1 Tuition, State Grants, and Affordability in Minnesota August 16, 2006 SHEEO Professional Development Conference

2 Minnesota Governing Boards have authority to set tuition for their campuses –University of Minnesota Board of Regents 4 campuses, largest campus is University of MN- Twin Cities tuition and required fees of $7,100

3 –Minnesota State Colleges and Universities Board of Trustees 7 state universities, 20 community and technical colleges tuition and required fees –State Universities - $4,500 –Community and Technical Colleges - $3,400

4 Design for Share Responsibility Policy assumes: –“Low” tuition subsidizes upper-income taxpayers as much as middle- and lower-income families –Middle- and upper-income students are much more likely to attend college –Minnesota State Grant program targets subsidies to low- and lower-middle income students –As tuition increases, appropriations for State Grants should increase accordingly

5 Minnesota’s Design for Shared Responsibility

6 Paying for college is a partnership of: –Students –Families –Taxpayers Considers all expenses students must pay, not just tuition Assumes students bear a significant and first responsibility for paying for college Minnesota Design for Shared Responsibility

7 Expects students to make a significant investment their education regardless of their financial circumstances Students pay their share with –Earnings from work –Savings –Institution grants and scholarships –Loans Minnesota Design for Shared Responsibility - continued

8 The state establishes in law: –The amount of living and miscellaneous expenses recognized (currently $5,750) –The maximum tuition and fees recognized Currently about $9,400 for students in four-year programs $6,400 for students in two-year programs –The percent of price assigned to students (currently 46%) –The need analysis used to determine the family’s ability to pay A modified version of the federal need analysis Minnesota Design for Shared Responsibility - continued

9 The framework includes inherent recognition of –Changes in prices (especially tuition) –Changes in family income –Changes in Federal Pell Grants Minnesota Design for Shared Responsibility - continued

10 How Does It Work in Practice? Do we have data?

11 National Postsecondary Student Aid Study (NPSAS) The national study has provided useful information on how students pay for college since 1986 –Study is repeated every 3 to 4 years The 2004 study provided data for detailed state-level analysis for 12 states Includes many variables on the financial situation, demographics, performance, and attendance of students Data was retrieved using the National Center for Education Statistics (NCES) online Data Analysis System (DAS)

12 Unique Aspects of NPSAS Data One of very few sources that includes information on students who did not apply for financial aid Includes information on grants, scholarships, and loans from all sources: –Federal –State –Institution –Private –Other

13 Minnesota Public Two-Year Institutions

14 Minnesota Public Four-Year Institutions

15 Minnesota Private Not-for-Profit Four Year Institutions

16 Minnesota Public Two-Year Institutions Average tuition and Net Tuition of Full-Time*, Full-Year Undergraduate Students $2,600 $1,800 $2,900 $3,100 $2,800 $2,700 $2,000 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 < $30,000 $30,000 - $59,999 $60,000 - $89,999 $90,000+Independent* Tuition and feesNet Tuition and fees Estimate not available Net tuition is tuition minus all grants and scholarships Family income for Dependent Students Independent students include those who said they attended full-time and mostly full-time

17 Minnesota Public Four-Year Institutions

18 Minnesota Private Not-for-Profit Four Year Institutions

19 Minnesota Public Two-Year Institutions

20 Minnesota Public Four-Year Institutions

21 Minnesota Private Not-for-Profit Four- Year Institutions

22 State and Regional Information from the National Postsecondary Student Aid Study (NPSAS) Analysts can obtain data for the 12 oversampled states (see previous slide) Others can retrieve data for: –US Undergraduates as a whole –A US Department of Education region –A group of states in a state compact (WICHE, MHEC, etc.) –A state and its surrounding states

23 Oversampled States in the National Postsecondary Student Aid Study 2004 CaliforniaIllinoisNew York ConnecticutIndianaOregon DelawareMinnesotaTennessee GeorgiaNebraskaTexas

24 Retrieving Information from the National Postsecondary Student Aid Study (NPSAS) Data can be retrieved from the website: For tutorials and technical assistance: For help with tables:

25 Minnesota Reports Using NPSAS 2004 Data

26 Contact Information Tricia Grimes –Policy Analyst –Minnesota Office of Higher Education –1450 –