Student Financing of Undergraduate Education:

Student Financing of Undergraduate Education: 1999 2000 Statistical Analysis Report U.S. Department of Education Office of Educational Research and Improvement NCES 2002 167

Student Financing of Undergraduate Education: 1999 2000 Statistical Analysis Report U.S. Department of Education Office of Educational Research and Improvement NCES 2002 167 July 2002 Lutz Berkner Ali Berker Kathryn Rooney Katharin Peter MPR Associates, Inc. Andrew G. Malizio Project Officer National Center for Education Statistics

U.S. Department of Education Rod Paige Secretary Office of Educational Research and Improvement Grover J. Whitehurst Assistant Secretary National Center for Education Statistics Gary W. Phillips Deputy Commissioner The National Center for Education Statistics (NCES) is the primary federal entity for collecting, analyzing, and reporting data related to education in the United States and other nations. It fulfills a congressional mandate to collect, collate, analyze, and report full and complete statistics on the condition of education in the United States; conduct and publish reports and specialized analyses of the meaning and significance of such statistics; assist state and local education agencies in improving their statistical systems; and review and report on education activities in foreign countries. NCES activities are designed to address high priority education data needs; provide consistent, reliable, complete, and accurate indicators of education status and trends; and report timely, useful, and high quality data to the U.S. Department of Education, the Congress, the states, other education policymakers, practitioners, data users, and the general public. We strive to make our products available in a variety of formats and in language that is appropriate to a variety of audiences. You, as our customer, are the best judge of our success in communicating information effectively. If you have any comments or suggestions about this or any other NCES product or report, we would like to hear from you. Please direct your comments to: July 2002 National Center for Education Statistics Office of Educational Research and Improvement U.S. Department of Education 1990 K Street NW Washington, DC 20006 5651 The NCES World Wide Web Home Page address is http://nces.ed.gov The NCES World Wide Web Electronic Catalog is: http://nces.ed.gov/pubsearch Suggested Citation U.S. Department of Education. National Center for Education Statistics. Student Financing of Undergraduate Education: 1999 2000, NCES 2002 167 by Lutz Berkner, Ali Berker, Kathryn Rooney, and Katharin Peter. Project Officer: Andrew G. Malizio. Washington, DC: 2002. For ordering information on this report, write: U.S. Department of Education ED Pubs P.O. Box 1398 Jessup, MD 20794 1398 Or call toll free 1 877 4ED Pubs Content Contact: Aurora D Amico (202) 502 7334 Aurora.D Amico@ed.gov

Executive Summary During the 1999 2000 academic year, about 16.5 million 1 undergraduates were enrolled in postsecondary institutions for all or part of the year, as full- or part-time students. More than onehalf (55 percent) of them received some type of financial aid from federal, state, institutional, or other sources to meet their educational expenses, receiving, on average, $6,200 (figure A). This report describes the financing of undergraduate education by students who were enrolled in U.S. postsecondary institutions during the 1999 2000 academic year. It is based on data from the 1999 2000 National Postsecondary Student Aid Study (NPSAS:2000), the fifth in a series of surveys conducted by the National Center for Education Statistics (NCES), U.S. Department of Education. Each NPSAS survey is a comprehensive nationwide study to determine how students and their families pay for postsecondary education. The two major types of financial aid awarded to students are grants and loans. In 1999 2000, 44 percent of all undergraduates received grants, for an average of $3,500. Twenty-nine percent of all undergraduates received student loans, averaging $5,100. In addition, 5 percent of all undergraduates held work-study jobs, earning an average of $1,700, and 7 percent received other Figure A. Percentage distribution of all undergraduates according to aid package, percentage receiving different types of aid, Figure 1. and average amount of aid for aided students: 1999 2000 No aid Aided, no loans $2,900 45% 7% 27% 22% Loans and other aid $10,600 All undergraduates Aid type Percent Average Grants 44 $3,500 Loans 29 $5,100 Work-study 5 $1,700 Other 7 $4,700 Any aid 55 $6,200 Loans only $5,200 NOTE: Loans only include loans to students. Parent PLUS loans are categorized as other aid. Percentages may not sum to 100 due to rounding. SOURCE: U.S. Department of Education, National Center for Education Statistics, 1999 2000 National Postsecondary Student Aid Study (NPSAS:2000). 1 Data not shown. This estimate is for undergraduates enrolled at any time in 1999 2000, and is therefore higher than the total fall enrollment. iii

Executive Summary types of aid, including veteran s benefits, job training and vocational rehabilitation funds, and federal PLUS loans to parents. Many undergraduates received more than one type of financial aid in their aid package. As shown in figure A, for 7 percent of all undergraduates, student loans were the only type of financial aid received; 22 percent took out loans but were also awarded grants or other aid; and 27 percent had aid packages that included grants, work-study, or other aid, but no loans. Those who had aid packages consisting of loans and other aid averaged $10,600 in total aid, compared with $5,200 for those with loans only and $2,900 for those without loans. Thirty-nine percent of all undergraduates were enrolled full time for a full academic year in 1999 2000, but the proportion varied by type of institution, from more than one-half of the undergraduates at 4-year institutions to about onefifth at public 2-year institutions. Figure B shows that among full-time, full-year undergraduates, about three-fourths (73 percent) relied on some type of financial aid to help pay for their postsecondary education, receiving an average of $8,500. Tuition and the Total Price of Attendance Within an institution, full-time, full-year students usually have the highest educational expenses because they are charged the full tuition price and incur other education-related expenses for a full academic year. As shown in figure C, the tuition and fees for full-time, full-year undergraduates in 1999 2000 averaged about $1,600 at public 2-year institutions, $4,300 at public 4-year institutions, $8,900 at private for- Figure B. Percentage distribution of full-time, full-year undergraduates according to aid package, percentage receiving different Figure 1. types of aid, and average amount of aid for aided students: 1999 2000 Aided, no loans $4,700 No aid Loans only $5,600 28% 10% 27% 36% Loans and other aid $12,100 Full-time, full-year undergraduates Aid type Percent Average Grants 59 $4,900 Loans 45 $5,400 Work-study 11 $1,700 Other 10 $6,000 Any aid 73 $8,500 NOTE: Loans only include loans to students. Parent PLUS loans are categorized as other aid. Percentages may not sum to 100 due to rounding. Full-time, full-year students represent 39 percent of all undergraduates. SOURCE: U.S. Department of Education, National Center for Education Statistics, 1999 2000 National Postsecondary Student Aid Study (NPSAS:2000). iv

Executive Summary Figure C. Average tuition and fees, nontuition expenses, and total price of attendance for full-time, full-year undergraduates, Figure 2. by type of institution attended: 1999 2000 Amount $28,000 $24,000 $23,600 $20,000 $16,000 $12,000 $8,000 $4,000 $0 $9,100 7,500 1,600 $12,600 8,400 4,300 8,600 15,000 Public 2-year Public 4-year Private not-for-profit 4-year $18,400 9,400 8,900 Private for-profit Price of attendance Nontuition Tuition and fees NOTE: Nontuition expenses are based on institutional student budget estimates and include room and board, books and supplies, transportation, and personal expenses while enrolled. Amounts may not sum to totals due to rounding. SOURCE: U.S. Department of Education, National Center for Education Statistics, 1999 2000 National Postsecondary Student Aid Study (NPSAS:2000). profit institutions, and $15,000 at private not-forprofit 4-year institutions. The tuition and fees at any particular institution within these sectors may vary considerably from these averages. The total price of attendance is the sum of tuition and fees and estimated nontuition expenses such as room and board, books and supplies, transportation, and personal expenses while enrolled. For full-time, full-year undergraduates, the average total price of attendance in 1999 2000 was $9,100 at public 2-year institutions, $12,600 at public 4-year institutions, $18,400 at private for-profit institutions, and $23,600 at private notfor-profit 4-year institutions. Tuition and fees and nontuition expenses for the 62 percent of undergraduates enrolled part time or part year are much lower than these amounts. Financial Aid, Price of Attendance, and Income The percentage of undergraduates receiving financial aid increased as the price of attendance rose, while the percentage receiving aid decreased as family income rose. These two patterns reflect the need analysis formula used to award financial aid. With the exception of some merit-based scholarships and some loan programs (notably, federal unsubsidized Stafford and PLUS loans), most financial aid programs are need based. Lowincome students who have limited resources will usually qualify for need-based aid at any price of attendance; high-income students will only qualify for need-based aid if they are attending institutions with a high price of attendance. About three-fourths of all low-income dependent undergraduates (those with a family income of less than $30,000) received financial aid in 1999 2000, compared with about one-half (48 percent) v

Executive Summary of high-income dependent undergraduates (those with a family income of more than $80,000). Financial Aid by Type of Institution Attended The percentage of undergraduates receiving financial aid, the types of aid received, and the average amounts varied by the type of institution attended, as shown in figure D. At public 2-year institutions, 38 percent of all undergraduates received financial aid in 1999 2000, with an average award of $2,300. One-third (33 percent) of the public 2-year students received a grant (averaging $1,600), and 7 percent took out a student loan (averaging $3,300). These percentages and average amounts were lower than those in any other sectors, reflecting the lower tuition and the high percentage of part-time and part-year students (81 percent) at public 2-year institutions. At public 4-year institutions, 62 percent of all undergraduates received financial aid, with an average award of $6,200. The percentage awarded grants was higher than the percentage taking out student loans (46 vs. 40 percent), but the average grant amount was lower than the average loan amount ($3,200 vs. $4,800). At private not-for-profit 4-year institutions, 76 percent of all undergraduates received financial aid, and the average amount was $11,600. About two-thirds of undergraduates (66 percent) had grants, and one-half took out student loans. The average grant amount was higher than the average loan amount ($7,000 vs. $6,200). At private for-profit institutions, 85 percent of undergraduates received financial aid, including 67 percent with loans and 60 percent with grants. Students enrolled at private for-profit institutions were more likely to be low income than those at the other types of institutions. Figure D. Percentage of all undergraduates receiving any aid, grants, or loans and average amounts received by aided Figure 6. students, by type of institution attended: 1999 2000 Any aid Grants Loans Percent 100 90 80 70 60 50 40 30 20 10 0 38 33 7 62 46 Public 2-year Public 4-year Private not-for-profit 4-year 40 76 66 50 85 67 60 Private for-profit Average total aid* $2,300 $6,200 $11,600 $7,200 Average grants $1,600 $3,200 7,000 2,700 Average loans $3,300 $4,800 6,200 5,800 *Includes types of aid other than grants and loans. NOTE: Loans only include loans to students. Parent PLUS loans are categorized as other aid. SOURCE: U.S. Department of Education, National Center for Education Statistics, 1999 2000 National Postsecondary Student Aid Study (NPSAS:2000). vi

Executive Summary The Sources of Financial Aid As shown in figure E, undergraduates with loans were most likely to receive them from the federal government: in 1999 2000, the percentage of undergraduates taking out federal loans (28 percent) was much higher than the percentages borrowing through state (1 percent), institutional (1 percent), and private commercial or nonprofit sources (3 percent). Undergraduates with grants, on the other hand, were more likely to receive them from a variety of sources. More undergraduates were awarded grants from the federal government (23 percent) than from any other source, but 17 percent received grants from institutional sources, 14 percent from state sources, and 7 percent from private sources. Low-income dependent undergraduates were more likely to receive grants from the federal government than from any other source. Middle-income dependent undergraduates were more likely to receive grants from state and institutional sources than from federal or private sources. High-income dependent undergraduates were more likely to receive grants from state, institutional, and private sources than from federal sources. Both low-income and middle-income independent undergraduates were more likely to receive grants from the federal government than from any other source. Among all undergraduates, federal grants were awarded to 17 percent of those at public 2-year institutions, about one-quarter of those at public and private not-for-profit 4-year institutions, and 53 percent of those at private for-profit institutions. At private not-for-profit 4-year Figure E. Percentage of all undergraduates receiving grants or loans and average amounts received by aided students, Figure 6. by source of funds: 1999 2000 Percent aided 100 80 Grants Loans 60 40 20 0 44 29 28 23 14 17 7 1 1 3 Any source Federal State Institutional Private Average total aid* Average grants Average loans $6,200 3,500 5,100 $5,200 2,100 4,600 $1,800 1,700 3,900 $3,800 3,700 2,400 $3,200 2,100 5,100 *Includes types of aid other than grants and loans. NOTE: Loans only include loans to students. Parent PLUS loans are categorized as other aid. Employer tuition reimbursements are not shown separately, but are included in total grants. SOURCE: U.S. Department of Education, National Center for Education Statistics, 1999 2000 National Postsecondary Student Aid Study (NPSAS:2000). vii

Executive Summary institutions, 46 percent of all undergraduates received institutional grants, a higher percentage than at any other type of institution. Undergraduates at these institutions also received a larger average institutional grant award ($6,600) than those at any other type of institution. undergraduates ($5,500 vs. $3,800). Among dependent Stafford borrowers, 69 percent borrowed the maximum annual amount. Among independent borrowers, whose annual loan limits were about double those for dependent borrowers, 27 percent borrowed the maximum. Student Loans Among undergraduates who borrowed in 1999 2000, nearly all (97 percent) took out federal student loans; 13 percent took out nonfederal loans, usually in combination with federal loans. The average federal student loan was $4,600. The largest source of federal student loans is the Stafford loan program, which offers students two types of loans, subsidized and unsubsidized. Subsidized Stafford loans are awarded on the basis of need and are interest free to students while they are enrolled. Unsubsidized Stafford loans require no need test, but charge interest while students are enrolled. Depending on their financial need, students may receive subsidized loans, unsubsidized loans, or both types. Stafford loans have annual loan limits that vary by students class level and dependency status. Students may borrow more at higher class levels, and independent students may borrow about double the amount available to dependent students at the same class level. About one-half (48 percent) of Stafford borrowers took out need-based subsidized loans only, 17 percent took out unsubsidized loans only, and 36 percent took out both. Independent undergraduates were more likely than dependent undergraduates to take out a combination of subsidized and unsubsidized loans (58 percent vs. 21 percent), and the average Stafford loan was higher for independent than for dependent Student Borrowing at Different Types of Institutions The student loans that undergraduates took out to pay for educational expenses in 1999 2000 may only represent a portion of the cumulative amount that they had borrowed for their undergraduate education. Among all undergraduates enrolled in postsecondary education, 42 percent had borrowed through the federal student loan programs at some time, either in that academic year or in prior years, with an average cumulative amount of $9,900. Among the seniors who received a bachelor s degree at any 4-year institution in 1999 2000, 62 percent had taken out a federal student loan at some time, and for those students, the average cumulative amount was $16,900. While only 7 percent of all public 2-year undergraduates took out a federal student loan in 1999 2000 (borrowing an average of $3,100), 23 percent had taken out a federal student loan at some time, either in the 1999 2000 academic year or earlier, borrowing a cumulative amount of $6,300, on average. Many students had already repaid their federal loans, probably because they had borrowed only in prior years and had spells in which they were not enrolled; 17 percent still had outstanding federal loan debts. About one-half (52 percent) of all undergraduates attending public 4-year institutions in 1999 2000 had borrowed through the federal student loan programs at some time, averaging a cumulative amount of $11,000 in federal loans. viii

Executive Summary Sixty percent of those who attained a bachelor s degree at a public 4-year institution in 1999 2000 had taken out a federal student loan at some time as an undergraduate, with a cumulative average of $16,100 in federal loans. At private not-for-profit 4-year institutions, 61 percent of the undergraduates had received a federal student loan at some time, with a cumulative average of $12,000. About two-thirds (66 percent) of the graduating seniors at private not-for-profit 4-year institutions had borrowed through the federal student loan programs as an undergraduate, having received $18,000, on average, by the completion of their bachelor s degrees. Summary Financial aid played a major role in the financing of undergraduate postsecondary education in 1999 2000. More than one-half of all undergraduates received some type of financial aid. More undergraduates received grants than loans to help pay for their education, but the average grant amount was less than the average amount borrowed. The average amounts of financial aid, however, varied considerably by the type of institution and price of attendance, as well as the attendance status and family income of the student. At public 2-year institutions, where students had a lower average price of attendance, most of the aided students did not take out student loans. At private not-for-profit 4-year institutions, where students had a higher average price of attendance, about one-half of undergraduates took out student loans, but most of them also received a substantial amount of grant aid. More undergraduates received grants from the federal financial aid programs than from any other single source, but states, postsecondary institutions, and private organizations were also important sources of grant aid to undergraduates. Low-income dependent undergraduates were more likely to receive federal grants; middle-income dependent undergraduates were more likely to receive grants from state and institutional sources than from federal sources. High-income dependent undergraduates were more likely to receive grants from state, institutional, and private sources than from federal sources. Nearly all of the undergraduates who borrowed, however, took out loans through the federal student loan programs. On average, undergraduates borrowed about $5,100 to pay for educational expenses in 1999 2000. The cumulative federal loan amounts that undergraduates had ever borrowed were about twice this amount. Two-fifths of all undergraduates enrolled in 1999 2000 had borrowed through the federal student loan programs at some time, and their average cumulative federal loan was almost $10,000. Three-fifths of all the graduating seniors at 4-year institutions in 1999 2000 had borrowed through the federal student loan programs at some time, and their average cumulative federal loan was almost $17,000. ix

Foreword This report describes the tuition, total price of attendance, and financial aid received by undergraduates who were enrolled in U.S. postsecondary institutions during the 1999 2000 academic year. It is based on data from the 1999 2000 National Postsecondary Student Aid Study (NPSAS:2000), the fifth in a series of surveys conducted by the U.S. Department of Education. Each NPSAS survey is a comprehensive nationwide study to determine how students and their families pay for postsecondary education. The report begins with a discussion of the percentage of undergraduates receiving various types of financial aid, the sources of the aid, and the average award amounts in 1999 2000. The focus is on loans and grants at the four major types of institutions where undergraduates were enrolled: public 2-year, public 4-year, private not-for-profit 4-year, and private for-profit postsecondary institutions. In addition to the loans received in 1999 2000, there is also a description of the cumulative amount of federal loans that students had ever borrowed as undergraduates. The report includes a compendium of tables that describe tuition, total price of attendance, and the various types and sources of financial aid in more detail by institutional and student characteristics. To facilitate comparisons, the compendium tables are numbered the same as in the NPSAS:1996 undergraduate financing descriptive report. The estimates presented in the report were produced using the NCES Data Analysis System (DAS), a microcomputer application that allows users to specify and generate tables for the NPSAS:2000 undergraduate survey. The DAS produces the design-adjusted standard errors necessary for testing the statistical significance of differences in the estimates. For more information on the DAS, readers should consult appendix B of this report. x

Acknowledgments The authors wish to thank all those who contributed to this report. At MPR Associates, Laura Horn and Susan Choy reviewed the analysis at various stages and provided many good suggestions. Barbara Kridl supervised the production of the report; Andrea Livingston edited it; Francesca Tussing and Wes Nations formatted the tables, prepared the graphics, and assembled the final report. We would like to thank our project officer, Andrew Malizio, for his guidance throughout all stages of the NPSAS:2000 project. Paula Knepper and Tracy Hunt-White provided a careful and thorough technical review of the text and tables. We would also like to thank the following for reviewing the final report and providing helpful comments: Dennis Carroll, Marilyn McMillen, and Laurence Ogle at NCES; Kent Phillippe of the American Association of Community Colleges; and Jacqueline King of the American Council on Education. xi

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Table of Contents Page Executive Summary... iii Foreword... x Acknowledgments... xi List of Tables... xiv List of Figures... xxii Financial Aid in 1999 2000... 1 Introduction... 1 Tuition and the Price of Attendance in 1999 2000... 3 Financial Aid, Price of Attendance, and Income... 6 Financial Aid by Type of Institution Attended... 8 The Sources of Financial Aid... 11 Student Loans... 17 Student Borrowing at Different Types of Institutions... 21 Conclusion... 27 References... 31 Table Compendium... 33 Section 1: Supplemental Text Tables... 35 Section 2: Tuition and Price of Attendance... 75 Section 3: Financial Aid... 93 Section 4: Net Price and Need... 149 Section 5: Student Characteristics... 181 Appendix A Glossary... 201 Appendix B Technical Notes and Methodology... 217 xiii

List of Tables Table Page COMPENDIUM TABLES Section 1: Supplemental Text Tables 1.0 Percentage distribution (by columns) of undergraduates according to selected characteristics, by type of institution attended: 1999 2000... 37 Grants, loans and total aid by institution type 1.1-A Percentage of 1999 2000 undergraduates receiving any aid, any grants, or any loans, and average amount received... 38 1.1-B 1.1-C Percentage of 1999 2000 undergraduates in public 2-year institutions receiving any aid, any grants, or any loans, and average amounts received... 40 Percentage of 1999 2000 undergraduates in public 4-year institutions receiving any aid, any grants, or any loans, and average amounts received... 42 1.1-D Percentage of 1999 2000 undergraduates in private not-for-profit 4-year institutions receiving any aid, any grants, or any loans, and average amounts received... 44 1.1-E Percentage of 1999 2000 undergraduates in private for-profit institutions receiving any aid, any grants, or any loans, and average amounts received... 46 Combinations of loans and other aid by institution type 1.2-A Percentage distribution of 1999 2000 undergraduates and average amount of financial aid according to combinations of loans and other aid received... 48 1.2-B 1.2-C Percentage distribution of 1999 2000 undergraduates in public 2-year institutions and average amount of financial aid according to combinations of loans and other aid received... 49 Percentage distribution of 1999 2000 undergraduates in public 4-year institutions and average amount of financial aid according to combinations of loans and other aid received... 50 xiv

List of Tables Table Page 1.2-D Percentage distribution of 1999 2000 undergraduates in private not-for-profit 4-year institutions and average amount of financial aid according to combinations of loans and other aid received... 51 1.2-E Percentage distribution of 1999 2000 undergraduates in private for-profit institutions and average amount of financial aid according to combinations of loans and other aid received... 52 Grants and total aid by source 1.2-F Percentage of all 1999 2000 undergraduates receiving grants, and average grant amount, according to the source of grant funds... 53 1.2-G Percentage of 1999 2000 full-time, full-year undergraduates receiving grants, and average grant amount, according to the source of grant funds... 54 1.2-H Among all 1999 2000 undergraduates who received any grants, the percentage receiving grants, and average grant amount, according to the source of grant funds... 55 1.2-I 1.2-J Among 1999 2000 full-time, full-year undergraduates who received any grants, the percentage receiving grants, and average grant amount, according to the source of grant funds... 56 Percentage of all 1999 2000 undergraduates receiving aid, and average aid amount, according to the source of aid funds... 57 1.2-K Percentage of 1999 2000 full-time, full-year undergraduates receiving aid, and average aid amount, according to the source of aid funds... 58 Federal loans (including cumulative) by institution type 1.3-A Percentage of 1999 2000 undergraduates who received a federal student loan in 1999 2000 or ever received a federal student loan through 2000 and average amounts borrowed, by student characteristics... 59 1.3-B 1.3-C Percentage of 1999 2000 undergraduates in public 2-year institutions who received a federal student loan in 1999 2000 or ever received a federal student loan through 2000 and average amounts borrowed, by student characteristics... 60 Percentage of 1999 2000 undergraduates in public 4-year institutions who received a federal student loan in 1999 2000 or ever received a federal student loan through 2000 and average amounts borrowed, by student characteristics... 61 xv

List of Tables Table Page 1.3-D Percentage of 1999 2000 undergraduates in private not-for-profit 4-year institutions who received a federal student loan in 1999 2000 or ever received a federal student loan through 2000 and average amounts borrowed, by student characteristics... 62 1.3-E Percentage of 1999 2000 undergraduates in private for-profit institutions who received a federal student loan in 1999 2000 or ever received a federal student loan through 2000 and average amounts borrowed, by student characteristics... 63 Types and combinations of federal loans 1.4-A Percentage of 1999 2000 undergraduates receiving loans from various types of programs, by institutional and student characteristics... 64 1.4-B Average amount of loans received by 1999 2000 undergraduates from various types of programs, by institutional and student characteristics... 65 1.5-A Percentage distribution of 1999 2000 federal student loan borrowers according to combinations of loans from various federal programs, by institutional and student characteristics... 66 1.5-B Average amount received by federal student loan borrowers in 1999 2000 according to combinations of loans from various federal programs, by institutional and student characteristics... 67 Federal Stafford loans 1.6-A Percentage of 1999 2000 undergraduates receiving any Stafford, any subsidized, and any unsubsidized loans, and average loan amounts, by institutional and student characteristics... 68 1.6-B Percentage of 1999 2000 undergraduate Stafford loan borrowers with subsidized and unsubsidized loans, and average loan amounts, by institutional and student characteristics... 69 1.7 Percentage distribution of 1999 2000 undergraduates with Stafford loans according to subsidized and unsubsidized loan combinations and average loan amounts, by institutional and student characteristics... 70 1.8-A Percentage of 1999 2000 undergraduates receiving Stafford subsidized loans and average loan amounts according to subsidized maximum or less than maximum amounts borrowed, by institutional and student characteristics... 71 1.8-B Percentage of 1999 2000 undergraduates receiving any Stafford loans and average loan amounts according to total maximum or less than maximum amounts borrowed, by institutional and student characteristics... 72 xvi

List of Tables Table Page 1.9 Average tuition and fees, nontuition expenses, and total price of attendance for 1999 2000 undergraduates, by type of institution and attendance pattern... 73 1.10 Percentage distribution of 1999 2000 undergraduates according to type of institution attended, by institutional and student characteristics... 74 Section 2: Tuition and Price of Attendance Price of attendance 2.1-A Average total price of attendance according to type of institution, by institutional and student characteristics: 1999 2000... 78 2.1-B 2.1-C Average total price of attendance for full-time, full-year undergraduates according to type of institution, by institutional and student characteristics: 1999 2000... 80 Percentage distribution of undergraduates according to total price of attendance, by institutional and student characteristics: 1999 2000... 82 Tuition and fees 2.2-A Average tuition and fees for undergraduates according to type of institution, by institutional and student characteristics: 1999 2000... 84 2.2-B 2.2-C Average tuition and fees for full-time, full-year undergraduates according to type of institution, by institutional and student characteristics: 1999 2000... 86 Average tuition and fees for part-time or part-year undergraduates according to type of institution, by institutional and student characteristics: 1999 2000... 88 2.2-D Percentage distribution of all undergraduates according to tuition and fees, by institutional and student characteristics: 1999 2000... 90 Section 3: Financial Aid Type of aid 3.1-A Percentage of undergraduates receiving aid according to type of aid, by institutional and student characteristics: 1999 2000... 100 3.1-B Average amount of aid received by aided undergraduates according to type of aid, by institutional and student characteristics: 1999 2000... 102 xvii

List of Tables Table Page Any aid 3.1-C Percentage of undergraduates receiving any aid according to type of institution, by institutional and student characteristics: 1999 2000... 104 3.1-D Average amount of total aid received by undergraduates who received any aid according to type of institution, by institutional and student characteristics: 1999 2000... 106 Federal aid 3.2-A Percentage of undergraduates receiving federal aid according to type of aid, by institutional and student characteristics: 1999 2000... 108 3.2-B 3.2-C Average amount of federal aid received by undergraduates who received federal aid according to type of aid, by institutional and student characteristics: 1999 2000... 110 Percentage of undergraduates receiving federal aid according to type of institution, by institutional and student characteristics: 1999 2000... 112 3.2-D Average amount of federal aid received by undergraduates who received federal aid according to type of institution, by institutional and student characteristics: 1999 2000... 114 State aid 3.3-A Percentage of undergraduates receiving state aid according to type of aid, by institutional and student characteristics: 1999 2000... 116 3.3-B 3.3-C Average amount of state aid received by undergraduates who received state aid according to type of aid, by institutional and student characteristics: 1999 2000... 118 Percentage of undergraduates receiving state aid according to type of institution, by institutional and student characteristics: 1999 2000... 120 3.3-D Average amount of state aid received by undergraduates who received state aid according to type of institution, by institutional and student characteristics: 1999 2000... 122 Institutional aid 3.4-A Percentage of undergraduates receiving institutional aid according to type of aid, by institutional and student characteristics: 1999 2000... 124 xviii

List of Tables Table 3.4-B 3.4-C Page Average amount of institutional aid received by undergraduates who received institutional aid according to type of aid, by institutional and student characteristics: 1999 2000... 126 Percentage of undergraduates receiving institutional aid according to type of institution, by institutional and student characteristics: 1999 2000... 128 3.4-D Average amount of institutional aid received by undergraduates who received institutional aid, by type of institution and student characteristics: 1999 2000... 130 Combinations of aid types 3.5-A Percentage distribution of aided undergraduates according to combination of financial aid received, by institutional and student characteristics: 1999 2000... 132 3.5-B Average amount of financial aid received by undergraduates who received various combinations of financial aid, by institutional and student characteristics: 1999 2000. 134 Aid by institution type 3.6-A Percentage of undergraduates in public 4-year institutions receiving financial aid according to type and source of aid, by student characteristics: 1999 2000... 136 3.6-B Average amount of financial aid received by aided undergraduates in public 4-year institutions according to type and source of aid, by student characteristics: 1999 2000... 138 3.7-A Percentage of undergraduates in public 2-year institutions receiving financial aid according to type and source of aid, by student characteristics: 1999 2000... 140 3.7-B Average amount of financial aid received by aided undergraduates in public 2-year institutions according to type and source of aid, by student characteristics: 1999 2000... 142 3.8-A Percentage of undergraduates in private not-for-profit 4-year institutions receiving financial aid according to type and source of aid, by student characteristics: 1999 2000... 144 3.8-B Average amount of financial aid received by aided undergraduates in private not-forprofit 4-year institutions according to type and source of aid, by student characteristics: 1999 2000... 146 xix

List of Tables Table Page Section 4: Net Price and Need Net price of attendance 4.1-A Average net price (total price of attendance less total aid) of postsecondary education among undergraduates according to type of institution, by institutional and student characteristics: 1999 2000... 152 4.1-B 4.1-C Average total price of attendance less all grants among undergraduates according to type of institution, by institutional and student characteristics: 1999 2000... 154 Average total price of attendance less federal grants among undergraduates according to type of institution, by institutional and student characteristics: 1999 2000... 156 4.1-D Average tuition and fees less grants among undergraduates according to type of institution, by institutional and student characteristics: 1999 2000... 158 4.1-E 4.1-F Average net price (total price of attendance less total aid) of postsecondary education among dependent undergraduates according to dependent student family income, by institutional and student characteristics: 1999 2000... 160 Average net price (total price of attendance less total aid) of postsecondary education among independent undergraduates according to independent student income, by institutional and student characteristics: 1999 2000... 162 4.1-G Average net price (total price of attendance less total aid) of postsecondary education among full-time, full-year undergraduates according to type of institution, by institutional and student characteristics: 1999 2000... 164 Financial aid need 4.2 Average federal expected family contribution (EFC) among undergraduates according to type of institution, by institutional and student characteristics: 1999 2000... 166 4.3-A Percentage of undergraduates with financial need for federal aid according to type of institution, by institutional and student characteristics: 1999 2000... 168 4.3-B Average financial need among undergraduates who have need according to type of institution, by institutional and student characteristics: 1999 2000... 170 4.4-A Percentage of undergraduates who have remaining financial need after receiving financial aid (if any) according to type of institution, by institutional and student characteristics: 1999 2000... 172 xx

List of Tables Table 4.4-B Page Average amount of remaining financial need among undergraduates who have need after receiving financial aid (if any) according to type of institution, by institutional and student characteristics: 1999 2000... 174 4.5-A Percentage of undergraduates with need who received financial aid according to type of institution, by institutional and student characteristics: 1999 2000... 176 4.5-B Average amount of financial aid received by undergraduates who had need according to type of institution, by institutional and student characteristics: 1999 2000... 178 Section 5: Student Characteristics 5.1-A Percentage distribution of undergraduates according to dependency status, by institutional and student characteristics: 1999 2000... 184 5.1-B 5.1-C Percentage distribution of undergraduates according to attendance pattern, by institutional and student characteristics: 1999 2000... 186 Percentage distribution of undergraduates according to local residence, by institutional and student characteristics: 1999 2000... 188 5.2-A Percentage distribution of undergraduates according to race/ethnicity, by institutional and student characteristics: 1999 2000... 190 5.2-B Percentage distribution of undergraduates according to gender and citizenship, by institutional and student characteristics: 1999 2000... 192 5.3 Percentage distribution of dependent undergraduates according to parents income, by institutional and student characteristics: 1999 2000... 194 5.4 Percentage distribution of independent undergraduates according to students income, by institutional and student characteristics: 1999 2000... 196 5.5 Percentage distribution of undergraduates according to type of institution attended, by institutional and student characteristics: 1999 2000... 198 Appendix Table B1 Standard errors for table 3.1-A: Percentage of undergraduates receiving aid according to type of aid, by institutional and student characteristics: 1999 2000... 219 xxi

List of Figures Figure Page Executive Summary Figures A Percentage distribution of all undergraduates according to aid package, percentage receiving different types of aid, and average amount of aid for aided students: 1999 2000... iii B C D E Percentage distribution of full-time, full-year undergraduates according to aid package, percentage receiving different types of aid, and average amount of aid for aided students: 1999 2000... Average tuition and fees, nontuition expenses, and total price of attendance for fulltime, full-year undergraduates, by type of institution attended: 1999 2000... Percentage of all undergraduates receiving any aid, grants, or loans and average amounts received by aided students, by type of institution attended: 1999 2000... Percentage of all undergraduates receiving grants or loans and average amounts received by aided students, by source of funds: 1999 2000... iv v vi vii Text Figures 1 Percentage distribution of undergraduates according to aid package, percentage receiving different types of aid, and average amount of aid for aided students: 1999 2000... 2 2 Average tuition and fees, nontuition expenses, and total price of attendance for fulltime, full-year undergraduates, by type of institution attended: 1999 2000... 4 3 Percentage distribution of all undergraduates and full-time, full-year undergraduates by total price of attendance: 1999 2000... 5 4 Percentage of undergraduates receiving any aid and any loans and average amounts received by aided students, by price of attendance: 1999 2000... 6 5 Percentage of dependent and independent undergraduates receiving any aid and any loans and average amounts received by aided students, by family income: 1999 2000... 9 xxii

List of Figures Figure Page 6 Percentage of all undergraduates receiving any aid, grants, or loans and average amounts receiving by aided students, by type of institution attended: 1999 2000... 10 7 Percentage of full-time, full-year undergraduates receiving any aid, grants, or loans and average amounts received by aided students, by type of institution attended: 1999 2000... 12 8 Percentage of all undergraduates receiving grants or loans and average amounts received by aided students, by source of funds: 1999 2000... 13 9 Percentage of all dependent undergraduates receiving grants and average amounts received by aided students according to dependent family income, by source of grant funds: 1999 2000... 15 10 Percentage of all undergraduates receiving grants and average grant amount received by aided students according to type of institution, by source of grant funds: 1999 2000... 16 11 Percentage distribution of dependent and independent Stafford loan borrowers with subsidized loans, unsubsidized loans, or both according to Stafford combination and average loan amounts, by family income: 1999 2000... 20 12 Percentage distribution of undergraduates in public 2-year institutions borrowing and receiving other aid: 1999 2000... 23 13 Percentage distribution of undergraduates in public 4-year institutions borrowing and receiving other aid: 1999 2000... 25 14 Percentage distribution of undergraduates in private not-for-profit 4-year institutions borrowing and receiving other aid: 1999 2000... 26 15 Percentage distribution of undergraduates in private for-profit institutions borrowing and receiving other aid: 1999 2000... 28 xxiii

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Financial Aid in 1999 2000 Introduction During the 1999 2000 academic year, about 16.5 million undergraduates were enrolled in postsecondary institutions for all or part of the year, as full- or part-time students. More than onehalf (55 percent) of them received some type of financial aid from federal, state, institutional, or other sources to meet their educational expenses. The average amount received was $6,200 (figure 1). The two major types of financial aid awarded to students are grants and loans. In 1999 2000, 44 percent of all undergraduates received grants (the average amount received was about $3,500). Grants do not need to be repaid; they include scholarships, which is a term usually applied to grants that are either wholly or partly awarded on some merit basis. Student loans, which are aid that does need to be repaid, were received by 29 percent of all undergraduates, and the average student loan was $5,100. In addition, 5 percent of the undergraduates held workstudy jobs, earning an average of $1,700. Seven percent received other types of aid, including veteran s benefits, job training and vocational rehabilitation funds, and federal PLUS loans to parents. In this report, PLUS loans to parents are kept separate from loans to students; in practice, however, few students had PLUS loans assumed by their parents but had no other type of loan. 1 Many of the students received more than one type of financial aid in their aid package. 2 As shown in figure 1, student loans were the only type of financial aid received for 7 percent of all undergraduates; 22 percent took out loans but were also awarded grants or other aid; and 27 percent had financial aid packages that included grants, work-study, or other aid, but no loans. Those who had aid packages including loans and other aid received an average of $10,600 in total financial aid, compared with $5,200 for those who had only loans and $2,900 for those who did not have loans. 1 About 1 percent of all students receiving federal loans received only PLUS loans (Compendium table 1.5-A). 2 Among aided students, 40 percent received only grants and 13 percent received only loans (Compendium table 3.5-A). 1

Financial Aid in 1999 2000 Figure 1. Percentage distribution of undergraduates according to aid package, percentage receiving different types Figure 1. of aid, and average amount of aid for aided students: 1999 2000 ALL UNDERGRADUATES No aid 45% 27% 22% Aided, no loans $2,900 Loans and other aid $10,600 Aid type Percent Average Grants 44 $3,500 Loans 29 $5,100 Work-study 5 $1,700 Other 7 $4,700 Any aid 55 $6,200 7% Loans only $5,200 FULL-TIME, FULL-YEAR UNDERGRADUATES* No aid Loans only $5,600 28% 10% 27% 36% Aided, no loans $4,700 Loans and other aid $12,100 Aid type Percent Average Grants 59 $4,900 Loans 45 $5,400 Work-study 11 $1,700 Other 10 $6,000 Any aid 73 $8,500 *Represents 39 percent of all undergraduates. NOTE: Based on Compendium tables 1.1-A, 1.2-A, 3.1-A, and 3.1-B. Loans only include loans to students. Parent PLUS loans are categorized as other aid. Percentages may not sum to 100 due to rounding. SOURCE: U.S. Department of Education, National Center for Education Statistics, 1999 2000 National Postsecondary Student Aid Study (NPSAS:2000). 2

Financial Aid in 1999 2000 Thirty-nine percent of all undergraduates were enrolled full time for a full academic year, 3 but the proportion varied by type of institution. At both public and private not-for-profit 4-year institutions, more than one-half of the undergraduates attended full time for the full year (55 and 61 percent, respectively), compared with about one-fifth (19 percent) at public 2-year institutions. 4 Within an institution, the full-time, full-year students usually have the highest educational expenses because they are charged the full tuition price and incur other educationrelated expenses for a full academic year. Figure 1 shows that among undergraduates who were enrolled full time for a full academic year, about three-fourths (73 percent) relied on some type of financial aid to help pay for their postsecondary education, receiving an average of $8,500. Tuition and the Price of Attendance in 1999 2000 The price to the student of attending a postsecondary institution has numerous components, the most basic being the tuition and fees 5 charged by the institutions for instruction and services. The average tuition and fees for full-time, full-year undergraduates in 1999 2000 varied by type of institution (figure 2). Tuition and fees averaged about $1,600 at public 2-year institutions, $4,300 at public 4-year institutions, $8,900 at private for-profit institutions, and $15,000 at private not-for-profit 4-year institutions. 6 The lower tuition at the public institutions reflects the direct subsidies that institutions receive from the states to meet a part of their operating costs. The tuition at any particular institution within these sectors may vary considerably from these averages. Students enrolled part time or for only part of the year are charged less tuition than fulltime, full-year students. 7 In addition to tuition and fees, the total price of attendance includes other expenses related to enrollment, such as books and supplies, room and board, transportation, and personal expenses during the academic year. The estimates of these nontuition expenses are based on student budgets prepared annually by the institutional financial aid offices, which use them in determining the financial aid need of students. The student budgets are adjusted by the institution to reflect differences in housing, transportation, and other expenses of different types of students. For example, students living at home with their parents will generally have lower nontuition expenses; a single parent with children to care for will have higher expenses. As shown in figure 3 Full-time is usually 12 or more credit hours of classes. A full academic year is usually 9 10 months. 4 Compendium table 1.0. 5 Usually the term tuition is used to designate the basic price of instruction, while required fees designate the price of providing other campus services. However, many institutions make no distinction and use the term fee for both. 6 These averages may differ from those based on IPEDS data in other NCES publications because they are weighted by institutional enrollments and include additional out-of-jurisdiction fees charged to nonresidents by public institutions. 7 Compendium table 1.9. 3