Accountability report

42% 78%
22%
29%

National Council Licensure CPA Exam Pass Rates GOAL THREE | Increase student learning and improve skill levels of students
Examination Candidates without Advanced Degrees

The Minnesota Board of Nursing 100% 32% 31% 31% 31% 30% 27%
requires graduates to complete the 80% 33% 31% 27%
National Council Licensure
Examination at either the practical 60% 30% 45% 42% 42% 35% 32% 30%
nurse or registered nurse level in order 30% 31% 43% 43%
to obtain licensure in the state. The Nation 24% 28% 27% 34% 38% Nation
majority of associate degree nursing 40% Minnesota Peer Nation
programs (both practical and Minnesota Peer
registered nursing programs) are 20% 37% 38% States States
provided by Minnesota public two-year 2006 2007
colleges. Many public and private 0% Minnesota Peer
institutions offer baccalaureate and States
master’s degree programs in nursing. 2005

Minnesota practical nurse candidates All sections Some sections No sections
have had higher pass rates than
candidates nationally over the past Source: National Association of State Boards of Accountancy
four years. Registered nurse candidates
from Minnesota associate degree CPA Exam Pass Rates
programs have either met or been Candidates with Advanced Degrees
slightly below the national pass rates.
Registered nurse candidates from 100% 35% 26% 34% 33% 23% 36%
Minnesota bachelor’s degree and 32% 23% 31% 42% 32%
higher programs have generally met or 80% 50% 42% 33% 36% 32%
exceeded the national pass rates. 60% Nation 29% Nation 49% Nation
Increasing numbers of candidates in 30%
Minnesota have taken the exams, 33% 55% 37%
ranging from a 13 percent increase in 40% 25% 28% 28%
test takers at the practical nurse level Minnesota Peer
to a 51 percent increase at the 20% 25% 28% States Minnesota Peer
registered nurse level from graduates 0% 2006 States
of baccalaureate and higher programs 2007
between 2004 and 2007. Minnesota Peer
States
Uniform Certified Public 2005
Accounting Exam
All sections Some sections No sections
The Uniform Certified Public
Accounting exam is administered across Source: National Association of State Boards of Accountancy
the country by the National Association
of State Boards of Accountancy to candidates without advanced degrees Certification and Licensure Preparation
candidates with baccalaureate degrees have consistently performed well
and those with advanced degrees. In compared to the nation and the peer
2007, 851 graduates of Minnesota states. In 2007, candidates with
institutions took the exam. advanced degrees passed some or all
sections of the exam in similar
The following charts refer to the numbers as the comparison groups,
percentage of unique candidates that although fewer Minnesota candidates
passed all four exam sections, none of passed all of the exam. Pass-rate data
the sections, and some (but not all) of on individual exam sections were not
the sections. Minnesota CPA reported in the aggregate.

Minnesota Measures - 2009 49

Preparation for Employment

Indicator 3E: How satisfied are Minnesota employers with recent graduates of Minnesota
postsecondary institutions?

Another means of assessing student Employment Preparation of Minnesota Graduates
learning outcomes is by examining 2008-2009 Survey Responses
students’ preparation for employment.
To gather information on this issue, the 0% Very good
Office of Higher Education asked 4% Good
employers throughout the state how
they viewed the preparation of recent 19%
graduates of Minnesota postsecondary
institutions. In a survey conducted in Poor
late 2008-early 2009, 1,500 employers 77% Very poor
with 20 or more employees
representing all major industry groups Note: The “very poor” rating had a zero percent response.
were sent a mail survey with questions Source: Minnesota Office of Higher Education.
about their satisfaction with recent
Minnesota graduates.15 The overall Factors in Hiring for Positions Requiring Postsecondary Education
survey response rate was 52 percent.
Not at all important Prior Work Experience Field-Specific Education
The vast majority of respondents rated Not very important 1% 1%
the job Minnesota postsecondary Somewhat important 4%
institutions are doing in preparing Very important 10%
graduates to work in their 63% 38%
organizations as either “good” or Source: Minnesota Office of Higher Education 26% 57%
“very good”. When asked to compare
their experience with recent organization may have hired
Minnesota graduates to graduates graduates of postsecondary
10 years ago, 95 percent of employers institutions outside Minnesota,
surveyed responded that Minnesota employers cited as the most important
postsecondary institutions are factor in their hiring decision that not
currently doing either a “better job” enough Minnesota graduates applied
(30 percent) preparing their graduates for the open position. Employers
for their workplace or doing “about surveyed also indicated the relative
the same job” (65 percent). Eighty-six importance of field-specific study and
percent of employers surveyed previous work experience in their
indicated that they are “likely” or hiring decisions.
“very likely” to hire graduates of
Minnesota postsecondary institutions
within the next five years. Of the
employers who had hired a
postsecondary graduate, 98 percent
had hired a graduate of a Minnesota
institution. When asked why their

50 Minnesota Office of Higher Education

Although employers indicated strong Employer Evaluation of Employee Attributes 2008-2009 Employer Survey GOAL THREE | Increase student learning and improve skill levels of students
levels of satisfaction with Minnesota
postsecondary institutions overall, Attribute Not Not
employers expressed concerns about At All Very Somewhat Very
the level of workforce training they Professionalism (punctuality, Satsfied Satisfied Satisfied Satisfied
must provide to recent graduates in time management, attitude)
their organizations, including 67 Self-direction, ability to take initiative 0% 3% 53% 44%
percent who indicated they either Capability for promotion, advancement
“sometimes” or “almost always” have Creativity 0% 6% 58% 36%
to train employees in areas they feel Adaptability, willingness to learn
should have been part of their Professional ethics, integrity 0% 6% 60% 33%
undergraduate education (see Ability to work in a culturally
indicator 4E for further information). diverse environment 0% 9% 64% 27%
Ability to work in teams
Employers were also asked about Written communication skills 0% 4% 50% 46%
specific skills and characteristics valued Verbal communication skills
in their organizations. They were Basic mathematical reasoning 0% 4% 46% 51%
subsequently asked how satisfied they (arithmetic, basic algebra)
were with those same skills and Critical thinking and analysis 0% 4% 57% 39%
characteristics of employees who Problem solving, application of theory
were recent Minnesota graduates. General computer skills 0% 4% 54% 42%
The two highest priority attributes, (word processing, spreadsheets)
professionalism and professional Advanced mathematical reasoning 0% 11% 54% 35%
ethics, also received strong satisfaction (linear algebra, statistics, calculus)
rates based on experiences with recent Technical communications 0% 5% 55% 39%
graduates. The two categories with Fluency in a language other than English
the lowest priority ratings, foreign Knowledge of specific computer 0% 5% 57% 38%
language fluency and advanced applications required for the job
mathematical reasoning, also had the Knowledge of technology/equipment 0% 11% 60% 30%
lowest satisfaction ratings. required for the job
Application of knowledge from 0% 8% 61% 31%
Other characteristics, such as creativity, a specific field of study
written communication and critical 0% 6% 53% 42%
thinking, had more mixed assessment
with lower “very satisfied” ratings, 1% 15% 61% 23%
relatively high “not very satisfied”
ratings and most frequent ratings of 0% 10% 64% 26%
“somewhat satisfied”. With the
exception of professional ethics, the 5% 25% 56% 14%
majority of ratings for each
characteristic/skill fell into the 0% 6% 63% 31%
“somewhat satisfied” category.
0% 7% 59% 33%

0% 4% 57% 39%

Most frequent ratings of “very important” (top 5) Preparation for Employment
Most frequent ratings of “not at all” or “not very important” (lowest 5)

Source: Minnesota Office of Higher Education

Minnesota Measures - 2009 51

Contribute to the development of a state economy that is
competitive in the global market through research, workforce

4training and other means.
A strong academic research component is beneficial to institutions, students and
the state’s economy. While many institutions engage faculty and students in some
academic and applied research, the University of Minnesota is the state’s leading
research institution. The University of Minnesota ranks among the top 20
institutions nationally in terms of total federally-funded academic research
dollars. The University and the state have a vested interest in seeing the state’s
rank and reputation improve in this area. The University of Minnesota’s strategic
plan adopted in 2006 establishes research as a key priority.
The state is fortunate to have a rich complement of institutions performing
research through other organizational structures. The Mayo Clinic is a non-profit
institution educating health care professionals and receives extensive federal
funds for research, much like the University of Minnesota. For this reason, the
Mayo Clinic is included in some of the indicators in this goal.
Measures of workforce training and development by the Minnesota State
Colleges and Universities are also included in this section. This indicator provides
valuable information, but falls short of fully measuring the impact of higher
education on workforce issues. Additional indicators, based on employer input,
have also been added.

52 Minnesota Office of Higher Education

Research and Discovery

Indicator 4A: What is Minnesota’s relative position in its national share
of academic research?

This indicator recognizes the Minnesota and are home to numerous GOAL FOUR
contribution of academic research to research institutions. The 1.8 percent
the competitive position of Minnesota share of the total in Minnesota was well
in the global economy. While business below the 3.4 percent average for
produces a substantial amount of Minnesota’s peer states. (This figure is a
research to develop new products and weighted average for the states in this
processes, higher education institutions group.)
contribute in unique ways that should
be separately measured. While Minnesota cannot expect to
reach the research activity levels of
The federal government, through California or New York, due to its size,
agencies such as the National Science the percent share of total research
Foundation, the National Institutes of over time provides a good indication
Health and the U.S. Department of of the state’s position and direction.
Defense, annually provides billions of Slight changes in the share of research
research dollars. Much of this money is dollars can make a big difference to a
spent on university campuses. These state. For example, an increase of one
research funds have two significant percentage point in the share would
impacts on the economy of the state. bring in another $356 million to the
First, the spending provides jobs and state. Between 2005 and 2006, total
income directly through the research academic research grants in the state
process and less directly as the money grew by about two percent.
moves through the economy. Second,
and more importantly, this research can This measure included all institutions of
lead to new products, techniques and higher education and the Mayo Clinic.
services that can create new industries. Minnesota’s data are dominated by the
University of Minnesota since few other
In 2006, Minnesota ranked 18th in its universities in Minnesota obtain
share of national academic research significant funds for sponsored research.
dollars, which can translate into This indicator included research funded
research activity. Minnesota’s share of by the federal government, business
1.8 percent was well below the two top and industries and non-profit
states, California and New York, both of foundations. It excluded research
which are significantly larger than funded by states or institutions.

National Academic Research Dollars Share and Rank

2002 2003 2004 2005 2006

Top 3 States 1.9% 1.9% 1.9% 1.8% 13.9%
California 17 18 18 18 8.1%
New York 6.5%
Texas 3.6% 3.5% 3.3% 3.3% 1.8%
18
Minnesota 3.4%
Rank
Peer States

Source: National Science Foundation, National Patterns of R&D Resources 2007 Data Update

Minnesota Measures - 2009 53

Research and Discovery

Indicator 4B: How does the University of Minnesota compare to other flagship research institutions?

The competition is intense for Ranking the Top Public and Private U.S. Research Universities 2007
sponsored research dollars among
institutions with similar scope and Type Institution Number of Measures
mission around the country and the in the Top 25 Nationally
world. A publicly established goal of
the University of Minnesota’s Private Columbia University 9
governing board is to be among the Private Harvard University 9
top three public research universities Private Massachusetts Institute of Technology 9
in the world. Private Stanford University 9
Private University of Pennsylvania 9
The Arizona State University report on Private Duke University 8
America’s top research universities Public University of California - Berkeley 8
defines top research universities as Public University of Michigan - Ann Arbor 8
those with at least $20 million in Private Johns Hopkins University 7
federal research expenditures and Private Yale University 7
ranking within the top 25 on at least Public University of California - Los Angeles 7
one of these nine measures: Public University of Washington - Seattle 7
Public University of Wisconsin - Madison 7
• Research dollars Public University of Minnesota - Twin Cities 6
Private Washington University - St. Louis 6
• Federal research dollars Public University of California - San Francisco 6

• Size of endowments Source: The Center for Measuring University Performance at Arizona State University 2007 Annual Report

• Annual giving to the institution Fifty-one institutions met the criteria earned six points, ranking among the
and were included in the ranking of top 16 research universities in the
• Membership in the national top research institutions in the country in 2007. This was one rank
academies country. Then researchers ranked lower than reported for 2006.
institutions based on how many times
• Number of faculty awards each institution ranked among the top
25 percent on these measures. The top
• Number of doctorates granted institutions earned nine points, one
point in each of the categories listed
• Number of post doctorates above. The University of Minnesota
appointed

• The average SAT or ACT scores of
entering freshmen

54 Minnesota Office of Higher Education

The University of Minnesota’s decline Related international rankings by • Newsweek ranked the University of GOAL FOUR | Contribute to the development of a state economy
was in the faculty awards category but other sources: Minnesota 30th internationally
only changed by one award. This was among research institutions in 2007.
enough to move the University out of • China’s Institute of Higher Education
the top 25 percent. Of perhaps larger at Shanghai Jiao Tong University Other organizations rank higher
concern was the relatively small ranked the University of Minnesota education institutions on an
growth in reported annual giving 28th internationally among the top international basis.16 They are not
compared to other institutions. The 100 research institutions for 2008. presented in this report because the
two measures where the University This was an improvement from 33rd methodologies of these other rankings
of Minnesota did not score in the top in 2007 and rankings in the low 30s have not been completely investigated.
25 percent were membership in in previous reports.
national academies and student test
entrance scores. Rankings on the other • London Times Higher Education
categories remained fairly consistent Supplement ranked the University
between 2006 and 2007. of Minnesota 87th in 2008. This was
an improvement from 142 in 2007
Arizona State University evaluated only and 187 in 2006. The ranking
institutions within the United States methodology for this report is
and did not establish international broader than that used in other
comparisons. Comparison to other studies.
countries is important given the
aspirations of the University of • The G-factor International University
Minnesota leadership to improve the Ranking placed the University of
institution’s standing and reputation Minnesota 19th in the world. This
on research and discovery source ranks universities as a
internationally. function of the number of links to
their Web sites from the Web sites
of other leading international
universities. Webometrics ranked
the University eighth.

Research and Discovery

Minnesota Measures - 2009 55

Research and Discovery

Indicator 4C: What are the total expenditures for research and development as a proportion
of gross domestic product?

While indicator 4A measures academic Performance on this indicator can be
research dollars, this indicator meas- influenced by factors that have
ures total expenditures on research in nothing to do with the strength or
the state from all sources, including growth of a state’s economy. For
business. Total research expenditures example, New Mexico had the
for the state were larger, by a factor highest share of gross state product
of ten, than spending on academic both because its economy is small
research alone. This provides a context and two large federal laboratories
for the academic research measure. are located there.
Research in business and industry is
more closely aligned with finished Research Expenditures as a Percentage of
products produced by corporations. Gross Domestic Product by State and Country
Many of these products may have
their roots in basic research performed 2001 2002 2003 2004 2005
at an earlier stage at a university. Total
academic research spending from all Top 3 States 2.6% 2.6% 2.8% 2.7% 7.6%
sources (including non-profit based New Mexico 16 14 15 14 5.8%
research) in 2005 in Minnesota was Maryland 5.2%
$746 million. Total research spending Massachusetts 2.7% 2.5% 2.5% 2.5% 3.1%
from all sources was $7.137 billion. 2.7% 2.5% 2.5% 2.5%
Minnesota 12
In order to fairly compare research Rank 2.3% 2.2% 2.3% 2.3% 2.6%
and development spending across Peer States 2.6%
geographic regions, the spending is Nation
divided by gross domestic product. Top 3 OECD Countries 4.4%
This is a measure of output prepared 3.9%
by the U.S. Bureau of Economic Israel 3.5%
Analysis in this country and reported Sweden 2.3%
by the Organisation for Economic Finland
Cooperation and Development OECD Countries Average
(OECD) for the international
comparisons. Research as a share of Source: National Science Foundation, National Patterns of R&D Resources 2007 Data Update; OECD Factbook 2008
output in Minnesota increased
dramatically in 2005. About 97 percent
of this improvement was due to a
significant increase in business
spending. Minnesota’s rank improved
between 2004 and 2005.

56 Minnesota Office of Higher Education

Workforce Development GOAL FOUR | Contribute to the development of a state economy

Indicator 4D: What is the activity at Minnesota State Colleges and Universities in customized
and contract training?

Much of postsecondary education can 2003 through 2008. There has been Colleges and Universities is provided by
be seen as a form of workforce training steady growth in total enrollment over the system’s two-year colleges. This
since many students continue their this period although contract courses activity tends to be more prevalent in
education beyond high school to obtain did drop off between 2007 and 2008. the non-metropolitan areas of the state.
the knowledge and skills needed for About 63 percent of the customized
future employment. This indicator is More than 97 percent of all customized training courses sections are offered in
intended to address the important training offered by the Minnesota State greater Minnesota.
aspect of direct workforce training
undertaken at the Minnesota State Customized Training, Full-Year Unduplicated Headcount
Colleges and Universities. at Minnesota State Colleges and Universities 2008

The system’s 32 two- and four-year Contract Courses Total Customized
institutions offer employee training, Training
including contract training, in a broad Fiscal Credit Non-Credit Total Open
range of areas designed to meet Year 5,136 83,456 87,918 Enrollment Enrollment
common business challenges. For some 4,927 81,388 85,699
employer needs, a standard training 2003 4,582 78,266 82,160 57,645 141,780
program works best. More often, 2004 3,674 82,224 85,219 60,812 142,829
however, colleges and universities 2005 3,998 85,388 88,535 62,096 141,262
customize or create new training 2006 4,456 80,435 84,466 64,310 146,345
tailored to an employer’s workforce, 2007 66,749 151,319
timeline, industry or business plan. 2008 72,805 153,229
Training is delivered on-site, on campus
or online. This indicator measured the Note: The totals in the table do not add up exactly since this is an unduplicated count and students are only counted
change in unduplicated headcount once even though they may take both credit and non-credit courses. Open enrollment is non-credit enrollment by
enrollment in credit and non-credit individuals that is not contracted by an employer.
courses in customized training from Source: Minnesota State Colleges and Universities, Office of Research and Planning

Research and Discovery | Workforce Development

Minnesota Measures - 2009 57

Workforce Development

Indicator 4E: How are Minnesota postsecondary institutions meeting the workforce training
needs of employers in the state?

In a mail survey conducted in late 2008- How often do new employees who have completed their postsecondary
early 2009, the Office of Higher education have to be trained in areas that you feel should have been
Education asked 1,500 employers in included in their postsecondary education?
Minnesota how satisfied they were with
the education and training of recent 6% 21% Almost always
graduates of Minnesota postsecondary 28% Sometimes
institutions. Employers across industries Rarely
throughout the state that had at least 46% Never
20 employees were selected in a
random sample to complete the survey. Source: Minnesota Office of Higher Education
The overall response rate for the survey
was 52 percent. Additional information How is training provided to new employees who have completed their
on this project is presented in Goal 3.17 postsecondary education? (Multiple responses possible)
In house...................................................................................................................95%
Employers had generally positive Contract with outside provider ............................................................................31%
comments about Minnesota Offer reimbursement at a postsecondary institution ........................................21%
postsecondary institutions, but also Other .........................................................................................................................5%
noted a need for workforce training for
recent graduates. When asked about In which of the following areas are new employees who have completed
workforce training in their organization their postsecondary education trained? (Multiple responses possible)
for new hires that graduated from Current job training
Minnesota postsecondary institutions, Including general occupational skills, specific technical
92 percent of employers surveyed occupational skills and adding or upgrading skills to meet job needs ...........85%
responded that they usually provided Professional development
training to these employees. Notably, Including interpersonal skills, diversity training and leadership skills .............62%
67 percent of employers reported they General development
sometimes or almost always had to train Including basic skills education in writing, math and reading
new employees in areas that they felt and ESL training .....................................................................................................12%
should have been covered in college. Other .........................................................................................................................5%

The most commonly reported area of Source: Minnesota Office of Higher Education
training provided by employers was in
current job training, including general
occupational and specific technical
skills. The second most common
area for training was in professional
development, including interpersonal
and leadership skills. The overwhelming
majority of employers provided training
in house, compared to offering
reimbursement at a postsecondary
institution or contracting with an
outside provider.

58 Minnesota Office of Higher Education

Provide access, affordability and choice GOAL FIVE

5for all students.
With more than 150 postsecondary institutions in Minnesota offering
a wide variety of programs at all levels, students have many choices.
A range of admissions policies and the availability of online courses from
both public and private institutions further enhance access and
opportunity.

College affordability and a lack of academic preparation are significant
barriers to college access. The ability of students to meet the financial
requirements of higher education is a critical step in increasing
educational attainment in the state. Affordability is a function of college
prices, the student’s college and program choice, income, assets and
financial aid coupled with the family’s determination of what it wants to
invest in the student’s education.

While state, federal and institutional policies can address broad
concerns, there is no ideal measure to ensure each student can afford to
attend. Furthermore, the variation in federal and state higher education
finance and financial aid policies make comparisons nationally and
internationally difficult.

Minnesota Measures - 2009 59

58% 64% 58% 71%
42% 29%
52% 78%
22%

Student Choice

Indicator 5A: Where do low-income students enroll?

Family income has an impact on the Undergraduates from families with
type of postsecondary institution a annual incomes of $60,000 or more
student chooses to attend. National were more likely to attend public or
research describes the increasing private four-year institutions. This
“stratification” of higher education, chart shows adjusted gross income of
where an increasing number of low- Minnesota State Grant recipients as
income students attend two-year as reported on federal income tax forms.
opposed to four-year institutions. For dependent students, the parents’
Minnesota undergraduates from income was used; for others, the
families with annual incomes less than student’s income was used. If married,
$30,000 were more likely to attend the spouse’s income was included. This
two-year institutions than public or distribution excluded students who did
private four-year institutions. not apply for financial aid.

Distribution of Minnesota Resident Undergraduates Enrolled
by Income and Institutional Type 2007-2008 Aid Applicants

Percent of Applicants 100% 28% 29% 32% 43%
80% 8%
60% 11% 12% 24%
40% 6% 17%
20% 15%
48% 16% 1%
3% 18% 16%
$90,000 or more
2% (34,772)
40%

31%

0% $30,000 to $59,999 $60,000 to $89,999
Less than $30,000
(54,393) (39,982) (32,984)

Private not-for-profit State universities State colleges 2-year
University of Minnesota Private career schools

Source: Minnesota Office of Higher Education, Free Application for Federal Student Aid (FAFSA) Applicants

60 Minnesota Office of Higher Education

48% 58% 64% 42% 71%
52% 42% 58% 29%

78% GOAL FIVE | Provide access, affordability and choice for all students
22%

Net Prices

Indicator 5B: How do tuition and fees at Minnesota institutions compare to the tuition and fees at colleges
nationally? How do net prices at Minnesota institutions compare to the net prices at colleges nationally?

Minnesota’s two- and four-year public Comparisons of college prices are institutions received federal or state

institutions had among the highest incomplete without consideration of grants. A significant percentage of

gross tuition and fees nationally (sixth financial aid, specifically grants and students received institutional grants

and eighth respectively). Tuition and scholarships provided to students. and scholarships, 40 percent at public

fees at Minnesota institutions are Policies regarding who is eligible to four-year institutions, and 88 percent

higher than national averages in every receive a grant or scholarship vary at private not-for-profit four-year

sector. Tuition and fees at institutions greatly by institution type and state. institutions.

in peer states are comparable to In Minnesota, a significant percentage

Minnesota. This is to be expected as of first-time, full-time students at all

college costs tend to reflect regional institutions received both federal and

trends with institutions along the East state grants. Approximately one in five
53.2%
Coast having higher tuition and fees 50.5s%tud50e.5n%t4s9.a8%t p50u.2%blic50a.6n%d50p.4%riv50a.1t%e n5o1.6t%-fo49r.7-%
50.8% 49.8% 48.3% 50.3%
49.5%
and institutions in the southern and profit four-year institutions and one in

western United States having lower three students at private for-profit

tuition and fees. four-year and public two-year

Gross Tuition and Fees for First-Time, Full-Time Students by Institution Type 2006-2007

$22,000 $19,835 $19,167
$20.000 $17,934
$18,000
Gross Tuition and Fees $16,000 $14,552 $13,936
$14,000
$12,000 $12,926 $13,568
$10,000 $11,270 $11,789
$8,000
$6,000 $7,208 $7,355 $4,309
$4,000 $5,409 $3,126
$2,000 $2,269
Public 4-year
$0 Public colleges
2-year
Private not-for-profit Private for-profit Private for-profit
4-year 4-year 2-year*

Minnesota Peer States Nation

*Only 60 percent of schools reported financial aid data. Student Choice | Net Prices

Note: Data for public institutions represents the weighted average of in-district and in-state charges.
Source: U.S. Department of Education, IPEDS Institutional Characteristics Survey

Minnesota Measures - 2009 61

Net Prices 5B, continued

48% 58% 36% 42% 71%
52% 42% 64% 58% 29%

78%
22%

After subtracting grants and scholar- shown are weighted by the number need. Students from families with
ships from tuition and fees, the of first-time, full-time students at each incomes under $50,000 are likely to
remaining tuition and fees are deemed institution. Minnesota’s average net receive federal Pell and Minnesota
the “net price”. The net price for first- prices were higher than the national State Grants that lower their net
time, full-time students took into averages by institution type. prices.
account all federal, state and institu-
tional grants and scholarships and is These data represent averages across
intended to reflect the price students all income levels. In Minnesota, state
and families actually pay. The averages grants are awarded based on financial

Financial Aid by Type for First-Time, Full-Time Minnesota Students 2006-2007

Institution Type Fall 2006 % Receiving Average % Receiving Average % Receiving Average
Federal State State Institutional Institutional
Number of Federal Grant Grant
Students Grant Aid Grant Aid Grant Aid Grant
$3,393 $3,027
Public 4-year 16,557 20% 28% 40% $3,136
Private not-for-profit 4-year 10,364 21% $3,930 $3,418
Private for-profit 4-year 39% 27% 88% $10,033
Public colleges 2-year 2,792 36% $2,103 $1,731
Private for-profit 2-year 16,680 57% 45% 22% $1,036
$2,907 $1,509
496 41% 7% $883
$3,408 $2,507
57% 4% $3,124

Source: U.S. Department of Education, IPEDS Student Financial Aid Survey

Net Tuition and Fees for First-Time, Full-Time Students by Institution Type 2006-2007

$16,000 $13,929 $13,641
$14,000
$12,000 $12,973 $12,148 $12,862
$10,000
Net Tuition and Fees $8,000 $11,273 $10,698
$6,000 $9,554 $9,393
$4,000 $4,816 $4,638 $2,625
$2,000 $2,599 $1,602 $891 Private for-profit
2-year*
$0 Public colleges
2-year
Public 4-year Private not-for-profit Private for-profit
4-year 4-year

Minnesota Peer States Nation

*Only 60 percent of schools reported financial aid data.
Source: U.S. Department of Education, IPEDS Institutional Characteristics Survey

62 Minnesota Office of Higher Education

Affordability GOAL FIVE | Provide access, affordability and choice for all students

Indicator 5C: What is the net price of higher education in Minnesota by student and family income?

This indicator provides additional one of the children enrolled in
context for the net tuition and fees postsecondary education.
outlined in indicator 5B. This measure
accounts for more factors affecting the The charts in this indicator show
net price, including gross tuition and the average net prices dependent
fees, an estimated living allowance, or independent students and their
financial aid, employer aid and some families pay. Dependent students
federal tax credits. Most importantly, are generally under 24 years old.
this indicator presents the net price in Independent students are generally
the context of student and family 24 years old or older.
income.
Students can meet educational costs in
Since data are not available for a variety of ways. They can work, take
individuals for many of the aid out loans or use past savings. Similarly,
components, hypothetical families a family can use current income,
were constructed using information savings and loans. The student may
from a number of sources. In further reduce costs by taking fewer
calculating these amounts, a “typical” courses or by living on less than the
student was used. A “typical” annual $10,000 living allowance
dependent student is from a family assumed in the analysis.
with a household size of four, with
two parents and two children, with Net price was calculated as follows:

Net Price = (tuition + fees + $10,000 living allowance18) - (grants + scholarships + tax credits) Net Prices | Affordability

Grants, scholarships and tax credits are the average sum of:

• Federal Pell and Minnesota State Grants

• Institutional grants and scholarships: The average amount (including students receiving no aid) for all
undergraduates in 2004 by $5,000 income bands by type of institution, adjusted to reflect inflation and
differences between average institution grants to Minnesota undergraduates and national averages.19

• Private scholarships: The average amount of private scholarships (e.g., Lions Club, Kiwanis) for undergraduates,
adjusted to reflect inflation and differences between average private scholarships awarded to Minnesota
undergraduates and national averages.

• Employer aid: The average amount for undergraduates adjusted to reflect inflation and differences between
employer aid given to Minnesota undergraduates and national averages. Employer aid include tuition
reimbursement, tuition benefits to children of university staff and similar assistance.

• Federal Hope Tax Credits: A simulation of the federal higher education Hope Tax Credit.20

Minnesota Measures - 2009 63

Affordability 5C, continued

Dependent Students incomes of $40,000 or lower, the net on a full-time basis and coming from a
prices for students attending public family with an annual income between
Net prices vary with income and institutions were about the same, but $30,000 and $35,000 faced a net price
institution attended. At all income diverged in higher family incomes. For of about $10,100.
categories, the net prices at public example, a dependent student
institutions were lower than those at attending the University of Minnesota
private institutions. At annual family

Net Price for Dependent Students by Income at Minnesota Institutions 2007-2008

Net Price$35,000   35,000
Number of Students30,000
$30,000 25,000
       20,000
$25,000 15,000
$20 ,000 $40,000 $60,000 $80,000 10,000
$20,000 $30,000 $50,000 $70,000 $90,000 5,000
0
$15,000 $100,000
$110,000
$10,000
State colleges 2 year
$5,000

$0
Less than
$10,000

Adjusted Gross Income of Dependent Student

Part time and/or part year Private for-profit University of Minnesota
Full time, full year Private not-for-profit State universities

Source : Minneso ta O ce of Higher Education

64 Minnesota Office of Higher Education

Independent Students increase dramatically, especially for and $15,000 faced a net price of GOAL FIVE | Provide access, affordability and choice for all students
single, independent students. For $11,700. A similar student with an
Independent students at the lower example, a single independent student annual income between $20,000 and
end of the income scale had lower net without children attending the $25,000 faced a net price of $13,400.
prices; however, their net prices were University of Minnesota full time, with
substantial compared to their income. an annual income between $10,000
As income increases, net prices

Net Price for Single Independent Students Without Children
by Income at Minnesota Institutions 2007-2008

Net Price$35,000   35,000
Number of Students30,000
$30,000 25,000
$20 ,000 $40,000 $60,000 $80,000 20,000
$25,000 $30,000 $50,000 $70,000 $90,000 15,000
10,000
$20,000 5,000
0
$15,000 $100,000
$110,000
$10,000
State colleges 2-year
$5,000

$0
Less than
$10,000

Adjusted Gross Income of Independent Student

Part-time and/or part-year Private not-for-profit University of Minnesota
Full-time, full-year Private for-profit State universities

Source : Minnesota O ce of Higher Education

Affordability

Minnesota Measures - 2009 65

48% 58% 36% 42% 71%
52% 42% 64% 58% 29%

78%
22%

Borrowing Patterns

Indicator 5D: To what extent are Minnesota undergraduates borrowing to finance their education?

The educational debt of college borrowing levels may increase in In summary, more Minnesota
graduates is an important concern response to favorable interest rates. undergraduates at public institutions
in any discussion about affordability. borrowed than those in peer states,
The number of undergraduates with In Minnesota, 68 percent of seniors and those who did, borrowed greater
loans and the total amount borrowed graduating from public universities amounts. Slightly more graduating
provide one perspective on the extent had student loans and borrowed an seniors at private colleges in
students rely on future income to pay average cumulative total of $22,907, Minnesota borrowed compared to
for higher education. If students while 74 percent graduating from peer states and they borrowed larger
believe they cannot complete a private colleges and universities had amounts. Students graduating from
college education without incurring loans, and borrowed an average private colleges and universities in
significant debt, there may be cumulative total of $27,497. both Minnesota and peer states
negative implications for the student, borrowed larger amounts than
the state and the economy. Some In peer states, 61 percent of seniors students graduating from public
view borrowing for postsecondary graduating from public universities universities.
education as an investment providing had student loans, and borrowed
income and other benefits over a $20,684, while 73 percent graduating The data in this indicator were
lifetime. As in the general economy, from private colleges and universities reported by campuses and were used
the number of students borrowing and had loans, and borrowed $23,106. to illustrate undergraduate debt levels
across states and colleges. While
Average Cumulative Debt of useful, the data have some limitations.
Graduating Seniors with Student Loans 2007 If a campus did not report data, the
data for the previous year were used.
$30,000 $22,907 $27,497 $20,684 $23,106 Since student debt levels generally rise
$25,000 from year to year, using the same data
$20,000 68% of 74% of 61% of 73% of from a previous year may understate
$15,000 seniors seniors seniors seniors the true debt level. The data reflect
$10,000 borrowed borrowed borrowed borrowed debt data as reported to the Project
$5,000 on Student Debt. If current year data
were not available for Minnesota
$0 institutions, additional data were
gathered by the Minnesota Office
of Higher Education.

Minnesota Peer States

Public 4-year universities
Private 4-year colleges

Source: The Institute for College Access and Success, Project on Student Debt; Minnesota Office of Higher Education

66 Minnesota Office of Higher Education

Next Steps NEXT STEPS

The Minnesota Office of Higher Family Finance Study Graduation and Retention Rates
Education reviews the goals and
indicators annually and considers The Office of Higher Education is Because the Integrated Postsecondary
feedback from systems, institutions undertaking a state-focused study of Enrollment Data System does not
and policymakers. New relevant data how families pay for postsecondary include sufficient data to report
is incorporated as it becomes available. education in Minnesota. This study will graduation and retention rates for
In 2009, two research projects will be complement the student-focused many private for-profit degree-
undertaken related to access and NPSAS data and provide a useful granting institutions, the Office of
affordability. Analysis from both comparison to national studies of Higher Education will identify if data is
projects will be featured in the 2010 family educational financing. The available from alternative sources and
accountability report. During 2009, study will gather information on the where possible, report this information
public meetings will be held to review variety of financial tools and strategies in subsequent reports.
the goals and analyze the indicators Minnesota families use to meet the
to ensure use of the most relevant, costs of higher education. Results from Survey of Graduates/Employees
appropriate and current measures to the survey will be included in future
assess higher education performance. reports and help guide policy The Office of Higher Education
discussions and outreach efforts. completed an Employer Satisfaction
Student Aid Study Survey with a set of questions
International Comparisons exploring workforce training needs in
The Office of Higher Education will late 2008-early 2009. The survey was
analyze data from the 2008 National One of the ongoing projects of sent to 1,500 employers in industries
Postsecondary Student Aid Study. Minnesota Measures is the selection across the state and had a 52 percent
NPSAS is a nationwide study of 80,000 of appropriate metrics for comparing response rate. Data from that survey
undergraduates designed to determine Minnesota’s postsecondary institutions is included in Indicators 3E and 4E,
how students and their families pay nationally and internationally. This year’s and further analysis of the data will
for postsecondary education. The study report has international comparative be in future reports. The Office of
also provides demographic and other data for certain indicators using Higher Education and the Department
characteristics of those enrolled. The information from the Organisation of Employment and Economic
NPSAS data will provide information for Economic Cooperation and Development will explore workforce
on income for students who applied Development, which analyzes preparation from the perspective of
for financial aid and those who did not educational data from 30 countries graduates/employees for inclusion in
apply, the net price of postsecondary including the United States. Future future reports.
education for students in different reports will continue to analyze
income categories, the distribution international comparative data and
of financial aid and the characteristics appropriate means of comparison
of Minnesota students and their for Minnesota.
families. Data on Minnesota students
will be compared to data for peer Technology Transfer
states and the nation.
One of the components of Goal Four
is the analysis of how research at the
postsecondary level contributes to a
globally competitive state economy.
Future reports will expand this goal’s
current analysis of research and
development expenditures to include
the economic contributions of licensing
and patents developed at educational
research institutions in the state.

Minnesota Measures - 2009 67

Endnotes

1 For additional detail on participation rates, visit 9 George D. Kuh, Jillian Kinzie, Ty Cruce, Rick 16 Arizona State University’s online Center of
www.ohe.state.mn.us/tPg.cfm?pageID=764. Shoup and Robert M. Gonyea, Connecting the American Research University Data provides a
Dots: Multi-Faceted Analyses of the Relationships comprehensive set of data on more than 200
2 Computation of college participation rates is between Student Engagement Results from the institutions (mup.asu.edu). This research was
not an exact science. Three sources (NCES, NSSE, and the Institutional Practices and performed by The University of Florida in prior
NCHEMS and OECD) show three different national Conditions That Foster Student Success: Final years.
participation rates for the United States. The Report Prepared for Lumina Foundation for
methodology used by NCHEMS most closely Education. (Bloomington, IN: Indiana University 17 Employers from all major groups of the
mirrors the methodology used by Minnesota in Center for Postsecondary Research, 2006), Standard Industrial Classification Coding System
computing college participation numbers, so the nsse.iub.edu/pdf/Connecting_the_Dots_Report.pdf. that had at least 20 employees were included.
NCHEMS data is used here. For more information,
visit www.higheredinfo.org. 10 The National Survey of Student Engagement is 18 The $10,000 allowance was calculated by
administered by the Center for Postsecondary using U.S. Bureau of Labor Statistics data from
3 See the April 2006 issue of Insight, a newsletter Research at Indiana University in Bloomington, the Consumer Expenditure Survey which
published by the Office of Higher Education. Indiana, www.ccsse.org. analyzed interview data on expenditures of
college students aged 18 to 22 enrolled on a
4 Minnesota Transfer Curriculum information is 11 Minnesota first-year students’ ratings were full-time basis. The data was for the 1996-1998
available at www.mntransfer.org. lower than those of the top 50 percent of NSSE period. The data included expenses for food
institutions but higher than those of first-year eaten at home, food eaten away from home,
5 I. Elaine Allen and Jeff Seaman, Staying the students in the peer states; the larger increase in shelter and utilities, apparel and services,
Course Online Education in the United States, ratings of academic challenge among Minnesota transportation, health care, entertainment and
2008 (Needham, MA: Sloan Consortium, 2008), seniors is not, then, solely attributable to lower travel. Average total expenses for students were
www.sloanconsortium.org/publications/survey/ initial student ratings. $2,584 per quarter (three calendar months).
staying_course. This figure was multiplied by three to arrive at
12 More information on the Community College an estimate for the nine-month academic year.
6 According to the U.S. Census, Minnesota had a Survey of Student Engagement is available at The result was adjusted from 1997 dollars to
net migration of almost 35,000 degreed people www.ccsse.org. 2007 dollars using the Consumer Price Index.
from 1995 and 2000. For the same period, the
state had a gross in-migration of degreed people 13 For 2006-2007, 5,719 students took the GRE 19 For example, grants from private not-for-profit
of 43,000. General Test at testing centers in Minnesota. postsecondary institutions to undergraduates
Since the testing center location does not were 16 percent higher in Minnesota, on average,
7 Further information on U-CAN is available at: necessarily indicate the location of the test taker’s than the national average, so the national
www.ucan-network.org. undergraduate institution, this indicator reports average institutional grant to students attending
exam scores for the 4,546 examinees who self- private not-for-profit institutions for each income
8 In its pilot project of measuring student reported that their undergraduate institution was category was multiplied by 1.16.
learning outcomes, the Voluntary System of in Minnesota.
Accountability uses two modules of the CAAP (the 20 Federal Hope Tax Credits were available to
Critical Thinking and Writing Essay tests) and two 14 Some institutions and programs require taxpayers with students in their first and second
subscores of the MAAP (critical thinking and prospective students to take one of eight years of postsecondary education. This calculation
written communication). The third testing option specific GRE Subject Tests. Those scores are not did not simulate the other federal higher education
for the VSA is the complete Collegiate Learning reported here. tax benefits: federal Lifetime Tax Credits and the
Assessment. After the pilot project, institutions deduction for postsecondary tuition.
will be required to update student learning 15 Employers from all major groups of the
measures every three years. Standard Industrial Classification Coding System
that had at least 20 employees were included.

68 Minnesota Office of Higher Education

Appendix ENDNOTES/APPENDIX

Definitions, Terms and Data Sources Used in the Report

Institutions: • Not-for-profit: These schools have a constraints of data collection systems.
tax-exempt status and are typically Existing data do not recognize the
Four-year institutions: For purposes of church affiliated. In Minnesota, they breadth of diversity that exists within
this report, four-year institutions were mainly include four-year liberal communities of color. Most educational
postsecondary institutions in Minnesota arts colleges. Examples are St. Olaf institutions use definitions adopted by
that offer bachelor’s degrees as their College, Macalester College and the U.S. Department of Education
primary undergraduate degree. Augsburg College. which uses the terms American Indian,
Asian or Pacific Islander, Black,
Two-year institutions: For purposes of • For-profit: In Minnesota, these Hispanic and White.
this report, two-year institutions were institutions mainly offer associate
postsecondary institutions in Minnesota degrees or sub-baccalaureate Undergraduate: Unless otherwise
that offer associate degrees as their certificates in specific career fields. specified, an undergraduate is any
primary undergraduate degree. Recently, some have started offering student enrolled at a postsecondary
career-related bachelor’s and institution taking one or more courses
State colleges two-year: For purposes of master’s degrees. Examples are where the credits earned in the course
this report, these are Minnesota’s public Brown College and Rasmussen can be applied to an academic award.
community and technical colleges. College. The student may be attending part
time or full time. The student may also
University of Minnesota: References to Other terms used: be a high school student earning dual
the University of Minnesota included credits. The undergraduate student
the state’s land grant campus in the Peer states: Peer states were selected may also be degree-seeking or non-
Twin Cities and its regional institutions due to their similarities to Minnesota degree seeking.
in Duluth, Morris, Rochester and in terms of geography, higher
Crookston. The University of Minnesota education structures, economies Dependent students: For financial aid
campuses are included with four-year and demographics. The peer states purposes, a dependent student is
public institutions in some instances. are Iowa, Illinois, Indiana, Michigan, generally a traditional age college
Ohio, Pennsylvania and Wisconsin. student and must submit financial aid
Minnesota State Colleges and information about his or her parents
Universities: This state-supported Top three states: For several of the on the Free Application for Federal
system comprises seven state indicators, Minnesota’s performance Student Aid.
universities and 25 community and was compared to the three best
technical colleges across Minnesota. performing states. In cases where Independent students: For financial
Where appropriate: trends over time were being aid purposes, the student meets one
evaluated, the best states were or more of the following criteria: is
• State Universities are included with identified for the most recent year. age 24 or older, is a graduate or
four-year institutions professional student, is married, has
Per capita: A way of measuring legal dependents other than a spouse,
• Community and technical colleges outputs in relation to the population. is an orphan or ward of the court or
are referred to as state colleges For example, the number of degrees is a veteran of the U.S. armed forces
two-year produced per 1,000 residents ages or is in active service.
18 to 64, were reported as a way to
Private colleges: These institutions are compare states with vastly different Certificate: These are occupation-
licensed or registered by the state, and populations. specific academic awards that are
their students are generally eligible to typically earned in less than two years
receive state and federal financial aid. Race/ethnicity descriptions: Assessing and are below the bachelor’s degree.
Some colleges are church affiliated, the situations of students by race and They are not an associate degree. The
others are independent. Classifications ethnicity is somewhat limited due to term “certificate” includes awards
within the private colleges are: some institutions call “diplomas”.

Minnesota Measures - 2009 69

Data Sources: Exam data: The Office of Higher Education either
contracted with the organizations listed below or obtained
Minnesota Department of Employment and Economic data on various assessments and admissions exams
Development: This state agency’s labor statistics staff completed by students from the organization Web site.
provided employment projections for fields analyzed
in Goal Two. • ACT: (www.act.org) Data on ACT test takers and data
on the Collegiate Assessment of Academic Proficiency.
National Science Foundation: This is the branch of the
federal government that collects information on research • Association of American Medical Colleges: (www.aamc.org)
and development across the United States. It is recognized Data on the Medical College Admissions Test.
by higher education institutions and research agencies as
the primary and official source of this data. • Community College Survey of Student Engagement:
(www.ccsse.org) Data on community college student
Office of Higher Education Student Enrollment Record surveys.
Database: The Office of Higher Education’s student
enrollment record database contains unit records for • Council for Aid to Education:
students enrolled during the fall term in Minnesota’s public (www.cae.org/content/pro_collegiate.htm)
and private postsecondary education institutions. Institutions Information on the Collegiate Learning Assessment.
eligible to participate in a Minnesota-funded student
financial aid program are required to report their student • Educational Testing Service: (www.ets.org)
enrollment data. Data on the Graduate Record Exam and the Measure
of Academic Proficiency and Progress.
Organisation for Economic Cooperation and Development:
This is a collaboration of 30 democratic countries sharing • Law School Admissions Council: (www.lsac.org)
information and best practices on domestic and Data on the Law School Admissions Test.
international policies. The OECD publication Education
at a Glance provides data on a variety of measures. • Minnesota Department of Education:
(www.education.state.mn.us) Data on the Minnesota
U.S. Census Bureau: This is the source for the American Comprehensive Assessment Series and on teacher
Community Survey data. The survey is conducted annually licensure.
by the Census Bureau.
• Minnesota Board of Nursing:
U.S. Department of Education: The National Center of (www.nursingboard.state.mn.us) Pass rates on NCLEX,
Education Statistics manages the Integrated Postsecondary the exam used for nursing certification nationwide.
Education Data System. IPEDS are a series of surveys
collected from the nation’s postsecondary institutions with • National Association of State Boards of Accountancy:
data on enrollment, degrees conferred, student financial (www.nasba.org) Pass rates on the Uniform Certified
aid and institutional characteristics. Public Accountant exam.

• National Survey of Student Engagement:
(www.nsse.iub.edu) Data on NSSE.

• U.S. Department of Education: Teacher licensure pass
rates on the Praxis exam.

70 Minnesota Office of Higher Education

Notes

Minnesota Measures - 2009 71

Notes

72 Minnesota Office of Higher Education

About the Minnesota Office of Higher Education

The Minnesota Office of Higher Education is a cabinet-level state agency providing students with financial aid
programs and information to help them gain access to postsecondary education. The agency serves as the state’s
clearinghouse for data, research and analysis on postsecondary enrollment, financial aid, finance and trends.

Authors Tricia Grimes Mark Misukanis, Ph.D.
Research & Policy Analyst Director of Finance and Research
Alexandra Djurovich Office of Higher Education Office of Higher Education
Research & Policy Analyst [email protected] [email protected]
Office of Higher Education
[email protected] Lesley Lydell John Smaby
Research & Policy Analyst Research Analyst
Meredith Fergus Office of Higher Education Office of Higher Education
Research & Policy Analyst [email protected] [email protected]
Office of Higher Education
[email protected]

How to Contact Us

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© 2009 Minnesota Office of Higher Education

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