Presentation created for EDL 764: Higher Education Finance.
This presentation analyzes state appropriations, enrollment, tuition and fees, educational revenue, college participation, family income needed to pay for college, college debt and current events affecting each state's financial situation.
3. +
Tuition and Fees, 2014-2015
Ohio's public two-year
institutions cost more than
$2,000 more on average.
Ohio public 2-year: $4,484
Texas public 2-year: $2,286
Tuition and fees at Ohio's public
four-year institutions cost about
$1,200 more than Texas'
institutions.
Ohio public 4-year: $10,100
Texas public 4-year: $8,830
The difference between the
average cost of tuition and fees
at a private institution in Ohio
versus Texas is under $200.
Ohio private 4-year: $30,977
Texas private 4-year: $31,172
4. +
In recent news in Ohio…
Cantonrep.com, April 19, 2015
Governor’s proposal: “…Capped tuition hikes at 2 percent over two years…”
Legislators: “…Want a flat $200 cap on increases at four-year schools, with
a $100 cap on two-year and regional campuses.
The House: “Ban ‘course overload’ fees for students who want to take more
than the typical full loads.”
Dayton Daily News, Feb. 14, 2015
“Ohio’s 14 public universities have more than doubled the debt they owe in
recent years to an unprecedented $6.5 billion.”
“Nearly all of the money college officials have borrowed is a result of building
booms on Ohio’s campuses.”
“…Some of the state’s public universities are showing signs of a struggle to
lure students into classrooms. The number of students who attended a
four-year public college dropped from 338,300 students in 2010 to
331,156 students in 2013, according to Ohio Board of Regents.”
6. +
In recent news in Texas…
Forbes, April 5, 2015
“The Texas Legislature is currently considering a bill—the “I CAN” Bill
(“Incentivizing College Affordability Now”)—that would take statewide a new
initiative called the Texas Affordable Baccalaureate Program (TABP), which
offers targeted college degrees for far less than what Texas public university
students currently pay.”
“According to a recent summary of data compiled by the Texas comptroller’s
office, ‘In 2012, 20.5 percent of . . . [Texas’s] student loan borrowers were
more than 90 days delinquent, surpassing the national rate of 17 percent and
marking the 10th highest rate in the country.’”
Texas Tribune, April 8, 2015
A senate bill approved 5-1 by the Higher Education Committee “…Would limit
tuition increases to the rate of inflation unless universities meet a majority of
11 ‘performance measures.’ Those measures include graduation rates,
administrative costs and number of degrees awarded to at-risk students.”
Another bill: “Freezes tuition for the 2015-16 academic year, meaning tuition
rates must exactly match the current academic year, except for universities that
decided earlier than Jan. 1, 2015, to increase tuition for the next year.”
10. +
Drilling down the controversial
Texan $10,000 degree
February 2011: The Texas governor called for colleges to offer
$10,000 degrees. At the time, a four year degree averaged $27,000.
Quota was that only 10% of public undergrad degrees needed to fit this
Encouraged use of online learning and competency-based programs
March 2012: Texas A&M-San Antonio was first to offer a $9,672
degree through a partnership with Alamo Colleges, a community
college system
12 additional universities in Texas have created low-cost degrees
Concerns include reliance on adjuncts, large class sizes and quality
of online classes affecting overall degree quality
Lindsay, T. K. (2015). Revolution rising? Update on Texas’ affordable baccalaureate degrees.
11. +
Millions proposed to help Ohio
students achieve degrees
The governor’s plan includes:
“…a maximum 2 percent tuition increase in 2016, followed by a tuition
freeze in 2017.”
“A $20 million innovation fund…which is set to be established in fiscal
year 2017, would provide resources for ‘innovative and administrative
redesign proposals that result in long-term, sustainable cost savings to
students.’”
“…$120 million to go toward a student debt reduction fund, which aims
to reduce financial debt burdens on students.”
“…$8 million to go toward scholarship and grant opportunities for
students.”
“…$1 million in each fiscal year will be added to the Ohio College
Opportunity Grant program…helpful for students who want to pursue
school year-round.”
The Lantern, Feb. 25, 2015
12. +
Considerations for universities
Affordable degree options
Financial aid
Prevent an increase in the amount of debt students graduate with
each year
Help low-income and underserved students
Responsible spending
I’ll admit … when I first heard about this assignment, I was a little intimidated. I’m a PR person … I do words, not numbers.
But, once I dug into the data and researched my two states, I started to find some really interesting information.
I chose Texas because I know it’s doing well in other industries. I chose Ohio because I wanted to compare it to a Midwest state similar to Michigan.
First I want to give you an at-a-glance look at how these two states match up.
Texas receives nearly double educational appropriations and it has significantly more students enrolled in higher education.
However, Texas has 30 percent less net tuition revenue, but it has 13% more total educational revenue.
I also took a look at tuition and fees.
Ohio's public two-year institutions cost over $2,000 more on average than the ones in Texas.
Tuition and fees at Ohio's public four-year institutions cost about $1,200 more than Texas' institutions.
And, the difference between the average cost of tuition and fees at a private institution in Ohio versus Texas is under $200.
I think it’s also important to understand what’s going on in Ohio.
The governor and legislature are proposing caps.
Additionally, Ohio’s universities are steeped in debt because of a building boom. Meanwhile, there’s a struggle to recruit students.
Here’s a look at enrollment. You can see that there has been a drop in public enrollment Ohio. Meanwhile, educational appropriations remain stagnant and appear to be about half of what they were in 2001.
Texas has been taking on affordable college in a different way with a new statewide initiative. A key reason is because about 20% of student loan borrowers in Texas are delinquent.
There also are bills in progress that would limit tuition increases – including the incorporation of performance measures and inflation adjustments.
Here you can see that enrollment is growing in Texas, but net tuition revenue is thousands lower than in Ohio.
Appropriations are actually much closer in 2014 to what they were in 2001, compared to the drop in appropriations in Ohio.
Despite higher costs for students, a slightly higher percentage of Ohio students go to college.
But, percentage of family income needed to pay for college in Texas is lower than Ohio’s and the national average – possibly because of Texas’ lower tuition rate.
Ohio is pretty close to the national average in state aid targeted to low-income families, while it’s much lower than the national average in Texas.
Another thing to note in the amount of debt students face. Nationally, seven in 10 students graduate with debt.
The average debt for Ohio students is $29,090 and the average for Texas students is lower at $25,244. The national average is $28,400.
In terms of yearly loan amounts, Texas and Ohio students borrow very similarly - $4,648 each year for Ohio students and $4,723 for Texas students.
I want to circle back to the Texas’ $10,000 degree plan.
Looking at Ohio, their plan include tuition freezes and funds to help save costs.