Affordability Strategies in the States
Moderator: Laura King (Minnesota)
Presenter: Deborah Greene (Texas)
Presenter: Sandra Woodley (Kentucky)
SHEEO Prof. Dev.
Conference
THECB August 13, 2004 Philadelphia
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Background
April 2004 Survey
9 responses (18% response rate)
– 8 have affordability policies
– Delaware has no statewide policy for setting
tuition at its colleges
(Plus Kentucky and Minnesota) (22%
response rate)
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THECB August 13, 2004 Philadelphia
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Florida
Financial aid fee for community colleges,
technical centers, and universities since
early 1980s that is indexed to tuition
– Up to 5% for colleges and universities
– Up to 10% for the technical centers
– Majority of the aid provided is need based
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Florida - continued
Prior to 1984, universities charged two
financial aid fees
– For distribution to own university students
– For need-based distribution statewide
Late 1980s through early 1990s
Early 1990s
– State policy targets charges to in-state
undergraduates at 25% of cost of HE
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Florida -continued
Florida Council of 100 recommendations
– Indexing need-based aid to 19% of tuition
revenues (January 2004)
– Tying authority to increase tuition to
performance on accountability measures
related to maintaining access
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Illinois
IBHE Committee to Study Affordability
(1994)
– High priority of making college affordable
– Affordability includes institutional ability to
control costs as well as student & family ability
to pay
– Affordability is inextricably linked to academic
preparation and college academic progress
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Illinois - continued
1994 study – continued
– Lack of financial resources should not be a
barrier to higher education; aid should be
need based and student focused
– College education should be affordable &
accessible to all students; students & their
families should not be asked to assume a
greater share of education costs than they are
currently paying
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THECB August 13, 2004 Philadelphia
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Illinois - continued
“Final Report & Recommendations of the
Committee on Affordability” (August 2003)
– 20 recommendations
Enhancing academic preparation and progress
Assisting needy students
Keeping core costs affordable
– Builds on the 1994 study
The Illinois Commitment – Goal 3
– No Illinois citizen will be denied an opportunity for a
college education because of financial need.
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THECB August 13, 2004 Philadelphia
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Iowa
Intense tuition and financial aid study
completed in mid-May (11 categories of
tuition-related policies covered)
Tuition set-asides: 15% of gross tuition
revenues continued
– No less than half to undergraduates, of which
no less than half is need based
– Authority to use up to additional 10% for
strategic enrollment goals, without restriction
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THECB August 13, 2004 Philadelphia
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Missouri
Bills introduced but not passed by the
Missouri General Assembly in their recent
session, which ended in May 2004
– HB 1674 (Smith)/SB 780 (Caskey) – would
have frozen tuition rates from the time
Missouri undergraduates enter college until
they graduate
SHEEO Prof. Dev.
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THECB August 13, 2004 Philadelphia
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Ohio
6% cap on in-state undergraduate instructional
and general fees (FY 2004 and FY 2005)
– Additional 3.9% per year permitted if revenues are
used to fund scholarships for low-income students or
to provide additional or improved technology services
to students
OSU permitted 9% cap plus 3.9% add on
Miami University was permitted a pilot fee
schedule similar to an independent university
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THECB August 13, 2004 Philadelphia
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Texas
Affordability Strategy in Closing the Gaps by
2015 (October 2000)
– Providing grants & scholarships to cover tuition, fees,
& books for every student with financial need
– Setting tuition & fees in a manner that closes gaps in
participation & success
– Establishing incentives that increase affordability
through academic & administrative efficiencies in the
higher education system
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THECB August 13, 2004 Philadelphia
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Texas - continued
The amount of grants and scholarships
must be increased.
Economically disadvantaged students
should be considered a high priority for gift
aid.
Colleges and universities should also
monitor the cost of higher education as
compared to what a family can pay based
upon its effective family contribution.
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THECB August 13, 2004 Philadelphia
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Texas - continued
Tuition Deregulation (Fall 2003)
– Boards of Regents given the authority to set
“designated tuition” at any level to allow
institutions of higher education to operate
efficiently
– 20% of amount above the then current cap of
$46/SCH required to be set aside for financial
aid
– This is above the 15% required for “statutory
tuition”
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THECB August 13, 2004 Philadelphia
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Utah
Regents’ policy on tuition and fees
– Addresses marginal percentage increases
rather than affordability
“First tier” rate increases – uniform for all
institutions
“Second tier” rate increases – optional, to meet
institutional needs, may be program specific
– Identified factors that should be reviewed
annually for “fairness and price
competitiveness”
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Utah - continued
– Explicitly states the Board should consider
requesting state appropriation increases for
Utah Centennial Opportunity Program for
Education when tuition is increased
Board usually requested an increase but the
Legislature has not regularly appropriated
increases
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Virginia
Limited tuition increases through 3% cap
for in-state students (1994)
Tuition freeze (1996)
20% reduction in tuition (2000-2002)
Tuition increases (avg. 15% per year) to
offset state budget cuts (2003-2004)
Tuition set-asides for financial aid (20022004 Biennium)
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Virginia - continued
Joint Legislative Subcommittee on Higher
Education Funding Guidelines approved
cost-sharing policy for all in-state students
(2004-2006 Biennium)
– 67% general fund support
– 33% tuition revenue
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More Ideas
Tuition as a portion of median family or
household income
– E.G., VA: total charges to students (tuition,
fees, room & board) = 36.6% of per capita
disposable income
Inverse relationship between state
appropriations for higher education and
tuition rates (national Center for Public
Policy and Higher Education, February
2002)
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More Ideas - continued
Prepaid College Tuition Programs
College Savings Programs
Need-Based versus Merit-Based State Aid
Others?
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