News You Need to Know: Daily Roundup, Wed., Oct. 25th

College Board Releases the Two Most Important Higher Ed Studies of the Year

The College Board released the two most important studies of every year on college costs: their Trends in College Pricing 2006 and Trends in Student Aid 2006 reports.

At four-year public colleges, average tuition and fee charges are $5,836 compared to $22,218 at four-year private colleges. Public tuition increased 6.3% from the previous year and private tuition increased 5.9% (after adjusting for inflation, 2.4% and 2% respectively). Public tuition and fees, however, have grown 35% between 2001 and 2006.

After federal, state, institutional, and private grant aid and tax benefits are considered, public college undergraduates paid about $2,700 and private undergraduates paid about $13,200 in tuition and fees. After remaining a stable proportion for almost a decade, grants now represent only 42% of total financial aid packages, a drop from 48% in 2001-02. Part of this decline can be attributed to cuts in federal funding to the Pell Grant program. Both the total amount of Pell Grants and the average award decreased from the previous year by approximately $900 million and $200, respectively.

The combination of rising tuition and decreasing grant aid caused students to rely more heavily on student loans, especially unsubsidized, private loans. Private loans have been increasing at an average annual rate of approximately 27% for the past five years.

There is a lot more to be gleaned from College Boards Trends reports. Read them in full yourself. Youll be glad you did.

College-Prep Students in Maryland Still Need Remediation in College

The Maryland Higher Education Commission released a new report on the college performance of Maryland high school graduates who enrolled at public Maryland colleges and universities. Maryland found that 30% of state students who graduated with a college-prep education still needed post-secondary level remedial assistance in mathematics. Approximately 15% of Maryland post-secondary students needed remedial training in English or reading.

Of students that did not complete college prep curriculum, considerably more required remediation: 41% of students needed remedial assistance in mathematics, 21% in English, and 24% in reading. Higher Ed Watch hypothesizes that high rates of post-secondary remediation in Maryland produce a college drop-out problem there similar to that in Ohio.

NCES Releases Study on Undergraduate Financial Aid

The National Center for Education Statistics published a report yesterday on the average amount of undergraduate financial aid available to in-state students. The study surveyed representative samples of undergraduates in public 2-year, public 4-year, and private not-for-profit 4-year institutions in 12 states. Overall, 60 percent of in-state undergraduates received an average of $6,600 in direct financial aid, with 49 percent receiving grants and 30 percent receiving student loans. Approximately, 77 percent of in-state undergraduates had some level of financial need with the average amount of need equaling $11,300.

NCES report also provides data for each of the 12 states. Georgia had the highest percentage of in-state undergraduates receiving financial aid (78%), while California had the lowest percentage (39%). New York provided the largest average amount of aid ($8,300), while Georgia provided the lowest amount ($4,800). But comparisons across states are not necessarily fair. Financial aid is a function of college cost, and each states tuition costs and students accompanying need vary widely.