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

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1 OSU Oregon Coast CC Clackamas CC September 19, 2017 WICHE Legislative Advisory Committee, Park City, Utah AFFORDABILITY IN OREGON HIGHER EDUCATION BEN CANNON, DIRECTOR, HIGHER EDUCATION COORDINATING COMMISSION 1

2 LBCC HOW AFFORDABLE IS HIGHER EDUCATION?

3 AFFORDABILITY: A MULTI-DIMENSIONAL ISSUE Student or family resources Type of degree/certificate/ major Tuition Time to completion Other costs of attendance (room and board, textbook, supplies, transportation etc.) Completion Financial Aid (state, federal, institutional, private) 3

4 MEASURING AFFORDABILITY Tuition: Cost of attendance: Net price: Net price to income: Other factors: okay good better best not systematically quantified Also debt. 4

5 $6,000 COMMUNITY COLLEGE TUITION AND FEES $5,000 $4,904 $4,000 $3,000 $3,206 $2,000 $1,000 $ Tuition and fees unadjusted for inflation Source: HECC analysis of community college and HECC data 5

6 PUBLIC UNIVERSITY TUITION AND FEES $10,000 $8,764 $8,000 $6,000 $5,821 $4,000 $2,000 $ Public university resident tuition and fees unadjusted for inflation Source: HECC analysis of university and HECC data 6

7 TOTAL COST OF ATTENDANCE Tuition plus Mandatory fees Housing Food Transportation Supplies Textbooks HECC survey: For the Fall 2014 term, how much did you spend on textbooks? 40% 8% 15% 37% $0 - $100 $100 - $250 $250 - $500 $500 + Source: HECC, Textbook Affordability Workgroup: Final Report and Recommendations, May

8 NET PRICE Cost of attendance minus grant aid (e.g. Pell, state grants, institutional aid) Varies by student Can be expressed as an average 8

9 NET PRICE RELATIVE TO FAMILY INCOME What percent of family income would be need to attend college full time at Oregon higher education institutions? Percent of Income (2013) Weeks of Work at Minimum Wage Oregon s Ranking Public Two-Year Public Four-Year Nondoctoral Public Research Private Four-Year Nondoctoral Source: Penn Graduate School of Education, 2016 College Affordability Diagnosis for Oregon 9

10 NET PRICE AS PERCENT OF INCOME, PUBLIC TWO-YEAR COLLEGES OR: 22% Source: 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. www2.gse.upenn.edu/irhe/affordability-diagnosis. Map link: 10

11 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 "Project on Student Debt, State by State Data." 11

12 STUDENT DEBT, LOAN REPAYMENT RATES Federal student loan repayment rates*, 3 years after leaving school 80% 80% 60% 62.5% 60% 59.6% 40% 42.0% 40% 39.4% 20% 20% 0% Received Pell grant No Pell grant 0% Did not complete Did complete Student loan repayment is concentrated among those from higher income backgrounds who complete their degrees *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 New Data Show Wider Repayment Gap Between Low- and High-Income Borrowers. 12

13 FOOD INSECURITY Source: Wisconsin HOPE Lab, January 13, 2016, What We re Learning: Food and Housing Insecurity among College Students A Data Update. 13

14 HOUSING INSECURITY Source: Wisconsin HOPE Lab, January 13, 2016, What We re Learning: Food and Housing Insecurity among College Students A Data Update. 14

15 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. 15

16 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

17 WHAT CAN BE DONE TO IMPROVE AFFORDABILITY? Oregon Chemeketa OSU Coast CC CC

18 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) 18

19 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) 19

20 WYOMING CALIFORNIA ALASKA NEW MEXICO ILLINOIS HAWAII FLORIDA NORTH CAROLINA NEW YORK GEORGIA IDAHO NEVADA NEBRASKA TEXAS MASSACHUSETTS OKLAHOMA ARKANSAS UTAH NORTH DAKOTA U.S. LOUISIANA WISCONSIN TENNESSEE MISSISSIPPI WASHINGTON MISSOURI KENTUCKY MARYLAND CONNECTICUT MONTANA KANSAS INDIANA MAINE MINNESOTA ARIZONA IOWA NEW JERSEY OHIO WEST VIRGINIA OREGON RHODE ISLAND VIRGINIA SOUTH CAROLINA SOUTH DAKOTA ALABAMA MICHIGAN COLORADO PENNSYLVANIA DELAWARE NEW HAMPSHIRE VERMONT STUDENT SHARE: NET TUITION AS A PERCENT OFF TOTAL EDUCATIONAL REVENUE, FY % 80.0% 70.0% 60.0% 61.6% 50.0% 46.5% 40.0% 30.0% 20.0% 10.0% 0.0% Data Source: 2015 State Higher Education Finance Report, SHEEO, 20

21 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) 21

22 OREGON S MAJOR HECC-ADMINISTERED FINANCIAL AID PROGRAMS Oregon Opportunity Grant Oregon Promise Grant Other programs 39,000 students received OOG awards totaling $64 million in the academic year. About 7,000 students projected to receive Oregon Promise awards totaling $11 - $13 million in Over 500 HECC-administered private scholarships, plus Chafee grants for former foster youth, and more. 22

23 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 , 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. 23

24 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, students 1 1 The 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. 24

25 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) 25