affordability and financial aid: what kind of california do we want? joint committee on the master...
TRANSCRIPT
Affordability and Financial Aid: What Kind of California Do We Want?
Joint Committee on the Master Plan for Higher Education
President F. King Alexander, CSU Long Beach
February 17, 2010
2
CSU Financial Aid Packaging
For the CSU, grants are awarded first, loans last
For many other systems and universities, grants are the last in
Typical approach to packaging for CSU student: 1. Grants
• Pell Grant• Academic Competitiveness Grant (ACG) and National Science and Mathematics
Access to Retain Talent (SMART) Grant Programs• Cal Grant• State University Grant• Supplemental Educational Opportunity Grant (SEOG)• Educational Opportunity Grant (EOP)
2. Work Study
3. Loans
4. Federal Tuition Tax Credit
3
CSU Student Indebtedness
Percentage of 2006-07 Baccalaureate Recipients Who Assumed Loan DebtCSU Average 43%State Average 45%National Average 59%
Average Loan Debt of 2006-07 Baccalaureate Recipients who Stated who Assumed Loan DebtCSU Average $14,013State Average $17,215National Average $20,098
*Baccalaureate recipients were those who started as freshmen
4
Declining State Support Forces More Reliance on Student Fees(Constant 2009 Dollars)
1990/91 1995/96 1998/99 2005/06 2007/08 2009/10$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$1,507 Average Net Student Fee Revenue per Student $4,022
Student Fees less Financial Aid State General Fund
$11,075 State Funds per Student $6,842
5
1980 1985 1990 1995 2000 2005 2010$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00 $
12
.87
$1
2.7
5
$1
1.3
5
$9
.94
$9
.44
$1
1.0
8
$9
.96
$1
0.7
9
$1
0.7
6
$9
.92
$1
0.0
4
$9
.20
$9
.10
$7
.43
$6
.42
$6
.80
$7
.03
$7
.71
$7
.66
$8
.25
$8
.00
$8
.68
$8
.34
$7
.97
$7
.12
$7
.35
$7
.91
$8
.17
$7
.90
$6
.64
$6
.73
California Fiscal Support for Higher Education per $1,000 of Personal Income
FY 1980 to FY 2010
6
7
BOTTOM LINE
• CSU is one of the most affordable university systems in the nation (88% of the public universities in America charge more than the CSU)
• Unlike other university systems nationwide, the CSU returns 33% of the state university fee back to the neediest students
• CSU remains one of the most efficient university systems in the nation. Our per student expenditures are among the lowest in the country
• CSU average cost to degree production measured by the Delta Cost Study, places the CSU in the lowest 25th percentile of the 168 universities studied
The Real Issue is “State Support” and “Lack of Balance”
• California has become one of the “Terrible 12” (among the nation’s worst states in declining support for higher education since 1980)
• California spends $10 billion less or - 47.7% less in tax effort for higher education than it did in 1980
• The California Master Plan is in jeopardy because California has been in the process of abrogating its commitments to public higher education since 1980 (2010 represented its 3 rd lowest point in 30 years)
