Intro

1
Intro

• College Affordability
• Thinking (Way) Outside the Box
• September 11, 2009
• Council for Opportunity in Education
• San Antonio, Texas
• Tom Mortenson
• Senior Scholar
• The Pell Institute for the Study of Opportunity
  in Higher Education
• Higher Education Policy Analyst
• Postsecondary Education OPPORTUNITY

2

• Where we are in 2007-08
• Financial barriers to higher education
• Trends in college affordability
• Solutions to college affordability

3

• The Basic Financial Aid Formula
• Cost of attendance
• - Expected family contribution
• Financial need

4
Financial Aid Resources
5
Mean Costs of Attendance Parental Income Sector
6
Mean Expected Family Contribution
7
Mean Financial Need
8
Mean Total Grants
9
Mean Total Loans
10
Mean Total Work-Study
11
Mean Total Other Aid
12
Mean Total Financial Aid
13
Financial barriers to higher education

1. Unmet financial need
2. Student work/loan burden
3. Family responsibility
4. Family burden percent of income

14
Unmet Financial Need
15
Student Work/Loan Burden
16
Net Price To Family
17
Net Price to Family as Parents Income
18
Trends Net Price to Family as Share of Income
19
Sector breakouts

• Public 4-year institutions
• Public 2-year institutions
• Private 4-year institutions

20
Financial Aid Resources Recvd Public 4-yr
21
Trends Net Price to Family as Share of Income
Public 4yr
22
Financial Aid Resources Recvd Public 2-yr
23
Trends Net Price to Family as Share of Income
Public 2yr
24
Financial Aid Resources Recvd Private 4-yr
25
Trends Net Price to Family as Share of Income
Private 4yr
26
Thinking (Way) Outside the Box

• Increase taxes
• Limit public subsidies to need
• Enforce calculated expected family contribution
• Start the revolution

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Total Tax Revenue GDP 2005
28
Change in Total Tax Rev GDP
29
Total Tax Revenue GDP
30
Fed, State, Local Taxes Share of Taxpayers Total
Income
31
Fed, State, Local Taxes Share of Taxpayers Total
Inc 2007
32
Change in Fed, State, Local Taxes Taxpayers Total
Inc
33
Change in Shares of Current Expend Fed Gov
34
Change in Shares Current Expend State Local Gov
35
Total Receipts Expend of Gov Share GDP
36
Higher Educations Share of GDP
37
Distribution of Revenue Sources for Financing
Higher Ed
38
Higher Ed Share Expend of State Local Gov
39
Higher Ed Share Expend of Federal Gov
40
Higher Education Share Personal Consumption Expend
41
Financial Aid Resources
42
Resources
Resources
www.postsecondary.org tom_at_postsecondary.org