According to recent data from the U.S. Department of Education, the percentage of full-time undergraduate students at private colleges and universities who receive some form of financial aid reached new highs in the 1999-2000 academic year, with 84% percent of full-time undergraduate students at private colleges and universities receiving an average of $13,700, an increase of 27% from 1995-1996.

Data from the Education Department's 1999-2000 National Post Secondary Student Aid Study (NPSAS) indicates that increases in institution grant aid at private institutions continues to grow faster than other forms of aid.

The average institutional grant award of $7300 in 1999-2000 compared to $5,600 in 1995-1996, increasing by 30%. Of full-time under graduates at private colleges, 59% received institutional grant aid in 1999-2000, compared to 56% four years before.

The average federal grant award was $2700 in 1999-2000, compared to $2300 in 1995-1996, up 17 percent.

The average state grant award was $2600 in 1999-2000 compared to $2200 in 1995-1996, an increase of18%.

The average subsidized Stafford loan was $3800 in 1999-2000 in contrast to $3600 in 1995-1996, up by 6%.

Private institutions are affordable because of the vast amounts of financial aid available to students. David L. Warren, president of the National Association of Independent Colleges and Universities adds, "private and public institutions continue to enroll virtually the same percentage of low-income and minority students."

These generous institutional aid packages make the average debt for graduates of private and public institutions "surprisingly similar." The debt shrunk from $3,641 to $1,875 in 1999-2000, down from four years earlier.
Warren amends, "these factors put together with the high-quality education at private colleges and universities mean that out institutions continue to be a wise investment for students and their families."

The number of prepared students is expected to rise nearly 19% between 1995-2015, of which 80% of students are expected to be low income and minority backgrounds. Federal and state policyholders need to act now to restore the purchasing power of student grant programs such as Pell Grant and other grants this year, or consequences will be felt as many of these students will not be able to afford the college of their choice.

Implications at La Sierra University

The implications of this study should not drastically effect La Sierra University. According to Christine Bartholomew, director of Student Financial Services, if Pell and Cal-Grants remain the same, it will not affect the University as long as tuition is not raised in the next three to four years.
Bartholomew adds that this is because Pell and Cal-Grant awards have been increased and are available to students who meet certain financial criteria.

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Source: NAICU (National Assn. of Independent Colleges and Universities) press release. Editor and Contributor: Kandi White, editorial assistant, LSU Public Relations & Publications.