• Introduction
• Student Characteristics
• Finances
• Influences
• Academic Differences
• Satisfaction
• Persistence
• Conclusions

This report investigates the reasons full-time, first-year undergraduates gave for choosing to enroll at higher sticker prices, how they paid their expenses, and the educational experiences associated with attendance. It also reviews how satisfied they were with their choice, how they rated their educational experience, how they paid for their education, and their first-year persistence.

For the purposes of this report, full-time, first-year undergraduates attending 4-year institutions are divided into three groups. First, “undergraduates with higher sticker prices” are those who faced at least $12,000 in tuition and required fees before any tuition remission, discounts, or financial aid award in the 1995–96 academic year, regardless of institution control or Carnegie classification. Second, undergraduates with sticker prices below $12,000 in the 1995–96 academic year attending public universities with the Carnegie classifications of Research Universities I or Research Universities II are the “undergraduates in public research universities.” Third, undergraduates with sticker prices below $12,000 in the 1995–96 academic year attending all other institutions are the “undergraduates in other 4-year institutions.”

The tables provide data on full-time, first-year undergraduates with higher sticker prices. Comparisons are made with undergraduates attending public research universities with sticker prices below $12,000. Undergraduates in public research universities with sticker prices below $12,000 were chosen as a comparison group because many of these students show signs of being financially able to enroll at higher sticker prices. The third group of undergraduates. those attending other 4-year public institutions and private institutions with sticker prices below $12,000. is included in the tables, but not in the analysis.

Most of the undergraduates with higher sticker prices attended private, not-for-profit institutions, but some attended public institutions as out-of-state students. Twenty-one percent of all full-time, first-year undergraduates who attended 4-year institutions faced higher sticker prices (figure A).

Figure A.—Percentage distribution of full-time, first-year undergraduates in 4-year institutions, by sticker price and Carnegie classification: 1995–96

Twenty-two percent of the full-time, first-year undergraduates who attended 4-year institutions enrolled in public research universities with sticker prices below $12,000. In many states, public research universities with sticker prices below $12,000 represent the most prestigious institutional choice available.

The source of data for this analysis was the 1995–96 National Postsecondary Student Aid Study (NPSAS:96). This data set provides a nationally representative sample of undergraduates enrolled in accredited postsecondary institutions. NPSAS:96 provides information about expenses and financial aid along with characteristics that distinguish undergraduates with higher sticker prices from those with sticker prices below $12,000 in public research universities.

In addition, the report provides information from NPSAS:96 about student characteristics associated with full-time undergraduate persistence in the first year of enrollment. Persistence is defined as attending full time at the same campus for at least 8 months during the year.

Nearly all of the full-time, first-year undergraduates who faced higher sticker prices or sticker prices below $12,000 in public research universities can be classified as traditional. Characteristics of traditional students include being single, younger than 24, and financially dependent on their parents. Also, the family incomes of the undergraduates attending institutions in the two institutional groups did not differ statistically (table A).

Table A.—Percentage distribution of full-time, first-year undergraduates in 4-year institutions according to selected student characteristics, by sticker price and Carnegie classification: 1995–96

The percent of full-time, first-year undergraduates attending college out of state and the percent living on campus differentiated those who enrolled with higher sticker prices from those enrolling with sticker prices below $12,000 in public research universities. Fifty-five percent of full-time, first-year undergraduates with higher sticker prices enrolled in institutions out of state compared with 19 percent of those with sticker prices below $12,000 in public research universities. Further, 92 percent of the full-time, first-year undergraduates with higher sticker prices lived on campus compared with 74 percent of those with sticker prices below $12,000 in public research universities.

Financial aid, work, and parental support are the three major sources of financial support for undergraduates in both groups. Financial aid was received by 79 percent of the full-time, first-year undergraduates with higher sticker prices compared with 69 percent of those with sticker prices below $12,000 in public research universities (table B). Part of the difference can be accounted for by the difference in probability of receiving federally provided financial aid Sixty-one percent of the full-time, first-year undergraduates with higher sticker prices received federal financial aid compared with 48 percent of those with sticker prices below $12,000 in public research universities.

Table B.—Percentage distribution of full-time, first-year undergraduates in 4-year institutions according to type of aid and average hours worked while enrolled, by sticker price and Carnegie classification: 1995–96

Full-time, first-year undergraduates with higher sticker prices were more likely to have received grants, loans, or work-study than were those with sticker prices below $12,000 in public research universities. The most striking difference was noted for college work-study, which was received by one-third of the full-time, first-year undergraduates with higher sticker prices, compared with 7 percent of those with sticker prices below $12,000 in public research universities.

The majority of full-time, first-year undergraduates in both groups worked while they attended school. Full-time, first-year undergraduates with higher sticker prices were more likely to work 1 to 14 hours a week, whereas those with sticker prices below $12,000 in public research universities were more likely to work 15 hours or more per week. Thirty-seven percent of those with higher sticker prices worked between 1 and 14 hours per week during the school year compared with 18 percent of those with sticker prices below $12,000 in public research universities. One-quarter of the full-time, first-year undergraduates with sticker prices below $12,000 in public research universities worked 15 to 29 hours compared with 16 percent of those with higher sticker prices. Ten percent of the full-time, first-year undergraduates with sticker prices below $12,000 in public research universities worked 30 hours or more compared with 7 percent of those with higher sticker prices.

Parents also provided financial support. Ninety-two percent of the full-time, first-year undergraduates with higher sticker prices received parental help compared with 80 percent of those with sticker prices below $12,000 in public research universities.

Four influences differentiated full-time, first-year undergraduates with higher sticker prices from those with sticker prices below $12,000 in public research universities (table C). First, one-half of the full-time, first-year undergraduates with higher sticker prices indicated that institutional reputation was a reason for enrolling compared with 41 percent of those with sticker prices below $12,000 in public research universities. The second factor was receiving more financial aid. Twelve percent of full-time, first-year undergraduates with higher sticker prices indicated that the receipt of more financial aid was a reason for enrolling compared with 6 percent of those with sticker prices below $12,000 in public research universities. Third, faculty reputation was identified as an influence by 7 percent of the full-time, first-year undergraduates with higher sticker prices compared with 2 percent of those with sticker prices below $12,000 in public research universities. The fourth influence was the job placement rate. Five percent of the full-time, first-year undergraduates with higher sticker prices said job placement was an important consideration compared with 1 percent of those with sticker prices below $12,000 in public research universities.

Table C.—Percentage distribution of full-time, first-year undergraduates in 4-year institutions according to selected undergraduates’ reasons for attendance, by sticker price and Carnegie classification: 1995–96

Four influences differentiated full-time, first-year undergraduates with sticker prices below $12,000 in public research universities from those with higher sticker prices. First, 31 percent of full-time, first-year undergraduates with sticker prices below $12,000 in public research universities indicated that being close to home was an important influence compared with 17 percent of those with higher sticker prices. The second factor was low tuition. Ten percent of the full-time, first-year undergraduates with sticker prices below $12,000 in public research universities indicated that low tuition was important compared with 1 percent of those with higher sticker prices. Third, 8 percent of those with sticker prices below $12,000 in public research universities indicated that friends or a spouse attending the school influenced their decision to enroll compared with 3 percent of those with higher sticker prices. The fourth factor was the option to live at home, which was a reason given by 5 percent of the full-time, first-year undergraduates with sticker prices below $12,000 in public research universities compared with 2 percent of those with higher sticker prices.

One measure of academic preparation, having SAT scores of 1,300 or more, differentiated full-time, first-year undergraduates with higher sticker prices from those with sticker prices below $12,000 in public research universities (table D). Seventeen percent of the full-time, first-year undergraduates with higher sticker prices achieved SATs of 1,300 or more compared with 10 percent of those with sticker prices below $12,000 in public research universities. Another difference noted was the distribution of undergraduates by their undergraduate grade-point averages (GPAs). Eighteen percent of the full-time, first-year undergraduates with sticker prices below $12,000 in public research universities achieved GPAs of less than 2.00 compared with 9 percent of those with higher sticker prices. Two other measures of academic preparation, the percentage of full-time, first-year undergraduates taking advanced placement tests or taking remedial classes, were not significantly different between the two groups.

Table D.—Percentage distribution of full-time, first-year undergraduates in 4-year institutions according to selected undergraduates’ academic differences, by sticker price and Carnegie classification: 1995–96

The mix of academic majors chosen by full-time, first-year undergraduates differed between the two undergraduate categories. Forty-two percent of the full-time, first-year undergraduates with higher sticker prices majored in humanities, social, behavioral, and life sciences compared with 32 percent of those with sticker prices below $12,000 in public research universities. Twenty-one percent of full-time, first-year undergraduates with sticker prices below $12,000 in public research universities majored in physical sciences, engineering, computer science, or mathematics compared with 13 percent of those with higher sticker prices.

Full-time, first-year undergraduates with higher sticker prices were also more likely to report that they often had social contact with the faculty than were those with sticker prices below $12,000 in public research universities.

Nearly all full-time, first-year undergraduates in both groups were satisfied with the social life and the sports and recreational activities on their campus (table E). However, full-time, first-year undergraduates with sticker prices below $12,000 in public research universities were even more likely to be satisfied with the social life and the sports and recreational activities (94 and 96 percent, respectively) than were those with higher sticker prices (90 and 92 percent, respectively). Satisfaction with the academic experience was higher for full-time, first-year undergraduates with higher sticker prices than it was for those with sticker prices below $12,000 in public research universities. Full-time, first-year undergraduates with higher sticker prices were more likely than those with sticker prices below $12,000 in public research universities to be satisfied with availability of courses, instructors’ ability, and class size.

Table E.—Percentage distribution of full-time, first-year undergraduates in 4-year institutions according to selected undergraduates’ satisfaction characteristics, by sticker price and Carnegie classification: 1995–96

Multivariate analysis techniques were used to find that full-time, first-year undergraduates with higher sticker prices were more likely to persist in their first year than were those with sticker prices below $12,000 in public research universities. Further, the multivariate statistical techniques found that student characteristics did not explain the difference in persistence. Persistence is defined as attending full time at the same campus for at least 8 months during the year.

Undergraduates attending institutions with sticker prices of $12,000 or more and those with sticker prices below $12,000 in public research universities include a high proportion of younger and academically prepared undergraduates. Differences in family incomes of full-time, first-year undergraduates in the two groups were not significantly different.

Full-time, first-year undergraduates in the two groups had different reasons for attending their institutions. For example, a larger percentage of full-time, first-year undergraduates with higher sticker prices indicated factors such as institutional reputation, financial aid, and job placement as reasons for attending their institution compared with those with sticker prices below $12,000 in public research universities.