Table 1 Proportions of Freshman Applicants to Selected US News and World Reports

Transcription

1 Table 1 Proportions of Freshman Applicants to Selected US News and World Reports 2004 Top 25 National Universities in 1997, 2013, and 2016 That Enrolled at Each Institution Harvard.10/.05/.04 Princeton.09/.05/.04 Yale.11/.05/.04 Stanford.09/.04/.04 Cornell.16/.08/.07 Duke.12/.06/.05 Pennsylvania.14/.08/.06 Cal. Tech..07/.05/.03 Brown.10/.05/.05 Columbia.09/.04/.04 Dartmouth.10/.05/.05 Johns Hopkins.12/.06/.05 Emory.12/.08/.07 Washington (St. Louis).09/.05/.06 Source: Author s calculations from data provided by the institutions on their world wide web pages for Data for 2013 and 2016 are from U.S. News & World Reports web pages in June 2015 and June 2018.

2 Figure 1 Let APP = number of applicants ACC= number of admitted students (accepted applicants) ENR = number of enrolled students Then (ENR/APP) = (ACC/APP)*(ENR/ACC) Enrollment/Applicant Ratio = Acceptance Rate times Yield

3 Table 2 Proportions of Freshman Applicants to Selected US News and World Reports 1999, 2004 and 2016 Top 25 National Universities and Colleges That Were Accepted at Each Institution University Acceptance Rate Yield in /2004/2016 Harvard.13/.11 / Princeton.13/.12 / Yale.18/.14/ Stanford.15/.13/ Cornell.34/.27/ Duke.30/.26/ Pennsylvania.31/.22/ Cal. Tech..23/.15/ Brown.18/.16/ Columbia.17/.12/ Dartmouth.22/.23/ Johns Hopkins.41/.34/ Emory.46/.43/ Wash (St Louis).40/.23/ Acceptance rates and yields are from USNWR and reflect classes enrolling in the fall of 2 years earlier. The yield data were obtained from USNWR web pages in June Yields will be higher, ceteris paribus, the greater the share of applicants accepted early decision.

4 Table 2a ACCEPTANCE RATES FOR THE CLASS OF 2022 CORNELL 10.3 DARTMOUTH 8.7 NORTHWESTERN 8.4 PENNSYLVANIA 8.4 VANDERBILT 7.3 BROWN 7.2 DUKE 6.4 YALE 6.3 PRINCETON 5.5 COLUMBIA 5.5 HARVARD 4.6 STANFORD 4.3 SOURCE: Collegevine.com (May 1, 2018) for all institutions except for Cornell. Cornell datum is from the Cornell Chronicle (March 28, 2018)

5 GENERIC NEED BASED FINANCIAL AID EXAMPLE TOTAL COST $60,000 -EXP. FAM. CONT. $23,000 -EXTERNAL GRANTS $ 5,000 STUDENT S NEED $32,000 MET WITH 1) WORK (school year) $2,000 2) LOAN $4,000 3) INSTITUTIONAL GRANT $26,000 Notes Expected Family contribution is based on family assets, family income, family size, student s expected summer earnings, number of other siblings in college etc. External grants include federal, state, and all other external Actual Cornell Policies Will Be Discussed in a Few Minutes

6 Ivy League Tuition And Mandatory Fee Levels Institution Tuition and Fee Level Columbia 57, Pennsylvania 53, Brown 53, Dartmouth 53, Yale 51, Cornell 50, Harvard 48, Princeton 47, Range $10,068 Range/Min 21.4% Percentage Increase

7 Table 3 Comparison and Analysis of Private Research Universities New Financial Aid Policies: Estimated Net Cost of Attendance by Family Income Level Institution Family Income 20k Family Income 40K Family Income 60K Family Income 80K Family Income 120K Family Income 160K Total Cost of Attend. Brown Columbia Cornell A Dartmouth Harvard MIT Northwest A A A A Princeton Stanford Wash. U a a a a Yale Source: The Project on Student Debt, What s the Bottom Line? (June 2012) ( ). Net cost is amount students and their families are expected to contribute from income, savings, work by the student and loans. a - project could not calculate amount from the available information provided by the institution

8 TABLE 3A ANNUAL AVERAGE COST OF ATTENDANCE FOR A RECENT YEAR FOR FINANCIAL AID RECIPIENTS FROM THE COLLEGE SCORECARD DATA BASE Institution Average Cost 2015 Endowment Per Student (millions) Brown $27, Columbia $21, Cornell $29, Dartmouth $29, Harvard $17, Pennsylvania $23, Princeton $8, Yale $20, The correlation between average cost of attendance and endowment per student is Why?

9 Table 4 FINANCIAL AID GRANT DOLLARS FOR UNDERGRADUATE STUDENTS AT CORNELL UNIVERSITY (in millions of dollars) Source (plan) Ave. Annual % Change Federal Gov % State Gov. a % Other External % Total External % Total Cornell % Cornell Share of % Total Grant Aid Number of 12,958 14, % Undergraduates Number Receiving 3,815 6, % CU Grant Aid Share Receiving % CU Grant Aid Average Cornell Grant Per Recipient $5,308 $39, % Source: Cornell University Fiscal 2019 Operating and Capital: Budget Plan, May 2018, Appendix Table I (and author s calculations) a Slow rate of growth of state share reflects both slow growth of NYS program and the dramatic decline in the share of Cornell undergraduates that were NYS residents during the period

10 Table 5 Cumulative and Annual Percentage Changes in Prices, Income, and Cornell Tuition and Fees during the Period Cumulative Annual 1) Consumer Price Index ) Mean Family Income (level in 2016) a) lowest quintile ($18,202) b) second quintile ($44,943) c) third quintile ($72,904) d) fourth quintile ($111,249) e) fifth quintile ($239,486) f) top 5 percent of the family income distribution ($417,090) 3) Endowed Cornell Tuition Consumer Price Index and Mean Family Income are for calendar year. Cornell Tuition is for the academic years and Until the 2008 economic decline, the top 5% mean family income grew at a rate greater than tuition.

11 PREFERENTIAL PACKAGING EXAMPLE STUDENT NEED = $30,000 ALL STUDENTS ARE DESIRABLE TO THE UNIVERSITY BUT SOME ARE RATED MORE DESIRABLE (1) (2) (3) WORK $1,500 $1,500 $1,500 LOAN $1,500 $5,500 $9,500 GRANT $27,000 $23,000 $19,000

12 Ehrenberg and Sherman, Optimal Financial Aid Policies for a Selective University, Journal of Human Resources (Spring 1984) This paper presents a model of a university seeking to maximize its utility from enrolling students who belong to different groups (legacy/academic ability/athletics/racial/ethnic) by allocating different financial aid packages across students with the same need in different groups. The groups differ in how much the university prefers members from each group, the propensity of students to enroll without financial aid, the sensitivity of enrollment decisions to financial aid, and how rapidly the average quality of members of the group fall of as you admit more of them. The model proves to be one of a discriminating monopolist and its key implications are: 1. If preferences for members of one group are higher than preferences for members of a second group, the university should give aid to members of the first group, other factors held constant. 2. If members of one group have a higher probability of enrolling in the absence of aid than members of a second group, the university should give aid to members of the first group, other factors held constant. 3. If members of one group s enrollment decisions are more sensitive to price than the members of a second group s enrollment decisions, the university should give aid to members of the first group, other factors held constant. 4. If the average quality of members of one group falls off more rapidly than the average quality of members of a second group as we expand admissions of the groups, the university should give aid to members of the first group, other factors held constant.

13 CORNELL S UNDERGRADUATE FINANCIAL AID POLICIES No parental contributions for students with families with incomes below $60,000 and assets below $100,000 No loans for families with incomes below $75,000 Loans capped annually at $3,000 for families with incomes between $75,000 and $120,000 Loans capped annually at $7,500 for families who have financial need and incomes over $120,000 Reduce the parental contributions for selected students who have financial need and whose family incomes are above $60,000 preferential packaging now takes place here and in the Cornell Commitment Cornell Commitment (Cornell Tradition, Rawlings Research Scholars, Meinig Family Cornell National Scholars)- Depending upon the program provides 1. Research Funding 2. Summer Living Expenses 3. Funding to Offset Expected Summer Earnings CHANGES FOR AND WHY THEY WERE MADE Ivy League Match and Strive to meet offers from Duke, MIT, and Stanford (Why the Difference?) CHANGES FOR AND WHY THEY WERE MADE These apply only to new, incoming students in and thereafter Family Income ($) Annual Loan Cap Share of Recipients <60,000* 0 34% 60,000-75,000 2,500 10% 75, ,000 5,000 27% >120,000 7,500 19% *no parental contribution if family assets less than $100,000.

14 CHANGES FOR AND WHY THEY WERE MADE These apply only to new, incoming students in and thereafter Family Income ($) Annual Loan Cap <60,000* 0 60,000-85,000 2,500 85, ,000 5,000 >135,000 7,500 *no parental contribution if family assets less than $100,000.

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16 NATIONAL MERIT SCHOLAR WINNERS AT TOP NATIONAL PRIVATE UNIVERSITIES IN FALL 2016 University Number Paid for by Not Paid for Institution by Institution Chicago USC Harvard Vanderbilt Northwestern Stanford MIT Yale Princeton Pennsylvania Duke Brown CORNELL Columbia Rice Notre Dame Emory Johns Hopkins Boston U Dartmouth WashU (StL) Tufts Georgetown Rochester Brandeis NYU Source: National Merit Scholarship Corporation Annual Report (October 2017)

17 Early Decision Enrollees as a Share of New First Year Enrollees at Ivy League Institutions for the Class of 2019 Institution Share Early Decision USNWR Rank Brown Columbia.43 5 Cornell Dartmouth Harvard EA 2 Pennsylvania.54 8 Princeton EA 1 Yale EA 3 EA = early action Source: USNWR s web pages (June 2017) (The correlation between the share admitted early decision and USNWR is -0.6.)

18 Estimated Percentage of Students that Would Chose to Attend Cornell Instead of the Alternative Institution Percentage That Would Chose Cornell Over the Institution Brown 24 Columbia 29 Dartmouth 33 Harvard 3 Princeton 10 Pennsylvania 37 Yale 11 Stanford 15 MIT 15 Duke 66 Georgetown 65 Northwestern 75 Tufts 88 Berkeley 77 UCLA 86 Virginia 68 Based upon a survey of 3,200 top students at 500 high schools across the nation as reported at on September 17, 2006