Risky Affordability

The California State Auditor maintains a "high risk" list of state agencies and issues. Included on that list - released in an update yesterday* - is affordability at UC and CSU. From the report:

STUDENTS’ ABILITY TO AFFORD HIGHER EDUCATION IN CALIFORNIA REMAINS A CONCERN

Background

As the State’s largest public university systems, which together enroll more than 777,000 students annually, the California State University (CSU) and University of California (UC) are responsible for a significant portion of higher education in California. In 1991 the Legislature declared that the State must commit to making higher education accessible and affordable for all Californians. In our January 2020 high-risk assessment (2019-601), we found that from 1992 to 2017, undergraduate tuition increased by about 340 percent at CSU and 440 percent at UC. We also found that recent data and studies have suggested that affordability continues to be a problem for students.

Students’ ability to afford higher education

Students have experienced increases in the cost of attending public universities, which affects their ability to afford higher education. The total cost of attending a public university (cost of attendance) includes expenses such as tuition, fees, books, housing, food, and transportation. For academic years 2018–19 to 2019–20, the average cost of attendance for full-time undergraduate students who are California residents increased by approximately $1,010 (from $23,260 to $24,270) at CSU and by approximately $900 (from $32,890 to $33,790) at UC. Although tuition has remained flat at CSU and UC over recent years, increases in other costs, such as campus fees, food, and housing, have contributed to the rise in the average cost of attendance. Further, tuition at UC is scheduled to increase beginning in academic year 2022–23 for future students. Meanwhile, for academic years 2018–19 to 2019–20, average financial aid awards (scholarships and grants) for eligible students increased by only about $120 (from $8,510 to $8,630) at CSU and by approximately $230 (from $18,320 to $18,550) at UC. 1 

Furthermore, students reported that they continue to experience a lack of consistent access to quality food or reduced food intake (food insecurity) as well as difficulties in obtaining adequate and reliable housing. Approximately 40 percent of students at CSU and UC reported experiencing food insecurity, and 11 percent of students at CSU and 4 percent of students at UC experienced homelessness. Additionally, increases in the cost of attendance likely have led students and their parents to take on more debt. Specifically, for academic years 2018–19 through 2019–20, the average annual loan amount for undergraduate education for California resident and nonresident students increased by approximately $190 (from $7,960 to $8,150) at CSU and by about $300 (from $8,860 to $9,160) at UC. Although CSU and UC have taken some steps to improve affordability, such as participating in federal and state financial aid reform efforts and not reducing the amount of system-provided aid they allocated for their students despite cuts in state funding, those actions have not fully addressed or resolved affordability challenges. Because of the increases in the cost of attendance, the level of food and housing insecurity among students, and the increase in average student debt, affordability of higher education continues to pose a high risk to the State.

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Agency Comments

CSU indicated that it is keenly aware of the financial and other challenges faced by its students and that many expenses beyond tuition and fees, such as off-campus housing costs, are outside CSU control and are a hardship faced by many Californians. CSU also indicated that to address these challenges, it has participated actively in efforts to expand state-based grant aid and other federal and state programs to decrease the cost of attendance for students.

UC agrees that college affordability should continue to be a state priority and looks forward to working with state and federal stakeholders to ensure that college is accessible to students from all socioeconomic backgrounds. UC also stated that it will set aside a higher percentage of new revenue derived from the tuition increase for financial aid to generate additional support for its low and middle income students.

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*https://auditor.ca.gov/reports/2021-601/index.html#contents3