low income families and student loan statistics
value of grants declining
After 3 years of large increases, the number of
Pell Grant recipients increased by only three percent in 2004-05, and the
constant dollar value of the average Pell Grant declined for the 2nd consecutive
year.
The maximum Pell Grant, which covered thirty-five percent of average public
four-year tuition, fees, and room and board in 1994-95 and 42 percent in
2001-02, covered only 36 percent in 2004-05.
Socioeconomic Status and Access to College
Several factors have led to students in the upper 1/2 of the income distribution benefiting more from changes in student aid policies than those in the lower 1/2. 43 percent of the education tax credits and about seventy percent of the benefits of the federal tuition tax deduction go to taxpayers with incomes of $50,000 or higher. Some states and institutions have also increased the proportion of aid they allocate on the basis of academic credentials rather than financial need.
Education Pays 2005, the supplement to last year's report on the benefits of higher education for individuals and society, shows that though college enrollment rates for high school graduates from low-income families are significantly lower than enrollment rates for students from middle- and upper-income families, the enrollment gaps have decreased over time.
"Although there are more students from low-income families with college aspirations and more 1st-generation college students, we need to do a better job of seeing these students through to graduation," Caperton said. "To that end, the College Board recently established the Task Force on College Access for Low-Income Students to examine this and other issues."
Education Pays 2005 also documents persistent gaps in graduation rates. Even among students with very high levels of academic achievement, those from families with low socioeconomic status are significantly less likely to enroll in college than their peers from more privileged backgrounds. Moreover, there are large gaps in college completion rates across socioeconomic groups.
"Socioeconomic status and college success cannot
be separated from the serious problem of unequal academic opportunity within our
schools," Caperton said. "In addition to increasing the affordability of higher
education, we need to make sure that students from all backgrounds have equal
opportunity to prepare for college. As well, all families should be made aware
of the financial aid process and the long-term benefits, both financial and
personal, of investing in a college education."