Transcript Document

The Benefits of Independent Higher
Education to Pennsylvania
Association of Independent Colleges and
Universities of Pennsylvania (AICUP)
101 North Front Street
Harrisburg, Pennsylvania 17101
Independent higher education is a primary
partner in helping families pay for college.
Sources of Financial Aid Received by
Students with Need
Change between 1998-99 and 2006-07
70%
59% 62%
60%
50%
40%
1998-1999
2006-2007
26% 28%
30%
20%
10%
6% 5%
8% 5%
Federal
Grants
State Grants
0%
Institutional
Grants
Loans
Independent
institutions, not
government, are the
largest source of
financial aid to students.
As federal and state
financial aid dollars
have decreased over
time, independent
institutions have
increased their share of
financial aid to students.
Source: National Center for Education Statistics, Integrated Postsecondary Education
Data System (IPEDS) Financial Aid survey.
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Independent colleges and universities benefit…individuals
Independent higher education is affordable.
Average Net Cost to Students with Need, 2006-07
$25,049
Average tuition and fees for an
Independent College student
Because of grants
and scholarships
needy students pay
far less than
published tuition
charges.
- $ 3,780
- $ 3,570
- $11,900
Average federal grant
Average state grant
Average institutional grant
- $19,250
Total Grant Aid
= $5,799
Average net cost to students with need
Source: National Center for Education Statistics, Integrated Postsecondary Education Data System
(IPEDS) Institutional Characteristics survey and Financial Aid survey.
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Independent colleges and universities benefit…individuals
Students graduating from independent
institutions have education debt
comparable to students at public universities.
Average Loan Debt of College Graduates, 2006-07
State Related
Universities
$25,676
Independent Colleges &
Universities
$23,846
State System Universities
$19,589
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Source: Institute for College Access and Success database at www.economicdiversity.org.
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Independent colleges and universities benefit…individuals
A degree from an independent college or
university has significant economic benefits.
Earning of Private College Graduates Five Years After Graduation
Compared to Non-College Pennsylvania Residents (2004 Income)
Under $20,000
0%
15%
12%
$20-$40,000
46%
44%
$40-$60,000
26%
A college degree is an
investment that does pay off in
numerous ways including
greater job security and higher
income.
26%
$60-$80,000
8%
11%
$80-$100,000
2%
Recent Independent College Graduates
PA Residents Without Bachelor's Degree
7%
Over $100,000
2%
0%
10%
20%
30%
40%
50%
Source: 2004 Baccalaureate Outcomes Survey undertaken by Association of Independent
Colleges and Universities of Pennsylvania.
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Independent colleges and universities benefit…individuals
Independent colleges and universities
graduate more students on time than
public universities.
Proportion of Students Graduating in 4 Years
Freshman Class of 2001
Independent
Colleges &
Universites
62%
State Related
Universities
Students earning degrees
from independent institutions
are in the workforce faster
than their counterparts
attending public universities.
43%
State System
Universites
(SSHE)
31%
0%
10%
20%
30%
40%
50%
60%
70%
Students at state universities
who do not graduate on time
cost the state over $40
million annually.
Source: National Center for Education Statistics, Integrated Postsecondary Education
Data System (IPEDS) Graduation Rate survey.
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Independent colleges and universities benefit…individuals
Independent colleges and universities are
major employers committed to the
Commonwealth and its communities.
Pennsylvania Residents Employed by
Independent Colleges and Universities, 2003
ScrantonWilkes Barre
4,599 jobs
Erie and Northwest
2,428 jobs
Over 60,000
Pennsylvania residents
are employed by
independent colleges and
universities.
North Central Area
2,097 jobs
Metro
Pittsburgh
10,890 jobs
Lehigh Valley
5,612 jobs
South Central
Area
1,478 jobs
Capital Area
5,216 jobs
Metro
Philadelphia
28,651 jobs
Source: Economic impact survey undertaken by Association of Independent Colleges and Universities of
Pennsylvania, 2004.
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Independent colleges and universities benefit…communities
The employment generated by private
higher education has a significant fiscal
benefit for state and local government.
Amount of State and Local Income Taxes
Generated by Employment at
Independent Colleges and Universities, 2003
Erie and Northwest
$2.9 million
North Central Area
ScrantonWilkes Barre
$5.6 million
$3.8 million
Metro
Pittsburgh
$17.6 million
Private higher
education returns
over $90 million
annually in income
taxes to the state
and to local
communities.
Lehigh Valley
$7.1 million
South Central
Area
$1.2 million
Capital Area
$7.0 million
Metro
Philadelphia
$47.8 million
Source: Economic impact survey undertaken by Association of Independent Colleges and Universities of
Pennsylvania, 2004.
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Independent colleges and universities benefit…communities
Independent colleges and universities assist
communities across the Commonwealth.
 Each year undergraduate students at independent colleges and
universities donate over a million hours of volunteer service to charitable
initiatives in local communities.
 Independent colleges and universities have invested millions of dollars in
community development and renovation projects in their regions.
 Independent institutions operate numerous health clinics across the state
using student and faculty to meet the medical needs of low-income
residents.
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Independent colleges and universities benefit…communities
Independent colleges and universities enroll
more students and more minority students
than any other sector.
Total Enrollment, Fall 2007
300,000
270,059
250,000
200,000
156,643
150,000
128,932
110,430
Total Minority Enrollment, Fall 2007
100,000
50,000
50,000
43,285
0
40,000
Independent
colleges and
universities
State Related
Universities
State System
Universities
(SSHE)
Community
Colleges
27,786
27,598
30,000
20,000
12,586
10,000
0
Source: National Center for Education Statistics, Integrated Postsecondary
Education Data System (IPEDS) Fall Enrollment survey.
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Independent
colleges and
universities
State Related
Universities
State System
Universities
(SSHE)
Community
Colleges
Independent colleges and universities benefit…the Commonwealth
Independent higher education saves
taxpayers money.
Pennsylvania’s independent colleges and
universities save taxpayers an estimated
$450 million annually
in institutional subsidies that might be required to
enroll an equivalent number of students in public
universities.
Note: Based on 2006-07 commonwealth per-student educational appropriation of $4,400 calculated by Pennsylvania Joint State Government
Commission, February 2008.
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Independent colleges and universities benefit…the Commonwealth
Independent higher education makes more
efficient use of Pennsylvania’s investment in
higher education
Pennsylvania Tax Dollars Spent on Higher Education
Per Degree Produced, 2006-2007
$25,000
$21,691
$20,406
$20,000
$15,000
$10,000
$5,000
$3,602
$0
State System of Higher
Education
State Related Universities
Independent Colleges and
Universities
Source: Degree data from National Center for Education Statistics Integrated Postsecondary Education Database (IPEDS)
Completions survey. Tax dollars per educational sectors includes legislative appropriations and PHEAA grant dollars but
excludes capital funds and PDE distributions for which sector breakouts are not available.
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Independent colleges and universities benefit…the Commonwealth
Pennsylvania's investment in
higher education, 2007-2008.
Sector
State
Funds
Pct of Total
State
Funding
Pct of Total
State
Enrollment
Pct of
Total
Degrees
Independent
Colleges and
Universities
$300,659,000
15%
41%
49%
State Related
Universities
$808,303,000
40%
23%
26%
State System
Universities
(SSHE)
$595,803,000
30%
16%
17%
Community
Colleges
$293,600,000
15%
19%
9%
Total
$1,998,444,000
Note: State funds per educational sectors includes legislative appropriations and PHEAA grant dollars but excludes capital
funds and PDE distributions for which sector breakouts are not available. PHEAA funds have been distributed to the sectors
according to the grants received by students in that sector.
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Independent colleges and universities benefit…the Commonwealth
Sources of Data
Sources of financial aid received by students with need (Page 1)
Data obtained from the U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS)
Financial Aid survey.
Average net cost to students with need (Page 2)
Average tuition and fees for 2006-07 is a student-weighted average for first-time, degree-seeking students developed using data from the U.S. Department
of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS) Institutional Characteristics survey.
Average financial aid amounts are based on data from the IPEDS Financial Aid survey. All dollar amounts provide averages for those freshmen students
who receive that particular form of financial aid. Total grant aid would apply only to a student who received the average of each type of aid and received
all aid types. Loans, including federally subsidized loans, are not included in this table, so none of this aid needs to be repaid. The financial aid packages of
some students do exceed tuition and allow the student to apply aid to room, board, and other expenses.
Average loan debt of college graduates, 2006-07 (Page 3)
Average loan debt of graduating seniors by institutional sector is based on a student-weighted average of loan debt by institution. Data obtained from
Petersons Undergraduate Financial Aid Database and reported by The Institute for College Access and Success through its Web site
www.economicdiversity.org. Average for independent institutions is based on data provided by 70 institutions while average for state system universities is
based on data provided by 14 institutions. Because of missing data, the loan debt of Penn State graduates used in the summary for state-related
institutions is based solely on loan debt of graduating seniors at the main campus. The state-related loan debt average does include data from all
campuses of the University of Pittsburgh as well as Temple University and Lincoln University.
Earnings of private college graduates five years after graduation (Page 4)
Income data for private college graduates is based on the annual (2004) earnings of individuals employed full-time. Data collected through the
Baccalaureate Outcomes Survey undertaken by AICUP in 2005. Data on annual income of Pennsylvania residents age 25 years and over employed fulltime was extracted from the U.S. Bureau of the Census, 2004 American Community Survey.
Proportion of students graduating in 4 years (Page 5)
Data obtained from the U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS)
Graduation Rate survey. The financial cost to the state of students who graduate in five years and in six years is estimated using the number of bachelor’s
degree-seeking students who enrolled at state universities in 2001 and who did not graduate until year five or year six (9,425). This number is multiplied by
the state per-student educational appropriation for 2006-07 for state-related and state system universities calculated by the Pennsylvania Joint State
Government Commission ($4,400).
Employment at independent colleges and universities (Page 6)
The total number of Pennsylvania-resident employees (full-time plus part-time) excluding student employees for Fall 2003 was collected through a survey
undertaken by AICUP in the Spring of 2004. For AICUP member institutions that did not supply data on employment and for independent institutions that
are not members of AICUP, data on total resident employment was estimated using figures from the U.S. Department of Education, National Center for
Education Statistics Integrated Postsecondary Data System (IPEDS) Fall Staff survey.
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Sources of Data (continued)
Employment at independent colleges and universities (Page 6)
The total number of Pennsylvania-resident employees (full-time plus part-time) excluding student employees for Fall 2003 was collected through a survey undertaken
by AICUP in the Spring of 2004. For AICUP member institutions that did not supply data on employment and for independent institutions that are not members of
AICUP, data on total resident employment was estimated using figures from the U.S. Department of Education, National Center for Education Statistics Integrated
Postsecondary Data System (IPEDS) Fall Staff survey.
Income taxes paid to state and local governments by independent colleges and universities (Page 7)
Data on total state and local income taxes paid by employees of independent colleges and universities for fiscal year 2003 was collected through a survey undertaken
by AICUP in the Spring of 2004. For AICUP member institutions that did not supply data on taxes paid and for independent institutions that are not members of
AICUP, this data was estimated using data from similar schools.
Total enrollment and total minority enrollment (Page 9)
Data obtained from the U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS)
Fall Enrollment survey. Minority enrollment includes students who classified themselves as Black, Asian, American Indian, or Hispanic.
Taxpayer savings (Page 10)
This figure represents the estimated savings in total state educational subsidies that might be required to enroll an equivalent number of currently enrolled
independent college and university students in public universities. The estimate uses the state per-student educational appropriation for 2006-07 for state-related and
state system universities calculated by the Pennsylvania Joint State Government Commission ($4,400). Taxpayer savings is calculated using the following formula:
Pennsylvania resident undergraduates enrolled at independent institutions X educational subsidy – ( ( PHEAA grant recipients attending independent institutions x
PHEAA grant differential) + institutional assistance grant revenues + state-aided appropriation to independent institutions).
Tax dollars per degree produced (Page 11)
This figure is calculated using the total state funds allocated to each educational sector in 2007-08 (presented in the table on page 12) divided by the total number of
degrees awarded (bachelor’s, masters, and doctoral) in 2007-08 by each educational sector. Degree data is from the U.S. Department of Education,
National Center for Education Statistics Integrated Postsecondary Data System (IPEDS) Completions survey.
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