AFFORDABILITY IN OREGON HIGHER EDUCATION BEN CANNON, DIRECTOR, HIGHER EDUCATION COORDINATING COMMISSION

OSU

1February 7, 2017Presented to: House Committee on Higher Education and Workforce Development

Clackamas CCOregon Coast CC

HOW AFFORDABLE IS OREGON HIGHER EDUCATION?

LBCC

AFFORDABILITY: A MULTI-DIMENSIONAL ISSUE

Student or family resources

Tuition

Other costs of attendance

(room and board, textbook, supplies, transportation etc.)

Financial Aid (state, federal,

institutional, private)Completion

Time to completion

Type of degree/certificate/

major

3

MEASURING AFFORDABILITY

4

Tuition: okay

Cost of attendance: good

Net price: better

Net price to income: best

Other factors: not systematically quantified

Also … debt.

Source: HECC analysis of community college and HECC data

COMMUNITY COLLEGE TUITION AND FEES

$3,206

$4,904

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Tuition and fees unadjusted for inflation

5

6

COMMUNITY COLLEGE TUITION AND FEES

$3,206

$3,665

$4,904

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Tuition and fees unadjusted for inflation

Tuition and fees adjusted for inflation (2015 dollars)

Source: HECC analysis of community college and HECC data

7

COMMUNITY COLLEGE TUITION AND FEES

$3,206

$3,665

$4,904

$1,680

$2,100

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Tuition and fees unadjusted for inflation

Tuition and fees adjusted for inflation (2015 dollars)

OOG maximum grant size adjusted for inflation (2015 dollars)

Source: HECC analysis of community college and HECC data

8

$5,821

$8,764

$-

$2,000

$4,000

$6,000

$8,000

$10,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Public university resident tuition and fees unadjusted for inflation

PUBLIC UNIVERSITY TUITION AND FEES

Source: HECC analysis of university and HECC data

9

$5,821

$6,654

$8,764

$-

$2,000

$4,000

$6,000

$8,000

$10,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Public university resident tuition and fees unadjusted for inflation

Public university resident tuition and fees adjusted for inflation (2015 dollars)

PUBLIC UNIVERSITY TUITION AND FEES

Source: HECC analysis of university and HECC data

10

$5,821

$6,654

$8,764

$2,003

$2,100

$-

$2,000

$4,000

$6,000

$8,000

$10,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Public university resident tuition and fees unadjusted for inflation

Public university resident tuition and fees adjusted for inflation (2015 dollars)

OOG maximum grant size adjusted for inflation (2015 dollars)

PUBLIC UNIVERSITY TUITION AND FEES

Source: HECC analysis of university and HECC data

11

TOTAL “COST OF ATTENDANCE”

Tuition plus …

…Mandatory fees

…Housing

…Food

…Transportation

…Supplies

…Textbooks

Source: HECC, Textbook Affordability Workgroup: Final

Report and Recommendations, May 2015

15%

37%

40%

8%

HECC survey: For the Fall 2014 term,

how much did you spend on

textbooks?

$0 - $100

$100 - $250

$250 - $500

$500 +

12

“NET PRICE”

• “Cost of attendance” minus grant aid (e.g. Pell, OOG, Oregon Promise, institutional aid)

• Varies by student

• Can be expressed as an average

13

NET PRICE RELATIVE TO OREGON FAMILY INCOME

Source: Penn Graduate School of Education, “2016 College Affordability Diagnosis for Oregon” http://www.gse.upenn.edu/pdf/irhe/affordability_diagnosis/Oregon_Affordability2016.pdf

Percent of

Income (2013)

Weeks of Work at

Minimum Wage

Oregon’s

Ranking

Public Two-Year 22 19 42

Public Four-Year

Nondoctoral32 31 41

Public Research 34 32 39

Private Four-Year

Nondoctoral51 48 39

What percent of family income would be need to attend college full time at Oregon higher education institutions?

NET PRICE AS PERCENT OF INCOME, PUBLIC TWO-YEAR COLLEGES

Institute for Research on Higher Education. (2016). College Affordability Diagnosis: National Report. Philadelphia, PA: Institute for Research on Higher Education,

Graduate School of Education, University of Pennsylvania. http:// www2.gse.upenn.edu/irhe/affordability-diagnosis.

Map link: http://peabody.vanderbilt.edu/research/studies/affordability/maps_cc.php

14

15

STUDENT DEBT, OREGON GRADUATES

Students graduating from 4-year

institution (public or private) Oregon U.S.

Percentage with loans 63% 68%

Median amount of loans $27,697 $30,100

Source: The Institute for College Access & Success. 2016. "Project on Student Debt, State by State Data." http://ticas.org/posd/mapstate-data#.

STUDENT DEBT, LOAN REPAYMENT RATES

16

39.4%

59.6%

0%

20%

40%

60%

80%

Did not complete Did complete

42.0%

62.5%

0%

20%

40%

60%

80%

Received Pell grant No Pell grant

Student loan repayment is concentrated among those from higher income backgrounds who complete their degrees

Federal student loan repayment rates*, 3 years after leaving school

*Repayment rates measure the percentage of students who have successfully paid off at least $1 of loan principal.

Source: U.S. Department of Education data, as reported in New America. 2017. “New Data Show Wider Repayment Gap Between Low- and High-Income Borrowers.” https://www.newamerica.org/education-policy/edcentral/new-data-show-repayment-gap-between-low-and-high-income-borrowers-wider-realized/

FOOD INSECURITY

Source: Wisconsin HOPE Lab, January 13, 2016, “What We’re Learning: Food and Housing

Insecurity among College Students A Data Update.” 17

HOUSING INSECURITY

Source: Wisconsin HOPE Lab, January 13, 2016, “What We’re Learning: Food and Housing

Insecurity among College Students A Data Update.” 18

STUDENT FINANCIAL CONTRIBUTIONS TO FAMILIES

Source: Wisconsin HOPE Lab, January 13, 2016, “What We’re Learning: Food and Housing

Insecurity among College Students A Data Update.” 19

SO, IS THE PRICE WORTH PAYING?

U.S. Median Earnings and Tax Payments of Full-Time Year-Round Workers Age 25 and Older, by Education Level, 2015

SOURCE: The College Board, Education Pays 2016, Figure 2.120

WHAT CAN BE DONE TO IMPROVE AFFORDABILITY?

Chemeketa CCOregon Coast CCOSUOSU

22

A MULTI-DIMENSIONAL PROBLEM REQUIRES MULTI-DIMENSIONAL SOLUTIONS

• Minimize the need for tuition increases

• Increase grant aid for the lowest-income students

• Create low-cost pathways to lower division and CTE courses

• Smooth transfer pathways to four-year institutions

• Improve graduation rates

• Maximize opportunity in high-return fields

• Support innovations that lower student costs (e.g. Open Educational Resources)

23

A MULTI-DIMENSIONAL PROBLEM REQUIRES MULTI-DIMENSIONAL SOLUTIONS

• Minimize the need for tuition increases

• Increase grant aid for the lowest-income students

• Create low-cost pathways to lower division and CTE courses

• Smooth transfer pathways to four-year institutions

• Improve graduation rates

• Maximize opportunity in high-return fields

• Support innovations that lower student costs (e.g. Open Educational Resources)

OREGON PUBLIC FTE ENROLLMENT AND EDUCATIONAL APPROPRIATIONS PER FTE, FY 1990-2015

24

$8

,00

2

$8

,14

4

$7

,88

2

$7

,93

6

$7

,74

0

$7

,93

8

$7

,18

3

$7

,41

5

$7

,35

9

$7

,51

4

$7

,48

7

$7

,92

2

$7

,06

5

$6

,57

2

$5

,88

2

$5

,73

7

$5

,99

3

$6

,06

6

$6

,37

7

$5

,96

6

$5

,15

2

$4

,75

0

$4

,13

6

$4

,22

0

$4

,51

5

$5

,09

6

$2

,87

9

$2

,89

9

$3

,32

5

$3

,32

6

$3

,95

7

$4

,23

1

$4

,42

2

$4

,36

1

$4

,19

0

$3

,97

4

$5

,11

7

$4

,42

9

$4

,56

4

$4

,97

1

$5

,38

3

$5

,66

5

$5

,57

9

$5

,72

2

$5

,64

3

$5

,20

4

$5

,16

6

$6

,16

8

$6

,53

3

$6

,95

9

$7

,92

4

$8

,18

9

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

0

20

40

60

80

100

120

140

160

180

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Do

llars

per

FTE

Pu

blic

FTE

En

rollm

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(Th

ou

san

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OREGONPUBLIC FTE ENROLLMENT AND EDUCATIONAL APPROPRIATIONS PER FTE, FY 1990-2015

NET TUITION REVENUE PER FTE EDUCATIONAL APPROPRIATIONS PER FTE PUBLIC FTE ENROLLMENT

NOTES: Data adjusted for inflation using the Higher Education Cost Adjustment (HECA). Full-time equivalent (FTE) enrollment equates student credit hours to full-time, academic year students, but excludes medical students. Educational appropriations are a measure of state and local support available for public higher education operating

expenses including ARRA funds, and exclude appropriations for independent institutions, financial aid for students attending independent institutions, research, hospitals, and medical education. Net tuition revenue is calculated by taking the gross amount of tuition and fees, less state and institutional financial aid, tuition waivers or discounts,

Data Source: 2015 State Higher Education Finance Report, SHEEO, http://www.sheeo.org

25

STUDENT SHARE: NET TUITION AS A PERCENT OFF TOTAL EDUCATIONAL REVENUE, FY 2015

46.5%

61.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

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Data Source: 2015 State Higher Education Finance Report, SHEEO, http://www.sheeo.org

26

STATE FUNDING: NATIONAL DATA

According to the 2015 State Higher Education Finance (SHEF) Report, Oregon public funding per student was still ranked among lowest nationwide:

• Oregon ranked 45th in the actual public educational appropriation per student in 2015 ($4,788 per student compared with $6,966 nationally).

• Since the 2008 recession, Oregon saw the 20th highest rate of decrease in public funding per student, showing that investments did not kept pace with enrollment over this time.

• This SHEF report addresses funding for 2015 and earlier. It does not take into account the significant new higher education investment the Oregon Legislature made in the 2015-17 biennium.

2017 preliminary numbers show significant increases, but Oregon is still accounting for years of under-investment.

27

A MULTI-DIMENSIONAL PROBLEM REQUIRES MULTI-DIMENSIONAL SOLUTIONS

• Minimize the need for tuition increases

• Increase grant aid for the lowest-income students

• Create low-cost pathways to lower division and CTE courses

• Smooth transfer pathways to four-year institutions

• Improve graduation rates

• Maximize opportunity in high-return fields

• Support innovations that lower student costs (e.g. Open Educational Resources)

28

OREGON’S MAJOR HECC-ADMINISTERED FINANCIAL AID PROGRAMS

39,000 students received OOG awards totaling $64 million in the 2015-2016 academic year.

Oregon Opportunity

Grant

About 7,000 students projected to receive Oregon Promise awards totaling $11 - $13 million in 2016-2017.

Oregon Promise Grant

Over 500 HECC-administered private scholarships, plus Chafee grants for former foster youth, and more.

Other programs

29

NEED-BASED AID:THE OREGON OPPORTUNITY GRANT

Oregon’s only state-funded, need-sensitive grant program that helps low- income Oregonians achieve their academic goals.

Goal: To help Oregon students who have demonstrated

financial need pay for college.

OREGON OPPORTUNITY GRANT: IMPACT

Graduation Rates at Oregon Public Universities

OOG recipients 64.1%

No OOG 59.6%S o u r c e : O r e g o n U n i v e r s i t y S y s t e m , G r a d u a t i o n R a t e b y F i r s t T i m e F r e s h m a n

C o h o r t 2 0 0 6 - 0 7 , f a l l t e r m , i n c l u d e s i n t e r - O U S t r a n s f e r s .

+4.5% DIFFERENCE

OOG recipients demonstrate higher university

graduation rates than those who did not

receive the grant.

30

Only students with Expected Family Contributions

at or below $4000 received awards in 2016-2017.

In 2015-2016, grants reached more than 30% of eligible

students, a slight increase over the 27% eligible students served in 2014-2015.

OREGON OPPORTUNITY GRANT: FOCUSED ON LOWEST-INCOME STUDENTS

This is a successful program, however,

it does not meet demand.

31

2014-15

U.S.

average

Oregon

number

Oregon

rank

Need-based grant dollars per

capita population$32 $14 33

Need-based grant dollars per

18-24 year old in state$333 $159 33

Percent of dollars awarded to

public colleges and universities 72.2% 91.9% 9

OREGON’S NATIONAL POSITION IN FUNDING STUDENT AID: ROOM TO GROW

32Source: National Association of State Student Aid and Grant Programs. 2016. 46th Annual Survey Report on State-Sponsored Student Financial Aid: 2014-15 Academic Year. http://www.nassgap.org/survey/NASSGAP_Report_14-15_final.pdf

OOG reinforces state

investments in public

colleges and universities

Oregon in

bottom

third

Senate Bill 81 (2015) established a program to “provide a waiver of tuition for community college courses.”

Covers most tuition costs for up to 90 credits attempted (approximately two years at full-time enrollment).

Minimum grant of $1,000 for a student enrolled full time, full year

Maximum grant at $3,398 for 2016-17, based on average CC tuition costs

GOAL: To increase college enrollment, completion, and affordability for recent

high school graduates and GED recipients.

LOW-COST COMMUNITY COLLEGE: THE OREGON PROMISE

34

THE OREGON PROMISE: IMPACT

Fall, 2014 Fall, 2016

Number of recent high school

graduates who enrolled at a

community college, 6+ credits

5,709 6,553

1The actual increase from 2014 to 2016 was likely much greater. Due to data resolution

issues, the 2014 figure includes all same-year high school graduates, including those who had a high school GPA lower than 2.5. The 2016 figure includes Oregon Promise recipients only. It does not include community college students who were recent high school graduates but ineligible for the Promise due to a GPA lower than 2.5 or other reasons.

+844

students1

35

OTHER EFFORTS UNDERWAY

• Minimize the need for tuition increases

• Increase grant aid for the lowest-income students

• Create low-cost pathways to lower division and CTE courses

• Smooth transfer pathways to four-year institutions

• Improve graduation rates

• Maximize opportunities in high-return fields

• Support innovations that lower student costs (e.g. Open Educational Resources)