Costs of Higher Education

In spite of the spiraling forecast for the U.S. economy, enrollment statistics for students entering college immediately after graduating from high school remain steady. Findings of the Bureau of Labor Statistics, U.S. Department of Labor (October 2007) indicate that 67.2% of students graduating from the class of 2007 enrolled in college. Of this same class of 2007, 93.2% enrolled as full-time students.

Student Financial Aid

According to Trends in Student Aid, over $131 billion in grants, work study, and federal loans was distributed to undergraduate and graduate students in 2006-07. In this report, these same students borrowed in excess of $18 million from state and private sources for the purpose of funding their education.

In a study of federal grant and loan aid for the 2006-07 academic year, Trends in Student Aid suggests that grant aid averaged $4,648 per full-time equivalent student, while total federal grants averaged $19,639 million, and total federal loans averaged $59,593 million.

Government Aid

Pell Grant awards distributed $12,881 billion to 5,165 recipients with $2,494 per recipient in 2006-07. As reported by Trends in Student Aid, the Pell Grant funds approximately 32% of the average total cost of tuition, fees, and room and board at four-year public colleges and universities, and approximately 13% at private colleges and universities.

Institutional Aid

Institutional aid remains the largest source of grants to undergraduate and graduate students. Average grant aid to full-time equivalent students was $4,648, $4,337 in federal loans, and $428 in tax benefits per student in 2006-07.

Scholarship Impact

Scholarships are awarded on the basis of merit or academic achievement, not financial need. For that reason, it is important to remember that a scholarship is counted within a student's total financial package (along with, for example, any other grants or loans administered). Federal and state financial aid programs are carefully monitored to ensure that students do not receive aid in excess of what they need to attend college. When a scholarship is awarded, the student must be sure to inform his/her financial aid advisor of the scholarship to determine what, if any, revisions must be made to the student's overall financial package.

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