Limited Financial Aid For Undergraduate And Graduate Students
Funding of higher education is a large and complex topic and is significantly important for underrepresented populations because the ability to pay for higher education underlies much of the decision making process to attend a college or university. There are three overarching themes of contemporary higher education:
- Quality of college or university and the relationship between funding and quality.
- Access to college or university and the search for social equity (i.e. who benefits from and who pays for higher education).
- The search for a cost-effective relationship between sources of income, particularly those that come from students, parents, and taxpayers.
According to the American Council on Education, colleges and universities are increasing their investment in student aid to ensure that underrepresented students have the financial resources to begin and complete their education. In the 2002-2003 academic year, on average, colleges and universities accounted for 20 percent of all available aid (federal, state, and institutional). Since 1992-1993, the estimated amount of institutional and other grant assistance has more than doubled in constant dollar value from $9.2 billion in 1992-1993 to $20.4 billion in 2002-2003.
Driving Forces
Higher education, by many, is seen as an engine for social mobility and equality. However, the cost of higher education is more of a burden to students and family members. The average tuition for full-time students enrolled in college (2003-2004) was the following: 37 percent attended community college, where the average tuition was $1,905. 40 percent attended state colleges and universities, where the average tuition for a full-time student was $4,694. 22 percent attended private four-year colleges and universities, where the average tuition was $19,710. The reason for the rising cost in tuition and fees is that states have reduced their support for higher education. Through the 1990's, states repeatedly trimmed the portion of their budgets allotted to higher education. As a result, state appropriations as a percentage of total institutional budgets declined. Therefore, the balance of funding responsibility has fundamentally changed to students and their families. For example, forty-nine states raised tuition at public institutions to compensate for budget shortfalls. Additionally, the drop in state spending on higher education averages 4 percent but goes as high as 26 percent. The likely continuation of sharply rising public tuitions, political attacks against remedial courses, elimination of affirmative action considerations in admissions and financial aid, will likely accentuate this pattern.
Future Prospects
The cost of higher education is worth the effort. Although students pay more for a college degree, the earning advantage of college graduates over those not earning college degrees also has grown substantially. The earning average of a student with a college degree is more than double of a student without a degree. The rising costs of higher education reflect the current trends of society's high expectations, demand for quality, and equal access to education. As a result, students and parents will pay close attention to what is actually being received for price of tuition. The challenge faced in the financial aid area is daunting. While scholarship monies are nice, it takes time to raise these awards. Institutions need additional monies for both high need undergraduate students and graduate students. These issues, along with projected changes in the ethnic composition of the United States and the concurrent shift in educational preparation of parents raise some serious questions for the nation.
Editorial provided by James E. Edwards, Ed.D., Director of Enrollment Management at Virginia Union University
References
American Council on Education (2001). Investing in People: Developing All of America's Talent on Campus and in the Workplace. Washington, D.C. American Council on Education.
Condition of Higher Education Funding in Virginia (2003). State Council of Higher Education for Virginia. Retrieved April 26, 2004 from http://www.schev.edu/Reportstats/ConditionOfFundingReport052003.pdf?from=reportstats
Johnstone, D.B. (1997). Financing Higher Education: Who Should Pay and Other Issues. Retrieved May 7, 2004 from
http://www.gse.buffalo.edu/FAS/Johnston/Fin_H_Ed_for_Altbach.htm
Paulsen, M. B., and Smart, J. C. (2001). The finance of higher education: Theory, research, policy, and practice. New York, NY: Agathon Press.
Vernez, G., Krop, R. and Rydell, C.P. (1999). Closing the education gap. Santa Monica, CA: RAND Corporation
