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Detailed Summary of Findings: NAICU Fall 2009 Economic Impact Survey

July 20, 2009

NAICU conducted its survey of member private, nonprofit colleges and universities on their expectations for fall 2009 enrollment, financial aid, and budgeting in light of the current economic recession, from May 18 to June 19, 2009. NAICU received 284 completed surveys, a 30-percent response rate.

Click here to view the news release.
Click here to view the full survey results.

Contents

• Enrollment
  ► Key enrollment findings
  ► Steps taken to achieve fall enrollment goals
• Student Need
  ► The impact of changes in federal student aid programs
  ► Changes in student aid applications
  ► Changes in student aid packages
  ► Steps taken by undergraduate students due to the recession
• Campus Budgeting
  ► Sources for additional student aid
  ► Balancing the budget and tuition increases
• Full Survey Results

Enrollment: Key enrollment findings*

• Undergraduate enrollment at private, nonprofit colleges and universities for fall 2009 is projected to increase slightly-by an average of 0.2 percent-over fall 2008.

• Overall student enrollment (undergraduate and graduate students) is projected to increase by an average of 0.1 percent over last year.

• Over half (56.2 percent) of responding institutions experienced an increase or no change in paid deposits by May 15, for fall 2009 enrollment, versus last year at this time. (See Paid Deposits section of full results for detailed statistical breakdown)


• Over two-thirds (67.9 percent) of respondents project an increase or no change in new undergraduate student enrollment for fall 2009. Nearly 14 percent (13.6 percent) of respondents project a decrease of more than 5 percent. (See New Undergraduate Enrollment section of full results for the detailed statistical breakdown)

• Almost three-quarters (74.3 percent) of respondents project an increase or no change in returning undergraduate student enrollment for fall 2009. Nearly 2 percent (1.9 percent) of respondents project a decrease of more 5 percent. (See Returning Undergraduate Enrollment section of full results for the detailed statistical breakdown)

• Over three-quarters (76.5 percent) of respondents project an increase or no change in transfer undergraduate student enrollment. Nearly 10 percent (9.5 percent) of respondents project a decrease of more than 5 percent. (See Transfer Undergraduate Enrollment section of full results for the detailed statistical breakdown)

* Note that projected and actual fall 2009 enrollment figures may differ more than in previous years, given the unusually unpredictable admissions season.

Enrollment: Steps taken to achieve fall enrollment goals

Percentage of institutions taking one or more of the following measures to meet fall enrollment goals in light of the economic recession:

• 58.1 percent responded more positively to more student aid appeals*
• 55.3 percent increased the size of institutional aid awards*
• 52.1 percent accepted a higher number of regular applicants versus last year
• 43.3 percent increased the number of students receiving institutional aid*
• 32.4 percent accepted late applications/extended the recruiting cycle
• 13.0 percent accepted more students on the waiting list versus last year
• 12.0 percent created a longer waiting list versus last year
• 9.9 percent accepted a higher number of early decision applicants versus last year

* Note that these figures do not necessarily capture the full extent of institutional student aid increases for fall 2009. Institutions have reasons for increasing student aid that go beyond meeting fall enrollment goals. These may include planned pre-recession enrollment growth, student population diversity efforts, natural/historical increases in aid, and so on. See section titled Student Aid: Changes in student aid packages for further data.

Student Need: The impact of changes in federal student aid programs

Changes in the federal student aid programs for fall 2009 were viewed by responding institutions as having a positive impact on students.

• 92.9 percent reported that the $500 increase in the maximum Pell Grant was helpful or very helpful
• 91.4 percent of reported that the $2,000 increase in Stafford loan limits was helpful or very helpful.
• 64 percent reported that the 20 percent increase in Federal Work-Study was helpful or very helpful.

Student Need: Changes in student aid applications

Eight in 10 (82.7 percent) of responding institutions reported an increase in fall 2009 student aid applications versus fall 2008, as a result of the economic recession.

• 15.1 percent reported substantially increased applications (>15 percent increase)
• 34.0 percent reported moderately increased applications (6-15 percent increase)
• 33.6 percent reported slightly increased applications (1-5 percent increase)
• 13.6 percent reported no change
• 2.6 percent reported slightly decreased applications (1-5 percent decrease)
• 1.1 percent reported moderately decreased applications (6-15 percent decrease)
• 0 percent reported substantially decreased applications (>15 percent decrease)

Student Need: Changes in student aid packages

Ninety-five percent of responding institutions reported an increase (76.6 percent) or no change (18.5) in institutional aid awards for fall 2009 versus fall 2008. About 80 percent reported a decrease (46.5 percent) or no change (34.2 percent) in expected family contributions. Slightly more half (54.5 percent) reported in increase in federal student loans and nearly a third (31.5 percent) reported an increase in private loans.

Institutional aid awards
• 76.6 percent of responding institutions reported an increase
• 18.5 percent reported no change
• 4.9 percent reported a decrease

Federal grant aid
• 75.8 percent of responding institutions reported an increase
• 22.7 percent reported no change
• 1.5 percent reported a decrease

Federal work study
• 36.3 percent of responding institutions reported an increase
• 61.1 percent reported no change
• 2.7 percent reported a decrease

Federal loans
• 54.5 percent of responding institutions reported an increase
• 41.3 percent reported no change
• 4.2 percent reported a decrease

State aid
• 19.1 percent of responding institutions reported an increase
• 48.6 percent reported no change
• 32.3 percent reported a decrease

Private loans
• 31.5 percent of responding institutions reported an increase
• 50.0 percent reported no change
• 18.5 percent reported a decrease

Expected family contributions
• 19.2 percent of responding institutions reported an increase
• 34.2 percent reported no change
• 46.5 percent reported a decrease

Student Need: Steps taken by undergraduate students due to the recession*

Nearly 40 percent of responding institutions report that due to the recession they had students stop out of school in the 2008-09 academic year or for the fall 2009 term. One-fourth of responding institutions report they had students switch to part-time status.

• 55.6 percent of responding institutions report that they have students who are working more hours
• 52.1 percent report they have students who are participating in a tuition payment plan
• 51.4 percent report they have students who are borrowing more through private sources (credit cards, private loans, etc.).
• 39.1 percent report they have students who stopped out of school
• 26.1 percent report they have students who switched to part-time status

* Note: NAICU's survey did not collect statistics on the number of students who had taken these steps.

Campus Budgeting: Sources for additional student aid

About half of responding institutions that had increased institutional aid to students for fall 2009 reported they generated funds through increased tuition revenue (53.5 percent) and cuts in other institutional budget areas (49.3 percent). Other sources included: increased fund raising/gift revenue (13.7 percent of responding institutions), drawing down more funds from endowments (5.3 percent of respondents), and "other" (11.6 percent).

Campus Budgeting: Balancing the budget and tuition increases*

To balance their budgets, more than half of responding institutions report they increased tuition at less than historical average (to increase/maintain student enrollment) and froze salaries. [Budget decisions related to tuition increases are listed in bold below.]

• 54.2 percent of responding institutions report they increased tuition at less than historical average
• 53.5 percent report they froze salaries
• 46.8 percent froze new hiring
• 43.7 percent restricted travel
• 37.7 percent slowed down current construction/renovation projects
• 30.6 percent delayed maintenance
• 28.5 percent gave smaller than usual salary increases
• 27.5 percent increased tuition less than anticipated
• 19.0 percent laid off staff (non-faculty)
• 16.9 percent cut salaries/benefits
• 15.5 percent canceled planned construction/renovation projects
• 7.0 percent laid off faculty
• 4.6 percent froze tuition levels
• 4.2 percent cut student services
• 3.9 percent cut academic programs

* For more information on 2009 tuition trends see NAICU news release titled "Private College Tuition Rises at Lowest Rate in 37 Years."

Full survey results

Full survey results, including supplemental written comments from responding institutions, are available on the NAICU Web site