Access and Affordability WG
Recommendations
1. Reaffirm UC’s commitment to access for California students.
2. Reaffirm the University’s commitment to be financially accessible for all
undergraduate students admitted to UC.
3. Reaffirm the University’s commitment to fulfilling graduate education’s
role in serving UC’s research enterprise, UC’s teaching mission, and the
diverse knowledge and workforce demands of the State and beyond.
4. Re-establish UC financial aid eligibility for undocumented California high
school graduates.
5. Adopt a multi-year fee schedule for each entering cohort of new
undergraduate students.
6. Rename the Education Fee and the Professional Degree Fees (but not
the Registration Fee) as “tuition.”
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C
!"!#$%&''(!)!*+,-!./%0/$1),/!&2!
3&4"5$0&6/ 7189/$1(
3&4"5$0&6/!7189/$1(
Source: IPEDS and the Federal Common Origination and Disbursement website. Figures are for 2007-08.
!
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/0-1"$%!-1!2&!3#45%)#6
100%
7%
4%
90%
17%
20%
21%
22%
21%
21%
21%
21%
23%
21%
21%
21%
20%
20%
%
20%
20%
19%
80%
70%
20%
Unknown
60%
Above $139k
50%
22%
23%
23%
23%
23%
23%
23%
23%
$93k to $139k
23%
40%
$46k to $93k
$0 to $46k
Independent
30%
20%
25%
25%
25%
26%
27%
28%
28%
28%
28%
8%
8%
8%
8%
7%
7%
7%
7%
7%
1999 00
1999-00
2000 01
2000-01
2001 02
2001-02
2002 03
2002-03
2003 04
2003-04
2004 05
2004-05
2005 06
2005-06
2006 07
2006-07
2007 08
2007-08
10%
0%
Source: UC Accountability Framework. Figures are in 2007-08 constant dollars.
!"
Undergraduate student budgets vary by such factors as residency status, campus, and living
arrangement (living with parents, on campus, or off campus). The average UC undergraduate
student budget for 2007-08 for a California resident living on campus is shown below.
Average On-Campus Undergraduate Student Budget,
Academic Year 2007-08
Student Fees:
Books and Supplies:
Living:
Personal Expenses:
Transportation:
Healthcare Allowance:
TOTAL:
$7,466
$1,475
$11,754
$1,452
$960
$866
$23,974
Since 1998-99, campus student budgets have been determined using a combination of known
institutional charges (e.g., fees and on-campus room-and-board charges) and results from the
systemwide Cost of Attendance Survey (COAS). The COAS, conducted every three years since
1997, provides the most comprehensive data available on UC undergraduates’ non-fee expenses.
The survey provides a standardized basis for calculating student budgets at each campus that
reflect local economic conditions and student spending patterns.
!"#$%&'!($)&)%$&'!*$+!,&%-&./01!2334"53
UC’s cost of attendance figures are generally more
inclusive than those used by other institutions…
*6/7&./!8)"9&:#;0!9<0=>!?2@1533!
.
#
? 1
?A1A33
UC’s cost of attendance figures are generally
more inclusive than
those used by other institutions
?531333
?2A1333
C7&)=
?5A B33 uses survey results
?5A1B33
in two ways. First,?5D1333
the University
estimate students’ actual expenditures
?54to333
?541333
for most non-fee components of the student budget.
?521@33 This differs from the practice of many other
,&7/)=
?D1333
institutions, which often assign student
budgets according to what they believe students should
?
?21B33
spend rather than what they do spend. Second, UC appears to include E/'F"G/'#
more costs as legitimate
educational expenses
than do
other institutions.
include?41533
certain transportation costs, cell
?41533
?41533
?41533
?41533These
?41533
phone costs (for survey respondents whose cell phones are their only phone), computer supplies,
food and snacks beyond a student’s meal plan, and health insurance costs for students who waive
?231333! ?A31333! ?@31333! ?H31333! ?5331333! ?5231333!
out of the University’s undergraduate,&7/)=!I)%<:/
health insurance plan because they have other coverage
(since families generally incur some expense to obtain that coverage, and health insurance is a
!
condition of enrollment).
!"#$%#&'()!*#&+,!#"+!-'.'/#"
01"(,, 2)1(.+ 3+4+/,
01"(,,!2)1(.+!3+4+/,
Minimally UC Eligible
Good Academic
Preparation
100
Very Good Academic
Preparation
Strongest Academic
Preparation
90
80
6-Year
Rates
70
60
50
4-Year
Rates
40
Below $46K
30
$46K-$93K
20
$93K-$139K
10
$139K +
95
96
97
98
99
00
01
02
03
04
95
96
97
98
99
00
01
02
03
04
95
96
97
98
99
00
01
02
03
04
95
96
97
98
99
00
01
02
03
04
0
Year Entered as Freshman
Source: 2007-08 Report to The Regents on Student Financial Support. Figures are in 2007-08 constant dollars.
!"
years, the net cost of attendance has actually declined for independent students and for students in
the lowest income bracket. (The small apparent decline in net cost for some income groups in
2002-03 reflects the introduction of AB 540 tuition exemptions in 2002-03, but also reflects data
limitations from prior years, since 2002-03 was the first year in which the value of Cal Vet fee
exemptions could be identified in the Corporate Student System. These changes more than offset
the 2002-03 decline in UC grant support noted in footnote 6 earlier in this chapter.)
Figure 1-14
Trends in Net Cost by Parent Income, Constant 2007-08 Dollars
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Independent
Less than
$23,000
$23,000 to
$46,000
$46,000 to
$70,000
$70,000 to
$93,000
$93,000 to
$116,000
$116,000 to
$139,000
$139,000 and
above
All Students
2000-01
$9,742
$8,879
$9,754
$13,640
$16,371
$17,542
$17,926
$18,511
$14,620
2001-02
$10,814
$9,305
$10,493
$14,332
$17,061
$18,223
$18,567
$19,080
$15,223
2002-03
$10,851
$9,284
$10,507
$14,279
$16,928
$17,938
$18,268
$18,873
$15,041
2003-04
$11,572
$10,043
$11,386
$15,415
$18,397
$19,910
$20,287
$20,994
$16,399
2004-05
$12,279
$10,986
$12,133
$16,377
$19,705
$21,277
$21,567
$22,337
$17,469
2005-06
$11,872
$10,929
$12,241
$16,520
$20,100
$21,766
$22,071
$22,884
$17,713
2006-07
$11,660
$10,707
$12,020
$16,549
$20,076
$21,757
$22,150
$22,869
$17,607
2007-08
$11,197
$10,435
$11,894
$16,451
$20,363
$22,048
$22,399
$23,054
$17,633
Trends in Student and Parent Borrowing
Despite increases in the University’s net cost, the percentage of students who borrow in a given
academic year has, over time, declined for students in most income categories. As shown in Figure 1-15, the decline (shown by the black lines) has been steepest among dependent students from
Figure 1-15
Trends in Student Borrowing by Parent Income, 2007-08 Constant
Dollars
2001
2003
2005
2007
2001
2003
2005
2007
2001
2003
2005
2007
2001
2003
2005
2007
2001
2003
2005
2007
2001
2003
2005
2007
2001
2003
2005
2007
Independent
Percent with Student Loan
2001
2003
2005
2007
Average Student Loan
2001
2003
2005
2007
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Less than
$22,000
$22,000 to
$45,000
$45,000 to
$67,000
$67,000 to
$89,000
$89,000 to
$112,000
$112,000 to
$134,000
$134,000
and Above
All Students
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Given the overall increase in the University’s net cost during this period, the overall decline in the
percentage of student borrowers in most income categories is perhaps counterintuitive. A similar
overall decline in student loan borrowing rates has been observed among students at California
State University (CSU) campuses and at independent California institutions. The trend runs contrary to national trends that show an overall increase in the percentage of students who borrow.
One possible explanation for the trend among California students is the rapid growth in California
property values, which increased faster than value of homes nationwide during the first half of
this decade. This increase may have led California families to rely more than other families on
home equity loans, rather than traditional student loans, to finance a student’s college education.
If this explanation is correct, then the recent downturn in the California housing market and a
Figure
1-16
tighter
credit market may partly explain the increase in the average amount borrowed among
Trends
Borrowing by
Parent
middle- in
andParent
upper-middle-income
families
and Income,
may lead to2007-08
a greater Constant
reliance on student loans in
Dollars
future years.
$20,000
$16,000
$12,000
[T]he recent downturn in Average
the California
housing
market
PLUS Loan
Percent
with PLUS Loan
and a tighter credit market … may lead to a greater
reliance on student loans in future years.
50%
40%
30%
2001
2003
2005
2007
2001
2003
2005
2007
2001
2003
2005
2007
2001
2003
2005
2007
2001
2003
2005
2007
2001
2003
2005
2007
2001
2003
2005
2007
Independent
2001
2003
2005
2007
2001
2003
2005
2007
As$8,000
shown in Figure 1-16, parental borrowing under the federal PLUS program has remained
20%
generally flat during this period and remains under 10% overall. The average amount borrowed
$4,000
10%
under
the PLUS program has increased in recent years – particularly among upper-income
families
$0 – but remained generally flat in 2007-08..
0%
Less than
$22,000
$22,000 to
$45,000
$45,000 to
$67,000
$67,000 to
$89,000
$89,000 to
$112,000
$112,000 to
$134,000
$134,000
and Above
All Students
Trends in Student Work-Study and On-Campus Employment
Per capita student support from work-study earnings has fluctuated little since 2000-01, as shown
in Figure 1-17. In contrast, support from other on-campus employment has been declining Page
stead-23
ily since 2000-01, with the largest declines occurring in 2002-03 and 2003-04. The decline in
other on-campus employment may have resulted from the cuts to the University’s budget that
!
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Less than
$23,000
$23,000 to
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$46,000 to
$70,000
$70,000 to
$93,000
$93,000 to
$116,000
&)#!
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$+#!
'++*
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'++$
'++%
'++&
"
$116,000 to
$139,000
$139,000 and
Above
All Students
!
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!!
!
Recommendations
1. Reaffirm UC’s commitment to access for California students.
2. Reaffirm the University’s commitment to be financially accessible
for all undergraduate students admitted to UC.
3. Reaffirm the University’s commitment to fulfilling graduate
education’s role in serving UC’s research enterprise, UC’s teaching
mission, and the diverse knowledge and workforce demands of the
State and beyond.
4. Re-establish UC financial aid eligibility for undocumented
California high school graduates.
5. Adopt a multi-year fee schedule for each entering cohort of new
undergraduate students.
6. Rename the Education Fee and the Professional Degree Fees (but
not the Registration Fee) as “tuition.”
Recommendation 1: Reaffirm UC’s commitment to
access for California students.
UC’s historic mission of complementary quality and access in its
undergraduate student body is central to the University’s mission
and responsibility to the state of California. This recommendation
addresses (1) the value to the state of continued adherence to
the Master Plan’s expectations for the number and proportion of
students who enter at the freshman and transfer levels; (2) the
maintenance of access for a pool of students that is broadly
diverse; and (3) the value and role of non-resident undergraduate
students.
Recommendation 2: Reaffirm the University’s commitment to be
financially accessible for all undergraduate students admitted to UC.
The University of California Financial Aid Policy, adopted by The Regents in
1994, states that the University’s commitment to enroll a diverse student body
requires that financial considerations must not be an insurmountable obstacle to
students’ decisions to seek and complete a University degree.
Three key implications of this commitment are:
• Students at every income level must be able to finance their total cost of
attendance – not just fees – through a combination of (a) manageable
contributions from parents and students, and (b) grant assistance from
University, Federal, and State aid programs.
• All aspects of a University of California education – including special
educational programs (e.g., Education Abroad) and experiential opportunities
(e.g., living on campus) – should be available to all students regardless of their
financial resources.
• Emphasis should be placed on providing aid to students on the basis of their
financial need rather than other criteria (such as scholastic achievement).
Recommendation 3: Reaffirm the University’s commitment to fulfilling graduate
education’s role in serving UC’s research enterprise, UC’s teaching mission, and the
diverse knowledge and workforce demands of the State and beyond.
California’s Master Plan recognizes UC as a doctoral-granting institution and the state’s primary
research institution. Graduate education is critical to the University’s research mission and,
therefore, central to the vibrancy of the state’s knowledge-based economy and ability to meet
its academic, technical, and professional workforce needs and fuel innovation that can have
worldwide impact. These contributions are made possible when UC graduate academic and
professional school programs serve as a magnet for the most highly qualified, talented, and
diverse students worldwide and are maximized by a sufficiently large number of graduate
students to meet growing needs.
Three key implications of this commitment are:
• Graduate enrollments need to grow at a rate at least equivalent to those of undergraduate
enrollment, with a special focus on increasing degrees in areas of specific state need (i.e., the
health care sector).
• To attract students with top academic qualifications and diversity of perspective, the fees and
financial support associated with graduate and professional degree programs must be
competitive with the support provided by other institutions.
• To enhance diversity and ensure that debt levels do not deter access to a range of career
options, including low-paying public interest opportunities, graduate student debt levels must be
manageable relative to student future earnings potential.
Recommendation 4: Re-establish UC financial aid eligibility for
undocumented California high school graduates.
Since 1996, federal law has precluded public universities from providing
financial aid to undocumented aliens unless a state explicitly makes
undocumented students eligible for such a “public benefit.” Consequently,
undocumented students attending UC are currently precluded from receiving
any financial support (e.g., scholarships, grants, loans) other than private
outside scholarships and AB 540 tuition exemptions. As a comparison, in
2008-09, documented UC students with financial need received an average of
$16,700 in support, including $5,400 in UC scholarships and grants that
undocumented students could not receive.
To partially address the lack of financial aid funds for undocumented students,
it is recommended that the UC Regents act to re-establish undocumented
student eligibility for UC financial aid. This could be done by explicitly
referencing undocumented students in the existing Regents financial aid policy.
Recommendation 5: Adopt a multi-year fee schedule for each
entering cohort of new undergraduate students.
In order to preserve a quality education for UC students, the University has
had to generate new fee revenue to partially backfill the severe state budget
cuts that have occurred. The fee increases have been problematic for
students and their families because of both their size and their unpredictability.
To avoid the pain and frustration produced by large, unexpected fee increases
that occur mid-education, UC could adopt a multi-year fee schedule for
incoming cohorts of undergraduates which would cover a specified number of
years – e.g., the typical time-to-degree of between four and five years for
entering freshmen and two to three years for transfer students. During this
period fees would increase annually at a moderate fixed rate or according to a
relatively stable annual adjuster (e.g., the inflation rate). The starting fees
charged to entering classes would be set independently and could increase at
a faster rate, as needed, to achieve the gross revenue required by the
University’s budget in a given year. Fees charged to students who remain
enrolled beyond the specified number of years could roll up to the fee levels
for the following cohort (i.e., a sixth-year student might be charged the higher
fees scheduled for currently enrolled fifth-year students).
Recommendation 6: Rename the Education Fee and
the Professional Degree Fees (but not the Registration
Fee) as “tuition.”
Consistent with language in the Organic Act (1868) and the
California Master Plan for Higher Education (1960) that calls
upon the University to be “tuition free” for Californians, UC
has not labeled any of its in-state student charges as “tuition.”
However, despite the labeling, the Education Fee and the
Professional Degree Fees have been equivalent to tuition as
the term is typically understood by most people since the
early 1990’s. Both these fees provide critical revenue for core
instructional expenses.
Summary
• UC has provided extraordinary access to quality
education
• First 3 recommendations are a commitment to that
• Stresses are clearly growing for some students
• 2 recommendations fix the largest holes
• Yet there is a lot more work to be done...
Recommendations
1. Reaffirm UC’s commitment to access for California students.
2. Reaffirm the University’s commitment to be financially accessible
for all undergraduate students admitted to UC.
3. Reaffirm the University’s commitment to fulfilling graduate
education’s role in serving UC’s research enterprise, UC’s teaching
mission, and the diverse knowledge and workforce demands of the
State and beyond.
4. Re-establish UC financial aid eligibility for undocumented
California high school graduates.
5. Adopt a multi-year fee schedule for each entering cohort of new
undergraduate students.
6. Rename the Education Fee and the Professional Degree Fees (but
not the Registration Fee) as “tuition.”
Extras
!
Figure 1-8 shows that among all students, student loans are much more common than
parent loans. The percentage of students with student loans declines steadily with income, although the average student loan is similar across income levels. Independent
students borrow at greater rates than their dependent counterparts and borrow at higher
levels.
!
Figure 1-8 also shows that among the smaller percentage of students who use parent
loans, usage is most common among middle-income families. The average PLUS loan
for parents who borrow increases steadily with parental income and is highest for highincome families, who should be in a better position than others to repay larger loans.
Figure 1-8
Utilization of Student and Parent Loans by Parent Income,
Academic Year 2007-08
$20,000
100%
80%
$15,000
60%
$10,000
40%
$5,000
20%
$0
Independent
Less than
$23,000
$23,000 to
$46,000
$46,000 to
$70,000
$70,000 to
$93,000
$93,000 to $116,000 to $139,000
All Students
$116,000 $139,000 and above
Avg. Student Loan
$7,716
$5,002
$5,008
$5,349
$5,777
$6,103
$6,145
$5,982
$5,700
Avg. PLUS Loan
$0
$7,651
$6,544
$8,219
$11,697
$13,815
$14,729
$15,871
$12,178
% with Student Loan
71%
56%
55%
50%
40%
26%
26%
14%
39%
% with PLUS
0%
3%
5%
10%
13%
12%
14%
8%
8%
0%
Student Employment
Most students use wages from on- and off-campus employment to cover a portion of their
educational expenses. Job opportunities funded through the federal work-study program are
reserved for financially needy students who receive a work-study award as part of their financial
in these positions, average earnings – which are a function of both the number of hours worked
and the hourly wage – do not vary significantly with students’ income. Student employment
(including off-campus employment) is discussed more fully later in this section under the heading
“Do UC Students Work Manageable Hours?”
Figure 1-9
Work-Study and Campus Employment by Parent Income,
Academic Year 2007-08
$6,000
50%
$5,000
40%
$4,000
30%
$3,000
20%
$2,000
10%
$1,000
$0
$93,000 to $116,000 to $139,000
$116,000
$139,000 and above
0%
Independent
Less than
$23,000
$23,000 to
$46,000
$46,000 to
$70,000
$70,000 to
$93,000
Avg. Work-Study
$1,759
$1,856
$1,821
$1,786
$1,781
$1,721
$1,619
$0
$1,811
Avg. Other UC Job
$5,340
$2,611
$2,633
$2,877
$3,074
$3,011
$2,925
$2,736
$2,954
Avg. W-S or UC Job
$5,148
$3,113
$3,050
$3,171
$3,199
$3,058
$2,933
$2,739
$3,163
% with Work-Study
10%
22%
20%
15%
7%
2%
1%
0%
10%
% with Other UC Job
19%
30%
30%
29%
28%
27%
26%
24%
27%
% with W-S or UC Job
24%
39%
38%
35%
30%
28%
26%
24%
31%
All Students
Recent Trends in Student Financial Support
Trends in the Cost of Attendance
UC’s average total cost of attendance has risen substantially in recent years, as shown in Figure
1-10, below. Since 2002-03, total expenses have grown by 42% ($6,503). Contributing to the
trend were annual increases to the University’s systemwide fees, particularly in 2003-04 and
2004-05. Systemwide fee increases, however, accounted for less than half ($3,072) of the growth
in the total cost of attendance during this period; campus-based fees and non-fee costs, taken
together,
increased by $3,431.
Figure 1-11
Trends in Per Capita Undergraduate Gift Aid by Parent Income,
ForConstant
many financially
needy
students, the Cal Grant program and the University’s own need-based
2007-08
Dollars
grant program ensure that systemwide fee increases do not reduce UC’s affordability. Cal Grant
awards$15,000
typically cover recipients’ systemwide fees and thus cover fee increases for eligible
students. The University’s need-based grant program is funded in part through a practice of
$12,000
returning
a share of new fee revenue back to financial aid. The additional aid generated from a
fee increase,
administered according to the principles of the Education Financing Model, is
$9,000
typically sufficient to cover fee increases for UC grant recipients without a Cal Grant. In
$6,000
contrast,
increases in campus fees and in non-fee costs pose a particular challenge to the
$3,000
$0
Independent
Less than
$23,000
$23,000 to
$46,000
$46,000 to
$70,000
$70,000 to
$93,000
$93,000 to
$116,000
$116,000 to
$139,000
$139,000 and
above
2000-01
$8,212
$9,289
$8,509
$4,701
$1,949
$812
$544
$478
Page
$3,853 17
2001-02
$7,841
$9,578
$8,517
$4,721
$2,017
$880
$636
$563
$3,948
2002-03
$7,403
$9,379
$8,236
$4,591
$1,920
$901
$717
$612
$3,897
2003-04
$8,915
$10,893
$9,648
$5,751
$2,646
$1,239
$906
$765
$4,799
2004-05
$9,458
$11,381
$10,276
$6,134
$2,733
$1,167
$961
$787
$5,092
2005-06
$10,167
$11,968
$10,631
$6,499
$2,869
$1,153
$998
$769
$5,346
2006-07
$10,337
$12,160
$10,830
$6,413
$2,831
$1,079
$943
$741
$5,393
2007-08
$10,869
$12,524
$11,086
$6,643
$2,790
$1,122
$850
$663
$5,531
All Students
Trends in Grant Support
The combined funding from all grant programs has increased in recent years and has generally
outpaced both inflation and the University’s enrollment growth. Figure 1-12 shows the increase
in 2007-08, resulting in an apparent (but not actual) decline in the percentage of students shown
in the $93,000 to $116,000 category and a corresponding increase in the percentage shown in
higher income categories.
Figure 1-20
Trends in the Parent Income of UC Undergraduates, 2007-08 Constant
Dollars
100%
90%
2%
1%
1%
1%
0%
0%
0%
20%
21%
22%
21%
21%
21%
21%
23%
11%
11%
4%
Parent Income Unknown
$139,000 and above
80%
70%
60%
50%
40%
30%
10%
11%
10%
11%
9%
8%
8%
7%
7%
11%
12%
12%
13%
11%
11%
11%
11%
11%
11%
11%
12%
12%
12%
12%
12%
11%
10%
$116,000 to $139,000
$93,000 to $116,000
$70,000 to $93,000
12%
12%
12%
13%
14%
15%
15%
16%
16%
16%
16%
11%
11%
11%
12%
12%
12%
12%
13%
8%
8%
8%
7%
7%
7%
7%
7%
$46,000 to $70,000
$23,000 to $46,000
20%
10%
0%
Less than $23,000
Independent
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
graduation for these borrowers was $15,242, slightly higher than the comparable figure for 200607
($15,218)Work
after adjusting
for inflation.
Dograduates
UC Students
Manageable
Hours?
The
percentage
of students
whoModel,
graduate
debt hasexpects
declined
among
every
income
group in
Under
the Education
Financing
thewith
University
each
student
to make
a manageable
most
years during
period depicted
in Figure
1-27.theThis
with the
declining Specifitrend
contribution
from the
employment
towards
financing
costisofconsistent
the student’s
education.
in
the number
of students
who
each year,
discussedaid
earlier.
Among
those
do borrow,
cally,
the University
funds
andborrow
administers
its financial
programs
such
thatwho
no student
is exaverage
has20changed
little
during
the past
few years.
pected tocumulative
work moredebt
than
hours per
week
in order
to finance
their education. The “cap” of 20
hours per week was based on research that suggests that work in excess of 20 hours per week
Figure
tends to1-27
negatively affect a student’s academic progress and performance.
Trends in Cumulative Debt at Graduation by Parent Income,
Constant 2007-08 Dollars
$20,000
Average Cumulative Student Loans at Graduation
Percent With Loans
$16,000
100%
80%
$12,000
60%
$8,000
40%
$4,000
20%
page 28
$70,000 to
$93,000
2001
2003
2005
2007
$46,000 to
$70,000
2001
2003
2005
2007
$23,000 to
$46,000
2001
2003
2005
2007
2001
2003
Less than
$23,000
2001
2003
2005
2007
2001
2003
2005
2007
2005
2007
2001
2003
2005
2007
Independent
2001
2003
2005
2007
0%
2001
2003
2005
2007
$0
$93,000 to
$116,000
$116,000 to
$139,000
$139,000
and Above
All Students
Figure 1-28, below, depicts the manageability of graduates’ debt by grouping students into different categories (represented by different sections of each bar) based upon the percentage of their
average estimated wages that would be required to repay their debt.
The dark area at the top of the graph represents graduates whose debt would require more than
9% of their average salary to repay. 10 The percentage of all UC graduates who fall into this last
,"A%6+*+!'#!)-*!>L!=*5+!).%!;8!.6)%*&7.&A*$!*(*&2!.)-*&!+,-../0!
!
!
!"#$%&'!(!
)*+,%%-.*/!,0!1,2"3*4,-.!5/67.*/#!&/!8,$"9&*:.7!3*#/"/6/",*#!
;,-$&+.7!/,!1,2"3*4,-.!)*+,%%-.*/!"*!/<.!5/&/.!
!
!!
!
!"#$%&'(&$)"*&+$
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!"
household income early in the current decade, but fees and household income have increased at
similar rates in recent years (due in part to the University’s ability to forgo a fee increase in 200607). The gap between undergraduate UC fees and the fees and tuition charged by comparable
independent institutions remains substantial.
Figure 1-1
Average Undergraduate Tuition and Fees at UC and Selected
Independent Institutions as a Percent of California Median Household
Income, Academic Years 1984-85 to 2007-081
70%
60%
50%
40%
30%
20%
10%
0%
84-85 85-86 86-87 87-88 88-89 89-90 90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08
UC
5.8
5.3
5.0
5.1
5.1
5.3
5.4
7.4
8.9 10.6 12.0 11.7 11.2 10.7 10.0
8.9
8.4
8.2
8.5 11.2 12.8 13.1 12.4 12.5
Independents 38.7 38.0 38.6 38.4 39.9 43.1 41.9 44.5 47.0 48.2 52.5 53.5 53.5 53.1 53.9 51.9 50.8 53.2 55.5 56.6 59.8 59.9 60.0 58.0
Student fees are just one component of the total cost associated with full-time college attendance.
The total cost of attendance – or student budget – consists of a student’s direct educational costs
(e.g., fees, textbooks, and supplies) as well as costs such as living expenses, health care expenditures, and transportation costs that are incurred by the student while enrolled.
In 2007-08, over 60% of University undergraduates received some form of financial assistance
from University, state, federal, and/or private financial aid programs to help cover their total cost
of attendance. Over half of undergraduates received grants or scholarships – often referred to as
“gift aid” – that reduce the “net cost” of attending the University. For many UC undergraduates,
this financial assistance is what makes a University of California education possible.
!"#$%&'(&$)"*&+$$),(&-.,/0$
1
The independent institutions in the comparison are Brown, Caltech, Claremont McKenna, Columbia, Cornell, Dartmouth, Duke, Georgetown, Harvard, M.I.T., Northwestern, Notre Dame, Occidental, Pepperdine,
Princeton, Saint Mary's College of Moraga, Santa Clara University, Stanford, the University of Pennsylvania, U.S.C., and Yale.
page 4
DRAFT 11/12/2009
!"#
!"#$%&"!'())(*+&,
-./ 0%1.+&%$ !".23%
-./!0%1.+&%$!!".23%
Average Debt at Graduation
$16,257
55%
$15,708
55%
Percent of Graduates with Debt
$15,583
$15,457
$15,594
$15,786
$15,625
53%
53%
53%
52%
52%
$15,218
$15,242
51%
51%
1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Source: UC Accountability Framework. Figures are in 2007-08 constant dollars.
!!
!"##$%&'!(%&$)&*''!+',"-./0'12'3#456'
!"#
income, or loans.
The line in Figure 1-2, below, depicts the percentage of undergraduate students in various income
bands 2 who received gift aid in academic year 2007-08. The bars show the average value of the
gift aid that they received.
Figure 1-2
Gift Aid Recipients and Average Award by Parent Income,
Academic Year 2007-08
100%
$16,000
$14,000
80%
$12,000
The pattern
shown in Figure 1-2 reflects the University’s primary goal of using aid to ensure
that
$10,000
60%
financial$8,000
considerations are not a barrier to access for financially needy students: independent and
low-income students are more likely to receive gift aid than higher-income students, and
40% gener$6,000
ally receive larger awards. Consistent with this goal, 88% of all gift aid received by UC undergraduates$4,000
was awarded on the basis of need in 2007-08. Yet Figure 1-2 also shows that20%
a signifi$2,000of students at every income level receives some form of gift aid.
cant portion
$0
0%
Independent
Less than
$23,000
$23,000 to
$46,000
$46,000 to
$70,000
$70,000 to
$93,000
$93,000 to
$116,000
$116,000 to
$139,000
$139,000
and above
All Students
$12,107
$14,335
$13,148
$9,104
$5,327
$3,898
$3,959
$3,886
$10,279
As noted above, gift aid includes both grants and scholarships.
Avg. Gift Aid
90% need-based
87%
! % with
Grants
Gift Aid are
84%
73%
52%primarily
29% on the
21% basis17%
54%
awards
distributed
of a student’s
financial
circumstances. The University, through the Education Financing Model, dedicates most
of its undergraduate financial aid resources to grants, consistent with its vision of undergraduate financial aid as a tool intended primarily to provide access to UC.
2
Parent
income figures are
usedbased
here and
this report
are obtained
from either the
Free Application
!
Scholarships
onthroughout
criteria such
as academic
achievement,
musical
talent, or athfor Federal Student Aid (for financial aid recipients) or the undergraduate application for admission. In
letica ability.
Eligibility
foris certain
scholarships
be limited
financially
needy
cases where
student’s parent
income
not available
from thosemay
sources,
the parenttoincome
represents
an stuscholarships
areincomes
generally
available
students
at any income level who demestimateddents,
figurebut
based
upon the parent
of students
withto
similar
characteristics.
onstrate particular merit as defined by the terms of the scholarship.
Page 9
Figure 1-3, below, depicts the percentage of undergraduates in each income band who received
grants and scholarships, along with the average value of the awards that they received.
Figure 1-3
Grant and Scholarship Recipients and Average Awards by Parent
Income, Academic Year 2007-08
$14,000
100%
$12,000
80%
$10,000
$8,000
60%
$6,000
40%
$4,000
20%
$2,000
$0
Independent
Less than
$23,000
$23,000 to
$46,000
$46,000 to
$70,000
$70,000 to
$93,000
$93,000 to
$116,000
$116,000 to
$139,000
$139,000
All Students
and above
Avg. Grant
$11,060
$13,142
$11,903
$8,271
$4,669
$3,079
$2,866
$2,122
$10,155
Avg. Scholarship
$4,373
$3,150
$3,206
$3,436
$3,893
$3,841
$3,935
$3,923
$3,549
% with Grant
88%
86%
82%
69%
44%
15%
6%
2%
46%
% with Scholarship
25%
40%
41%
27%
18%
17%
17%
16%
25%
0%
Figure 1-3 illustrates the difference between how grants and scholarships are awarded. Students
from low-income families and financially independent students (who are generally low-income)
are much more likely to receive grant assistance than students with higher parental incomes, as
shown by the downward-sloping black line in the figure. Average grant assistance declines as
parent income increases, as shown by the declining height of the black bars. In contrast, there is a
Figure 1-4
Pell Grant, Cal Grant, and UC Grant Awards, Academic Year 2007-08
$8,000
90%
$7,000
80%
$6,000
70%
60%
$5,000
50%
$4,000
40%
$3,000
30%
$2,000
20%
$1,000
10%
$0
$93,000 to $116,000 to $139,000
$116,000
$139,000 and above
0%
Independent
Less than
$23,000
$23,000 to
$46,000
$46,000 to
$70,000
$70,000 to
$93,000
Avg. Pell Grant
$3,477
$4,061
$3,049
$1,564
$1,162
$0
$0
$0
$3,325
Avg. Cal Grant
$7,110
$6,551
$6,394
$6,714
$6,331
$5,413
$0
$0
$6,533
Avg. UC Grant
$6,767
$4,478
$4,837
$4,129
$3,081
$2,617
$2,493
$1,803
$4,596
% with Pell Grant
75%
84%
74%
23%
1%
0%
0%
0%
30%
% with Cal Grant
23%
65%
62%
47%
16%
2%
0%
0%
27%
% with UC Grant
78%
74%
71%
53%
33%
13%
5%
1%
38%
All Students
A student’s UC grant fills in the remaining gap, if any, after taking into account the student’s total cost of attendance (not just fees), the student’s parental resources, the student’s self-help expectation from work and borrowing, and the other grants received by
the student. Because UC grant eligibility is based upon these multiple factors, the distribution of UC grants shows neither the rapid decline in eligibility exhibited by the Pell
Grant program nor the “all-or-nothing” characteristic of Cal Grant awards. The average
UC grant is highest for independent students, partly because needy independent students
have no parental resources to draw upon, and partly because they are less likely than
other low-income students to meet the Cal Grant eligibility requirements. UC grants are
more sensitive to the actual need of a student given the other resources at the student’s
Figure 1-5
disposal – including an expected contribution from loan and work.
!
Scholarship Awards by Parent Income, Academic Year 2007-08
Scholarship$6,000
Programs
50%
$5,000
In the 2007-08
academic year, 25% of UC undergraduates received $147 million in scholarships.
40%
Scholarships$4,000
are funded from both University and extramural sources. Figure 1-5, below, shows
30%of
the average size of UC and extramural scholarships awarded in 2007-08, along with percentage
$3,000
students receiving a scholarship, by income level. The average scholarship size varies little20%by
income level.$2,000
However, in 2007-08, low-income students were significantly more likely than
10%
high-come students
to receive an extramural scholarship. This pattern reflects two federal schol$1,000
arship programs, introduced in 2006-07, whose eligibility is restricted to Pell Grant recipients: the
$0
0%
Academic Competitive
GrantLess(ACG)
program
andto the
Science
andto Mathematics
Access to Retain
than $23,000
to $46,000
$70,000
to $93,000
$116,000 to $139,000
Independent
All Students
$23,000
$46,000 16,000
$70,000 low-income
$93,000
$116,000
$139,000 and
above
Talent (SMART) Grant program.
Over
UC students
received
$23 million
$4,686
$4,382
$4,718
$4,393
$4,626
$4,821
$4,765
$4,754
$4,644
Avg.
UC
Scholarship
from the ACG and SMART grant programs in 2007-08, reducing the amount that these students
$3,055
$2,093
$2,269
$2,426
$2,184
$2,370
$2,232
$2,238
Avg. Other Scholarship
needed
to work or borrow
to $2,177
finance their
education.
% with UC Scholarship
15%
12%
12%
11%
10%
9%
10%
9%
11%
% with Other Scholarship
14%
34%
35%
19%
11%
10%
10%
8%
18%
page 12
Fee and Tuition Exemptions and Waivers
The University’s fee and tuition policies include a limited number of waivers and exemptions for
students who meet specific eligibility criteria. Examples include fee exemptions for eligible
dependents of deceased or disabled veterans (“Cal Vet” exemptions); nonresident tuition
exemptions for students who attended a California high school for three years and graduated from
sources of support were utilized in 2007-08 is presented below. UC also conducts and
participates in occasional student surveys to obtain information about students’ work patterns in
all types of employment; information from these surveys is presented later in the section. Much
less is known about the extent to which students and their families supplement these sources with
other funds, such as current parental income, tax-advantaged educational savings plans, tax
credits, home equity loans, or credit cards.
Figure 1-7
Utilization of Loans by Parent Income, Academic Year 2007-08
100%
$15,000
80%
$10,000
60%
40%
$5,000
20%
$0
Independent
Less than
$23,000
$23,000 to
$46,000
$46,000 to $70,000 to
$70,000
$93,000
$93,000 to $116,000 to $139,000
All Students
$116,000 $139,000 and above
Avg. Loans (Student or Parent)
$7,737
$5,365
$5,594
$6,981
$9,398
$11,758
$13,029
$13,843
$8,061
% with Loan (Student or Parent)
71%
56%
55%
51%
41%
28%
28%
16%
40%
0%
Student and Parent Borrowing
UC students and their families borrowed over $520 million from student and parent loan
programs in 2007-08, the great majority of which (90%) was borrowed through federal programs.
Figure 1-7, above, shows the percentage of UC students within each income category who used
either a student loan or a parent loan to finance their education during the 2007-08 academic year,
along with the average amount they borrowed. As shown in the figure, the likelihood that a
family borrows (using either a student loan or a parent loan) declines as parent income increases.
However, among those higher-income families that do borrow, the average amount that they
borrow is much higher than the amount borrowed by lower-income families. Note also that a
large percentage of students and parents do not use education loans to finance a UC education,
even among low-income families.
!"#!$%&!'%() *"*+!,%-(./'00) **"1+!,%-(./'00) 21+!,%-(./'00)
!"#$%&"'!(%&%)*++,!-.)/!
0*&*1%*2+% 3.#)'
0*&*1%*2+%!3.#)'
The overall pattern
results74from two different
patterns *+4
associated with
34
*+4in family borrowing
*+4
student borrowing and parent borrowing. These are depicted in Figure 1-8, below.
1*4
154
164
134
134
*74
*74
*74
1+4
*74
554
554
584
694
5:4
;0..!&,<$!
=5:>+++
=5:>+++!&%!
=79>+++
=79>+++!&%!
=*97>+++
=*97>+++!<$#!
<?%@0
ABB!C&-#0$&.
Page 15
4
4*)%&"!5&6.7%
"5
Source: 2007-08 Annual Report to The Regents on Student Financial Support
*1