National Postsecondary Student Aid Study

Understanding College Financing

As we conduct the 2020 round of NPSAS, we are releasing some findings from NPSAS:16, which covered the 2015-16 academic year, including

• Seventy-two percent of all undergraduates received some type of financial aid from federal, state, institutional, and other sources. Sixty-three percent received grants, 39 percent took out student loans, 65 percent received aid through work-study jobs, 3 percent received veterans’ benefits, and 4 percent had parents who took out federal Direct PLUS Loans.
• Among undergraduates who received any aid, the average total amount was $12,300. The average total grant amount for grant recipients was $7,400, and borrowers took out an average of $7,600 in student loans. Recipients of veterans’ benefits received an average of $15,300 in benefits. Among undergraduates whose parents took out federal Direct PLUS Loans, the average amount borrowed was $14,000.
• Seventy-two percent of graduate students received financial aid, including grants, loans, and assistantships. The average total aid amount for recipients was $22,000.

Over the years, NPSAS has helped illuminate some major trends, including

• The rise and fall of private education loans. The percentage of undergraduate students using these loans peaked at 14 percent before the 2008 financial crisis. It dropped to 5.5 percent in 2015-16, while the percentage of students using unsubsidized Federal Direct Loans (also known as Stafford Loans) increased from 22 percent in 2008 to 30 percent in 2016.
• The increase in military student populations. Between 2007-08 and 2015-16, the number of undergraduate military students (including veterans) in U.S. colleges and universities increased from 914,000 to 1.43 million. During the same period, the percentage of military undergraduates who used veterans’ education benefits rose from 36 to 43 percent and the percentage of military graduate students using these benefits increased from 22 percent to 34 percent.
• The expansion of Pell grants. In 2015-16, over two-fifths (42 percent) of financially independent undergraduates received a Pell grant, a nearly 70 percent increase over the 25 percent rate in 1999-2000.

By uncovering important data and trends such as these, NPSAS helps federal policymakers understand the varied ways in which Americans fund college education and how those methods change. As costs increase and the government and private sector consider new options for students and families, NPSAS provides vital facts to inform policy decisions.

Setting the Groundwork for Additional In-Depth Studies of Students and Graduates

NPSAS data form the basis for other large, longitudinal education studies that we conduct. For the Beginning Postsecondary Students Longitudinal Study, we follow a cohort of students over a six-year period, tracking their progress through college and into the labor market. In the Baccalaureate and Beyond Longitudinal Study, we survey recipients of bachelor’s degrees, particularly new teachers, on their education, employment, and family formation for the first 10 years after graduation. For both studies, we use NPSAS to identify representative populations and obtain baseline data.

NPSAS and its related studies are trusted resources for the education and policy community. We expect to continue our record of innovation and quality improvement as we lead NPSAS into the future.