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Tuition, Fees, and Other Costs at Kentucky Public Universities Tuition, Fees, And Other Costs At Kentucky Public Universities Research Report No. 458 Program Review And Investigations Committee Tuition, Fees, And Other Costs At Kentucky Public Universities Program Review And Investigations Committee Sen. Danny Carroll, Co-chair Rep. Rob Rothenburger, Co-chair Sen. Tom Buford Rep. Lynn Bechler Sen. Perry B. Clark Rep. Chris Fugate Sen. Dan “Malano” Seum Rep. Al Gentry Sen. Reginald Thomas Rep. Adam Koenig Sen. Stephen West Rep. Ruth Ann Palumbo Sen. Whitney Westerfield Rep. Steve Riley Sen. Phillip Wheeler Rep. Walker Thomas Project Staff Scott Tremoulis Whitney Davis, PhD William Spears Greg Hager, PhD Committee Staff Administrator Research Report No. 458 Legislative Research Commission Frankfort, Kentucky legislature.ky.gov Adopted May 9, 2019 Paid for with state funds. Available in alternative format by request. Abstract The Kentucky Council on Postsecondary Education (CPE) is authorized by statute to set tuition and mandatory fees at Kentucky’s eight public universities. For the 9-year period after CPE implemented a tuition ceiling policy, the average annual tuition increase was 4.6 percent, less than half the average in the period preceding the policy change. Students must differentiate between a university’s total cost of attendance, which does not take financial assistance into account, and its net price, which does. In academic year 2015, the total cost of attendance for an in-state student living on a Kentucky campus ranged from less than $19,000 to more than $25,000, depending on the university. Net prices ranged from more than $8,000 to more than $16,000. Since 2007, net price, adjusted for inflation, increased by at least 17 percent at five Kentucky universities but decreased at three. The average net price for Kentucky universities in 2015 was lower than the average for universities in four of seven surrounding states and in 9 of 15 other southern states. Depending on the Kentucky university, net price as a percentage of state median household income ranged from 18 percent to more than 35 percent in 2015, with the percentage increasing at seven of eight universities since 2007. Approximately 93 percent of students at all Kentucky universities received some type of financial aid in academic year 2015, including 68 percent who received state grant aid. The average institutional grant and loan were each more than $6,500. Average state grant aid was less than $2,300. Kentucky’s university graduates had a median debt of nearly $24,000 in FY 2015; the average student’s 3-year default rate was 11 percent. Legislative Research Commission Foreword Program Review And Investigations Foreword The authors of this report thank the staff of the Kentucky Council on Postsecondary Education, especially Senior Fellow and Legislative Liaison Ron Carson; Vice President of Finance and Administration William Payne; Senior Associate for Finance and Administration Shaun McKiernan; Vice President for Policy, Planning, and External Relations Lee Nimocks; Associate Vice President of Data, Research, and Analysis David Mahan; and General Counsel and Associate Vice President Travis Powell. Budget officials Ryan Green at Eastern Kentucky University, Douglas Allen at Kentucky Community and Technical Colleges, Ray Griffith at Kentucky State University, Teresa Lindgren at Morehead State University, Jackie Dudley at Murray State University, Angela Schaffer at Northern Kentucky University, Angie Martin and Shan Hong Wang at the University of Kentucky, Rick Graycarek at the University of Louisville, and Stacy Garrett at Western Kentucky University provided insight into university financials. The Integrated Postsecondary Education Data System help desk staff answered data questions. Legislative Research Commission Frankfort, Kentucky May 9, 2019 i Legislative Research Commission Contents Program Review And Investigations Contents Summary ....................................................................................................................................... vii Chapter 1: Introduction ....................................................................................................................1 Major Conclusions .........................................................................................................2 Organization Of This Report .........................................................................................4 Chapter 2: Kentucky Council On Postsecondary Education ...........................................................5 Chapter 3: Costs Of Attending Public Universities .......................................................................11 Tuition And Fees..........................................................................................................11 Books And Supplies .....................................................................................................15 Living Costs .................................................................................................................16 Total Cost Of Attendance ............................................................................................19 Enrollment....................................................................................................................23 Chapter 4: Net Price.......................................................................................................................27 Economic Research ......................................................................................................27 Average Net Price For In-State Students .....................................................................29 As Share Of Income .........................................................................................34 State General Fund Appropriations And Tuition And Fee Revenue ...........................36 University Revenue And Expenses ..............................................................................43 Chapter 5: Student Financial Aid .................................................................................................45 Federal..........................................................................................................................45 Kentucky ......................................................................................................................46 Applying For Aid .........................................................................................................47 National Trends In Financial Aid ................................................................................48 Financial Aid In Kentucky ...........................................................................................48 State And Institutional Grant Aid ................................................................................54 Student Loans...............................................................................................................62 Chapter 6: Student Loan Debt And Default ..................................................................................65 Student Loans ..............................................................................................................65 Student Loan Debt ...........................................................................................66 Nationwide ...........................................................................................66 Kentucky ..............................................................................................66 Default Rates ....................................................................................................73 Repayment Rates .............................................................................................76 Appendix: Data And Research Methods ........................................................................................81 Endnotes .........................................................................................................................................83 iii Contents Legislative Research Commission Program Review And Investigations Tables 2.1 Maximum Base Rate Percentage Increase Ceilings, Academic Years 2008 To 2018 .........9 3.1 Annual In-State Tuition And Fees, Academic Years 2000 To 2015 .................................12 3.2 Annual Out-Of-State Tuition And Fees, Academic Years 2000 To 2015 .........................14 3.3 Average Annual Cost Of Living On Campus, Academic Years 2000 To 2015 ................17 3.4 Annual Total Cost Of Attendance For In-State, On-Campus Students, Academic Years 2000 To 2015 ...........................................................................................................19 3.5 Annual Total Cost Of Attendance For Out-Of-State, On-Campus Students, Academic Years 2000 To 2015 ..........................................................................................21 3.6 In-State Enrollment Of First-Time, Full-Time Students, Academic Years 2000 To 2015....................................................................................................................................23 3.7 Out-Of-State Enrollment Of First-Time, Full-Time Students, Academic Years 2000 To 2015 ..............................................................................................................................24 3.8 Percentage Of First-Time, Full-Time Students Paying In-State Tuition, Academic Years 2000 To 2015 ...........................................................................................................25
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