Research Question: How is access to higher education becoming more difficult for middle class families or to students who can’t get loans?
Federal Aid
(FAFSA, Pell
Grants, federal
loans) and Federal
involvement
Baum, S., & Ma,
J. (2013). Trends
in Higher
Education:
Trends in
College Pricing
2013. Retrieved
from The
College Board
website:
http://trends.coll
egeboard.org/site
s/default/files/col
lege-pricing2013-full-report140108.pdf
Baum, S., &
Payea, K.
(2013). Trends
in Higher
Education:
Trends in
Student Aid.
Retrieved from
The College
Board website:
http://trends.coll
egeboard.org/site
s/default/files/stu
dent-aid-2013full-report140108.pdf
Quinterno, J.
(2012, March).
The Great Cost
Shift: How
Higher
Education Cuts
Undermine the
Future Middle
Class (R.
Clendenin, Ed.).
Retrieved from
Dēmos website:
http://www.dem
os.org/sites/defa
ult/files/publicati
ons/TheGreatCo
stShift_Demos.p
df
Toutkoushain, R.
K., & Hillman,
N. W. (2012).
The Impact of
State
Appropriations
and Grants on
Access to Higher
Education and
Outmigration
[PDF]. The
Review of
Higher
Education,
36(1), 51-90.
http://dx.doi.org/
10.1353/rhe.201
2.0063
Joint Legislative
Audit and
Review
Commission,
Trends in Higher
Education
Funding,
Enrollment, and
Student Costs,
A. 2013-441
(Va. 2013).
Government
Accountability
Office, Federal
Student Loans:
Patterns in
Tuition,
Enrollment, and
Federal Stafford
Loan Borrowing
Up to the 200708 Loan Limit
Increase, Misc.
Doc. (May,
2011).
“Large increases
in federal Pell
Grants and
veterans benefits
in 2009-10,
combined with
the 2009
implementation
of the American
Opportunity Tax
Credit, had a
significant
impact on the net
prices paid by
students who
benefit from
these programs”
(Baum and Ma,
2013, pg. 21)
Not everyone is
“Total grant aid
to postsecondary
students
increased by
29% in inflationadjusted dollars
between 2008-09
and 2009-10 and
by another 12%
in 2010-11, but
did not grow
between 2010-11
and 2012-13
(Baum and
Payea, 2013, p.
3).
“A radical
reorientation of
the financial aid
environment has
exacerbated the
cost pressures.
At the federal
level, financial
aid has shifted
from grant-based
aid toward
loans”
(Quinterno,
2012, p. 5).
“The federal
government
relies primarily
on grants to
faculty to
support basic
research and on
need-based
grants to
students that can
be used at
institutions
across the United
States”
(Toutkoushain
and Hillman,
2012, p. 52).
“The last 20
years has seen a
shift in
responsibility for
funding higher
education. Public
higher education
is being funded
less by state
governments and
more by
students, through
tuition and fees
and payments for
housing, dining,
intercollegiate
athletics, and
other activities”
(Joint
Legislative
“The Stafford
Loan program is
the largest
source of federal
financial aid
available to
postsecondary
students. In AY
2009-10, 35
percent of
undergraduate
students
participated in
the program,
which provided
an estimated
$56.1 billion
dollars to
eligible students
through
Total Pell Grant
expenditures
increased from
“Even with the
recent increases
in the average
and maximum
values of aid
“Because
appropriations
Willie, M.
(2012). Taxing
and Tuition: A
Legislative
Solution to
Growing
Endowments and
the Rising Costs
of a College
Degree [PDF].
BYU Law
Review, 5(6),
1665-1702.
Retrieved from
http://digitalcom
mons.law.byu.ed
u/cgi/viewconten
t.cgi?article=268
9&context=lawr
eview
“Based on an
average
investment
return of 15.3%,
a 2007 study
found that
applying a 35%
income tax rate
to the 765
university
endowments
included in the
study could
result in $18
billion in annual
federal revenue.
Under one
proposal,
Congress could
develop a
Engberg, M. E.,
& Allen, D. J.
(2011).
Uncontrolled
Destinies:
Improving
Opportunity for
Low-Income
Students in
American
Higher
Education
[PDF]. Research
in Higher
Education,
52(8), 786-807.
http://dx.doi.org/
10.1007/s11162011-9222-7
“While federal
requirements,
such as the net
cost calculator,
implore colleges
to be more transparent about
college costs,
colleges would
be wise to use
this extrinsic
motivation to
further invest in
their websites
and publications
to encourage
greater
knowledge and
understanding
about their
benefiting from
these increases
“…the
difference
between the
published tuition
and fee prices
and the average
net prices that
students pay has
grown over time
as grant aid and
federal education
tax benefits have
come to play a
larger role. In
particular, from
2008-09 to 201011, the federal
government
markedly
increased its
funding for
students, causing
average net
prices for
students to fall in
years when
tuition was rising
rapidly. But that
trend is not
continuing. Total
federal grant aid
per full-time
equivalent
undergraduate
student declined
by 9% ($325 in
2012 dollars)
between 2010-11
and 2012-13”
(Baum and Ma,
2013, p. 7).
$14.8 billion (in
2012 dollars) in
2002-03 to $37.5
billion in 201011, but declined
to an estimated
$32.3 billion by
2012-13” (Baum
and Payea, 2013,
p. 3)
“Only
undergraduate
students who
have an expected
family
contribution of
zero and enroll
full time/full
year receive the
maximum Pell
Grant. In 201112, 28% of
recipients
received the
maximum
$5,550 in Pell
funding” (Baum
and Payea, 2013,
p. 3).
“The maximum
Pell Grant
covered 87% of
average public
four-year tuition
and fees in 200304, but only 63%
in 2013-14. It
covered 21% of
average private
nonprofit fouryear tuition and
fees in 2003-04,
and 19% in
2013-14” (Baum
delivered
through the Pell
Grant program,
the main federal
assistance
program for lowincome students,
the awards cover
a decreasing
share of the cost
of attending a
four-year public
university.
Between 19911992 and 20112012, the
maximum Pell
grant award went
from covering 44
percent of the
annual cost to 32
percent”
(Quinterno,
2012, p. 25)
“Data from the
National Center
for Education
Statistics show
that 28.5 percent
of undergraduate
students enrolled
in public fouryear universities
in 1989-1990
borrowed
through the
federal Stafford
Loan program,
the nation’s main
source of student
loans, with the
average student
borrowing
$7,200 after
adjusting for
cannot be used at
institutions
outside of the
state’s
boundaries, it is
reasonable to
expect that they
will be more
likely to increase
the percentage of
students going to
an in-state
college and
reduce the
percentage of
students going
out-of-state. The
effect of needbased grants on
access to higher
education,
however, is also
likely to be
influenced by
factors such as
the portability of
aid, the size of
the typical award
relative to instate tuition, and
the income
threshold used
for determining
aid eligibility”
(Toutkoushain
and Hillman,
2012, p. 67).
“With regard to
merit-based
grants, if the
state dollars are
primarily given
to students who
would likely
attend college
Audit and
Review
Commission,
2013, p. 19).
subsidized and
unsubsidized
loans”
(Government
Accountability
Office, 2011, p.
4).
revenue-sharing
plan and use this
money to curb
the highereducation wealth
gap. A less
complicated
suggestion is to
earmark the
funds for
financial aid”
(Willie, 2012, p.
1664-1665).
“Critics have
argued, for
example, that if
Congress uses
tax revenue to
fund federal
financial-aid
programs,
schools ‘can
capture the
benefit by
raising tuition or
by offsetting
internal financial
aid (or both)’”
(Willie, 2012, p.
1665).
institutions”
(Engberg and
Allen, 2011, p.
804).
“while a number
of policy efforts
are centered on
increasing Pell
grants and
curbing the
rising costs of
attending a
postsecondary
institution,
additional efforts
are needed early
on in helping
families plan for
the costs of
postsecondary
education and
understanding
the complexities
of the financial
aid process”
(Engberg and
Allen, 2011, p.
803).
and Payea, 2013,
p. 3).
“The data
reported in
Trends in
Student Aid
2013 reveal that
the sharp
increases in
federal grant aid
and in student
borrowing that
accompanied the
financial crisis
have not been
repeated. Indeed,
while the federal
government
continues to play
a large and
increased role in
funding students,
inflationadjusted
spending on both
federal grants
and federal loans
decreased in
2011-12 and
again in 201213” (Baum and
Payea, 2013, p.
7).
State Aid (state
grants and loans)
“About twothirds of full-
“While federal
grant aid to
inflation. In
2007-2008, 52.6
percent of such
students took out
Stafford Loans
with the typical
student
borrowing
$11,100”
(Quinterno,
2012, p. 27).
“Not only did
more
undergraduate
students take out
Stafford Loans
in 2007-2008
than in the early
1990s, but also
more of those
students—39.7
percent of fouryear university
students and 9.4
percent of twoyear college
students—
borrowed the
maximum
amount for
which they
were
individually
eligible”
(Quinterno,
2012, p. 27-28).
“While state
spending on
without the aid,
then
conventional
wisdom holds
that their impact
on the overall
college-going
rates should be
smaller than
need-based
grants. The
effect of merit
aid on access to
higher education
may also depend
on factors such
as the size of
financial awards,
the level of
academic
performance
needed to qualify
for the grant, and
the institutions
where the merit
aid can be
applied to tuition
and fees.
And…if students
increase their
academic
performance to
qualify for
broad-based
merit aid, then
these programs
could lead to
increases in
overall college
enrollment rates”
(Toutkoushain
and Hillman,
2012 p. 67-68).
“State
governments
“While the cost
of attending
“In addition,
according to a
and state
involvement
time students
pay for college
with the
assistance of
grant aid; many
receive federal
tax credits and
deductions to
help cover
expenses”
(Baum and Ma,
2013, p. 3).
postsecondary
students doubled
in constant
dollars between
2007-08 and
2012-13, state
grant aid grew
by only 11%”
(Baum and
Payea, 2013, p.
3).
“In 1992-93,
only 10% of all
state grant aid
for
undergraduates
was awarded
without regard to
the students’
financial
circumstances.
By 2002-03, this
percentage had
risen to 23%.
Between 201011 and 2011-12,
it fell from 29%
to 26%” (Baum
and Payea, 2013,
p. 4).
“Total spending
on state
undergraduate
grant aid
increased from
$6.5 billion (in
2012 dollars) in
2001-02 to $8.3
billion in 200607 and to $9.4
billion in 201112” (Baum and
Payea, 2013, p.
28).
higher education
increased by
$10.5 billion in
absolute terms
from 1990 to
2010, in relative
terms state
funding of
higher education
declined. Real
funding per
public FTE
dropped by 26.1
percent from
1990-1991 to
2009-2010”
(Quinterno,
2012, p. 2).
“As state support
has declined,
institutions have
balanced the
funding equation
by charging
students more.
Between 19901991 and 20092010, published
prices for tuition
and fees at
public four-year
universities more
than doubled,
rising by 112.5
percent, after
adjusting for
inflation, while
the real price of
two-year
colleges climbed
by 71 percent
(Quinterno,
2012, p. 2).
“In many states,
play an
important role in
providing
funding for
higher education,
with more than
$75 billion being
appropriated for
postsecondary
education in
2009–2010”
(Toutkoushain
and Hillman,
2012, p. 52).
“With regard to
state financial
support for
higher education,
the data showed
that, as states
increased their
investments in
postsecondary
education, more
students went to
college”
(Toutkoushain
and Hillman,
2012, p. 74).
“When we broke
down total percapita state
financial support
into its three
main
components
(Model 2), we
found that
increases within
states in both
appropriations
and merit-based
grants had
positive and
four-year public
colleges and
universities has
increased,
Virginia’s
institutions have
a wide range of
tuition and fees.
For example,
annual in-state
tuition and fees
in 2012-13
ranged from just
under $3,400 to
more than
$9,200.
Similarly,
mandatory noneducation and
general (nonE&G) fees range
from about
$1,600 to nearly
$4,900”
(JLARC, 2013,
p. 4).
“In 1991,
Virginia’s 15
public four-year
higher education
institutions spent
a total of about
$2.6 billion. By
2011, this had
in- creased 130
percent to nearly
$6 billion.
During the last
two decades as
this spending
increased, the
proportion of
total spending on
instruction and
other activities
report published
by the State
Higher
Education
Executive
Officers, the
recent economic
recession has
reduced state
revenue,
resulting in an
overall reduction
in states’ support
for higher
education—the
primary source
of funding for
institutional
operations”
(GAO, 2011, p.
5).
“Six states
provided 49% of
all state grant
dollars in 201112, with
California
contributing
16% and New
York 10%”
(Baum and
Payea, 2013, p.
29). Not all
states are
allocating money
equally.
Geography plays
a major role in a
student’s ability
to access
college.
the tuition
increases of the
past 20 years
have occurred
alongside
expansions in
state-sponsored
financial aid
programs.
Between 19901991 and 20092010, the
aggregate
investment in
state grant and
loan programs
more than
tirpled, rising to
$10.8 billion
from $3.5
billion.
However, an
increasing
percentage of
that aid is taking
the form of
merit-based aid
which is
awarded without
regard for
students’
financial
situations”
(Quinterno,
2012, p. 2).
significant
effects on the
overall collegegoing rates”
(Toutkoushain
and Hillman,
2012, p. 74).
“The data
showed that
appropriations
and merit-based
grants were
negatively
correlated with
the percentage of
students
migrating to
other states. At
the same time,
need-based
grants were
positively
correlated with
outmigration.
The same
general patterns
held true when
we considered
attendance in
only four-year
institutions,
except that
appropriations
were found to be
negatively
correlated with
the percentage of
students
attending any
four-year
institution or
staying in-state
for college”
(Toutkoushain
and Hillman,
has remained
generally the
same in Virginia
and nationally.
On average,
instructional
spending at
Virginia
institutions has
accounted for
about one-third
of total
spending. This is
the case
nationally as
well” (JLARC,
2013, p. 14).
“Virginia has
historically
provided a
smaller portion
of total revenue
to its public
institutions than
the national
average, and this
continues to be
the case. In
1991, Virginia
provided 27
percent, on
average, of total
revenue for its
15 public fouryear institutions.
By 2011, State
support had
declined to about
15 percent of
total revenue”
(JLARC, 2013,
p. 19).
“Virginia’s
public four-year
2012, p. 72).
“Nonetheless,
the level of percapita funding
for state grants
remained fairly
small overall in
comparison to
appropriations,
with about 8% of
total state
support in 2008
coming in the
form of grants”
(Toutkoushain
and Hillman,
2012, p. 70).
Cost of College
(Tuition, room
and board, other
expenses,
consequences of,
etc.)
“Among fulltime
undergraduates
at public and
private nonprofit
four-year
institutions, the
median
published tuition
and fee price in
“In 2012-13,
undergraduate
students received
52% of their
funding in the
form of grants,
39% as loans
(including
nonfederal
loans), and 9%
“In 1990-1991,
published annual
charges for
tuition and fees
at public fouryear universities
equaled $3,150,
after adjusting
for inflation,
while tuition and
higher education
institutions
collect, on
average, more
total revenue per
student than the
national average.
This was the
case in 1991 and
was still the case
in 2011. In 1991,
Virginia’s 15
public four-year
higher education
institutions
collected, on
average, $16,229
in revenue per
student, which
was substantially
more than the
national average
of $10,952. By
2011, total
revenue per
student had
increased in
Virginia to more
than $35,000,
while the
national average
had risen to
about $27,000”
(JLARC, 2013,
p. 21).
“Tuition and fees
nationwide at
public four-year
institutions have
increased
substantially
over the last 20
years. In 1991,
the average
public four-year
“…many of the
private lenders
exited the market
in response to
limited access to
capital resulting
from the credit
crisis, according
to select lenders,
researchers, and
“Researchers
have tracked
movements in
tuition for
approximately
thirty years.
During that
period, published
college prices
have consistently
“Escalating costs
to attend a
college or
university
further
contribute to the
stratification of
students by SES
[socioeconomic
system], and this
2013-14 is
$11,093” (Baum
and Ma, 2013, p.
3).
“Because of
increases in aid,
the average net
price for fulltime in-state
public four-year
college students
was $650 lower
(in 2013 dollars)
in 2009-10 than
it was in 200809. However,
between 2009-10
and 2013-14,
average net price
increased from
$1,940 (in 2013
dollars) to about
$3,120” (Baum
and Ma, 2013, p.
4).
in a combination
of tax credits or
deductions and
Federal Work‐
Study” (Baum
and Payea, 2013,
p. 3). It is
important to note
that 39% of
students are
using nonfederal
loans to pay for
school, which is
typically not
possible without
a cosigner.
fees at two-year
institutions
totaled $1,336.
Twenty years
later, the
published
charges at public
four-year
institutions had
risen to $6,695
and those at twoyear colleges had
climbed to
$2,285”
(Quinterno,
2012, p. 22)
“In 1982-83, the
average student
received $2,130
(in 2012 dollars)
in grant aid and
borrowed $1,720
in federal loans.
Thirty years
later, we are
reporting $7,270
in grant aid per
full-time
equivalent (FTE)
student and
$6,370 in federal
loans. Over the
same period,
average tuition
and fees at
public four-year
colleges and
universities rose
from $2,423 (in
2012 dollars) in
1982-83 to
$8,646 in 201213. (The average
price in 2013-14
is $8,893)”
“In many states,
the tuition hikes
of the past 20
years have
occurred
alongside
expansions in
state-sponsored
financial aid
programs.
Between 19901991 and 20092010, the
aggregate
investment in
state grant and
loan programs
more than
tripled, rising to
$10.8 billion
from $3.5
billion; over that
period, all but
four states
boosted
investment in aid
programs”
(Quinterno,
institution
charged in-state
students $2,029
per year. By
2011, average
tuition and fees
nationally was
$7,227—an
increase of 256
percent”
(JLARC, 2013,
p. 37).
“In 1991,
Virginia
institutions
charged in-state
students an
average of
$2,982 per year.
By 2011,
Virginia
institutions
charged an
average of
$9,452—an
increase of 217
percent. While
these dollar
amounts are
greater than
average tuition
and fees
nationally and
among
institutions in the
Southeast,
tuition and fees
at Virginia’s
public
institutions has
increased about
15 percent less
than the national
average”
(JLARC, 2013,
experts. Lenders
that continued
their private
student loan
programs
reportedly
tightened their
lending
practices. As
these private
loans declined,
there was a
significant
increase in the
total dollar
amount of
unsubsidized
loans issued to
students between
AY 2007-08 and
AY 2009-10”
(GAO, 2011, p.
5).
“According to
Education data,
between AY
2003-04 and AY
2007-08 the
largest dollar
increases
occurred at forprofit
institutions,
where total price
of attendance
increased by
$6,054 and net
price after grant
aid increased by
$6,583” GAO,
2011, p. 6).
“In AY 2007-08,
for example,
students
increased more
rapidly than
prices for other
goods or
services. In fact,
since 1981, the
average total
cost, in constant
dollars, of
tuition, fees,
room, and board
at undergraduate
institutions in the
United States has
more than
doubled”
(Willie, 2012, p.
1668).
“Unfortunately,
the largest
increases,
particularly in
recent years,
have come at
public schools,
not private
universities.
Statistics from
the Department
of Education
show an almost
90% spike in
inflationadjusted tuition
rates at public
colleges and
universities from
2000 to 2010”
(Willie, 2012, p.
1668-1669).
redistribution
appears to be
particularly
disadvantageous
for students from
the lowest end of
the SES
spectrum”
(Engberg and
Allen, 2011, p.
787).
(Baum and
Payea, 2013, p.
7).
2012, p. 24).
p. 38).
attending
nonprofit 4-year
and for-profit
institutions had
the highest
average total
price of
attendance
($29,561 and
$23,182,
respectively).
However,
average grant aid
helped to lower
net price to an
average of
$21,688 for
students at
nonprofit 4-year
institutions and
$20,842 at forprofit
institutions.
Students
attending public
2-year
institutions had
the lowest
average total
price of
attendance
($7,495) and net
price after grants
($6,487)
compared with
undergraduates
attending other
institutions in
other sectors”
(GAO, 2011, p.
7).
Family (income
levels,
contribution, loan
involvement,
overall
involvement)
“Average
incomes for
families in the
middle quintile
and above
increased
between 2011
and 2012, but
real incomes
remained lower
(after adjusting
for inflation) at
all levels of the
income
distribution than
they had been in
2002” (Baum
and Ma, 2013, p.
4)
“From 2002 to
2012, declines in
family incomes
ranged from
13% over the
decade for the
bottom quintile
to less than 0.5%
for the top
quintile” (Baum
and Ma, 2013, p.
4)
“Dependent
students in the
third income
quartile, with
2010 family
incomes between
$65,000
and
$105,999, were
more likely than
those from either
less affluent or
more affluent
families to take
private student
loans in 201112” (Baum and
Payea, 2013, p.
20).
“In 2011-12, on
average, lowincome
dependent
students enrolled
full time in
public four-year
colleges and
universities
received about
five times as
much total grant
aid as those from
families with
incomes of
$106,000 or
higher ($8,890
vs. $1,760).
However, they
received only
30% more
institutional
grant aid ($1,690
vs. $1,280)”
(Baum and
Payea, 2013, p.
“The steady
escalation in
college prices
has occurred
alongside
stagnant incomes
for most
American
households.
Median
household
income in the
United States in
2010 was just
2.1 percent
higher than in
1990”
(Quinterno,
2012, p. 3).
“In the 1992-93
academic year,
the average
student using
loans borrowed
$3,318 to attend
a Virginia
school. By the
2011-12
academic year,
the average
student using
loans borrowed
$9,893, or
$6,575 more
than in 1992-93
(Figure 22). Of
this increase,
inflation only
accounted for
about $2,000,
less than onethird of the total
increase. The
average loan
amount rose
considerably as
the most recent
recession took
hold. Between
2008 and 2009,
the average loan
amount
increased nearly
$1,000, an increase of 13
percent”
(JLARC, 2013,
p. 48).
“According to
Education data,
declines in
maximum
borrowing
occurred across
all three Stafford
loan types, as
shown in figure
4. For example,
the percentage of
borrowers taking
out their
maximum in
subsidized
loans—whereby
the federal
government pays
the interest on
the loan while
the student is in
school—dropped
from 60 to 53
percent” (GAO,
2011, p. 9)
“Such instances
are especially
troubling
because of the
number of
individuals and
families affected.
Public colleges
and universities
provide
education for
nearly threequarters of the
country’s
students.
Traditionally, a
core mission of
these schools has
been to ‘promote
the well-being of
communities and
states,’ but
tuition increases
like those in
California can be
particularly
burdensome for
in-state students
who may be
reluctant to pay
the much higher
nonresident
tuition rates of
other states’
public schools”
(Willie, 2012, p.
1669).
“Only 40% of
low income
students, for
instance, enroll
in a
postsecondary
institution
immediately
upon high school
graduation
versus 84% of
those students
with family
incomes over US
$100,000”
(Engberg and
Allen, 2011, p.
786).
“Students from
families of
higher net worth
are often ‘in a
privileged
position to
purchase
academic inputs
of higher
quality—not
simply good
schooling,
private tutoring,
and
extracurricular
training, but
comfortable
housing, good
nutrition, and
access to
intellectual
stimuli’”
(Engberg and
Allen, 2011, p.
788)
“Thus, while
30).
“Independent
students and
low-income
dependent
students are
more likely than
others to enroll
in low-price
institutions and
less likely
to
enroll in higherprice institutions.
In 2007-08,
when 35% of
full-time
dependent
students in the
sector from
families with
incomes of
$106,000
or
higher were
enrolled in
institutions with
tuition and fees
exceeding
$8,000, 20% of
low-income
dependent
students and
14% of
independent
students attended
institutions in
this category
(Baum and
Payea, 2013, p.
30).
academics may
indeed be a
driving
consideration in
the decision to
attend a 2- or 4year college, the
results suggest a
more nuanced
understanding of
cultural and
social influences
that extends
from one’s
immediate
family to
networks found
among peers and
schools
representatives.
These results
may also help
explain why
academically
qualified, lowincome students
might forego the
opportunity to
attend a fouryear institution,
particularly
when examining
factors that lie
outside of their
immediate locus
of control”
(Engberg and
Allen, 2011, p.
801)