New Hampshire Higher Education Fails in Affordability

in Fall 2006 Newswire, Lauren Katims, New Hampshire
September 20th, 2006

FAILING
The Keene Sentinel
Lauren Katims
Boston University Washington News Service
9-20-06

WASHINGTON, Sept. 21 – At Keene High School, students are busy worrying about how they will pay for college and with some of the highest tuition costs in the country and low-state aid, their worries are completely justified.

In the last decade, New Hampshire colleges have become less affordable, especially for low-income families, according to a new report by the National Center for Public Policy and Higher Education, a non-partisan group that studies education. The state received an “F” in affordability, a grade they have not been able to escape for years.

The report grades each state on five categories relating to its post-secondary education systems. New Hampshire received a “B+” in preparation, a “C+” in participation, and aced completion and benefits.

New Hampshire was one of 43 states that received failing grades in affordability. California and Utah each received the highest affordability score – “C-”.

New Hampshire has among the highest college tuition costs in the country said Tara Payne, vice president of marketing and communications for the New Hampshire Higher Education Assistance Foundation. Costs are far outpacing inflation, she said.

Since the 1990s, New Hampshire college tuition has been climbing, according to the report, and financial aid is not keeping up.

Patricia Blodgett, director of student financial services at Keene State College, said 71 percent of Keene’s students are using financial aid to help pay tuition, a number that has been increasing over the years.

In-state students pay $14,848 and out-of-state students pay $22,118, which includes tuition, room and board and basic needs. Blodgett said Keene State’s tuition is a reasonable amount for college tuition. If a student goes out-of-state for college, they are not going to find a better price than this, she said.

But still, 45 percent of students who graduate high school in New Hampshire attend college out-of-state, according to the report. Matthew Cookson, associate vice chancellor for external relations at the University System of New Hampshire said the reason students leave the state has nothing to do with high tuition.

“One of the reasons people do go out of state is they are looking for a different experience,” Cookson said. There are a lot of great education opportunities in New Hampshire, he said, but it is a small state and students feel they need to explore other areas.

The trend of high school graduates leaving the state is something the University System of New Hampshire wants to reverse or at least slow down, Cookson said. Having so many students leave for college has an effect on the economy, he said.

“It makes the state more robust to have a wider range of individuals living here,” he said.

The University System of New Hampshire recently enacted a program called Affordable College Effort, targeted at helping New Hampshire’s neediest students pay for their freshman year in college.

With high tuition costs comes high debt. On average, Payne said, students leave a New Hampshire college owing $22,793, the highest in the country, which is the reason the state keeps failing affordability.

Some families are spending 48 percent of their annual income on tuition, even after federal aid, according to the new report.

“Traditionally, our university system has received a lower percentage of support from the state legislature than almost every other state university system,” Cookson said.

Eighty-three percent of grants given to college students in New Hampshire are from the colleges themselves, said Payne. Only one percent of funds actually come from the state.

“Colleges are shouldering most of the burden,” Payne said. “They are using more of their institutional dollars than other colleges around the country.”

Since 2000, the University System of New Hampshire has worked to keep tuition hikes five to seven percent lower than the national average, Cookson said. However, it is unlikely that state support will increase enough for New Hampshire school systems to be able to lower tuition and fees, Cookson said.

Students who attend college are likely to make $1 million more in their lifetime than students who do not, Payne said, but they are also missing out on something more than a higher salary.

People who go to college have more flexibility in their lives. There is a lower unemployment rate and better work environments to name a few, she said.

However, despite high tuition costs and soaring loan debts, New Hampshire has one of the lowest default rates in the country, Payne said.

The New Hampshire Higher Education Assistance Foundation has an outreach program that teaches students and parents about repaying debt.

“Students and parents who have been dealing with stagnant aid understand what it is,” Payne said, and they understand they have to pay their loans back.

According to the report, students are prepared for college in other areas too. New Hampshire received a “B+” in preparation.

At Keene High School, 71 percent of students pursue some type of post-secondary education, said Kim Baker, director of guidance at the high school. And more than half of them attend a four-year university.

Each year, the guidance department meets with students to develop some sort of post-secondary plan, she said. They help students get exposure to courses they might be interested in and discuss career opportunities.

Although Keene High School does not advise individual students on financial aid, they work closely with the New Hampshire Higher Education Assistance Foundation to educate students and parents on financial assistance.

Baker said students often confess their concerns about affording college.

“I worry too,” Baker said. “It’s very expensive. The cost of school has been on the rise and it’s more of a hardship for families. There are a lot of hidden costs that people don’t see.”

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