1. TRENDS IN HIGHER EDUCATION SERIES 2008 TRENDS IN COLLEGE PRICING TRENDS IN STUDENT AID October 29, 2008

2. TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID TRENDS IN HIGHER EDUCATION SERIES Published College Prices: How fast are they rising?

3. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Annual Percent Change in the Consumer Price Index 1991 4.4% 1992 3.2% 1993 2.8% 1994 2.8% 1995 2.8% 1996 3.0% 1997 2.2% 1998 1.7% 1999 2.1% 2000 3.7% 2001 2.7% 2002 1.5% 2003 2.1% 2004 3.0% 2005 3.2% 2006 4.1% 2007 2.4% 2008 5.6%

4. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Average Published Charges for Undergraduates by Type and Control of Institution, 2008-09 (Enrollment-Weighted) Enrollment-weighted tuition and fees are derived by weighting the price charged by each institution by the number of full-time students enrolled in 2007-08. Public four-year in-state charges are weighted by total 2007-08 full-time enrollment in each institution. Out-of-state tuition and fees are computed by adding the average in-state price to the out-of-state premium weighted by the number of full-time out-of-state students enrolled at each institution. Room and board charges are weighted by the number of students residing on campus. — Sample too small to provide meaningful information. Note: Prices reported for 2007-08 have been revised and may differ from those reported in Trends in College Pricing 2007. Source: The College Board, Annual Survey of Colleges

5. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID 2008-09 Published Price Changes by Sector Current and Constant Dollar Increases 2007-082008-09 2007-08 In 2008 $Current %Constant % Public Two-year $ 2,294 $ 2,402 $ 2,4224.7%-0.8% Public Four-Year In-State $ 6,191 $ 6,585 $ 6,5386.4%0.7% Public Four-Year Out-of-State $ 16,586 $ 17,452 $ 17,5155.2%-0.4% Private Not-for-Profit Four-Year $ 23,745 $ 25,143 $ 25,0755.9%0.3% For-Profit $ 12,489 $ 13,046 $ 13,1884.5%-1.1%

6. TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID TRENDS IN HIGHER EDUCATION SERIES Published College Prices: How much do they vary?

7. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Average Published Charges for Undergraduates by Carnegie Classification, 2008-09 (Enrollment-Weighted) Enrollment-weighted tuition and fees are derived by weighting the price charged by each institution by the number of full-time students enrolled in 2007-08. Public four-year in-state charges are weighted by total 2007-08 full-time enrollment in each institution. Out-of- state tuition and fees are computed by adding the average in-state price to the out-of-state premium weighted by the number of full- time out-of-state students enrolled at each institution. Room and board charges are weighted by the number of students residing on campus. Source: The College Board, Annual Survey of Colleges

8. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Total Educational Costs per Full-Time Equivalent (FTE) Student by Carnegie Classification in Constant (2005) Dollars, 1995-96, 2000-01, and 2005-06 Note: Total educational costs include spending on instruction and student services, as well as the instructional share of spending on central academic and administrative support and operations and maintenance. Source: The Delta Cost Project; calculations by the authors.

9. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Total Net Tuition and Fee Revenues as a Percentage of Total Educational Costs by Carnegie Classification, 1995-96, 2000-01, and 2005-06 Notes: Total educational costs include spending on instruction and student services, as well as the instructional share of spending on central academic and administrative support and operations and maintenance. Net tuition and fees equal gross tuition and fee revenue (including federal and state grants) less institutional grant aid (price discounts). Source: The Delta Cost Project; calculations by the authors.

10. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Endowment Assets per Full-Time Equivalent (FTE) Student at Four-Year Colleges and Universities by Decile and Carnegie Classification, 2007 Note: The value of endowment assets was as of the end of fiscal year 2007. Endowment assets are based on data for 63 private doctorate-granting, 109 private master’s, 168 private baccalaureate, 142 public doctorate-granting, 216 public master’s, and 98 public baccalaureate degree institutions. Average endowment per FTE for each decile of institutions is calculated by ordering the institutions in the sector by assets per FTE and dividing the students in the sector into deciles. Total assets in the institutions enrolling 10% of students in the sector are divided by the number of students in those institutions. Sources: National Association of College and University Business Officers (NACUBO) Endowment Study; NCES, Integrated Postsecondary Education Data System; calculations by the authors. Data are from NACUBO where available.

11. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Tuition and Fee and Room and Board (TFRB) Charges by College Board Region and Sector, in Constant (2008) Dollars, 1998-99 and 2008-09 (Enrollment-Weighted) Note: 2008-09 room and board charges are based on commuter housing and food costs; comparable data are not available for 1998-99. States included in the regions are as follows. New England: CT, MA, ME, NH, RI, and VT; Middle States: DC, DE, MD, NJ, NY, PA, and PR; South: AL, FL, GA, KY, LA, MS, NC, SC, TN, and VA; Midwest; IA, IL, IN, KS, MI, MN, MO, NE, ND, OH, SD, WI, and WV; Southwest: AR, NM, OK, and TX; West: AK, AZ, CA, CO, HI, ID, MT, NV, OR, UT, WA, and WY. In addition to regional differences, there are also state differences in published tuition and fees (see data online at: www.collegeboard.com/trends). Source: The College Board, Annual Survey of Colleges. www.collegeboard.com/trends

12. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Percentage Changes and Dollar Changes in Published Prices by Region Over the decade: Public four-year: Largest increase Southwest $6,421 89% ($3,016) Smallest dollar increase: South $5,412 50% ($1,807) Smallest percentage increase: Middle States $7,565 34% ($1,903 )

13. TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID TRENDS IN HIGHER EDUCATION SERIES Tuition and Fees Tell Only Part of the Story

14. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Average Estimated Undergraduate Budgets, 2008-09 (Enrollment-Weighted) Note: Expense categories are based on institutional budgets for students as reported by colleges and universities in the Annual Survey of Colleges. They do not necessarily reflect actual student expenditures. Source: The College Board, Annual Survey of Colleges.

15. TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID TRENDS IN HIGHER EDUCATION SERIES How Much do Students Actually Pay? Net Prices

16. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Average Educational Subsidy per Full-Pay Student by Carnegie Classification, 2005-06 Notes: Subsidy per full-pay student is the dollar amount of full educational cost per FTE student that is not covered by published tuition and fees per FTE. Source: The Delta Cost Project; calculations by the authors.

17. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Published Tuition and Fees and Room and Board (TFRB) Compared to TFRB Net of Average Grant and Education Tax Benefits per Full-Time Undergraduate Student, in Constant (2008) Dollars, 1993-94, 1998-99, 2003-04 and 2008-09 Notes: Net tuition and fees are calculated by subtracting estimated average grant aid plus tax benefits per full-time student in the sector from the published price. Aggregate aid amounts are from Trends in Student Aid 2008. Division of total aid across sectors and between full-time and part-time students is based on the NPSAS, 1993 through 2004.

18. TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID TRENDS IN HIGHER EDUCATION SERIES The Distribution of Income and Aid

19. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Percentage Growth in Mean Family Income by Quintile (in Constant 2007 Dollars), 1977–1987, 1987–1997, and 1997–2007 Source: U.S. Census Bureau, Current Population Survey, Table F-1, Table F-3, and FINC-01; calculations by the authors, where available.

20. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Median Family Income by Selected Characteristics, 2007 Source: U.S. Census Bureau, Current Population Survey, Table F-1, Table F-3, and FINC-01; calculations by the authors, where available.

21. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Distribution of Pell Grant Recipients by Family Income and Dependency Status, 2006-07 Source: The Federal Pell Grant Program End of Year Report, 2006-07.

22. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Distribution of Education Tax Credits, 2006 (and Average Tax Savings per Recipient) Note: Only tax credits and deductions claimed on taxable income tax returns are included. The value of tax deductions is estimated based on applicable marginal tax rates. Available data do not allow separation of independent students from parents of dependent students claiming tax credits and deductions. Components may not sum to 100 percent due to rounding. Sources: http://www.irs.gov/pub/irs-soi/06in33ar.xls; http://www.irs.gov/pub/irs-soi/06in14ar.xls; http://www.irs.gov/pub/http://www.irs.gov/pub/irs-soi/06in33ar.xlshttp://www.irs.gov/pub/irs-soi/06in14ar.xlshttp://www.irs.gov/pub/ irs-soi/06in13ms.xls;irs-soi/06in13ms.xls; calculations by authors.

23. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Distribution of Savings from Tuition Tax Deduction, 2006 (and Average Tax Savings per Recipient) Note: Only tax credits and deductions claimed on taxable income tax returns are included. The value of tax deductions is estimated based on applicable marginal tax rates. Available data do not allow separation of independent students from parents of dependent students claiming tax credits and deductions. Components may not sum to 100 percent due to rounding. Sources: http://www.irs.gov/pub/irs-soi/06in33ar.xls; http://www.irs.gov/pub/irs-soi/06in14ar.xls; http://www.irs.gov/pub/http://www.irs.gov/pub/irs-soi/06in33ar.xlshttp://www.irs.gov/pub/irs-soi/06in14ar.xlshttp://www.irs.gov/pub/ irs-soi/06in13ms.xlsirs-soi/06in13ms.xls; calculations by authors.

24. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Number of Recipients of Federal Aid by Program (with Average Aid Received), 2007-08 Note: Tax Benefits, Perkins Loans, and FWS are received by both undergraduate and graduate students. Federal Pell Grants, FSEOG, ACG, and SMART grants go to undergraduates only.

25. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Distribution of Federal Aid Funds by Sector, 2006-07 Note: Components may not sum to 100% due to rounding.

26. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Institutional Grant Aid: Need-Based, Non-Need-Based, and Athletic Awards in Constant (2007) Dollars, 2000-01 to 2006-07 Note: The scale on the private institutional grant graph is 10 times the scale on the graph for public institutions. The highest line on the private graph corresponds to average grant aid of $5,000, while the highest line on the public graph corresponds to average grant aid of $500.

27. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Private Four-Year Institutions by Type and Tuition Level: Need-Based, Non-Need-Based, and Athletic Aid Note: Need-based grants include any institutional grant dollars awarded to students with financial need up to the student’s full need. Non-need-based grants are defined as dollars awarded to students without financial need or amounts that exceed the student’s financial need. Tuition levels are divided into two groups: those above and those below the median tuition and fee level ($28,605) for this sample. Source: Annual Survey of Colleges, The College Board, New York, NY.

28. TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID TRENDS IN HIGHER EDUCATION SERIES Student Borrowing

29. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Average Aid per Undergraduate FTE in Constant (2007) Dollars, 1990-91 to 2007-08

30. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Growth of Stafford, PLUS, and Nonfederal Loan Dollars in Constant (2007) Dollars, 1997-98 to 2007-08 Note: Components may not sum to 100% due to rounding.

31. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Proportion of Undergraduate Students Borrowing Federal Stafford Loans, 1997-98, 2002-03, and 2007-08 Sources: Percent of students borrowing is based on IPEDS enrollment data; calculations by the authors. Loan data are from the U.S. Department of Education, Office of Postsecondary Education, and the National Student Loan Data System (NSLDS).

32. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Average Debt per Borrower and Average Debt per Bachelor’s Degree Recipient in Constant (2007) Dollars, 2000-01 to 2006-07 Note: Debt figures include both federal loans and loans from nonfederal sources that have been reported to the institutions, based on institutional reporting of aggregate debt figures. Source: Annual Survey of Colleges, The College Board, New York, NY.

33. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Average Debt per Borrower and Average Debt per Bachelor’s Degree Recipient in Constant (2007) Dollars, 2000-01 to 2006-07 Note: Debt figures include both federal loans and loans from nonfederal sources that have been reported to the institutions, based on institutional reporting of aggregate debt figures. Source: Annual Survey of Colleges, The College Board, New York, NY.

34. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Degrees Granted by Level and Institutional Type, 1995-96 and 2005-06 Note: First-professional degrees involve completion of all academic requirements to begin practice in any of the following fields: chiropractic, dentistry, law, medicine, optometry, osteopathic medicine, pharmacy, podiatry, theology and veterinary medicine. Source: NCES, Condition of Education 2008, Table 41.1.

35. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Total Number of Degrees Granted, 1995-96 and 2005-06 Note: First-professional degrees involve completion of all academic requirements to begin practice in any of the following fields: chiropractic, dentistry, law, medicine, optometry, osteopathic medicine, pharmacy, podiatry, theology and veterinary medicine. Source: NCES, Condition of Education 2008, Table 41.1.

36. TRENDS IN HIGHER EDUCATION SERIES TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID Percentage Distribution of Full-Time Equivalent (FTE) Enrollment in Postsecondary Institutions by Sector, Fall 1995 and Fall 2005 Source: NCES, unpublished data.

37. TRENDS IN COLLEGE PRICING AND TRENDS IN STUDENT AID TRENDS IN HIGHER EDUCATION SERIES For More Information: Sandy Baum sbaum@collegeboard.org Jennifer Ma jma@collegeboard.org Kathleen Payea kpayea@collegeboard.org sbaum@collegeboard.org jma@collegeboard.org kpayea@collegeboard.org