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
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.
[Financial Need]
[Relationship Between Financial Aid and Cost]