Student ability to afford college in Oregon improved during the pandemic, state finds

The share of Oregon students unable to afford their college education dropped to the lowest point in recent history during the pandemic, new state research reveals, as colleges kept their costs stable and a smaller pool of students qualified for more financial aid.

Researchers are optimistic that affordability will continue to improve in future years as Oregon sees the benefits of newer funding increases for student financial aid.

“We are really happy to see this improvement in affordability because it is a measure that has been stubborn for many years,” said Amy Cox, director of research and data for the state’s Higher Education Coordinating Commission.

The cost of going to college in Oregon has risen 38% in the last two decades when accounting for inflation, the commission found. In the past decade, the cost of just tuition and fees for local undergraduates has increased 73% at Oregon State University, 39% at Portland State and 58% at the University of Oregon.

The commission tracks students’ ability to afford college by comparing whether the total cost of attending is higher than a student’s expected resources, including financial aid, any income and their “expected family contribution” calculated by the federal government.

Between 2010 and 2018, roughly 45% of Oregon college and university students faced costs that outpaced their expected resources. That number has been improving recently, and in 2021-22 dropped to just 34%, the state found.

Between 2019 and 2021, affordability improved 10 percentage points at public universities and almost nine percentage points at community colleges.

Affordability varies dramatically between the two sectors. Even with the improvements, 47% of public university students continue to face unaffordable costs, the state found. That’s compared to just 25% of community college students.

While higher education outcomes tend to display large disparities across demographic groups, affordability is a crisis that spans those distinctions, Cox said. Improvements in affordability have been widespread as well.

“To see this improvement and to see it across the board just sort of adds to the good news,” Cox said.

It’s the first time in more than a decade that the state has seen a “notable improvement” in student affordability, according to the state’s research brief. However, the study does note that the state measures could be slightly optimistic. Many families can’t actually afford to pay the “expected family contribution” that the state takes into account.

One reason for the improved affordability was a 17% increase in state financial aid for students through the need-based Oregon Opportunity Grant, state research found. In 2021-22, the number of grant recipients rose by 20%.

Several pandemic-related factors contributed as well. For one, fewer students attended Oregon’s colleges and universities as COVID-19 forced classes online. Lower enrollment translated to fewer students vying for financial aid. Several colleges and universities also used pandemic relief dollars to boost aid for students. And the cost of attending Oregon’s colleges and universities fell slightly compared to inflation as many chose not to increase tuition and fees during the pandemic.

Some of those factors are changing now. Student enrollment is inching up and tuition is again on the rise.

But researchers think affordability will probably keep improving due to financial aid investments not yet reflected in the data: the new Oregon Tribal Students Grant covers college costs for the state’s Indigenous students and a $100 million increase in the Oregon Opportunity Grant will expand both the number of students who qualify for aid and the amount of help they receive.

Nick Keough, legislative director for the Oregon Student Association, said in an email that the research helps illustrate the impact of aid for Oregon’s students. The association has lobbied consistently for more financial aid, including the Opportunity Grant increase in the 2023 session.

“While Oregon still has a long way to go when it comes to funding financial aid to a level that truly meets the full need of our students, these findings from the (commission) prove that every additional dollar we put into financial aid is a worthwhile and lucrative investment in the future of Oregon’s students and economy,” Keough said.

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Sami Edge covers higher education for The Oregonian. You can reach her at sedge@oregonian.com or (503) 260-3430.