aspects of undergraduate finances: using the npsas data to analyze borrowing in minnesota and...

Aspects of undergraduate finances: Using the NPSAS data to analyze borrowing in Minnesota and Connecticut

Tricia Grimes

Shefali Mehta

Minnesota Office of Higher Education

June 2006

Presented for the Student Financial Aid Research

Network Conference, June 22-24, 2006 in Providence,

Rhode Island

June 2006 Minnesota Office of Higher Education 2

• NPSAS 2004 provided data for detailed state-level analysis for 12 states for the three major institutional sectors

• The dataset provides over 1,000 variables on finances, demographics, persistence, and attendance.

• While the data provide much useful information that was not previously available, there are several areas where it is necessary to use the data with caution.

• Today’s presentation will focus on borrowing characteristics in Minnesota and Connecticut while highlighting the issues in analyzing these data.

The National Postsecondary Student Aid Study (NPSAS)

Overview of finances in the 12 states

Income, tuition and borrowing for

undergraduates


Income distributions by dependent status

Income distributions ranked by median

$45,100$24,100$10,900$86,000$51,500$28,300New York

$56,500$27,400$11,100$89,800$53,600$26,200California

$43,400$24,500$11,300$90,100$55,000$30,400Georgia

$46,200$24,700$11,000$88,800$57,000$29,400Texas

$50,200$27,700$12,800$82,500$57,600$37,700Nebraska

$54,900$32,700$17,400$95,200$58,200$34,000Delaware

$49,900$24,500$9,000$88,600$59,200$35,600Oregon

$53,000$26,600$11,600$85,200$61,000$33,700Tennessee

$55,100$30,400$13,700$91,500$61,200$36,200Illinois

$62,700$30,800$14,200$94,700$66,500$39,600Connecticut

$51,200$28,700$11,500$98,600$67,100$42,200Indiana

$55,600$30,700$14,800$93,200$67,800$39,600Minnesota

$50,100$26,500$12,700$90,000$58,200$32,500U.S.

75th %50th %25th %75th %50th %25th %

Independent (residents)Dependent (residents)


Tuition and fees in the 12 states

Tuition and fees ranked by median

$6,300$2,200$1,700 Delaware$2,000$320$180 California

$6,000$2,500$550 California$3,200$1,100$540 Texas

$5,100$3,200$2,600 Georgia$3,100$1,400$590 Georgia

$4,800$3,500$1,700 Texas$5,200$1,500$630 Illinois

$9,300$3,800$3,200 Nebraska$3,900$1,900$910 Tennessee

$10,000$3,900$3,100 Tennessee$5,000$1,900$650 Oregon

$7,700$4,400$3,300 Minnesota$6,600$2,300$1,100 Delaware

$11,000$5,000$1,800 Illinois$5,800$3,000$1,300 Indiana

$7,000$5,300$4,200 Oregon$4,100$3,100$1,300 Nebraska

$17,000$5,400$3,800 Indiana$5,800$3,400$1,700 Minnesota

$18,000$5,700$4,300 New York$11,000$4,300$2,300 New York

$24,000$6,800$5,000 Connecticut$18,000$5,000$1,500 Connecticut

$9,800$4,800$2,800U.S.$5,400$2,300$790U.S.

75th %50th %25th % 75th %50th %25th %

Undergraduates attending full-time, full yearAll undergraduates


Overall annual borrowing in the 12 states

Ranked by percent who borrowed

$5,50016% California

$5,30025% Illinois

$5,70025% Georgia

$5,80026% Texas

$5,70030% Delaware

$6,80034% Connecticut

$5,80034% Oregon

$5,20037% Tennessee

$5,60039% Indiana

$6,00040% New York

$5,00046% Nebraska

$6,10049% Minnesota

$5,80035%U.S.

Total loans

Percent who

borrowed

Total loans (95% confidence

intervals)

$5,700$5,30017%14%

$5,600$5,00027%23%

$6,000$5,40027%23%

$6,000$5,60028%25%

$6,400$5,00033%27%

$7,600$6,00036%32%

$6,200$5,50036%33%

$5,400$5,00038%35%

$5,900$5,30040%37%

$6,400$5,70042%38%

$5,200$4,70048%43%

$6,400$5,80051%48%

$5,900$5,70035%35%

Percent who borrowed

(95% confidence intervals)

Borrowing in Minnesota and Connecticut

Undergraduate borrowing by

attendance status, sector and class

level


Public 4-year, 32%

Public 4-year, 33%

Private not-for-profit 4-year, 33% Private not-for-

profit 4-year, 17%

Public 2-year, 29%

Public 2-year, 43%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Connecticut Minnesota

Enrollment across institutional sectors: CT and MN

The difference in enrollment between

the public 2-year and private not-for-profit 4-year sector

is substantial.


Borrowing by attendance status: Minnesota

$4,390

$6,450$6,600

$4,960$6,120

49%

63%

44%48%

19%

$0

$2,000

$4,000

$6,000

$8,000

Total Full-time/full-year Part-time/full-year Full-time/part-year Part-time/part-year

Attendance status

0%

20%

40%

60%

80%

100%

Average loan Percent who borrowed


Borrowing by attendance status: Connecticut

$4,070

$5,620

$7,380

$6,810

$4,790

34%

9%

19%

32%

46%

$0

$2,000

$4,000

$6,000

$8,000

Total Full-time/full-year Part-time/full-year Full-time/part-year Part-time/part-year

Attendance status

0%

20%

40%

60%

80%

100%

Average loan Percent who borrowed


Average loan amount by attendance status

$4,960

$6,450

$4,390

$6,600

$4,070

$4,790$5,620

$7,380

$0

$2,000

$4,000

$6,000

$8,000

$10,000

Full-time/full-year Part-time/full-year Full-time/part-year Part-time/part-year

Attendance status

Minnesota Connecticut


Percent who borrowed by attendance status

19%

63%

48%44%46%

19%

32%

9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Full-time/full-year Part-time/full-year Full-time/part-year Part-time/part-year

Attendance status



Average loan amount by dependent students’ parents’ income

$6,600$6,000

$5,400

$6,800

$7,800$8,800

$6,700

$5,700

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

< $30,000 $30,000-$60,000 $60,000-$90,000 $90,000+

Dependent students' parents' income



Percent who borrowed by dependent students’ parents’ income

73%68%62%

57%

43%

50%48%

58%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

< $30,000 $30,000-$60,000 $60,000-$90,000 $90,000+

Dependent students' parents' income



Average loan amount by full-time students by institutional sector

$8,200

$6,800

$5,200

$6,600

$9,400

$5,400

$7,400

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

Total Public 2-year Public 4-year Private not-for-profit 4-year

Institutional sector


Estimate not available

due to small sample size


Percent who borrowed by institutional sector

75%77%

50%

63%

8%

57%

52%

46%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Public 2-year Public 4-year Private not-for-profit 4-year

Institutional sector



Average cumulative borrowing for graduating seniors by sector

$25,300

$17,300

$20,300$18,900

$16,700$18,000

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Total Public 4-year Private not-for-profit 4-year

Institution sector



Percent of graduating seniors who borrowed by sector

80%75%76%

65%61%

62%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Public 4-year Private not-for-profit 4-year

Institution sector



Reports and articles for Minnesota

February 2006

Undergraduate Borrowing in Minnesota

February 2006

A periodic newsletter on a single topic of interest published by the Office of Higher Education

Student Borrowing Increases - Much Growth Among Higher-I ncome Families

This issue of Insight takes a look at undergraduate borrowing in the 2003-2004 academic year. The student borrowing information here is based on a survey administered by the U.S. Department of Education called the National Postsecondary Student Aid Survey. See also a report on student borrowing, produced by the Minnesota Office of Higher Education.

Overall, 49 percent of all undergraduate students in Minnesota (or approximately 150,000 students) took out student loans in 2004. This is a moderate increase since the 1999-2000 academic year when 41 percent of Minnesota undergraduates took out student loans.

In Minnesota, 63 percent of students who attended full-time for the full academic year had student loans. Among those who borrowed, the average annual amount was about $6,600, which is slightly higher than the national average of $6,210. In contrast, 19 percent of students who attended part-time for part of the academic year took out student loans. Undergraduates attending part-time and taking out loans borrowed an average of $4,390, which is slightly lower than the national average.

Average borrowing by full-time, full-year undergraduates in Minnesota in 2004

Full-time, full-year students borrow more than their part-time counterparts In 2000, 41 percent of all Minnesota students borrowed an average of $5,650. In 2004, 49 percent of all students borrowed an average of

» TABLE OF CONTENTS «

Full-time, full-year students borrow more

Borrowing Increases Among Higher-Income Families

Increased Borrowing Mirrors a National Increase in Personal Debt

Reliance on Unsubsidized Loans Increases

Middle Income Families Most Likely to Borrow

Loan sources and limits

» RELATED TOPI CS «

Tuition and fee increases in Minnesota

» FEATURED LI NKS «

Increasing Consumer Debt by State

National Information on How Students Pay for College

Consumer debt is increasing

Rising tuition and student loans

Types of student loans

Student debt burden and repayment

Student loan repayment

Student loans and debt aversion

Student loans and access to college

Rising student debt

J une 2006

A periodic newsletter on a single topic of interest published by the Office of Higher Education

First-generation college students more likely to be older, independent, part-time and attending community and technical colleges

Students who are the first in their family to attend college come from a variety of backgrounds. Yet these students face some common challenges as they strive to complete degrees, often with less support and guidance from their families.

In an effort to better understand first generation students in Minnesota, this issue of Insight provides information about the characteristics of first-generation students. First-generation students can encounter difficulty during the transition from high school to college and are more likely to struggle to persist in college than their peers. The first-generation student information in this issue is based on the National Postsecondary Student Aid Survey (NPSAS) from 2004 administered by the U.S. Department of Education.

First-generation students comprise one-fourth of undergraduate population in Minnesota

First-generation undergraduates are students whose parents' have never been enrolled in college, meaning their highest educational attainment was a high school degree or the equivalent. While the definition of a first-generation student is based upon neither parent having any college experience, the estimates in this analysis are based on three levels of parents' educational attainment: no college, some college, and bachelor's degree or higher.

In 2004, 26 percent of all undergraduates enrolled in college in Minnesota were first-generation students. Nationally, 34 percent of all undergraduates were first-generation students.

Distribution of undergraduates in Minnesota by parents' highest level of educational attainment, 2004

» TABLE OF CONTENTS «

First-generation students comprise one-fourth of undergraduate population in Minnesota

Fewer first-generation students attend four-year institutions

First-generation students were less likely to enroll full time than their counterparts

First-generation students tend to have non-traditional characteristics

First-generation students are more likely to be immigrants or children of immigrants in Minnesota

First-generation students are more likely to take remedial classes than their peers

» RELATED TOPICS «

Minnesota Undergraduate Demographics: Characteristics of Postsecondary Students

National Postsecondary Student Aid Survey

» FEATURED LINKS «

First generation students and their performance in college

An analysis of first generation students in the U.S.

Contributions of first generation students in California [ .pdf ]

Information for first generation students

Tips for first generation students

» NEWS ALERTS «

May 2006

Minnesota Undergraduate Demographics: Characteristics of Post-Secondary Students


Findings and discussion

• Borrowing under some variables is similar but on the whole, the percent who borrowed in Minnesota is higher than in Connecticut

• Answering these questions requires more complex models to deal with these complex relationships that can not be analyzed by basic descriptive statistics or linear regression

• Minnesota has found the state-level data to be very useful

– It helps to have a graduate intern who can spend dedicated time on mining the data.

– We are grateful for Lumina Foundation support


Findings and discussion - continued

• If we had it to do over again, we would like a larger sample and we would like the sample to include students in the for-profit sector

– A sample of 1,800 is a nice size, but when you want to look at full-time students you end up with about 900, then dependent students gets you about 450 and when you cut it by sector and income, the sample size is too small for meaningful analysis.


Findings and discussion - continued

• One of the major advantages of NPSAS data is information on students who did not apply for aid

– In Minnesota there was less precision on this data because the two public systems interpreted federal and Minnesota data privacy laws to mean they could provide little information about students who had not filled out a FAFSA.

• If these systems change the “data warning” in their student application materials, they should be able to provide more complete data.

• Another major advantage is information on aid from all sources

– Private and state loans

– Institution and private grants and scholarships

The End

Thank you

For questions or comments, please contact us:

Tricia Grimes, [email protected]

Shefali Mehta, [email protected]

aspects of undergraduate finances: using the npsas data to analyze borrowing in minnesota and...

Documents

minnesota slide

connecticut slide

attendance status slide

institutional sector

class level slide

rhode island slide

annual borrowing

borrowing characteristics