FINANCIAL ACCESS

Lumina Foundation seeks to ensure that students have financial information and resources to enter into and graduate from college.

The price of college is increasing sharply, and low-income students have been hit hardest. In the past decade, the average public four-year college tuition rose 51 percent, after adjusting for inflation. Measuring Up 2006: The National Report Card on Higher Education gave America a "C-" for college affordability in its most recent report. In 2008, no states received an "A" or a "B" in the college affordability category, and 43 states flunked.

Students and families who are most likely to need financial aid are the least likely to be aware of the financial aid options available to them. An American Council on Education study shows that for the 2003-04 academic year, the number of students who filed a Free Application for Federal Student Aid (FAFSA) grew to 11.1 million (59 percent). At the same time, the number of low- and moderate-income undergraduates who did not apply increased from 1.7 million to 1.8 million.
Anxiety about college opportunities is greater among minority families. Even African-American and Latino parents from more financially stable households have heightened concerns about college prices compared to their white counterparts. More »PDF

The buying power of the federal Pell grant has dropped sharply as college prices have increased, reducing college access for lower-income students. According to The College Board's Trends in Student Aid 2007 PDF, the average Pell Grant of $2,494 covered about 32 percent of average total charges (tuition, fees, room and board) at four-year public institutions. In 1987, the average Pell Grant covered 52 percent of tuition at a public four-year school.

By the year 2025, an estimated 25 percent of school-age children in the United States, and 22 percent of the college-age population will be Hispanic. In the nation's largest states—California, Texas, Florida, and New York—Hispanics already have reached that level. According to a U.S. Census Bureau report, Latinos are the most undereducated racial or ethic group in the country. Fifty-nine percent of white students earn a bachelor's degree within six years of entering college; the same is true for only 37 percent of Latino students. More » PDF

Race or ethnicity influences borrowing patterns for college. According to a National Center for Education Statistics report, Latinos borrow the least of all undergraduates by race or ethnicity. Educators and financial aid experts believe a "cultural aversion" to student loans is more common among Latino immigrant families than than for other groups. It stems from a lack of knowledge about financial aid, fear of taking on debt and a general distrust of providing personal information to lenders or other authorities.
Many Latinos do not apply to college because they think they cannot afford it or believe they will be forced to drop out because of fear—real and perceived—of taking on too much debt. In 2006, 29 percent of U.S. Latinos had college loans, as opposed to 35 percent of all U.S. undergraduates. More » PDF
Compared to other ethnic and racial groups, Latinos are more likely to be from low-income families. Latino students receive smaller financial aid packages on average than members of any other racial or ethnic group. More »PDF