1. The Benefits of Independent Higher Education to Pennsylvania Association of Independent Colleges and Universities of Pennsylvania (AICUP) 101 North Front Street Harrisburg, Pennsylvania 17101

2. Independent higher education is a primary partner in helping families pay for college. Sources of Financial Aid Received by Students with Need Change between 1998-99 and 2006-07 Independent colleges and universities benefit…individuals Independent institutions, not government, are the largest source of financial aid to students. As federal and state financial aid dollars have decreased over time, independent institutions have increased their share of financial aid to students. Source: National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) Financial Aid survey. 1

3. Independent higher education is affordable. Average Net Cost to Students with Need, 2006-07 $25,049Average tuition and fees for an Independent College student - $ 3,780Average federal grant - $ 3,570Average state grant - $11,900Average institutional grant - $19,250Total Grant Aid = $5,799Average net cost to students with need Independent colleges and universities benefit…individuals Because of grants and scholarships needy students pay far less than published tuition charges. Source: National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) Institutional Characteristics survey and Financial Aid survey. 2

4. Average Loan Debt of College Graduates, 2006-07 Independent colleges and universities benefit…individuals Students graduating from independent institutions have education debt comparable to students at public universities. Source: Institute for College Access and Success database at www.economicdiversity.org. 3

5. A degree from an independent college or university has significant economic benefits. Earning of Private College Graduates Five Years After Graduation Compared to Non-College Pennsylvania Residents (2004 Income) Independent colleges and universities benefit…individuals A college degree is an investment that does pay off in numerous ways including greater job security and higher income. Source: 2004 Baccalaureate Outcomes Survey undertaken by Association of Independent Colleges and Universities of Pennsylvania. 4

6. Independent colleges and universities graduate more students on time than public universities. Proportion of Students Graduating in 4 Years Freshman Class of 2001 Students earning degrees from independent institutions are in the workforce faster than their counterparts attending public universities. Independent colleges and universities benefit…individuals Students at state universities who do not graduate on time cost the state over $40 million annually. Source: National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) Graduation Rate survey. 5

7. Independent colleges and universities are major employers committed to the Commonwealth and its communities. Pennsylvania Residents Employed by Independent Colleges and Universities, 2003 Independent colleges and universities benefit…communities Over 60,000 Pennsylvania residents are employed by independent colleges and universities. Source: Economic impact survey undertaken by Association of Independent Colleges and Universities of Pennsylvania, 2004. Erie and Northwest 2,428 jobs Metro Pittsburgh 10,890 jobs North Central Area 2,097 jobs South Central Area 1,478 jobs Scranton- Wilkes Barre 4,599 jobs Lehigh Valley 5,612 jobs Metro Philadelphia 28,651 jobs Capital Area 5,216 jobs 6

8. The employment generated by private higher education has a significant fiscal benefit for state and local government. Independent colleges and universities benefit…communities Private higher education returns over $90 million annually in income taxes to the state and to local communities. Amount of State and Local Income Taxes Generated by Employment at Independent Colleges and Universities, 2003 Source: Economic impact survey undertaken by Association of Independent Colleges and Universities of Pennsylvania, 2004. Erie and Northwest $2.9 million Metro Pittsburgh $17.6 million North Central Area $3.8 million South Central Area $1.2 million Capital Area $7.0 million Scranton- Wilkes Barre $5.6 million Lehigh Valley $7.1 million Metro Philadelphia $47.8 million 7

9. Independent colleges and universities assist communities across the Commonwealth.  Each year undergraduate students at independent colleges and universities donate over a million hours of volunteer service to charitable initiatives in local communities.  Independent colleges and universities have invested millions of dollars in community development and renovation projects in their regions.  Independent institutions operate numerous health clinics across the state using student and faculty to meet the medical needs of low-income residents. Independent colleges and universities benefit…communities 8

10. Independent colleges and universities benefit…the Commonwealth Independent colleges and universities enroll more students and more minority students than any other sector. Total Enrollment, Fall 2007 Total Minority Enrollment, Fall 2007 Source: National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) Fall Enrollment survey. 9

11. Independent higher education saves taxpayers money. Pennsylvania’s independent colleges and universities save taxpayers an estimated $450 million annually in institutional subsidies that might be required to enroll an equivalent number of students in public universities. Independent colleges and universities benefit…the Commonwealth Note: Based on 2006-07 commonwealth per-student educational appropriation of $4,400 calculated by Pennsylvania Joint State Government Commission, February 2008. 10

12. Independent higher education makes more efficient use of Pennsylvania’s investment in higher education Pennsylvania Tax Dollars Spent on Higher Education Per Degree Produced, 2006-2007 Independent colleges and universities benefit…the Commonwealth Source: Degree data from National Center for Education Statistics Integrated Postsecondary Education Database (IPEDS) Completions survey. Tax dollars per educational sectors includes legislative appropriations and PHEAA grant dollars but excludes capital funds and PDE distributions for which sector breakouts are not available. 11

13. Pennsylvania's investment in higher education, 2007-2008. Sector State Funds Pct of Total State Funding Pct of Total State Enrollment Pct of Total Degrees Independent Colleges and Universities $300,659,000 15%41%49% State Related Universities $808,303,000 40%23%26% State System Universities (SSHE) $595,803,000 30%16%17% Community Colleges $293,600,000 15%19%9% Total $1,998,444,000 Note: State funds per educational sectors includes legislative appropriations and PHEAA grant dollars but excludes capital funds and PDE distributions for which sector breakouts are not available. PHEAA funds have been distributed to the sectors according to the grants received by students in that sector. Independent colleges and universities benefit…the Commonwealth 12

14. Sources of Data 13 Sources of financial aid received by students with need (Page 1) Data obtained from the U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) Financial Aid survey. Average net cost to students with need (Page 2) Average tuition and fees for 2006-07 is a student-weighted average for first-time, degree-seeking students developed using data from the U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) Institutional Characteristics survey. Average financial aid amounts are based on data from the IPEDS Financial Aid survey. All dollar amounts provide averages for those freshmen students who receive that particular form of financial aid. Total grant aid would apply only to a student who received the average of each type of aid and received all aid types. Loans, including federally subsidized loans, are not included in this table, so none of this aid needs to be repaid. The financial aid packages of some students do exceed tuition and allow the student to apply aid to room, board, and other expenses. Average loan debt of college graduates, 2006-07 (Page 3) Average loan debt of graduating seniors by institutional sector is based on a student-weighted average of loan debt by institution. Data obtained from Petersons Undergraduate Financial Aid Database and reported by The Institute for College Access and Success through its Web site www.economicdiversity.org. Average for independent institutions is based on data provided by 70 institutions while average for state system universities is based on data provided by 14 institutions. Because of missing data, the loan debt of Penn State graduates used in the summary for state-related institutions is based solely on loan debt of graduating seniors at the main campus. The state-related loan debt average does include data from all campuses of the University of Pittsburgh as well as Temple University and Lincoln University. Earnings of private college graduates five years after graduation (Page 4) Income data for private college graduates is based on the annual (2004) earnings of individuals employed full-time. Data collected through the Baccalaureate Outcomes Survey undertaken by AICUP in 2005. Data on annual income of Pennsylvania residents age 25 years and over employed full- time was extracted from the U.S. Bureau of the Census, 2004 American Community Survey. Proportion of students graduating in 4 years (Page 5) Data obtained from the U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) Graduation Rate survey. The financial cost to the state of students who graduate in five years and in six years is estimated using the number of bachelor’s degree-seeking students who enrolled at state universities in 2001 and who did not graduate until year five or year six (9,425). This number is multiplied by the state per-student educational appropriation for 2006-07 for state-related and state system universities calculated by the Pennsylvania Joint State Government Commission ($4,400). Employment at independent colleges and universities (Page 6) The total number of Pennsylvania-resident employees (full-time plus part-time) excluding student employees for Fall 2003 was collected through a survey undertaken by AICUP in the Spring of 2004. For AICUP member institutions that did not supply data on employment and for independent institutions that are not members of AICUP, data on total resident employment was estimated using figures from the U.S. Department of Education, National Center for Education Statistics Integrated Postsecondary Data System (IPEDS) Fall Staff survey.

15. Sources of Data (continued) 14 Employment at independent colleges and universities (Page 6) The total number of Pennsylvania-resident employees (full-time plus part-time) excluding student employees for Fall 2003 was collected through a survey undertaken by AICUP in the Spring of 2004. For AICUP member institutions that did not supply data on employment and for independent institutions that are not members of AICUP, data on total resident employment was estimated using figures from the U.S. Department of Education, National Center for Education Statistics Integrated Postsecondary Data System (IPEDS) Fall Staff survey. Income taxes paid to state and local governments by independent colleges and universities (Page 7) Data on total state and local income taxes paid by employees of independent colleges and universities for fiscal year 2003 was collected through a survey undertaken by AICUP in the Spring of 2004. For AICUP member institutions that did not supply data on taxes paid and for independent institutions that are not members of AICUP, this data was estimated using data from similar schools. Total enrollment and total minority enrollment (Page 9) Data obtained from the U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) Fall Enrollment survey. Minority enrollment includes students who classified themselves as Black, Asian, American Indian, or Hispanic. Taxpayer savings (Page 10) This figure represents the estimated savings in total state educational subsidies that might be required to enroll an equivalent number of currently enrolled independent college and university students in public universities. The estimate uses the state per-student educational appropriation for 2006-07 for state-related and state system universities calculated by the Pennsylvania Joint State Government Commission ($4,400). Taxpayer savings is calculated using the following formula: Pennsylvania resident undergraduates enrolled at independent institutions X educational subsidy – ( ( PHEAA grant recipients attending independent institutions x PHEAA grant differential) + institutional assistance grant revenues + state-aided appropriation to independent institutions). Tax dollars per degree produced (Page 11) This figure is calculated using the total state funds allocated to each educational sector in 2007-08 (presented in the table on page 12) divided by the total number of degrees awarded (bachelor’s, masters, and doctoral) in 2007-08 by each educational sector. Degree data is from the U.S. Department of Education, National Center for Education Statistics Integrated Postsecondary Data System (IPEDS) Completions survey.