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How Low Income Undergraduates Financed Postsecondary Education:1992-93


Considerations in Choosing an Institution

In 1989-90, 76 percent of low income undergraduates reported that the fact that an institution offered the course of study they wanted was a very important consideration in their choice of institution. They cited this factor far more frequently than any other (table 4). However, financial considerations were important as well. Forty-five percent of low income students reported that obtaining the financial aid they needed was a very important consideration (compared with only 20 percent of other students). Low income students were also more likely than other students to report that other factors that had financial implications (lower tuition and other expenses, a good reputation for placement, and being able to finish in a shorter time) were very important.


Although students were not asked in NPSAS:93 why they chose the institution in which they enrolled, there is some evidence of efforts on the part of low income students to try to reduce costs. For example, low income students at 4-year institutions were more likely


Table 4 Percentage of undergraduates who rated various reasons for selecting the institution attended as very important, by income group and dependency status: 1989-90

                                                      Tuition   School   Could
           Offered  Could                     School and other had good  finish  Obtained       
          course of go to   Could    School     was  expenses reputation in      financial
             study  school   live   had good   close   were   for        shorter aid
            wanted and work at home reputation to home less   placement  time    needed
__________________________________________________________________________________________
   Total      72.6   51.3     50.5    50.4       43.4    36.8  36.1     29.2     24.4
                                Low income
 Total        75.9   48.8     50.6    52.6       44.8    42.2  41.2     37.1     45.3
Dependency status
 Dependent    71.6   43.2     39.7    51.9       36.6    40.7  45.8     26.6     52.7
 Single 
 independent  80.9   49.0     64.1    53.4       52.9    41.7  40.4     45.6     47.7
 Independent 
   with   
   dependents 74.8   52.7     46.6    52.4       43.6    43.9  38.4     37.4     37.9
                              Not low income
 Total        71.9   51.8     50.4    49.9       43.1    35.5  34.9     27.1     19.5
Dependency status
 Dependent    66.9   38.9     34.4    51.8       34.3    35.7  40.6     21.1     20.3
 Single 
  independent 80.0   63.8     75.9    48.0       56.2    34.3  27.6     36.0     19.5
 Independent with
   dependents 74.7   73.4     59.2    47.2       49.4    36.7  28.8     31.6     17.4

SOURCE: U.S. Department of Education, National Center for Education Statistics, 1989-90 National Postsecondary Student Aid Study (NPSAS:90), Undergraduate Data Analysis System.


than other undergraduates (24 percent compared with 20 percent) to live with their parents or relatives. This can be an important strategy for reducing housing and, possibly, transportation costs (table 5). Based on tuition and fees paid by students who attended full time, full year, low income undergraduates appear to be sensitive to tuition charges. Except at public less-than-4-year institutions, low income undergraduates enrolled full time, full year paid a lower average amount for tuition and fees than their counterparts who were not low income at the same type of institution (table 6). This suggests that low income students may be choosing lower cost rather than high-cost private institutions and less expensive public institutions over more expensive ones as a way of keeping down their educational costs.

Table 5 Percentage distribution of undergraduates according to local residence, by institution type and income group: 1992-93

                             Off campus,
                    On      with parents   Other
                  campus    or relatives   off campus
______________________________________________________
                              Total
     Total         12.8       28.1        59.0         
Income group
 Low income        10.7       29.4        59.9                   
 Not low income    13.5       27.3        59.2        
                         Less-than-4-year*
    Total          2.5        34.2        63.2
Income group
 Low income         3.2       33.4        63.4                   
 Not low income     2.4       33.6        64.0        
                             4-year
     Total         25.2        21.1       53.8
Income group
 Low income        21.1       24.0        55.0 
 Not low income    26.8       19.9        53.3        
                      Private, for-profit
     Total          3.1       32.5        64.4 
Income group
 Low income         2.8       33.3        63.8 
 Not low income     3.3       31.3        65.4

* Excluding private, for-profit institutions. Most private, for-profit institutions are less-than-4-year, but they are distinct from public and private, not-for-profit less-than-4-year institutions.

NOTE: Percentages may not add to 100 due to rounding. Totals include students with missing income data. Therefore, the percentages for totals may be higher or lower than the percentages for both low income and not low income students.

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 6 Average tuition for undergraduates attending full time, full year, by type of institution and income group: 1992-93

                     Public         Private, not-
                  less-than- Public   for-profit  Private,
                   4-year    4-year    4-year    for-profit
______________________________________________________________
  Total            $1,160    $2,987    $11,194    $5,823
Income group
 Low income         1,169     2,601      8,784     5,332
 Not low income     1,171     3,033     11,634     6,164

NOTE: Totals include students with missing income data. Therefore, the amounts for all students may be greater or less than the amounts for both low income and not low income students.

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


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