Unequal Family Income and Unequal Opportunity for Higher ...€¦ · •Income contingent education loan repayment •College work-study for all students States •Required 50:50

Intro

Unequal Family Income and

Unequal Opportunity for Higher Education

National Scholarship Providers AssociationSeattle, WA

October 11, 2017

Tom Mortenson

Senior Scholar,

The Pell Institute for the Study of Opportunity in Higher Education

Higher Education Policy Analyst,

Postsecondary Education OPPORTUNITY

31

.4

31

.9 33

.0 34

.9 37

.0

37

.8

38

.6 39

.7

39

.9

40

.1

40

.2

40

.0

39

.9

40

.7

41

.3

42

.9

44

.6

45

.5

44

.8 46

.0 48

.2 50

.4

50

.8

53

.3

52

.8

52

.6

0.0

10.0

20.0

30.0

40.0

50.0

60.0

1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

Ap

pro

ved

(%

)

Source: US Dept of Agriculture

K-12 School Children Approved

for National School Lunch Program

1989 to 2014

12.1

10.1

2.1

49.6

31.4

52.6

0.0

10.0

20.0

30.0

40.0

50.0

60.0

1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014

Lo

w I

nco

me

Sh

are

ot

To

tal

(%)

Low Income Student Shares of Totals

1970 to 2014

K-12 Students Approved

for Free/Reduced Price

School Lunches

Bachelor's Degrees Awarded by

Age 24 to Students from Bottom Quartile

of Family Income

Undergraduate Students

with Pell Grants

46.5

24.8

50.3

27.6

42.2

39.6

33.5

24.4

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Non-Hispanic

White

Black Asian American Indian

or Alaska Native

Native Hawaiian/

other Pacific

Islander

Other More than one

race

Hispanic

Co

mp

leti

on R

ates

(%

)

Source: NCES/BPS

6-Year Bachelor's Degree Completion Rates for

Dependent Students Initially Enrolled in a 4-Year Institution

by Race/Ethnicity

2009

73.6

84.5

91.7

91.6

87.0

89.6

94.8

91.2

75.2

87.6

90.5

93.6

76.9

83.3

88.8

90.2

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Bottom

Second

Third

Top

High School Graduation Rates (%)

Fam

ily I

nco

me

Quar

tile

s

White NH

Black

Asian

Hispanic

High School Graduation Rates

for Dependent 18 to 24 Year Olds

by Family Income Quartiles and Race/Ethnicity

2015

Source: Calculated from October Current Population Survey File

(Formerly Table 14 in Census Bureau's School Enrollment Report)

67.1

68.0

70.8

82.0

85.1

90.6

89.1

96.8

53.2

66.1

74.9

80.8

58.6

66.7

77.0

87.0

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Bottom

Second

Third

Top

College Continuation Rates (%)

Fam

ily I

nco

me

Quar

tile

s

White NH

Black

Asian

Hispanic

College Continuation Rates for Dependent

18 to 24 Year Old High School Graduates


2015



49.4

57.5

64.9

75.1

74.0

81.2

84.5

88.3

40.0

57.9

67.7

75.6

45.1

55.6

68.4

78.5

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Bottom

Second

Third

Top

College Participation Rates (%)

Fam

ily I

nco

me

Quar

tile

s

White NH

Black

Asian

Hispanic

College Participation Rates

for Dependent 18 to 24 Year Olds


2015



Sleeping, 8.8

Grooming, 0.8

Working & Related

Activities, 2.3

Educational Activities,

3.3

Eating & Drinking, 1.0

Sports & Leisure,

4.3

Traveling, 1.5

Other, 2.1

Time Use of Full-Time College Students on Weekdays

Ages 18 to 24 Years

2003-2016

24 Hours

Sleeping, 9.3

Grooming, 0.7

Working & Related

Activities, 1.3

Educational

Activities, 4.5

Eating & Drinking, 1.4

Sports & Leisure,

3.8

Traveling, 1.4

Other, 1.6

Time Use of Asian Full-Time College Students on Weekdays

Ages 18 to 24 Years

2003-2016

24 Hours

$1,825

$2,716

$2,147

$3,262

$4,625

4-Year

$6,495

$8,070

$728

$1,360

$1,022

$1,378

2-Year

$1,761

$2,252

$2,792

$2,200

$1,696

$2,512

$3,385

$4,689

$5,899

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012

Tu

itio

n &

Req

uir

ed F

ees

(AY

2013$)

Academic Year Ending

Average Tuition and Required Fees in Public Institutions

In Constant Dollars

AY1964 to AY2013

Source: 2013 Digest of Education Statistics

All

Institutions

Financial Need Analysis Model

Cost of Attendance

Tuition and fees

Room and board

Books and supplies

Personal and medical care

Transportation

Less: Expected family contribution

Income and assets

Family size

Number of children enrolled in college

Equals: Financial need

Gift aid: grants, scholarships, waivers

Earnings from work/study

Education loans: subsidized/unsubsidized Stafford, PLUS

Federal tax credits

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

LT10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100100-125125-150150-200GT200

Res

ou

rces

($)

Parents' Income ($000)

Grant

EFC

Loan

CWS

Other

COA

Resources

Financial Resources and Barriers of Full-Time, Full-Year

Dependent Undergraduate Students at One Institution

2012

Source: NPSAS 2012

$3,4

95

$367

$(5

,233)

$(1

7,2

96)

$5,7

32

$3,5

13

$2,1

08

$(1

5,6

22

)

$5,9

53

$4,1

42

$(6

09)

$(1

3,1

25

)

$6,0

87

$3,5

80

$(2

,450)

$(1

7,0

94

)

$6,7

26

$4,1

37

$(2

,074)

$(1

9,4

35)

$6,4

14

$3,0

43

$(3

,722)

$(1

9,7

31)

$8,2

21

$6,5

14

$1,0

47

$(1

3,9

50

)

-$25,000

-$20,000

-$15,000

-$10,000

-$5,000

$0

$5,000

$10,000

Bottom Second Third Top

Mea

n U

nm

et F

inan

cial

Nee

d

(co

nst

ant

20

12

do

llar

s)

Parents' Income Quartile

1990

1993

1996

2000

2004

2008

2012

Mean Unmet Financial Need for Dependent Undergraduates

By Parents' Income Quartiles

1990 to 2012Year

Source: NPSAS 2012

$4

,41

0

$6

85

$(6

,58

8)

$(2

1,3

82)

$7

,21

9

$4

,64

7

$1

,74

2

$(1

9,6

28)

$8

,08

6

$6

,45

5

$6

09

$(1

4,9

93)

$8

,15

0

$5

,90

9

$(9

49

)

$(1

7,9

39)

$9

,16

7

$7

,14

2

$2

79

$(1

9,0

24)

$9

,32

2

$6

,80

9

$(7

72

)

$(1

9,8

99)

$1

1,2

07

$1

0,3

52

$4

,45

5

$(1

2,3

53)

-$25,000

-$20,000

-$15,000

-$10,000

-$5,000

$0

$5,000

$10,000

$15,000


Mea

n S

tud

ent

Wo

rk/L

oa

n B

urd

en

(co

nst

an

t 2

01

2 d

oll

ars

)


1990 1993

1996 2000

2004 2008

2012

Mean Student Work/Loan Burden in Public 4-Year Institutions

for Dependent Undergraduates by Parents' Income Quartiles

1990 to 2012

Year

$1

0,8

81

$1

2,5

74

$1

3,7

23

$1

8,1

23

$1

2,9

83

$1

4,8

76

$1

6,8

39

$2

1,1

53

$1

1,1

79 $

13

,78

7 $1

5,9

83

$1

9,6

72

$1

1,6

37

$1

5,0

47

$1

7,0

77

$2

0,2

68

$1

2,3

46

$1

5,7

88 $1

8,0

19

$2

1,3

37

$1

2,8

32

$1

7,1

82

$2

0,1

66

$2

4,3

01

$1

3,6

99

$1

7,5

62

$2

2,0

97

$2

6,5

80

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000


Mea

n N

et P

rice

to

Fa

mil

y

(co

nst

an

t 2

01

2 d

oll

ars

)


1990

1993

1996

2000

2004

2008

2012

Mean Net Price to Family

for Dependent Undergraduates by Parents' Income Quartiles

1990 to 2012

Year

44

.6

21

.5

15

.7

10

.4

45

.6

23

.4

18

.7

12

.2

53

.6

24

.8

18

.1

11

.4

46

.5

25

.2

18

.4

11

.9

52

.5

27

.0

19

.2

12

.5

55

.8

28

.8

20

.7

13

.6

84

.0

35

.4

24

.8

15

.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0


Mea

n N

et P

rice

to

Fa

mil

y P

erce

nt

of

Pa

ren

ts'

Inco

me

(per

cen

t)


1990

1993

1996

2000

2004

2008

2012

Mean Net Price to Family as a Percent of Parents' Income

by Parents' Income Quartiles

1990 to 2012

Year

Tertiary Type-A Degree Attain 25-34 yr

olds OECD 2003

Restoring College Affordability

Federal

• $13,000 Pell Grant maximum award

• $2,000 Super Pell to fund negative EFC calculated from FAFSA

• Income contingent education loan repayment

• College work-study for all students

States

• Required 50:50 match to federal Pell Grant

Institutions

• Continued eligibility for Title IV participation contingent on

progress toward broadening enrollment of students from low income

families

Email to request PowerPoint from:

[email protected]

Contact Information:

Unequal Family Income and Unequal Opportunity for Higher ...€¦ · •Income contingent education loan repayment •College work-study for all students States •Required 50:50

Documents