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How Low Income Undergraduates Financed Postsecondary Education:1992-93


Financial Aid

The vast majority (88 percent) of low income students who enrolled full time, full year in 1992-93 received some type of financial aid (table 8). The average amount aided students received varied by institution type, ranging from $3,400 at public less-than-4-year institutions to $9,300 at private, not- for-profit 4-year institutions.

Types of Aid

Grants are the foundation of student financial aid for low income students. Depending on the type of institution, between 80 percent and 95 percent of full-time, full-year low income students received grants (figure 9 and table 8). The average amount received in the

Figure 9 Percentage of full-time, full-year low income undergraduates receiving aid and average amount received by aided students, by type of institution: 1992-93



Table 8 Percentage of low income undergraduates attending full time, full year who received various types of financial aid and the average amounts received by aided students, by dependency status and type of institution: 1992-93

                    Total aid      Grants             Loans      Work study     
                  ______________ _______________  ______________ ______________
                         Average         Average         Average        Average
                  Percent amount Percent  amount  Percent amount Percent amount
_______________________________________________________________________________
   Total             88.1 $5,764    84.0  $3,485     48.3 $3,465    15.0 $1,388                                 
Institution type                                    
 Public less-than-
  4-year             83.5  3,352    80.2   2,365     20.2  2,549    10.3  1,560
 Public 4-year       86.6  5,638    81.6   3,193     54.9  3,371    14.8  1,371
 Private, not-for-
  profit
   less-than-4-year  97.0  4,802    95.1   3,257     39.7  2,892     3.7    -                                                        
 Private, not-for-               
  profit 4-year      92.8  9,318    89.7   6,046     62.4  3,901    30.0  1,264                                 
 Private, for-profit 92.3  4,745    88.4   2,313     54.9  3,658     3.6    -   
                                 Dependent
   Total             89.1  6,188    85.8   4,126     48.8  2,957    20.5  1,315                                                    
Institution type                                    
 Public 
  less-than-4-year   83.1  2,831    81.4   2,242     11.7   -       15.1     -              
 
 Public 4-year       86.8  5,181    82.7   3,302     50.3  2,722    16.1  1,341               
 Private, 
  not-for-profit
   less-than-4-year  99.3  4,710    99.0   3,058     38.4   -        3.9     -              
 Private, 
  not-for-profit 
    4-year           93.5  9,781    90.6   6,902     62.1  3,279    37.3  1,224           
 Private, for-profit 96.7  5,267    93.5   2,408     65.7  3,336     1.9    -          
                            Single independent
   Total             88.2  5,944    82.9   3,319     51.5  3,824    12.7  1,365                        
Institution type                                    
 Public 
  less-than-4-year   82.6  3,094    78.0   2,085     20.7   -        7.0   -               
 Public 4-year       87.9  5,764    81.6   3,049     57.9  3,671    12.2  1,359          
 Private, 
  not-for-profit
   less-than-4-year    -     -       -       -        -      -        -     -             
                             
 Private, 
  not-for-profit
   4-year            92.6  9,385    88.4   5,654     62.7  4,547    26.3  1,313                
 Private, 
  for-profit         90.9  5,271    87.6   2,258     58.5  4,242     2.2   -     
                        Independent with dependents
   Total             87.0  5,129    83.4   2,996     44.3  3,581    12.0  1,540
Institution type                                    
 Public less-than-
  4-year             84.3  3,733    81.0   2,585     23.7  2,938    10.3    -  
 Public 4-year       84.1  6,194    79.8   3,273     57.2  3,778    17.3  1,433                    
 Private, not-for-
  profit 
   less-than-4-year  94.3  5,111    94.1   3,530     41.9    -       5.2    -               
                                   
 Private, not-for-
  profit 4-year      91.5  8,058    89.9   4,664     62.5  4,227    19.1  1,332                      
 Private, for-profit 91.5  4,308    87.1   2,308     49.6  3,450     4.9    -

- Sample size was too small for a reliable estimate.

SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Undergraduate Data Analysis System.



form of grants was in the $2,300 $3,300 range except at private, not-for- profit 4-year institutions, where it was $6,000 (table 8).


Loans were used less frequently, with 48 percent of low income students borrowing. Students at public less-than-4-year institutions were the least likely to borrow (20 percent). Between 40 percent and 62 percent borrowed in other types of institutions. The average loan ranged from $2,500 to $3,900, depending on the type of institution. The differences reflect, at least in part, higher borrowing limits for upper-division students as well as cost differences among institution types.


Work-study aid was far more common at private, not-for-profit 4-year institutions than at other types of institutions. Thirty percent of full-time, full-year low income undergraduates participated in work study in that type of institution in contrast to 15 percent or less at other types of institutions. However, the average amount earned by participants was roughly similar at each type of institution ($1,300 to $1,600).


Receipt of some types of aid varied by dependency status. Similar percentages of dependents, single independents, and independents with dependents received grants, but single independents were more likely than independents with dependents to borrow. Dependent students were more likely than either type of independent student to participate in work-study programs.

Sources of Aid

The federal government was the major source of all types of financial aid. With respect to grants, the Pell grant program was the most important. Overall, 84 percent of full-time, full-year low income undergraduates received some type of grant aid; 78 percent received federal grant aid; and 76 percent received a Pell grant (tables 8, 9, and 10). The average Pell grant was $2,100 (table 10), just $300 less than the 1992 93 maximum allowable award of $2,400.


Full-time, full-year low income students at private, not-for-profit 4- year institutions received larger amounts of federal grant aid ($2,800, on average) than their counterparts at other types of institutions. This was partly due to slightly larger Pell amounts, but also because they were considerably more likely than their counterparts in other types of institutions to receive Supplementary Education Opportunity Grants (SEOGs) (table 10).


Participation in loan programs varied considerably by type of institution. However, at each type of institution, almost all of the students with loans had federal loans, and most of these students had Stafford loans (tables 8, 9, and 11). About one out of five full-time,


Table 9 Percentage of low income undergraduates attending full time, full year who received financial aid from various sources and the average amounts received by aided students, by dependency status and type of institution: 1992-93

                                                                 
                                                                          Any
                      Any        Federal      Federal         Any      institutional
                  federal aid     grant         loan       state aid      aid      
                  ___________  _____________ ____________ ____________ ____________                                                                                                           
                  Per- Average Per-  Average Per- Average Per- Average Per- Average
                  cent amount  cent  amount  cent amount  cent amount  cent amount
_____________________________________________________________________________________
                                   Total
  Total           82.6 $4,453  77.6  $2,339  47.6 $3,408  33.5 $1,586  24.8 $2,689 
                                                                                                                                  
Institution type                            
 Public less-than-
   4-year         76.6  2,872  75.5   2,026  19.9  2,568  33.0    915  11.2    840 
 Public 4-year    80.9  4,699  74.6   2,389  54.1  3,330  36.5  1,458  25.4  1,440 
 Private,  not-for-profit
  less-than-
   4-year         95.3  3,817  95.0   2,371  39.7  2,871  38.4  1,645  16.1    -
   Private, not-for-profit 
     4-year       86.3  5,718  78.0   2,773  61.1  3,772  43.5  2,351  51.7  4,647 
 Private, 
  for-profit      91.0  4,328  87.2   2,089  54.6  3,622  10.2  1,874  7.5   1,655 
                                 Dependent
   Total          84.7  4,332  78.9   2,404  48.2  2,905  36.1  1,837 32.8   3,146                     
                                                                  
Institution type                            
 Public less-than-
   4-year         74.6  2,378  70.0   1,840  11.7   -     29.1   -    18.9     -                     
 Public 4-year    82.9  4,084  76.9   2,329  49.7  2,702  36.6  1,563 28.8   1,411                     
 Private, not-for-profit
  less-than-
   4-year         99.3  3,774  99.0   2,427  38.4   -     43.6   -    15.0     - 
 Private, not-for-
  profit 4-year   89.0  5,497  82.0   2,863  61.1  3,154  44.7  2,519 55.3   5,160           
 Private, 
  for-profit      96.2  4,861  93.1   2,128  65.2  3,359  11.9   -     6.8     - 
                              
                            Single independent
   Total          80.5  4,707  73.9   2,284  50.6  3,753  32.2  1,599 24.7   2,686                     
                                                                  
Institution type                            
 Public less-than-
  4-year          73.4  2,523  73.0   1,793  19.7     -   25.9    920 13.0     -                         
 Public 4-year    80.4  4,953  72.7   2,366  57.1  3,614  35.4  1,437 21.8     1,557                     
 Private, not-for-profit                       
  less-than-4-year -     -       -       -    -      -     -      -    -       -
 Private, not-for-profit 
   4-year         82.6  5,996  71.3   2,704  61.0  4,361  42.2  2,359 53.5     4,564           
 Private, 
  for-profit      89.3  4,847  84.9   2,091  58.5  4,225  10.6    -    8.2      -
                                                                                 
                        Independent with dependents
   Total          82.8  4,312  80.1   2,328  43.9  3,539  32.5  1,289 16.7     1,786 
                                                           
Institution type                                           
 Public less-than-
  4-year          79.5  3,273  79.5   2,229  23.7  2,938  39.0    880  6.7       -          
 Public 4-year    78.4  5,321  74.4   2,536  56.2  3,739  38.4  1,324 26.4     1,316 
 Private, not-for-profit
  less-than-
   4-year         94.1  3,877  93.9   2,396  41.9    -    39.1    -   16.9       -
 Private, not-for-profit 
   4-year         86.3  5,789  80.3   2,662  61.4  4,203  43.1  1,921 40.0     3,140 
 Private, 
  for-profit      90.1  3,889  86.5   2,075  49.2  3,375   9.4  1,870  7.4       -
    

- Sample size was too small for a reliable estimate.

SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Undergraduate Data Analysis System.


Table 10 Percentage of low income undergraduates attending full time, full year who received various types of grants and the average amounts received by aided students, by dependency status and type of institution: 1992-93

                  Any fedaral      Pell         SEOG        State      Institutional
                  ___________  _____________ ____________ ____________ ____________                                                                                                           
                  Per- Average Per-  Average Per- Average Per- Average Per- Average
                  cent amount  cent  amount  cent amount  cent amount  cent amount
_____________________________________________________________________________________
                                   Total
   Total          77.6 $2,339  76.1  $2,111  23.1 $  781  29.7 $1,486  21.9 $2,665                     
                                                                                  
Institution type                            
 Public less-than-
  4-year          75.5  2,026  73.2   1,932  17.1    432  27.8    836  11.2    830                     
 Public 4-year    74.6  2,389  74.1   2,188  20.4    717  33.3  1,338  21.4  1,364                     
 Private, not-for-profit
  less-than-
   4-year         95.0  2,371  94.5   2,241  19.1     -   29.8    -    14.3     -
 Private, not-for-
  profit 4-year   78.0  2,773  75.2   2,247  36.4  1,158  39.0  2,264  47.9  4,596           
 Private,                            
  for-profit      87.2  2,089  85.9   1,967  22.9    560   8.2  1,552   5.2  1,077                             
                                                                
                                 Dependent
                                                                
   Total          78.9  2,404  77.6   2,117  24.7    955  33.7  1,749  29.7  3,197                     
                                                                                  
Institution type                            
 Public less-than-
  4-year          70.0  1,840  68.3   1,801  14.4     -   27.5    -    18.9    -                       
 Public 4-year    76.9  2,329  76.5   2,136  18.6    803  35.3  1,477  24.6  1,366                     
 Private, not-for-profit
  less-than-
   4-year         99.0  2,427  98.8   2,209  23.4    -    30.0    -     9.9    -           
 Private, not-for-
  profit 4-year   82.0  2,863  79.6   2,243  41.9  1,268  41.4  2,453  51.9  5,167           
 Private, 
  for-profit      93.1  2,128  91.0   2,042  21.1    574   8.1    -     6.5    -  
                            Single independent
   Total          73.9  2,284  72.3   2,100  19.2    723  27.8  1,458  22.2  2,579                     
                                                                                  
Institution type                            
 Public less-than-
  4-year          73.0  1,793  70.4   1,790  12.4     -   19.5     -   13.0    -                      
 Public 4-year    72.7  2,366  72.3   2,206  17.3    634  31.6  1,297  18.9  1,420                     
 Private, not-for-profit
  less-than-4-year -      -      -      -      -      -    -      -      -      -           
 Private, not-for-profit 
  4-year          71.3  2,704  67.6   2,233  30.3  1,027  36.7  2,170  48.3  4,466           
 Private, 
  for-profit      84.9  2,091  83.2   1,956  19.6    678   9.0    -     7.8    -  
                                                                
                        Independent with dependents
                                                                                  
   Total          80.1  2,328  78.6   2,117  25.7    658  27.8  1,192  13.8  1,658 
                                                                                  
Institution type                                                                  
 Public less-than-
  4-year          79.5  2,229  77.0   2,063  21.1    508  33.0    794   6.6    -                 
 Public 4-year    74.4  2,536  73.7   2,248  29.1    716  33.3  1,161  20.7  1,266      
 Private, not-for-profit less-than-
   4-year         93.9  2,396  93.9   2,332  14.9     -   31.8    -    16.9    -            
 Private, not-for-profit
   4-year         80.3  2,662  78.1   2,275  34.0  1,043  37.6  1,928  37.4  2,992     
 Private,
  for-profit      86.5  2,075  85.6   1,948  25.0    511   7.9     -    3.6    -  

- Sample size was too small for a reliable estimate.

SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Undergraduate Data Analysis System.



Table 11 Percentage of low income undergraduates attending full time, full year who obtained various types of loans and the average amounts borrowed by students who borrowed, by dependency status and type of institution: 1992-93

                  Any fedaral    Stafford        SLS        Perkins    
                  ___________  _____________ ____________ ____________                                                                                                         
                  Per- Average Per-  Average Per- Average Per- Average 
                  cent amount  cent  amount  cent amount  cent amount  
_______________________________________________________________________
                                   Total
   Total          47.6 $3,408  45.1  $2,850  6.8  $2,753  10.4  $1,316
Institution type                                    
 Public less-than-
  4-year          19.9  2,568  19.1   2,229  2.4    -      2.3     -
                             
 Public 4-year    54.1  3,330  50.5   2,906  6.5   2,618  12.1   1,255                
 Private, not-for-profit less-than-
   4-year         39.7  2,871  38.2   2,344  6.5    -      1.8      -             
                                   
 Private, not-for-profit 
   4-year         61.1  3,772  57.4   2,949  9.2   3,133  21.1   1,379            
 Private, 
   for-profit     54.6  3,622  54.0   2,945 11.4   2,580   4.0   1,817                               
                                 Dependent
   Total          48.2  2,905  45.3   2,644  1.2     -    12.6   1,307 
Institution type                                    
 Public less-than-
  4-year          11.7    -    11.7     -    0.0     -     0.1     -
 Public 4-year    49.7  2,702  46.3   2,572  1.0     -    10.7   1,125            
 Private, not-for-profit less-than-
  4-year          38.4    -    38.4     -    0.4     -     5.1     -
 Private, not-for-profit 
  4-year          61.1  3,154  56.7   2,684  1.5     -    25.1   1,443            
 Private, 
  for-profit      65.2  3,359  65.2   3,145  4.1     -     4.8     -                                           
                            Single independent
   Total          50.6  3,753  47.9   2,993 10.9   2,766  10.6   1,324                        
Institution type                                    
 Public less-than-
   4-year         19.7     -   17.7     -    1.4      -    2.3     -            
 Public 4-year    57.1  3,614  53.9   3,011 10.6   2,651  11.0   1,336           
 Private, not-for-profit
   less-than-4-year -      -    -       -     -       -     -      -                
                             
 Private, not-for-profit 
   4-year         61.0  4,361  57.7   3,181 15.7   3,055  20.4   1,287            
 Private, 
   for-profit     58.5  4,225  57.2   3,079 19.3   2,881   6.9      - 
                        Independent with dependents      
   Total          43.9  3,539  41.7   2,900  8.0   2,769   8.0   1,317                              
Institution type                                    
 Public less-than-
  4-year          23.7  2,938  23.2   2,345  4.0     -     3.4    -               
                        
 Public 4-year    56.2  3,739  51.1   3,214  8.3   2,551  16.6   1,298           
 Private, not-for-profit less-than-
   4-year         41.9     -   38.7     -    3.3     -     0.0    -               
                             
 Private, not-for-profit 
   4-year         61.4  4,203  58.7   3,155 16.1   3,328  12.7   1,341            
 Private, 
   for-profit     49.2  3,375  48.8   2,781  9.8   2,362   2.3    - 

- Sample size was too small for a reliable estimate.

SOURCE: U.S. Department of Education, National Center for Education Statistics, 1992-93 National Postsecondary Student Aid Study (NPSAS:93), Undergraduate Data Analysis System.


full-year low income students at private, not-for-profit 4-year institutions took out a Perkins loan, a much greater proportion than at any other type of institution (table 10).


It should be noted that students' access to federal campus-based aid (SEOG, Perkins, and College Work-Study programs) varies from one institution to another for reasons other than student financial need. The allocation of campus-based aid to institutions has a historical basis. Not all institutions participate, and institutions have different amounts to distribute. Older institutions that have been participating for a long time have the largest amounts.


State aid (which is primarily grant aid) was another important source of aid for low income students, with 34 percent of those who attended full time, full year receiving an average of $1,600 (table 9). State aid was less available to those at private, for-profit institutions than at other types of institutions (10 percent received state aid compared with one-third or more elsewhere). Many state programs do not provide awards to students in private, for-profit institutions.


Institutional aid was an important source of aid for full-time, full-year low income students at private, not-for-profit 4-year institutions: 52 percent received institutional aid averaging $4,600 (table 9). Their counterparts at other types of institutions were much less likely to receive this type of aid. Public institutions usually have relatively little need-based aid to distribute. In many states, most need-based aid at public institutions is awarded directly to students through state grant programs rather than through the institutions.



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