National Education Associations Comment on Trends in College Pricing and Student Aid
- George R. Boggs, President and CEO
American Association of Community Colleges - Dr. Constantine (Deno) W. Curris, President
American Association of State Colleges and Universities - David Ward, President
American Council on Education - Dr. Lezli Baskerville, President and CEO
National Association for Equal Opportunity in Higher Education - David L. Warren, President
National Association of Independent Colleges and Universities - Peter McPherson, President
National Association of State Universities and Land-Grant Colleges - Dallas Martin, President
National Association of Student Financial Aid Administrators
George R. Boggs, President and CEO
American Association of Community Colleges
"The average increase in community college tuition this fall is relatively modest, roughly paralleling the consumer price index. Community colleges remain a great bargain for those aspiring to a college education. This year's tuition increases reflect erratic state and local government support as well as high program delivery costs, particularly in occupational education areas that are heavily reliant on technology. Our colleges and their state and local partners are doing everything they can to keep tuition low; it is time now for the federal government to step up and provide additional grant aid to needy students pursing higher education."
Dr. Constantine (Deno) W. Curris, President
American Association of State Colleges and Universities
"College Board's Trends in College Pricing and Student Aid provide the higher education community with valuable and timely information on the condition of college affordability.
"While tuition and fees at public four-year colleges increased for 2006-07, the growth rate was the lowest since 2000. This indicates that states are rebounding from their deficits and reinvesting in our country's most valuable resource-education.
"Higher education leaders still have a lot of work ahead of them in addressing the issue of college affordability. Funding for the federal Pell Grant program dropped by half a million dollars last year, and the maximum award has not increased for five years. This poses a serious threat to access and opportunity for low-income students who struggle to pay for college."
David Ward, President
American Council on Education
"While it is important that the College Board provide its annual report on college affordability, I can assure you that this issue is on the minds of college and university presidents and chancellors on a daily basis. Institutions are continually finding new ways to control cost and access new sources of revenue—both of which act to moderate tuition price. I remained heartened to see that the average tuition increase at community colleges was less than $100—this is certainly good news for the nearly 50 percent of U.S. undergraduates who attend those institutions and demonstrates what an incredible value they are to those seeking a college degree.
"Still, it is clear from the data on tuition increases at both public and private four-year institutions that more work needs to be done. We hope that state governments—which really set tuition prices at most public colleges and universities—will do their part to reinvest in higher education and keep their commitment to the financing partnership with institutions and the federal government.
"It is also greatly disturbing to me to see that the total dollar amount spent on the federal Pell Grant program actually declined from 2005 to 2006, and that the maximum grant now covers only 33 percent of tuition at public four-year institutions—that's an all-time low. The Pell Grant remains our nation's most important financial grant for needy students, and without future investment, thousands of individuals will have to defer or give up entirely on their dreams of earning a college degree. To its credit, the Commission on the Future of Higher Education, commissioned by Education Secretary Margaret Spellings, called in its final report for nearly doubling the nation's investment in the Pell Grant program over the next five years. We hope Congress acts quickly on this proposal which would mark a historic recommitment to need-based aid by the federal government."
Dr. Lezli Baskerville, President and CEO
National Association for Equal Opportunity in Higher Education
"The National Association for Equal Opportunity in Higher Education (NAFEO) is grateful to the College Board for again producing its Trends reports and its newer report on the benefits of higher education. The data contained in these highly acclaimed reports is extremely useful to NAFEO in making a compelling case to policymakers and a range of policy shapers and partners for the continued and increased investment in two- and four-year Historically Black Colleges and Universities and Predominantly Black Institutions (PBIs).
"As the only membership association of all of the nation's 105 Historically Black Colleges and Universities (HBCUs) and in excess of 20 Predominantly Black Institutions (PBIs), NAFEO continues to use the Trends in College Pricing data with NAFEO data and NCES data to illustrate that the cost of attaining a four-year degree at a private HBCU is, on average, $10,000 less than attaining a four-year degree at a private historically white college or university (HWCU). The cost of attaining a four-year degree at a public HBCU is $2,000 less on average than at a public HWCU.
"Every year, NAFEO uses Trends data to support higher education recommendations to federal and state legislators. For example, this year, NAFEO used the Trends data to support its recommendation that Congress adjust the Pell Grant maximum award to cover the average cost (tuition and fees) at a four-year public institution.
"HBCUs are continuing to outperform HWCUs relative to graduating and sending African American students directly to graduate and professional schools, especially in the sciences, technology, and health disciplines. Any student seeking to attain a first-rate, four-year college education at a lower cost and in a diverse environment should consider an HBCU. With the need to provide a college degree for more students with greater financial need, public and private investments in NAFEO member institutions are among the best investments we can make to lift students and their families out of poverty and strengthen our communities and the nation. The Trends data is a vital tool for making this case."
David L. Warren, President
National Association of Independent Colleges and Universities
"The College Board's report not only underscores the challenges that families face in affording higher education, but the efforts of private colleges and universities to remain affordable and accessible. The 11 percent inflation-adjusted increase in published tuition and fees at four-year private institutions between 2001-02 and 2006-07 is the lowest in 25 years.
"This year's average net tuition (published price minus grants and tax benefits) for a student at a private college is more than 40 percent below the average published tuition—$13,200 versus $22,218.
"This year's average tuition increase reflects double-digit increases in energy, library acquisitions, health care and other insurance premiums, and information technology. However, another key price driver is institutional aid. Congress has not kept funding for student aid in line with inflation, growing family need, or the swelling tidal wave of low-income and first-generation college students who are academically prepared for college. Declining federal funding for Pell Grants has put a strain on private college budgets as institutions use more of their resources to attempt to fill the gap.
"The Secretary of Education's Commission on the Future of Higher Education has called on policymakers to increase the maximum Pell Grant to 70 percent of the average cost of in-state tuition at a four-year public university, from the current 33 percent. Such a move by Congress would have the long-term benefits of the GI Bill, positioning the nation to safeguard its role as a global economic, scientific, political, and security leader. Private colleges and universities remain dedicated to controlling costs, increasing accessibility, and maintaining quality. Congress needs to keep up its commitment to needy students, their future, and the future of the national interest."
Peter McPherson, President
National Association of State Universities and Land-Grant Colleges
"Tuition increases are of great concern to both university leadership and our students. Every public university has its own unique situation, but for all of our institutions, state appropriations are critical to containing tuition increases. Over the last couple of decades, state governments have not kept up their traditional portion of the cost of a university education. This is clearly a major factor in tuition increases.
"I know from personal experience, during my tenure as president of Michigan State, the efforts that public university presidents make to hold down costs and tuition increases. This is a constant concern because access is a core value and mission of public universities. Universities will continue to struggle to contain costs in expense areas such as health care. Much has already been done and a great deal more is under way. Almost every budget control idea has been tried on some campus somewhere. No doubt, further innovation and cost containment will be required in delivering quality higher education. Public higher education is willing to do more. The states must be willing to do more as well.
"In that same spirit, it is important for the Pell Grant increase recommended by the Commission on the Future of Higher Education to be enacted. These grants were intended to help our nation's poorest students who otherwise could not afford higher education. The grants should be large enough to accomplish this goal. "
"This very complex problem of tuition increases is an important challenge for our society. All concerned parties must put great effort into finding solutions."
Dallas Martin, President
National Association of Student Financial Aid Administrators
"The National Association of Student Financial Aid Administrators (NASFAA) commends the College Board for compiling and issuing these important reports on the factors determining college access and affordability, factors that profoundly affect America's future. These reliable sources of information are critical to higher education policymakers.
"On the surface, Trends in Student Aid 2006 suggests some progress in increasing student aid, but underneath the surface some alarming trends lurk. While federal spending on student aid increased 95 percent over the last decade, over the last year federal Pell Grant spending is down by nearly $1 billion. In addition, average Pell Grant awards fell, the maximum Pell Grant award only covered one-third of the average cost of college, the proportion of undergraduate aid in the form of grants continues to decline, and an increasing proportion of institutional aid is distributed without considering whether the student needs the aid.
"The continued increase in student borrowing is another ominous trend highlighted by the report. Student loans are an important part of the student aid program, but the shift in federal spending from grants to loans undermines the ability of the student aid program to help low-income students. The continued increase in borrowing of nongovernment, or private, loans also has some potentially negative side-effects. Private loans are often marketed directly to students who may forgo other forms of aid because they lack knowledge about student aid programs. The increase in private loans makes campus financial aid administrators vital because they are an unbiased source of information to help students make informed decisions about borrowing for postsecondary education.
"Low-income and minority students are the fastest growing populations and their success is tied to the future success of America. But we are doing less and less to help these students access and complete higher education. Instead we are directing more and more money to students who already plan on attending college and have more resources to pay for it.
"NASFAA urges higher education leaders, policymakers at every level of government, and the public to support efforts to realign the student aid programs to help the neediest students pay for college by reinvesting in need-based, grant aid. This crucial investment will improve the lives of these students and the lives of all Americans."