Intro

1. Unequal Family Income and Unequal Opportunity for Higher Education Duluth Superior Area Community Foundation Lake Superior College Duluth, MN July 16, 2018 Tom Mortenson Senior Scholar, The Pell Institute for the Study of Opportunity in Higher Education Higher Education Policy Analyst, Postsecondary Education OPPORTUNITY Intro

3. The Changing Policy Environment forHigher Education Opportunity for Families-------------------------- 1973: Growing importance of higher education 1980: State defunding of public higher education 1981: Increasing public institution tuition and fee rates ~1994: Federal policy shift from grants to loans 1995: State financial aid shift from need-based grants toward merit-based scholarships 1999: Federal shift to tax credits 2000: Median family income for families with 18 to 24 year olds peaks and begins sharp decline 2003: Declining international ranking in production of college graduates

9. The Education Pipeline High school graduation College continuation for high school graduates College participation Estimated bachelor’s degree completion by age 24 Estimate bachelor’s degree attainment by age 24

24. Influences on Opportunityfor Higher Education Social and cultural capital Financial barriers: Unmet financial need Student work-loan burden Net price to family Net price tax rate Adverse Childhood Experiences (ACEs)

32. Financial Need Analysis Model Cost of Attendance Tuition and fees Room and board Books and supplies Personal and medical care Transportation Less: Expected family contribution Income and assets Family size Number of children enrolled in college Equals: Financial need Gift aid: grants, scholarships, waivers Earnings from work/study Education loans: subsidized/unsubsidized Stafford, PLUS Federal tax credits