Transcript Slide 1

2008
TRENDS IN COLLEGE PRICING
TRENDS IN STUDENT AID
T R E N D S
I N
H I G H E R
E D U C A T I O N
October 29, 2008
S E R I E S
T R E N D S
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C O L L E G E
P R I C I N G
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T R E N D S
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Published College Prices:
How fast are they rising?
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
S T U D E N T
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C O L L E G E
P R I C I N G
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S T U D E N T
Annual Percent Change in the Consumer Price Index
T R E N D S
I N
H I G H E R
1991
4.4%
1992
3.2%
1993
2.8%
1994
2.8%
1995
2.8%
1996
3.0%
1997
2.2%
1998
1.7%
1999
2.1%
2000
3.7%
2001
2.7%
2002
1.5%
2003
2.1%
2004
3.0%
2005
3.2%
2006
4.1%
2007
2.4%
2008
5.6%
E D U C A T I O N
S E R I E S
A I D
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C O L L E G E
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S T U D E N T
Average Published Charges for Undergraduates by
Type and Control of Institution, 2008-09 (Enrollment-Weighted)
Enrollment-weighted tuition and fees are derived by weighting the price charged by each institution by the number of full-time students
enrolled in 2007-08. Public four-year in-state charges are weighted by total 2007-08 full-time enrollment in each institution. Out-of-state tuition
and fees are computed by adding the average in-state price to the out-of-state premium weighted by the number of full-time out-of-state
students enrolled at each institution. Room and board charges are weighted by the number of students
residing on campus.
— Sample too small to provide meaningful information.
Note: Prices reported for 2007-08 have been revised and may differ from those reported in Trends in College Pricing 2007.
Source: The College Board, Annual Survey of Colleges
T R E N D S
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H I G H E R
E D U C A T I O N
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A I D
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C O L L E G E
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S T U D E N T
A I D
2008-09 Published Price Changes by Sector
Current and Constant Dollar Increases
2007-08
2008-09
2007-08
In 2008 $
Current %
Constant %
Public Two-year
$
2,294
$
2,402
$
2,422
4.7%
-0.8%
Public Four-Year
In-State
$
6,191
$
6,585
$
6,538
6.4%
0.7%
Public Four-Year
Out-of-State
$
16,586
$
17,452
$
17,515
5.2%
-0.4%
Private Not-for-Profit
Four-Year
$
23,745
$
25,143
$
25,075
5.9%
0.3%
For-Profit
$
12,489
$
13,046
$
13,188
4.5%
-1.1%
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
T R E N D S
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C O L L E G E
P R I C I N G
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T R E N D S
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Published College Prices:
How much do they vary?
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
S T U D E N T
A I D
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C O L L E G E
P R I C I N G
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S T U D E N T
Average Published Charges for Undergraduates by
Carnegie Classification, 2008-09 (Enrollment-Weighted)
Enrollment-weighted tuition and fees are derived by weighting the price charged by each institution by the number of full-time students
enrolled in 2007-08. Public four-year in-state charges are weighted by total 2007-08 full-time enrollment in each institution. Out-ofstate tuition and fees are computed by adding the average in-state price to the out-of-state premium weighted by the number of fulltime out-of-state students enrolled at each institution. Room and board charges are weighted by the number of students
residing on campus.
Source: The College Board, Annual Survey of Colleges
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E D U C A T I O N
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S T U D E N T
Total Educational Costs per Full-Time Equivalent (FTE) Student
by Carnegie Classification in Constant (2005) Dollars,
1995-96, 2000-01, and 2005-06
Note: Total educational costs include spending on instruction and student services, as well as the instructional
share of spending on central academic and administrative support and operations and maintenance.
Source: The Delta Cost Project; calculations by the authors.
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H I G H E R
E D U C A T I O N
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C O L L E G E
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S T U D E N T
Total Net Tuition and Fee Revenues as a Percentage of
Total Educational Costs by Carnegie Classification,
1995-96, 2000-01, and 2005-06
Notes: Total educational costs include spending on instruction and student services, as well as the instructional share of spending
on central academic and administrative support and operations and maintenance. Net tuition and fees equal gross tuition and fee
revenue (including federal and state grants) less institutional grant aid (price discounts).
Source: The Delta Cost Project; calculations by the authors.
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H I G H E R
E D U C A T I O N
S E R I E S
A I D
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C O L L E G E
P R I C I N G
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S T U D E N T
A I D
Endowment Assets per Full-Time Equivalent (FTE) Student
at Four-Year Colleges and Universities
by Decile and Carnegie Classification, 2007
Note: The value of endowment
assets was as of the end of fiscal
year 2007. Endowment assets
are based on data for 63 private
doctorate-granting, 109 private
master’s, 168 private
baccalaureate, 142 public
doctorate-granting, 216 public
master’s, and 98 public
baccalaureate degree institutions.
Average endowment per FTE for
each decile of institutions is
calculated by ordering the
institutions in the sector by assets
per FTE and dividing the students
in the sector into deciles. Total
assets in the institutions enrolling
10% of students in the sector are
divided by the number of students
in those institutions.
Sources: National Association of College and University Business Officers
(NACUBO) Endowment Study; NCES, Integrated Postsecondary Education Data
System; calculations by the authors. Data are from NACUBO
where available.
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H I G H E R
E D U C A T I O N
S E R I E S
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S T U D E N T
Tuition and Fee and Room and Board (TFRB) Charges by
College Board Region and Sector, in Constant (2008) Dollars,
1998-99 and 2008-09 (Enrollment-Weighted)
Note: 2008-09 room and board charges are based on commuter housing and food costs; comparable data are not available for 1998-99.
States included in the regions are as follows. New England: CT, MA, ME, NH, RI, and VT; Middle States: DC, DE,
MD, NJ, NY, PA, and PR; South: AL, FL, GA, KY, LA, MS, NC, SC, TN, and VA; Midwest; IA, IL, IN, KS, MI, MN, MO,
NE, ND, OH, SD, WI, and WV; Southwest: AR, NM, OK, and TX; West: AK, AZ, CA, CO, HI, ID, MT, NV, OR, UT, WA, and WY.
In addition to regional differences, there are also state differences in published tuition and fees (see data online at:
www.collegeboard.com/trends).
Source: The College Board, Annual Survey of Colleges.
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Percentage Changes and Dollar Changes in
Published Prices by Region
Over the decade:
Public four-year:
Largest increase
Southwest
$6,421
89% ($3,016)
Smallest dollar increase:
South
$5,412
50% ($1,807)
$7,565
34% ($1,903 )
Smallest percentage increase: Middle States
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H I G H E R
E D U C A T I O N
S E R I E S
A I D
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C O L L E G E
P R I C I N G
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S T U D E N T
Tuition and Fees
Tell Only Part of the Story
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H I G H E R
E D U C A T I O N
S E R I E S
A I D
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C O L L E G E
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S T U D E N T
Average Estimated Undergraduate Budgets,
2008-09 (Enrollment-Weighted)
Note: Expense categories are based on
institutional budgets for students as
reported by colleges and universities in
the Annual Survey of Colleges. They do
not necessarily reflect actual student
expenditures.
Source: The College Board, Annual
Survey of Colleges.
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
A I D
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C O L L E G E
P R I C I N G
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How Much do Students
Actually Pay?
Net Prices
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
S T U D E N T
A I D
T R E N D S
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C O L L E G E
P R I C I N G
A N D
T R E N D S
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S T U D E N T
Average Educational Subsidy per Full-Pay Student
by Carnegie Classification, 2005-06
Notes: Subsidy per full-pay student is the dollar amount of full educational cost per FTE student that is not covered by published
tuition and fees per FTE.
Source: The Delta Cost Project; calculations by the authors.
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
A I D
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C O L L E G E
P R I C I N G
A N D
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S T U D E N T
A I D
Published Tuition and Fees and Room and Board (TFRB) Compared to TFRB
Net of Average Grant and Education Tax Benefits per
Full-Time Undergraduate Student, in Constant (2008) Dollars,
1993-94, 1998-99, 2003-04 and 2008-09
Notes: Net tuition and fees are calculated by subtracting estimated average grant aid plus tax benefits per full-time
student in the sector from the published price. Aggregate aid amounts are from Trends in Student Aid 2008. Division
of total aid across sectors and between full-time and part-time students is based on the NPSAS, 1993 through 2004.
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
T R E N D S
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C O L L E G E
P R I C I N G
A N D
T R E N D S
The Distribution of
Income and Aid
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
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S T U D E N T
A I D
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C O L L E G E
P R I C I N G
A N D
T R E N D S
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S T U D E N T
Percentage Growth in Mean Family Income by Quintile
(in Constant 2007 Dollars), 1977–1987,
1987–1997, and 1997–2007
Source: U.S. Census Bureau, Current Population Survey, Table F-1, Table F-3, and FINC-01;
calculations by the authors, where available.
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H I G H E R
E D U C A T I O N
S E R I E S
A I D
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C O L L E G E
P R I C I N G
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S T U D E N T
Median Family Income by Selected Characteristics, 2007
Source: U.S. Census Bureau, Current Population Survey, Table F-1, Table F-3, and FINC-01;
calculations by the authors, where available.
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
A I D
T R E N D S
I N
C O L L E G E
P R I C I N G
A N D
T R E N D S
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S T U D E N T
Distribution of Pell Grant Recipients by Family Income
and Dependency Status, 2006-07
Source: The Federal Pell Grant Program End of Year Report, 2006-07.
T R E N D S
I N
H I G H E R
E D U C A T I O N
S E R I E S
A I D
T R E N D S
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C O L L E G E
P R I C I N G
A N D
T R E N D S
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S T U D E N T
Distribution of Education Tax Credits, 2006
(and Average Tax Savings per Recipient)
Note: Only tax credits and deductions claimed on taxable income tax returns are included. The value of tax deductions is estimated
based on applicable marginal tax rates. Available data do not allow separation of independent students from parents of dependent
students claiming tax credits and deductions. Components may not sum to 100 percent due to rounding.
Sources: http://www.irs.gov/pub/irs-soi/06in33ar.xls; http://www.irs.gov/pub/irs-soi/06in14ar.xls; http://www.irs.gov/pub/
irs-soi/06in13ms.xls; calculations by authors.
T R E N D S
I N
H I G H E R
E D U C A T I O N
S E R I E S
A I D
T R E N D S
I N
C O L L E G E
P R I C I N G
A N D
T R E N D S
I N
S T U D E N T
Distribution of Savings from Tuition Tax Deduction, 2006
(and Average Tax Savings per Recipient)
Note: Only tax credits and deductions claimed on taxable income tax returns are included. The value of tax deductions is estimated
based on applicable marginal tax rates. Available data do not allow separation of independent students from parents of dependent
students claiming tax credits and deductions. Components may not sum to 100 percent due to rounding.
Sources: http://www.irs.gov/pub/irs-soi/06in33ar.xls; http://www.irs.gov/pub/irs-soi/06in14ar.xls; http://www.irs.gov/pub/
irs-soi/06in13ms.xls; calculations by authors.
T R E N D S
I N
H I G H E R
E D U C A T I O N
S E R I E S
A I D
T R E N D S
I N
C O L L E G E
P R I C I N G
A N D
T R E N D S
I N
S T U D E N T
Number of Recipients of Federal Aid by Program
(with Average Aid Received), 2007-08
Note: Tax Benefits, Perkins Loans, and FWS are received by both undergraduate and graduate students. Federal Pell Grants,
FSEOG, ACG, and SMART grants go to undergraduates only.
T R E N D S
I N
H I G H E R
E D U C A T I O N
S E R I E S
A I D
T R E N D S
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C O L L E G E
P R I C I N G
A N D
T R E N D S
I N
S T U D E N T
A I D
Distribution of Federal Aid Funds by Sector, 2006-07
Note: Components may not
sum to 100% due to
rounding.
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
T R E N D S
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C O L L E G E
P R I C I N G
A N D
T R E N D S
I N
S T U D E N T
A I D
Institutional Grant Aid:
Need-Based, Non-Need-Based, and Athletic Awards in
Constant (2007) Dollars, 2000-01 to 2006-07
Note: The scale on the
private institutional grant
graph is 10 times the
scale on the graph for
public institutions. The
highest line on the
private graph
corresponds to average
grant aid of $5,000,
while the highest line on
the public graph
corresponds to average
grant aid of $500.
T R E N D S
I N
H I G H E R
E D U C A T I O N
S E R I E S
T R E N D S
I N
C O L L E G E
P R I C I N G
A N D
T R E N D S
I N
S T U D E N T
Private Four-Year Institutions by Type and Tuition Level:
Need-Based, Non-Need-Based, and Athletic Aid
Note: Need-based grants include any institutional grant dollars awarded to students with financial need up to the student’s full need. Non-need-based
grants are defined as dollars awarded to students without financial need or amounts that exceed the student’s financial need. Tuition levels are divided
into two groups: those above and those below the median tuition and fee level ($28,605) for this sample.
Source: Annual Survey of Colleges, The College Board, New York, NY.
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
A I D
T R E N D S
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C O L L E G E
P R I C I N G
A N D
T R E N D S
Student Borrowing
T R E N D S
I N
H I G H E R
E D U C A T I O N
S E R I E S
I N
S T U D E N T
A I D
T R E N D S
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C O L L E G E
P R I C I N G
A N D
T R E N D S
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S T U D E N T
Average Aid per Undergraduate FTE in Constant (2007)
Dollars,
1990-91 to 2007-08
T R E N D S
I N
H I G H E R
E D U C A T I O N
S E R I E S
A I D
T R E N D S
I N
C O L L E G E
P R I C I N G
A N D
T R E N D S
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S T U D E N T
Growth of Stafford, PLUS, and Nonfederal Loan Dollars
in Constant (2007) Dollars, 1997-98 to 2007-08
Note: Components may not sum to 100% due to rounding.
T R E N D S
I N
H I G H E R
E D U C A T I O N
S E R I E S
A I D
T R E N D S
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C O L L E G E
P R I C I N G
A N D
T R E N D S
I N
S T U D E N T
Proportion of Undergraduate Students Borrowing
Federal Stafford Loans, 1997-98, 2002-03, and 2007-08
Sources: Percent of students borrowing is based on IPEDS enrollment data; calculations by the authors. Loan data are from
the U.S. Department of Education, Office of Postsecondary Education, and the National Student Loan Data System (NSLDS).
T R E N D S
I N
H I G H E R
E D U C A T I O N
S E R I E S
A I D
T R E N D S
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C O L L E G E
P R I C I N G
A N D
T R E N D S
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S T U D E N T
A I D
Average Debt per Borrower and Average Debt per Bachelor’s
Degree Recipient in Constant (2007) Dollars,
2000-01 to 2006-07
Note: Debt figures include both federal
loans and loans from nonfederal sources
that have been reported to the
institutions, based on institutional
reporting of aggregate debt figures.
Source: Annual Survey of Colleges,
The College Board, New York, NY.
T R E N D S
I N
H I G H E R
E D U C A T I O N
S E R I E S
T R E N D S
I N
C O L L E G E
P R I C I N G
A N D
T R E N D S
I N
S T U D E N T
A I D
Average Debt per Borrower and Average Debt per Bachelor’s
Degree Recipient in Constant (2007) Dollars,
2000-01 to 2006-07
Note: Debt figures include both federal
loans and loans from nonfederal sources
that have been reported to the
institutions, based on institutional
reporting of aggregate debt figures.
Source: Annual Survey of Colleges,
The College Board, New York, NY.
T R E N D S
I N
H I G H E R
E D U C A T I O N
S E R I E S
T R E N D S
I N
C O L L E G E
P R I C I N G
A N D
T R E N D S
I N
S T U D E N T
Degrees Granted by Level and Institutional Type,
1995-96 and 2005-06
Note: First-professional degrees involve completion of all academic requirements to begin practice in any of the following fields:
chiropractic, dentistry, law, medicine, optometry, osteopathic medicine, pharmacy, podiatry, theology and veterinary medicine.
Source: NCES, Condition of Education 2008, Table 41.1.
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
A I D
T R E N D S
I N
C O L L E G E
P R I C I N G
A N D
T R E N D S
I N
S T U D E N T
Total Number of Degrees Granted, 1995-96 and 2005-06
Note: First-professional degrees involve completion of all academic requirements to begin practice in any of the following fields:
chiropractic, dentistry, law, medicine, optometry, osteopathic medicine, pharmacy, podiatry, theology and veterinary medicine.
Source: NCES, Condition of Education 2008, Table 41.1.
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
A I D
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C O L L E G E
P R I C I N G
A N D
T R E N D S
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S T U D E N T
A I D
Percentage Distribution of Full-Time Equivalent (FTE)
Enrollment in Postsecondary Institutions by Sector, Fall 1995
and Fall 2005
Source: NCES, unpublished data.
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
T R E N D S
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C O L L E G E
P R I C I N G
A N D
T R E N D S
I N
For More Information:
Sandy Baum
[email protected]
Jennifer Ma
[email protected]
Kathleen Payea
[email protected]
T R E N D S
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H I G H E R
E D U C A T I O N
S E R I E S
S T U D E N T
A I D