Higher education leaders frequently cite the shrinking share of the tax dollar going directly or indirectly to higher education as the reason for spiraling tuition increases. In contrast, policy makers often cite higher education's unwillingness to contain or reduce unit expenses as a reason for price (tuition) increases. In my opinion, policy makers are correct in that higher education could borrow a page from the productivity book that informs almost every other sector of the service economy. That is, most other service organizations have used technology to redesign services to reduce unit costs while increasing quality and flexibility. Wherever you stand on the price / cost issue, one thing is clear. Students are suffering, and in some states -- Texas, for example -- are not attending college in the numbers consistent with state demographics. A new report from the State Public Interest Research Group's Higher Education Project summarizes the situation quite succinctly.
College Students Faced More than $31 Billion in Unmet Financial Need in 2003-2004
A college education continues to be a great investment for every American. The average college graduate earns more than $1,000,000 more over the course of a career than the average high school graduate. Similarly, a system of affordable higher education benefits states and the federal government. College graduates contribute to a strong civil society by voting and serving the community in higher numbers than non-college graduates. In addition, they contribute to a strong economic base by driving innovation and expanding the tax base. Unfortunately, new data suggests that America’s higher education system falls short of being affordable for millions of students. New data, released by the Department of Education and analyzed by Postsecondary Education OPPORTUNITY, suggests that higher education is unaffordable for millions of Americans. According to Postsecondary Education OPPORTUNITY, American undergraduate college students faced more than $31 billion in unmet financial need in 2003-2004. Unmet need equals the cost of attending college, including tuition and living expenses, minus expected family contribution and financial aid. Students deal with unmet need by working more during the school year and taking out more student loans beyond those included in their financial aid packages. Postsecondary Education OPPORTUNITY, an education public policy think tank in Oskaloosa, Iowa, based its analysis on the 2003-2004 National Postsecondary Student Aid Survey (NPSAS). NPSAS is a nationwide survey conducted by the Department of Education’s National Center on Education Statistics that uses a representative sample of students, weighted to accurately reflect the distribution of students across income levels and institution types. By analyzing the most recent NPSAS data, Postsecondary Education OPPORTUNITY calculated that undergraduate students faced $31,855,470,142 in unmet need in 2003-2004. High levels of unmet need have serious impacts for undergraduate students. According to Access Denied, a 2001 report by the Advisory Committee on Student Financial Assistance, “unmet need causes students to deviate from full-time, on-campus attendance—the behavior most conducive to academic success.” In addition, the report found that unmet need is related to participation, persistence and completion gaps between students from different economic backgrounds. Read more ...
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