Affordability Indicators: Price, Financial Aid, & Student Debt In the Montana University System Office of the Commissioner of Higher Education 2014
Price, Financial Aid, & Student Debt In the Montana University System What does it cost for a resident, full-time, freshmen to attend college in the MUS? How much financial aid does the average resident, full-time enrolled, freshmen receive? What is the net price of attendance? How much do students borrow? How do we compare regionally/nationally? Indicators of Affordability 2
PRICE $7,000 $6,500 $6,000 $5,500 $5,000 $4,500 $4,125 Tuition & Fees Academic Year Rates for Resident Freshmen Enrolling Full-time $5,445 $4,695 $6,399 $5,292 Flagships 55% (UM/MSU) 10yr %Chg 4-year 42% Regional (Tech, MSUB, UMW, MSUN) $4,000 $3,500 $3,000 $2,500 $3,725 $2,509 $3,150 $3,384 2-year 35% Colleges (includes CC's) $2,000 source: OCHE, BOR approved tuition & fees 3
PRICE 9,000 Regional Tuition & Fees Comparison Academic Year Rates for Resident Freshmen Enrolling Full-time, 2013-14 8,000 7,000 6,000 5,000 4,000 Montana University System WICHE Average $5,292 $6,292 $6,399 $8,046 3,000 2,000 1,000 $3,384 $3,351 0 2-year Colleges 4-year Universities Flagships/Doctoral Research Tuition and fees at Flagship and 4-year campuses in the MUS are lower than the regional average, while 2-year rates remain slightly higher. source: Western Interstate Commission for Higher Education 4
PRICE 120.0% 100.0% 80.0% Regional Tuition & Fees Comparison 10 Year Increase in Academic Year Rates for Resident Freshmen Enrolling Full-time, 2004 to 2014 Montana University System WICHE Average 84% 103% 110% 60.0% 40.0% 20.0% 35% 42% 55% 0.0% 1st 1st 2nd 2-year Colleges 4-year Universities Flagships/Doctoral Research While the average ten year tuition increase across the region has more than doubled, rates in the MUS have grown at less than half those rates. source: Western Interstate Commission for Higher Education 5
PRICE Regional Tuition & Fees Comparison Ratio of Tuition & Fees to Median Household Income, 2013-14 (based on Academic Year Rates for Resident Freshmen Enrolling Full-time) 16.0% 14.0% 12.0% Montana University System WICHE Average 14.2% 14.7% 10.0% 11.7% 11.8% 8.0% 6.0% 4.0% 2.0% 7.5% 6.3% 0.0% 2-year Colleges 4-year Universities Flagships/Doctoral Research Ratio of tuition and fees to Median Household Income at MUS 4-year campuses is lower than the regional average for the first time in over 10 years. source: Western Interstate Commission for Higher Education 6
$16,000 Price of Attendance Academic Year Rates for Resident Freshmen Enrolling Full-time $15,081 PRICE Flagships $14,000 $12,000 $10,000 $9,829 $9,068 $12,399 $11,085 $8,446 $13,707 $10,602 4-year Regional 2-year Colleges $8,000 $7,357 $6,000 $4,000 The price of attendance on this chart includes: tuition and fees, on-campus room and board (avg off-campus for 2yr campuses), and books and supplies. "Other expenses" such as transportation, child care, and general costs of living were excluded. The amount for books and supplies was normalized across all campuses by using the System average. $2,000 7
$5,000 $4,500 $4,000 $3,500 Average Amount of Financial Aid Received Academic Year Amounts Received by First-time, Full-time Resident Students $4,580 $4,207 $3,861 FIN AID Flagships 4-year 2-year $3,000 $2,500 $2,000 $1,500 $1,000 $500 $2,426 $1,954 $2,811 $2,087 Financial Aid = all types of financial aid except loans, including all grants, scholarships, waivers, and work study Academic Year Amounts = amount received in Fall and Spring semesters, does not include winter or summer sessions. Average Financial Aid = average amount received by all students, not just those receiving aid 8
90% 80% 70% 60% Average Amount of Financial Aid Received Academic Year Aid Received by First-time, Full-time Resident Students All Campuses Avg Amount Received 67% 67% % Receiving Aid 73% $3,654 FIN AID 84% $4,246 $5,000 $4,000 50% 40% $2,229 $2,634 $3,000 30% $2,000 20% $1,000 10% 0% $0 Financial Aid = all types of financial aid except loans, including all grants, scholarships, waivers, and work study; Academic Year Amounts = amount received in Fall and Spring semesters, does not include winter or summer sessions; Average Financial Aid = average amount received by all students, not just those receiving aid; source: MUS Data Warehouse 9
Average Amount of Financial Aid Received Academic Year Amounts Received by First-time, Full-time Resident Students FIN AID $5,000 $4,500 $4,000 $3,500 Reasons for increase: Increases in Pell, Gov. Scholarship, MUS Honors; recruiting efforts; and waivers tied to tuition rates All Campuses All Other Aid $2,383 10yr %Chg $4,246 +91% +116% $3,000 $2,500 $2,229 $2,000 $1,500 $1,000 $500 All Other Aid $1,101 Pell $1,127 Pell $1,863 +65% $0 2003 2013 Financial Aid = all types of aid except loans, including all grants, scholarships, waivers, and work study; Academic Year Amounts = amt received in Fall /Spring semesters, does not include winter/summer sessions; Average Financial Aid= avg amt received by all students, not just those receiving aid 10
70% 65% 60% 55% 54% Percentage of Students Receiving Pell Grants % First-time, Full-time Resident Students Receiving Pell Grants 64% FIN AID 2-year Colleges 50% 45% 40% 35% 30% 25% 20% Max Pell: 46% 42% 37% 47% 33% 28% Pell eligibility criteria expanded $4,050 $4,050 $5,550 46% 43% 36% Total 4-year Flagships Average Pell for 1 st -time, FT, Res. 02-03 = $2,696 12-13 = $4,074 Pell Total Awards 02-03 = $33M 12-13 = $63M 11
FIN AID $1,800 State Funded Grant Aid & Scholarships per Undergraduate FTE, 2011-12 source: National Association of State Student Grant and Aid Programs $1,600 $1,400 $1,200 $1,000 National Avg $800 $600 $400 Montana $200 $0 12
$3,000 $2,500 Net Tuition & Fees Academic Year Amounts for First-time, Full-time Resident Students $2,546 FIN AID $2,000 $1,500 $1,000 $500 $1,573 $954 $608 $1,818 $1,003 $105 $1,765 $1,227 Flagships Regional 4-year $0 -$500 -$1,000 Net Tuition = Academic year tuition and fees minus average amount of financial aid received by all students (not just those receiving aid) 63% 73% -$417 2-year Colleges 63% source: MUS Data Warehouse Financial Aid = all types of aid except loans, including all grants, scholarships, waivers, and work study 13
$12,000 $10,000 $8,000 $6,000 $4,000 $7,600 $6,642 $5,403 Net Price of Attendance Academic Year Amounts for First-time, Full-time Resident Students $9,620 $8,274 $6,359 $10,501 $9,500 $6,881 FIN AID Flagships 4-year 2-year Colleges $2,000 $0 Net Price of Attendance = Academic year price of attendance minus average amount of financial aid received by all students (not just those receiving aid) 63% 73% 63% source: MUS Data Warehouse Financial Aid = all types of aid except loans, including all grants, scholarships, waivers, and work study 14
DEBT Student Loan Debt Average Loan Amount for First-time, Full-time Resident Students in 1st Academic Year of Enrollment (of those who borrow) (not including parent loans) $8,000 $7,000 Avg Loan Debt % Borrowing 58% 70% 60% $6,000 $5,000 $4,000 $3,000 58% 3290 55% 3692 5579 50% 40% 30% $2,000 20% $1,000 10% $0 0% Academic Year Amounts = amount received in Fall and Spring semesters, does not include winter or summer sessions. Average Loan = average amount received by students who borrowed, includes federal and private loans recorded by campuses source: MUS Data Warehouse 15
DEBT Average Loan Amounts for MUS Degree/Certificate Recipients (average loan amounts of students who borrowed; no parent PLUS loans included; borrowing activity = 8 years prior to graduation; includes federal and non-federal loans) 30,000 2008-09 2012-13 25,000 $26,440 20,000 $19,655 $21,125 15,000 $17,102 $16,166 10,000 5,000 $11,627 % Borrowing 0 60% 69% Certificates of Applied Science 71% 73% 63% 64% Associate Degrees Baccalaureate Degrees source: MUS Data Warehouse 16
DEBT Average Loan Amounts of Bachelor's Degree Recipients MT vs. Nation, Public Institutions (average loan amounts of students who borrowed) 29,000 27,000 Nation Montana $26,440 25,000 $23,800 $23,894 $25,000 $25,140 23,000 21,000 $19,800 $21,125 $22,780 $22,000 19,000 17,000 % Borrowing 55% 63% 56% 63% 57% 63% 58% 64% Info not available yet 64% 15,000 2008-09 2009-10 2010-11 2011-12 2012-13 source: MUS Data Warehouse, College Board, "Trends in Student Aid 2012" 17
Average Loan Amounts for MUS Bachelor's Degree Recipients, 2012-13 (average loan amounts of students who borrowed; no parent PLUS loans included; borrowing activity = 8 years prior to graduation; includes federal and non-federal loans) DEBT 35,000 by Pell Status 30,000 25,000 $26,440 $29,024 20,000 15,000 10,000 $21,466 % Borrowing 64% 3,130 / 4,924 41% 1,070 / 2,611 89% 2,060 / 2,313 5,000 0 Total Non-Pell Pell 18
DEBT 90% 80% 70% MUS Retention & Graduation Rates Full and Part-time Students Entering 4-year Campuses source: Access to Success 2013 Report Pell Recipients 77% Non-Pell Recipients 60% 65% 50% 40% 48% 30% 34% 20% 10% 0% Retention Rates (1-yr) Graduate Rates (6-yr) 19
250,000,000 200,000,000 MUS Student Loans - Total Amount Borrowed Loan Amounts by Type Subsidized Unsubsidized Other Total $223M DEBT Change 03 to 13 Total +$111M (114%) 150,000,000 100,000,000 50,000,000 0 63% 73% UNSUB +$71M (225%) SUB +$14M (25%) Other 63% +$27M (215%) (PLUS, private) source: MUS Data Warehouse 20
Summary Points Indicators of Affordability Tuition and fees in MUS are relatively low at Flagship/4-year; about average at 2-year Colleges Tuition rates have increased at a slower pace than almost any other state Financial aid availability is at a ten year high First year borrowing amounts have leveled off; total loan amounts for graduates continue to increase 21