fintrend

Trends in Financial Aid: 

Trends in Financial Aid According to the National Center for Education Statistics The Chronicle of Higher Education Almanac 2003, The College Board 2003, and The United States Department of Education

Federal Financial Aid Programs (2001-2002): 

Federal Financial Aid Programs (2001-2002) General Aid Pell Grants ($9.95 Billion) Supp. Educational Opportunity Grants ($691 Million) Leveraging Educational Assistance Partnerships ($50 Million) Federal Work-Study ($1.2 Billion) Perkins Loans ($1.1 Billion) Ford Direct Student Loan Program Subsidized Stafford Loans ($5.6 Billion) Unsubsidized Stafford Student Loans ($4.4 Billion) Parent Loans for Undergrads ($1.4 Billion)

Federal Financial Aid Programs (2001-2002): 

Federal Financial Aid Programs (2001-2002) General Aid (cont’d) Federal Family Education Loan Program Subsidized Stafford Student Loans ($14 Billion) Unsubsidized Stafford Student Loans ($12.6 Billion) Parent Loans for Undergrads ($3.3 Billion) TOTAL FEDERAL PROGRAMS: GENERAL AVAILABLE AID $54,295,000,000

Federal Financial Aid Programs (2001-2002): 

Federal Financial Aid Programs (2001-2002) Specially Directed Aid Veterans ($1.7 Billion) Military ($619 Million) Other Grants ($270 Million) Other Loans ($110 Million) Education Tax Credits ($5 Billion) TOTAL FEDERAL FINANCIAL AID PROGRAMS: $62,010,000,000

Other Financial Aid Programs (2001-2002): 

Other Financial Aid Programs (2001-2002) State grant programs ($5.1 Billion) State sponsored loan programs ($634 Million) Private sector loans ($5 Billion) Institutional and other grants ($17 Billion) TOTAL OTHER FINANCIAL AID PROGRAMS: $27,614,000,000

Number of Recipients and Amount of Aid per Recipient, Selected Programs (2001-2002): 

Number of Recipients and Amount of Aid per Recipient, Selected Programs (2001-2002)

Proportion of Undergraduates Receiving Financial Aid, 1999-2000: 

Proportion of Undergraduates Receiving Financial Aid, 1999-2000

Proportion of Undergraduates Receiving Financial Aid at Public 4-Year Doctorate-Granting Institutions, 1999-2000: 

Proportion of Undergraduates Receiving Financial Aid at Public 4-Year Doctorate-Granting Institutions, 1999-2000

1999-2000 Total Enrolled Students (First Time Enrollment) as Compared to Enrolled Students Receiving Financial Aid Assistance at Title IV Degree-Granting Institutions: 

1999-2000 Total Enrolled Students (First Time Enrollment) as Compared to Enrolled Students Receiving Financial Aid Assistance at Title IV Degree-Granting Institutions Public 4-Year Private (Non-Profit) 4-Year Private (For-Profit) 4-Year

Slide10: 

**Taken from Trends in Student Financial Aid 2003, The College Board

Department of Education Total Financial Aid Funding 1993 - 2003: 

Department of Education Total Financial Aid Funding 1993 - 2003

Federal Financial Aid Presidential Budget Request vs. Actual Allocation: 

Federal Financial Aid Presidential Budget Request vs. Actual Allocation

Factors Affecting Federal Financial Aid Budget: 

Factors Affecting Federal Financial Aid Budget National economic conditions Competition for funding with other governmental departments (Homeland Security, Department of Defense, Social Security, etc.) Competing programs within education – elementary and secondary Significant increases in student enrollment Increasing enrollment (10% over the last decade) at U.S. higher education institutions, weak economy, changing demographics and rising tuition levels have caused a the proportion of students requiring financial assistance to increase

Facts About Financial Aid for Higher Education in the United States: 

Facts About Financial Aid for Higher Education in the United States 1997 – 2003 Grant aid has increased more rapidly than loan aid Approximately 50% of undergraduate student aid is awarded in the form of loans Private and state loan programs have skyrocketed in recent years, while average Stafford loan amounts have remained the same because of lack of increase in borrowing limits (despite significant increases in private and public college tuition) Stafford loan limits have remained unchanged since 1992-1993

Facts About Financial Aid for Higher Education in the United States: 

Facts About Financial Aid for Higher Education in the United States Significant increase in level of student indebtedness Loan to grant ratio for graduate students is 3 times higher than undergraduates Only program targeted toward low-income students and their families is the Pell Grant program Funding for the Pell Grant program increased 17% between 2001 and 2003, following a 23% increase in 2001 Despite the increase, the number of eligible students increased by 11%, thus only causing a 3% overall increase in the average grant

Facts About Financial Aid for Higher Education in the United States: 

Facts About Financial Aid for Higher Education in the United States The average Pell Grant of $2,241 in 2002-2003 covered: Approximately 33% of tuition & commuter room and board fees at a public two-year institution Approximately 25% of total charges at an average four-year institution Less than 10% of total charges at a four-year private institution Approximately 33% of tax credit dollars accrue to taxpayers with incomes of $60,000 or higher – less than 50% of tax credit dollars are received by families/students with an income of below $40,000

Facts About Financial Aid for Higher Education in the United States: 

Facts About Financial Aid for Higher Education in the United States Parent loans have increased 95% since 1992 to an average of $8,231 Parent loans allow parents of undergraduates to borrow up to the cost of education minus all financial aid, and In 2002-2003 non-federal borrowing increased 41% over the previous year Non-federal borrowing through banks and private lenders has increased from 6% to 13% of education loan volume over the last 5 years

Facts About Financial Aid for Higher Education in the United States: 

Facts About Financial Aid for Higher Education in the United States 1982-83 to 1992-93: Tuition increased 55% from while the growth in family median income was only 12% Financial aid only increased 27% 1992-93 to 2002-03 Tuition and fees increased 40% and growth in family median income was less than 12% Financial aid, doubled per FTE in constant dollars

Facts About State Grant Programs for Higher Education: 

Facts About State Grant Programs for Higher Education Only provide 5% of total student aid funds, but have increased 8% in 2002-3, and 107% since 1993 24% of state grant funding is directed to merit-based programs as opposed to need-based (an increase of 14% in the last decade)

Current Education Proposals State of the Union Address, January 19, 2004 : 

Current Education Proposals State of the Union Address, January 19, 2004 “Jobs for the 21st Century” Increased Pell Grants for high school students who prepare for college with demanding schedules during high school Increasing support for Community Colleges Increased support for middle and high school students who fall behind in reading & math Expanded advanced placement programs in low-income schools Invite math & science professionals from the private sectors to teach part-time in our high schools

References: 

References “Society for College and University Planning” July 22, 2003 James Duderstadt, Professor Emeritus, University of Michigan National Center for Education Statistics, “Projections of Education Statistics to 2013, 32nd Edition”, October 2003 “Same Classroom, Different Price” Chronicle of Higher Education, 9/19/03 “Boomers, Gen-X-ers, & Millenials. Understanding New Students” EDUCAUSE, July/August 2003 Smith, Peter. Curricular Transformation: Why we need it.How to Support it.Change, January/February 2004 Scott, Geoff. Effective Change Management in Higher Education, Educause Review, November/December 2003, V. 38, Number 6 United States’ Census Bureau The College Board., “Trends in Student Aid” & “Trends in College Pricing” “Dealing with the Future NOW. Principles for Creating a Vital Campus in a Climate of Restricted Resources” Change Magazine, July/August 2003 US Census Rhode Island State Planning Website University of Rhode Island Catalog: 1981 – 2002 United States Department of Education, Budget History www.ed.gov Bush, George W. “State of the Union Address”. January 19, 2004