Is College Really an Option for Me?

Transcription

1 Is College Really an Option for Me? How the Classes of 2009 and 2010 Perceive the Costs and Availability of a College Education Don Munce President NRCCUA Kevin Cavanagh Assistant Vice President for College Admissions Iona College

2 Today s Agenda Objectives of the Research Methodology Findings Conclusions

3 Objectives of the Research Find out how students perceive the costs of college Find out if students are changing their college plans based on perceptions of cost Find out at what cost points students will change their plans Study began as custom project for a mid-western private 4 year institution. All questions are focused at 4 year college options.

4 Methodology Delivered via Participants drawn from the NRCCUA database of nearly 5.5 million high school students Nationally representative sample Classes of 2009 and ,495 valid surveys were completed

5 Students are Bombarded by Media Messages on the High Cost of Attending College

6 Are Students and Parents Getting the Full Story? Online College Cost Calculator from the Kansas 529 Plan

7 What Do Students Think it Costs to Go to College? What is your perception of the average total cost to attend each of the following types of colleges and universities for one academic year? Please enter the estimated amount in dollars in each box. Type of College Tuition Room & Board Total Major State University (in-state tuition) AUTO SUM Major State University (out-of-state tuition) Regional State University (in-state tuition) Regional State University (out-of-state tuition) Large Private University Medium Private University Small Private College College Run by a Religious Denomination

8 What We Looked At: Median Half said more and half said less than this number First Quartile (Q1) 25% said less than this number Third Quartile (Q3) 25% said more than this number So 50% of students fell between the Q1 and Q3 number

9 Estimated Cost of College by Gender 50,000 45,000 40,000 35,000 30,000 25,000 20,000 Male Q1 Male Q3 Median Female Q1 Median Female Natl Avg Q3 Natl Avg 15,000 10,000 5,000 0 MSU-IN MSU-IN MSU-OUT MSU-OUT RSU-IN RSU-IN RSU-OUT RSU-OUT LGPRIV LGPRIV MEDPRIV MEDPRIV SMPRIV SMPRIV RELIG RELIG

10 Regional Differences in Cost Public 4 Year NATIONAL $13,305 Florida $10,767 Illinois $16,343 Source: College Board Trends in Pricing 2007 Enrollment Weighted Average Tuition + Average Room & Board (amount paid by each student divided by # of students)

11 Florida vs. Illinois 50,000 45,000 Illinois Public Avg 40,000 35,000 Florida Public Avg 30,000 25,000 20,000 FL Q1 FL Median Q3 IL Median Q1 Natl IL Q3Avg Natl Avg 15,000 10,000 5,000 0 MSU-IN MSU-OUT RSU-IN RSU-OUT LGPRIV MEDPRIV SMPRIV RELIG

12 A+ Students vs. B Students 50,000 45,000 40, , ,000 25,000 20, A+ Q1 A+ Q3 Median B Q1 Median B Natl Q3Avg Natl Avg 15,000 10, ,000 0 MSU-IN MSU-OUT RSU-IN RSU-OUT LGPRIV MEDPRIV SMPRIV RELIG

13 50,000 Class of 2009 vs. Class of ,000 40,000 35,000 30,000 25,000 20, Q Q3 Median 2010 Q1 Median Natl 2010 Avg Q3 Natl Avg 15,000 10,000 5,000 0 MSU-IN MSU-OUT RSU-IN RSU-OUT LGPRIV MEDPRIV SMPRIV RELIG

14 Do Students Think that Lower Prices Mean a Substandard Education?

15 What is the Cost for College that Students Will Consider? For each range, indicate if you will realistically consider a college or university whose costs fall into that range. (Total Cost for One Year) Yes, I would consider paying this much per year. No, I would not consider attending a college with costs in this range.

16 All Students % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% Yes to Under 5K All All 30.00% 20.00% 10.00% 0.00% Under Under $5,000 $5,000 per per year year $5,000 $5,000 to to $9,999 $9,999 $10,000 $10,000 to to $14,999 $14,999 $15,000 $15,000 to to $19,999 $19,999 $20,000 $20,000 to to $24,999 $24,999 $25,000 $25,000 to to $29,999 $29,999 $30,000 $30,000 to to $34,999 $34,999 $35,000 $35,000 to to $39,999 $39,999 $40,000 $40,000 to to $44,999 $44,999 $45,000 $45,000 to to $49,999 $49,999 $50,000 $50,000 or or more more

17 No to Lower Priced Colleges % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% No Under 5k No Under 10k No Under 15k 5% of Students 10% of Students 15% of Students 10.00% 0.00% Under $5,000 per year $5,000 to $9,999 $10,000 to $14,999 $15,000 to $19,999 $20,000 to $24,999 $25,000 to $29,999 $30,000 to $34,999 $35,000 to $39,999 $40,000 to $44,999 $45,000 to $49,999 $50,000 or more

18 Gender % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% Male Female 30.00% 20.00% 10.00% 0.00% Under $5,000 per year $5,000 to $9,999 $10,000 to $14,999 $15,000 to $19,999 $20,000 to $24,999 $25,000 to $29,999 $30,000 to $34,999 $35,000 to $39,999 $40,000 to $44,999 $45,000 to $49,999 $50,000 or more

19 First Generation Students % 90.00% 80.00% 87.53% 87.70% 86.64% 86.67% 84.71% 80.54% 82.72% 70.00% 71.23% 69.84% 60.00% 50.00% 56.79% 54.82% Non-First Generation Students First Generation Students 40.00% 41.73% 39.18% 30.00% 26.79% 27.44% 20.00% 10.00% 0.00% Under $5,000 per year $5,000 to $9,999 $10,000 to $14,999 $15,000 to $19,999 $20,000 to $24,999 $25,000 to $29,999 $30,000 to $34,999 $35,000 to $39, % 17.45% 11.48% 11.35% 8.49% 6.67% 4.44% $50,000 or more $40,000 to $44,999 $45,000 to $49,999

20 A+ Students vs. B Students % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% A+ B 30.00% 20.00% 10.00% 0.00% Under $5,000 per year $5,000 to $9,999 $10,000 to $14,999 $15,000 to $19,999 $20,000 to $24,999 $25,000 to $29,999 $30,000 to $34,999 $35,000 to $39,999 $40,000 to $44,999 $45,000 to $49,999 $50,000 or more

21 What Level of Financial Aid do Students Expect to Receive?

22 Expected Financial Aid First Gen vs. Non First Gen 25,000 20,000 15,000 10,000 20,000 17,800 20,000 18,700 17,500 15,000 MEDIAN-FG 3RD Quartile-FG MEDIAN-NFG 3RD Quartile-NFG 1ST Quartile- FG&NFG 8,918 5,000 6,900 7,000 6,000 5,600 5,000 0 Major State U Regional State U Large Private U Medium Private U Small Private College Denominational

23 What Level of Debt are Students Willing to Bear in Order to Graduate from College?

24 What is the Level of Debt for College that Students Will Consider? Please indicate the amount of debt you are willing to incur in order to attend college. This should be the total amount of debt you would have after graduating with a bachelor s degree. Amount of Debt None o Up to $5,000 o $5,000 to $9,999 o $10,000 to $14,999 o $15,000 to $19,999 o $20,000 to $24,999 o $25,000 to $29,999 o $30,000 to $34,999 o $35,000 to $39,999 o $40,000 to $44,999 o $45,000 to $49,999 o $50,000 or more o

25 100.00% Percentage of Students Willing to Assume a Given Debt Level 90.00% 80.00% 85.86% 88.68% 70.00% 67.69% 60.00% 50.00% 40.00% 57.65% 46.08% 2010 Female 2009 Female 2010 Male 2009 Male 35.28% 30.00% 26.93% 20.00% 18.22% 15.88% 10.00% 9.55% 9.20% 0.00% None Up to 10k 10k up to 20 k 20k up to 30k 30k up to 40k 40k up to 50k 4.82% 50k or more

26 100.00% Percentage of Students Willing to Assume a Given Debt Level 90.00% 89.35% 80.00% 77.78% 70.00% 60.00% 50.00% 40.00% 47.71% 63.12% 39.93% Hispanic African Am Asian White 30.00% 30.07% 20.00% 17.12% 21.01% 10.00% 9.41% 11.53% 5.49% 6.26% 0.00% None Up to 10k 10k up to 20 k 20k up to 30k 30k up to 40k 40k up to 50k 50k or more

27 Are Students and Families Adjusting their Approach to College Planning?

28 How has the cost of college changed your planning for college? (Choose one) a) It has not changed my plans b) I have had to accept attending a college other than one of my first choice colleges c) I have had to postpone attending college d) I have realized I can attend a college I thought I could not afford

29 100% 90% How has the cost of college changed your planning for college? 8.07% 1.51% 10.64% 2.59% 80% 70% 31.29% 34.37% 60% 50% 40% Now realize I can attend Postpone college Accept not attending 1st choice Not changed my plans 30% 20% 59.14% 52.40% 10% 0% Non First Gen First Gen

30 100% 90% How has the cost of college changed your planning for college? 13.17% 11.08% 1.96% 2.35% 7.66% 1.56% 9.96% 10.53% 2.05% 4.45% 80% 70% 35.07% 29.22% 33.17% 32.74% 29.96% Now realize I can attend 60% Postpone college 50% Accept not attending 1st choice 40% Not changed my plans 30% 49.80% 57.34% 57.62% 55.25% 55.06% 20% 10% 0% Hispanic Af American White Asian Am Indian

31 52.14% 37.61% 36.75% 45.88% 25.39% 26.95% 29.91% 30.07% 38.46% 18.80% 20.04% 23.08% Seniors (2007) Who "Know where I want to go " Reasons for Removing a College from Considered List 60.00% 50.00% 40.00% 30.00% All Seniors Hispanic Seniors 20.00% 10.00% 0.00% Cost Didn't Get Financial Aid Didn't Have Academic Program Bad Campus Visit Too Far from Home Didn't Think Would Be Admitted Source: NRCCUA Mapping the College Search Process II Study

32 Summary of Findings 36% of rising juniors and seniors don t believe they will receive ANY financial aid. 72% say they will not consider a college with total cost over $35,000. There are a substantial number of students with inaccurate perceptions of cost. About 15% think higher cost results in higher quality. First generation students are significantly less informed than non-first generation students.

33 Summary of Findings Men are slightly willing to pay more for college and willing to borrow significantly more to attend. Ignorance of accurate cost and financial aid information causes a MAJORITY of students to reject colleges early in the decision making process.

34 Observations From the Field

35 Questions?

36 Thank You! Contact Information: Don Munce Kevin Cavanagh - kcavanagh@iona.edu