aspects of undergraduate finances: using the npsas data to analyze borrowing in minnesota and...
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Aspects of undergraduate finances: Using the NPSAS data to analyze borrowing in Minnesota and Connecticut
Tricia Grimes
Shefali Mehta
Minnesota Office of Higher Education
June 2006
Presented for the Student Financial Aid Research
Network Conference, June 22-24, 2006 in Providence,
Rhode Island
June 2006 Minnesota Office of Higher Education 2
• NPSAS 2004 provided data for detailed state-level analysis for 12 states for the three major institutional sectors
• The dataset provides over 1,000 variables on finances, demographics, persistence, and attendance.
• While the data provide much useful information that was not previously available, there are several areas where it is necessary to use the data with caution.
• Today’s presentation will focus on borrowing characteristics in Minnesota and Connecticut while highlighting the issues in analyzing these data.
The National Postsecondary Student Aid Study (NPSAS)
Overview of finances in the 12 states
Income, tuition and borrowing for
undergraduates
June 2006 Minnesota Office of Higher Education 4
Income distributions by dependent status
Income distributions ranked by median
$45,100$24,100$10,900$86,000$51,500$28,300New York
$56,500$27,400$11,100$89,800$53,600$26,200California
$43,400$24,500$11,300$90,100$55,000$30,400Georgia
$46,200$24,700$11,000$88,800$57,000$29,400Texas
$50,200$27,700$12,800$82,500$57,600$37,700Nebraska
$54,900$32,700$17,400$95,200$58,200$34,000Delaware
$49,900$24,500$9,000$88,600$59,200$35,600Oregon
$53,000$26,600$11,600$85,200$61,000$33,700Tennessee
$55,100$30,400$13,700$91,500$61,200$36,200Illinois
$62,700$30,800$14,200$94,700$66,500$39,600Connecticut
$51,200$28,700$11,500$98,600$67,100$42,200Indiana
$55,600$30,700$14,800$93,200$67,800$39,600Minnesota
$50,100$26,500$12,700$90,000$58,200$32,500U.S.
75th %50th %25th %75th %50th %25th %
Independent (residents)Dependent (residents)
June 2006 Minnesota Office of Higher Education 5
Tuition and fees in the 12 states
Tuition and fees ranked by median
$6,300$2,200$1,700 Delaware$2,000$320$180 California
$6,000$2,500$550 California$3,200$1,100$540 Texas
$5,100$3,200$2,600 Georgia$3,100$1,400$590 Georgia
$4,800$3,500$1,700 Texas$5,200$1,500$630 Illinois
$9,300$3,800$3,200 Nebraska$3,900$1,900$910 Tennessee
$10,000$3,900$3,100 Tennessee$5,000$1,900$650 Oregon
$7,700$4,400$3,300 Minnesota$6,600$2,300$1,100 Delaware
$11,000$5,000$1,800 Illinois$5,800$3,000$1,300 Indiana
$7,000$5,300$4,200 Oregon$4,100$3,100$1,300 Nebraska
$17,000$5,400$3,800 Indiana$5,800$3,400$1,700 Minnesota
$18,000$5,700$4,300 New York$11,000$4,300$2,300 New York
$24,000$6,800$5,000 Connecticut$18,000$5,000$1,500 Connecticut
$9,800$4,800$2,800U.S.$5,400$2,300$790U.S.
75th %50th %25th % 75th %50th %25th %
Undergraduates attending full-time, full yearAll undergraduates
June 2006 Minnesota Office of Higher Education 6
Overall annual borrowing in the 12 states
Ranked by percent who borrowed
$5,50016% California
$5,30025% Illinois
$5,70025% Georgia
$5,80026% Texas
$5,70030% Delaware
$6,80034% Connecticut
$5,80034% Oregon
$5,20037% Tennessee
$5,60039% Indiana
$6,00040% New York
$5,00046% Nebraska
$6,10049% Minnesota
$5,80035%U.S.
Total loans
Percent who
borrowed
Total loans (95% confidence
intervals)
$5,700$5,30017%14%
$5,600$5,00027%23%
$6,000$5,40027%23%
$6,000$5,60028%25%
$6,400$5,00033%27%
$7,600$6,00036%32%
$6,200$5,50036%33%
$5,400$5,00038%35%
$5,900$5,30040%37%
$6,400$5,70042%38%
$5,200$4,70048%43%
$6,400$5,80051%48%
$5,900$5,70035%35%
Percent who borrowed
(95% confidence intervals)
Borrowing in Minnesota and Connecticut
Undergraduate borrowing by
attendance status, sector and class
level
June 2006 Minnesota Office of Higher Education 8
Public 4-year, 32%
Public 4-year, 33%
Private not-for-profit 4-year, 33% Private not-for-
profit 4-year, 17%
Public 2-year, 29%
Public 2-year, 43%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Connecticut Minnesota
Enrollment across institutional sectors: CT and MN
The difference in enrollment between
the public 2-year and private not-for-profit 4-year sector
is substantial.
June 2006 Minnesota Office of Higher Education 9
Borrowing by attendance status: Minnesota
$4,390
$6,450$6,600
$4,960$6,120
49%
63%
44%48%
19%
$0
$2,000
$4,000
$6,000
$8,000
Total Full-time/full-year Part-time/full-year Full-time/part-year Part-time/part-year
Attendance status
0%
20%
40%
60%
80%
100%
Average loan Percent who borrowed
June 2006 Minnesota Office of Higher Education 10
Borrowing by attendance status: Connecticut
$4,070
$5,620
$7,380
$6,810
$4,790
34%
9%
19%
32%
46%
$0
$2,000
$4,000
$6,000
$8,000
Total Full-time/full-year Part-time/full-year Full-time/part-year Part-time/part-year
Attendance status
0%
20%
40%
60%
80%
100%
Average loan Percent who borrowed
June 2006 Minnesota Office of Higher Education 11
Average loan amount by attendance status
$4,960
$6,450
$4,390
$6,600
$4,070
$4,790$5,620
$7,380
$0
$2,000
$4,000
$6,000
$8,000
$10,000
Full-time/full-year Part-time/full-year Full-time/part-year Part-time/part-year
Attendance status
Minnesota Connecticut
June 2006 Minnesota Office of Higher Education 12
Percent who borrowed by attendance status
19%
63%
48%44%46%
19%
32%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Full-time/full-year Part-time/full-year Full-time/part-year Part-time/part-year
Attendance status
Minnesota Connecticut
June 2006 Minnesota Office of Higher Education 13
Average loan amount by dependent students’ parents’ income
$6,600$6,000
$5,400
$6,800
$7,800$8,800
$6,700
$5,700
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
< $30,000 $30,000-$60,000 $60,000-$90,000 $90,000+
Dependent students' parents' income
Minnesota Connecticut
June 2006 Minnesota Office of Higher Education 14
Percent who borrowed by dependent students’ parents’ income
73%68%62%
57%
43%
50%48%
58%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
< $30,000 $30,000-$60,000 $60,000-$90,000 $90,000+
Dependent students' parents' income
Minnesota Connecticut
June 2006 Minnesota Office of Higher Education 15
Average loan amount by full-time students by institutional sector
$8,200
$6,800
$5,200
$6,600
$9,400
$5,400
$7,400
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Total Public 2-year Public 4-year Private not-for-profit 4-year
Institutional sector
Minnesota Connecticut
Estimate not available
due to small sample size
June 2006 Minnesota Office of Higher Education 16
Percent who borrowed by institutional sector
75%77%
50%
63%
8%
57%
52%
46%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Total Public 2-year Public 4-year Private not-for-profit 4-year
Institutional sector
Minnesota Connecticut
June 2006 Minnesota Office of Higher Education 17
Average cumulative borrowing for graduating seniors by sector
$25,300
$17,300
$20,300$18,900
$16,700$18,000
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Total Public 4-year Private not-for-profit 4-year
Institution sector
Minnesota Connecticut
June 2006 Minnesota Office of Higher Education 18
Percent of graduating seniors who borrowed by sector
80%75%76%
65%61%
62%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Total Public 4-year Private not-for-profit 4-year
Institution sector
Minnesota Connecticut
June 2006 Minnesota Office of Higher Education 19
Reports and articles for Minnesota
February 2006
Undergraduate Borrowing in Minnesota
February 2006
A periodic newsletter on a single topic of interest published by the Office of Higher Education
Student Borrowing Increases - Much Growth Among Higher-I ncome Families
This issue of Insight takes a look at undergraduate borrowing in the 2003-2004 academic year. The student borrowing information here is based on a survey administered by the U.S. Department of Education called the National Postsecondary Student Aid Survey. See also a report on student borrowing, produced by the Minnesota Office of Higher Education.
Overall, 49 percent of all undergraduate students in Minnesota (or approximately 150,000 students) took out student loans in 2004. This is a moderate increase since the 1999-2000 academic year when 41 percent of Minnesota undergraduates took out student loans.
In Minnesota, 63 percent of students who attended full-time for the full academic year had student loans. Among those who borrowed, the average annual amount was about $6,600, which is slightly higher than the national average of $6,210. In contrast, 19 percent of students who attended part-time for part of the academic year took out student loans. Undergraduates attending part-time and taking out loans borrowed an average of $4,390, which is slightly lower than the national average.
Average borrowing by full-time, full-year undergraduates in Minnesota in 2004
Full-time, full-year students borrow more than their part-time counterparts In 2000, 41 percent of all Minnesota students borrowed an average of $5,650. In 2004, 49 percent of all students borrowed an average of
» TABLE OF CONTENTS «
Full-time, full-year students borrow more
Borrowing Increases Among Higher-Income Families
Increased Borrowing Mirrors a National Increase in Personal Debt
Reliance on Unsubsidized Loans Increases
Middle Income Families Most Likely to Borrow
Loan sources and limits
» RELATED TOPI CS «
Tuition and fee increases in Minnesota
» FEATURED LI NKS «
Increasing Consumer Debt by State
National Information on How Students Pay for College
Consumer debt is increasing
Rising tuition and student loans
Types of student loans
Student debt burden and repayment
Student loan repayment
Student loans and debt aversion
Student loans and access to college
Rising student debt
J une 2006
A periodic newsletter on a single topic of interest published by the Office of Higher Education
First-generation college students more likely to be older, independent, part-time and attending community and technical colleges
Students who are the first in their family to attend college come from a variety of backgrounds. Yet these students face some common challenges as they strive to complete degrees, often with less support and guidance from their families.
In an effort to better understand first generation students in Minnesota, this issue of Insight provides information about the characteristics of first-generation students. First-generation students can encounter difficulty during the transition from high school to college and are more likely to struggle to persist in college than their peers. The first-generation student information in this issue is based on the National Postsecondary Student Aid Survey (NPSAS) from 2004 administered by the U.S. Department of Education.
First-generation students comprise one-fourth of undergraduate population in Minnesota
First-generation undergraduates are students whose parents' have never been enrolled in college, meaning their highest educational attainment was a high school degree or the equivalent. While the definition of a first-generation student is based upon neither parent having any college experience, the estimates in this analysis are based on three levels of parents' educational attainment: no college, some college, and bachelor's degree or higher.
In 2004, 26 percent of all undergraduates enrolled in college in Minnesota were first-generation students. Nationally, 34 percent of all undergraduates were first-generation students.
Distribution of undergraduates in Minnesota by parents' highest level of educational attainment, 2004
» TABLE OF CONTENTS «
First-generation students comprise one-fourth of undergraduate population in Minnesota
Fewer first-generation students attend four-year institutions
First-generation students were less likely to enroll full time than their counterparts
First-generation students tend to have non-traditional characteristics
First-generation students are more likely to be immigrants or children of immigrants in Minnesota
First-generation students are more likely to take remedial classes than their peers
» RELATED TOPICS «
Minnesota Undergraduate Demographics: Characteristics of Postsecondary Students
National Postsecondary Student Aid Survey
» FEATURED LINKS «
First generation students and their performance in college
An analysis of first generation students in the U.S.
Contributions of first generation students in California [ .pdf ]
Information for first generation students
Tips for first generation students
» NEWS ALERTS «
May 2006
Minnesota Undergraduate Demographics: Characteristics of Post-Secondary Students
June 2006 Minnesota Office of Higher Education 20
Findings and discussion
• Borrowing under some variables is similar but on the whole, the percent who borrowed in Minnesota is higher than in Connecticut
• Answering these questions requires more complex models to deal with these complex relationships that can not be analyzed by basic descriptive statistics or linear regression
• Minnesota has found the state-level data to be very useful
– It helps to have a graduate intern who can spend dedicated time on mining the data.
– We are grateful for Lumina Foundation support
June 2006 Minnesota Office of Higher Education 21
Findings and discussion - continued
• If we had it to do over again, we would like a larger sample and we would like the sample to include students in the for-profit sector
– A sample of 1,800 is a nice size, but when you want to look at full-time students you end up with about 900, then dependent students gets you about 450 and when you cut it by sector and income, the sample size is too small for meaningful analysis.
June 2006 Minnesota Office of Higher Education 22
Findings and discussion - continued
• One of the major advantages of NPSAS data is information on students who did not apply for aid
– In Minnesota there was less precision on this data because the two public systems interpreted federal and Minnesota data privacy laws to mean they could provide little information about students who had not filled out a FAFSA.
• If these systems change the “data warning” in their student application materials, they should be able to provide more complete data.
• Another major advantage is information on aid from all sources
– Private and state loans
– Institution and private grants and scholarships
The End
Thank you
For questions or comments, please contact us:
Tricia Grimes, [email protected]
Shefali Mehta, [email protected]