Graduate School of Education VANDERBILT 1111 GE HIGHER EDUCATION 4 POLICY INSTI TE COLLEGE AFFORDABILITY DIAGNOSIS OHIO Suggested Citation: Institute for Research on Higher Education. (2016). College Affordability Diagnosis: Ohio. Philadelphia, PA: Institute for Research on Higher Education, Graduate School of Education, University of Image by COLLEGE AFFORDABILITY DIAGNOSIS COLLEGE I AFFORDABILITY RANKING Four in ten Ohio undergraduates attend the Since 2008, all institutions, state?s public research institutions, which are with the exception of public among the least affordable in the nation. The nondOCloml C?llegesr state also offers well below the national average reqUire more family income to attend college tull in need-based ?nancial aid, further burdening the nearly quarter of families making less than l'me' $30,000 a year. For Ohio families earning $30,000 or less per year, 81 percent of family income would be required to Students attending publlc research 1nst1tutlons (mend public research institutions full time. would have to work, on average, 48 hours a week to pay for full-time attendance. Their peers at For Ohio families earnan more lhan "0,000, only l2 percent at family income would be required private research institutions would have to work, to attend the public research institutions Full time. on average, 69 hours a week. Students attending community colleges haVe to work: on Students enrolled in public research institutions average, 28 hours a week to pay for full-time typically borrow $4,062 annually. tt . a en ance Ohio contributes little investment in per- Without Changes in college affordabile Ohio?s student need-based Financial aid For students racial and ethnic disparity in postsecondary attending public institutions, compared to the degree attainment will likely persist. Currently, 39 ?Ol'OnC'l average Of $474 percent Of Whites have an aSSOCiate,S degree or The total number at high school graduates at public higher, compared to 25 percent of Blacks and 24 institutions in Ohio is proiected to decline 7 percent percent of Hispanics. between 2020 and 2028. In Ohio, nearly a quarter (23 percent) of children live in poverty. Mare Ohia students attend public research institutions than any On average, percent at working?age Ohio state other kind of institution, with 39 percent enrolled. Families would residents [age 25-64] have an assaciate?s degree or higher. spend, on average. 37 percent at annual income to pay for By 2020, 64 percent of iabs will require an Full-time attendance. assaciate's degree or higher. 37% 64% l. . Jabs requiring associate-'5 degree or higher by 2020 37? 0 Workforce wi'h associde's degree or higher, as at 2014 -..- Penentage at smdentsattending public Percentage afiumily incarne required research ins?nrtions to pay FathI l-tirne attendance Visit for interactive map. Ohio 2016 COLLEGE AFFORDABILITY DIAGNOSIS WHAT PERCENT OF FAMILY INCOME would be needed to attend college full time? Percent of Percent of Ranking* Income 2008 Income 2013 Public Two-Year (29 percent of enrollment)* I7 ?8 28 Public Four-Year Nondoctoral 27 26 23 (10 percent of enrollment) Public Research (39 percent of enrollment) 33 37 47 Private Four-Year Nondoctoral 42 46 27 (18 percent of enrollment) Private Research 43 58 24 (3 percent of enrollment) This measure ranked states 1-50. The lower the ranking on this measure, the better a state performed on overall college affordability. *Enrollment may not add up to 100% due to rounding. NOTE: The "net price" reported in the following tables for each sector of higher education includes tuition, mandatory fees, room/board and books minus all financial aid (federal, state and institutional). For information on how these measures were calculated or which institutions were included, please see the technical report, available at 2 INSTITUTE FOR RESEARCH ON HIGHER EDUCATION at PENN GSE COLLEGE AFFORDABILITY DIAGNOSIS Ohio 2010 PERCENT OF FAMILY INCOME STATE INCOME needed to attend full tIme: PROFILE PUBLIC TWO-YEAR INSTITUTION Net Price of Income Needed to Income Pay Net Price 50?30900 . $0?30,000 0,473 38 Average Income In Group $30 000 48 000 7104 18 $16,822 Families in Group $48,000?75,000 9,088 15 23% $75,000?110,000 10,660 12 $110,000 and above 10,505 6 Income Students would have to work 28 hours a week, on average, at federal minimum wage to pay for college expenses to attend a public two-year institution full time. $30,000 ?48,000 Average Income in Group $39,157 Families in Group PUBLIC FOUR-YEAR NONDOCTORAL INSTITUTION 17% Net Price of Income Needed to Pay Net Price Ejgmgoo 75 000 9,603 57 A $30,000?48,000 10,387 27 verage Income In Group $61,078 $48,000?75,000 12,798 21 Families in Group $75,000? 110,000 14,230 16 23% $110,000 and above 14,703 8 Students would have to work 32 hours a week, on average, at federal minimum wage to pay Income for college expenses to attend a public four-year nondoctoral institution full time. 575,000?110,000 Average Income in Group $90,971 PUBLIC RESEARCH INSTITUTION Fam'l'es . of Income Needed to 18% Nel Pnce Pay Net Price $0?30,000 13,686 81 Income $110,000 and above $30,000?48,000 15,170 39 Average Income in Group 18,676 $180,109 $75,000?110,000 21,167 23 igg'ies in Group $110,000 and above 21,998 12 Students would have to work 48 hours a week, on average, at federal minimum wage to pay for college expenses to attend a public research institution full time. Source: Income data: US. Census Bureau; Net price data: US. Department of Education. For information on how these measures were calculated or which institutions were included, please see the technical report, available at INSTITUTE FOR RESEARCH ON HIGHER EDUCATION at PENN GSE 3 Ohio 2016 COLLEGE AFFORDABILITY DIAGNOSIS STATE INCOME PROFILE Income $0?30,000 Average Income in Group $16,822 Families in Group 23% Income $30,000 ?48,000 Average Income in Group $39,157 Families in Group 17% Income $48,000?75,000 Average Income in Group $61,078 Families in Group 23% Income $75,000?110,000 Average Income in Group $90,971 Families in Group 18% Income $110,000 and above Average Income in Group $180,109 Families in Group 19% PERCENT OF FAMILY INCOME needed to attend full time: of Income Needed to Price Pay Net Price $0?30,000 17,871 106 $30,000?48,000 18,548 47 $48,000?75,000 21,105 35 $75,000? 110,000 23,399 26 $110,000 and above 26,442 15 Students would have to work 55 hours a week, on average, at federal minimum wage to pay for college expenses to attend a private four-year nondoctoral institution full time. PRIVATE RESEARCH INSTITUTION of Income Needed to Net Price Pay Net Price $0?30,000 17,921 107 $30,000?48,000 19,034 49 $48,000?75,000 22,300 37 $75,000?110,000 25,512 28 $110,000 and above 27,518 15 Students would have to work <59 hours a week, on average, at federal minimum wage to pay for college expenses to attend a private research institution full time. Source: Income data: US. Census Bureau; Net price data: US. Department of Education. For information on how these measures were calculated or which institutions were included, please see the technical report, available at 4 INSTITUTE FOR RESEARCH ON HIGHER EDUCATION at PENN GSE COLLEGE AFFORDABILITY DIAGNOSIS Ohio 2016 WHAT INVESTMENT DOES THE STATE MAKE to financial aid programs to make college more affordable? TOTAL STATE FINANCIAL AID DOLLARS PER STUDENT AT PUBLIC TWO- AND FOUR-YEAR INSTITUTIONS 2004 2007 2013 National Average, 2013 Need-Based Aid 237 279 97 474 Other Aid 24 64 76 210 TOTAL STATE FINANCIAL AID DOLLARS PER STUDENT AT PRIVATE INSTITUTIONS 2004 2007 2013 National Average, 2013 Need-Based Aid 578 754 455 644 Other Aid 570 539 60 221 Data Source: National Association of State Student Grant and Aid Programs and the US. Department of Education. HOW MUCH IS ANNUAL UNDERGRADUATE BORROWING for students who earn and do not earn degrees? Students who enroll in public research Students who enroll at private four-year institutions typically borrow $4,062 annually. nondoctoral institutions typically borrow 5 365 ll . Students who enroll at private research annua institutions typically borrow $3,746 annually. In contrast, students who enroll at public two- t' 3 496 11 . Students who enroll at public four-year year ms 1 Ions ormw 9 annua nondoctoral institutions typically borrow $5,398 annually Data Source: US. Department of Education. For information on how these measures were calculated or which institutions were included, please see the technical report, available at INSTITUTE FOR RESEARCH ON HIGHER EDUCATION at PENN GSE 5 Ohio 2016 COLLEGE AFFORDABILITY DIAGNOSIS WHAT CONSIDERATIONS SHOULD STATES take into account in establishing policies on college affordability? Workforce Needs By 2020, 64 percent of jobs in Ohio will require a postsecondary credential. Ohio is 34th in terms of states with the highest percentage of jobs that will require a postsecondary credential in the future. Educational Attainment As of 2014, 41 percent of young adults in Ohio (ages 25-34) had an associate?s degree or higher compared to 42 percent nationally. As of 2014, 37 percent of working age adults in Ohio (ages 35-64) had an associate?s degree or higher, compared to 40 percent nationally. Educational Attainment by Race Ethnicity As of 2014, on average 37 percent of working age Ohio state residents (age 25-64) have an associate?s degree or higher. However, attainment varies by race: 39 percent of Whites have an associate?s degree or higher but the other three most populous racial groups (Blacks, Hispanics and Asians) have attainment of 25 percent, 24 percent and 67 percent respectively. Educational Pipeline in Ohio In 2020, Ohio?s public high school graduates are projected to be 12 percent Black, 3 percent Hispanic, and 2 percent Asian. The total number of high school graduates at public institutions in Ohio is projected to decline by 7 percent between 2020 and 2028. However, the percent of graduates that are Black in Ohio is projected to grow by 1 percent and the percent of graduates that are White is projected to decline by 8 percent while the percent of graduates that are Hispanic is projected to grow by 1 percent over the same time period. The projected number of Asian graduates will increase by 1 percent between 2020 and 2028. While the decline in White graduates is similar but more pronounced than projections for the nation (4 percent decline in White graduates between 2020 and 2028), the growth in both Blacks and Hispanic graduates in Ohio is similar to national patterns (Blacks are projected to increase by 1 percent and Hispanics are projected to increase by 2 percent of national high school graduates by 2028). The growth in Asian graduates mirrors national trends (nationally, Asian graduates are projected to increase by 1 percent). For information on how these measures were calculated or which institutions were included, please see the technical report, available at 6 INSTITUTE FOR RESEARCH ON HIGHER EDUCATION at PENN GSE COLLEGE AFFORDABILITY DIAGNOSIS Ohio 2016 Children in Poverty The percent of children living in poverty in Ohio increased between 2005 and 2013, from 19 percent to 23 percent. In 2013 Ohio was ranked 3 in terms of percent of children living in poverty. Rank order is from lowest to highest percentages of poverty. Student Share of Total State and Tuition Revenues for Public Higher Education In Ohio, total student share of state and net tuition revenues per full time student was 38 percent in 1989, 41 percent in 2000, and 63 percent in 2014, adjusted for in?ation. This pattern shows that net tuition revenues were increasing as a share of higher education funding from 1989 to 2000 but after the 2007- 08 recession net tuition revenues increased even more rapidly. For information on how these measures were calculated or which institutions were included, please see the technical report, available at INSTITUTE FOR RESEARCH ON HIGHER EDUCATION at PENN GSE 7 Ohio 2OI6 COLLEGE AFFORDABILITY DIAGNOSIS In what types of higher education institutions (sectors) has the state lost ground in college affordability? What are the economic circumstances of families in the state (by income quintiles, by different regions of the state, etc.)? What are the implications for college affordability? What is the projected demand for an educated workforce in the state? How far is your state from addressing this demand? To what extent is college affordability one of the barriers in educating more state residents? What are the gaps in college attainment between Whites and minority groups in your state? How can state policies on college affordability help to narrow these gaps? How is tuition policy related, if at all, to the income of the students and families that the state must educate? If tuition policy is delegated to public institutions, how does the state provide oversight to ensure that tuition and other educational costs are affordable for students and families? In what ways can state policies related to tuition be more coupled with state policies on institutional appropriations and ?nancial aid to address college affordability? POLICY QUESTIONS FOR STATE LEADERS To what extent do tuition policies encourage access to higher education and completion of certi?cates and degrees? How do ?nancial aid policies address the needs of both young and working-age students? In what ways has the state provided incentives for institutions to improve ef?ciency and productivity in order to reduce the overall costs to students? Research shows that students who work more than 20 hours a week are less likely to make progress toward or complete their certi?cate or degree programs. How is the state alleviating the need for students to work more than 20 hours a week so that they can focus more on earning their certi?cates and degrees? How much are students borrowing relative to the percent of family income needed to pay for postsecondary education? Are all state policies that in?uence college affordability inadvertently stratifying higher education by income or race? For information on how these measures were calculated or which institutions were included, please see the technical report, available at 8 INSTITUTE FOR RESEARCH ON HIGHER EDUCATION at PENN GSE