Student Budget and Net Prices of Full-Time, Full Year Undergraduate Students Attending Public 4 Year Institutions in Their State of Residency

$15,000 $14,600$15,200

$15,600

$7,260$11,300

$13,200 $14,400

$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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Indiana: Public Four-Year Institutions


$14,100 $13,500$14,000

$14,700

$7,470$10,600

$12,400 $13,200

$0

$10,000

$20,000

$30,000

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




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Minnesota: Public Four-Year Institutions


$13,400$14,200

$14,200

$11,000$13,400 $13,900


$0

$10,000

$20,000

$30,000

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




15

Nebraska: Public Four-Year Institutions


$12,800 $12,400$12,800

$12,400

$7,920 $9,320 $10,200 $9,380

$0

$10,000

$20,000

$30,000

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




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Mean Student Budget and Net Prices of Full-Time, Full Year Undergraduate Students Attending Public 2 Year Institutions

$9,440 $9,770$10,100

$9,910$11,300 $11,300 $11,700

$6,360$8,600 $9,460 $9,450 $8,300 $9,030 $10,800

$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+



National Data: Public Two-Year Institutions


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Illinois: Public Two-Year Institutions


$9,380 $9,270 $9,480$9,900

$6,790 $8,340 $9,210 $9,670

$0

$10,000

$20,000

$30,000

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




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Minnesota: Public Two-Year Institutions


$12,600 $12,900$14,200

$14,900

$9,190$11,400

$13,600 $14,400

$0

$10,000

$20,000

$30,000

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




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Mean Student Budget and Net Prices of Full-Time, Full Year Undergraduate Students Attending Private Not-for-Profit 4 Year Institutions

$25,000$26,900

$27,800$30,200

$22,700 $23,400 $23,100

$14,300$16,900

$19,900$23,600

$15,900$18,600 $20,400

$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+



National Data: Private Not-for-Profit Four-Year Instit.


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

Mean Student Budget and Net Prices of Full-Time, Full Year Undergraduate Students Attending Private Not-for Profit 4 Year Institutions in Their State of

Residency

$26,800 $26,000 $26,400

$28,600

$15,000 $16,500$18,800

$23,000

$0

$10,000

$20,000

$30,000

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




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


Residency

$27,400 $27,300$29,400

$14,000$17,200

$19,800No estimates due to small sample size

$0

$10,000

$20,000

$30,000

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




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


Residency

$28,100 $28,100 $27,900

$14,800

$19,400$21,800


$0

$10,000

$20,000

$30,000

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




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


Residency

$22,500 $22,100

$11,900$13,700


$0

$10,000

$20,000

$30,000

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



Cumulative Borrowing

Cumulative Borrowing by Graduating Seniors in the U.S.


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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


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Cumulative Borrowing for Graduating Seniors Attending Public 4 Year Institutions

$15,900 $14,700 $15,100 $15,400

$19,800 $19,200 $19,400

66% 64%58%

74%69%

50%48%

$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%



National Data: Public Four-Year Institutions


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Cumulative Borrowing for Graduating Seniors Attending Private Not-for-Profit 4 Year Institutions

$21,200 $20,900$22,900 $21,500

$26,100$23,000

$18,100

85%80%

77%73%

80%

64%61%

$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%



National Data: Private Not-for-Profit Four-Year Instit.


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Cumulative Borrowing for 4th and 5th Year Undergraduates Attending Postsecondary Institutions

$17,400 $17,600 $17,800 $17,100$20,900 $21,000

$19,300

71%68% 66%

76% 74%

58%54%

$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%



National Data: 4th and 5th Year Undergraduates

Cumulative Borrowing

Cumulative Borrowing by 4th and 5th Year Undergraduates in Illinois, Indiana, Minnesota, and Nebraska


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Illinois


$19,700$18,100 $17,000 $16,200

78%73%

66%

56%

$0

$10,000

$20,000

$30,000

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

Income

Tota

l loa

n am

ount

0%

20%

40%

60%

80%

100%



31

Indiana


$19,900$22,400

$18,100$20,000

81%

63%

65% 68%

$0

$10,000

$20,000

$30,000

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

Income

Tota

l loa

n am

ount

0%

20%

40%

60%

80%

100%



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Minnesota


$20,200 $19,200 $17,900$19,600

71%

79% 78%

59%

$0

$10,000

$20,000

$30,000

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

Income

Tota

l loa

n am

ount

0%

20%

40%

60%

80%

100%



33

Nebraska


$13,500 $12,900 $12,400

$7,920

73%76%

66% 61%

$0

$10,000

$20,000

$30,000

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

Income

Tota

l loa

n am

ount

0%

20%

40%

60%

80%

100%



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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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• The Minnesota Office of Higher Education is the recipient of a grant from the Lumina Foundation for Education

• The purpose of the grant is to help the 12 states make effective use of the state-representative NPSAS data.

Lumina Foundation Grant


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• 5 two-day training sessions by the MPR Associates in Berkeley which trained a total of 45 people

• Additional training through teleconferences

• The Research Assistant (Shefali) provides support and retrieves data for requests from people in the 12 states, runs teleconference trainings and maintains the following website containing NPSAS information:

http://www.ohe.state.mn.us/NPSAS/

• Presentations and Publications

Services to the 12 states through the Lumina Grant


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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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• Refer to the handout for a list of those trained in your states

• For data and training requests and questions, please contact

– Tricia Grimes ([email protected])

– Shefali Mehta ([email protected])

Further Information

undergraduate finances: net prices and cumulative borrowing tricia grimes shefali mehta minnesota...

Documents

data source

source of data slide

minnesota slide

nces npsas

national data slide

npsas survey slide

indiana slide

nebraska slide