Report: Financial Aid and Tuition Rise at Colleges
With the rise in tuition and fee at higher education institutions, there has been a steady increase in financial aid and a decrease in loan borrowings by the students.
According to Trends in Student Aid and Trends in College Pricing report released by non-profit College Board, the grants per full-time equivalent (FTE) for undergraduate students saw an increase of 4 percent in between 2016-2017 and 2017-2018.
The report has noted a decline in federal grant for graduate and undergraduate students in 2017-2018 but at the same time, the grant aid coming from colleges and universities has seen a substantial increase.
“A college education is critical to one’s long-term financial security, yet many students and families face real financial barriers to college enrollment and success. The data on college prices and student aid included in these reports create a context for evaluating public policies designed to increase educational opportunities.”
Increase in Tuition
At public four-year colleges and universities for full-time out-of-state students, the tuition and fee rose from $25,670 in 2017-18 to $26,290 in 2018-19 while for in-state students, it rose from $9,980 in 2017-18 to $10,230 in 2018-19.
The tuition and fee rose at private nonprofit four-year institutions from $34,700 in 2017-18 to $35,830 in 2018-19.
The public two-year colleges were also slightly affected by tuition hike. The colleges saw an average increase of $100 from $3,560 in 2017-18 to $3,660 in 2018-19.
Overall Increase in Grants
The report found an increase of 14 percent in grant aid per FTE undergraduate from $7,890 in 2016-17 to $8,970 in 2017-18, but the decline in Pell Grant expenditures continues to worry students.
The expenditure which rose from $17.2 billion in 2007-08 to $40.1 billion in 2010-11 fell to $28.2 billion by 2017-18.
The grant from colleges and universities have also seen an increase of 24 percent from $48.4 billion in 2012-13 to $60.0 billion in 2017-18. The grant from states and other private sources have also seen a rise of nearly 10 percent.
When it comes to awarding the largest grants, private nonprofit four-year institutions topped the list by offering grants to low-income students ranging from $33,260 to $12,840 from middle-income students.
Also, the public doctoral universities on an average awarded $2,900 in grants to their full-time students.
Decline in Student Borrowing
The borrowing by students and parents is seeing a continuous decline for the seventh consecutive year from $127.7 billion in 2010-11 to $105.5 billion in 2017-18.
The Federal loans per FTE undergraduate student also saw a decline from $5,830 in 2010-11 to $4,510 in 2017-18.
The average debt among public four-year college graduates saw an increase of $700 in between 2011-12 and 2016-17 as a comparison to $3,700 between 2006-07 and 2011-12.