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Findings

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• Of total aid statewide in 1995-96, about 50 percent ($2.3 billion) went to students attending public two- and four-year institutions, 39 percent ($1.8 billion) to students attending independent nonprofit institutions, and 11 percent ($0.5 billion) to students attending proprietary schools. (See Tables 2, 3 and 4.)

• The distribution of aid among sectors shifted dramatically in some programs from 1990-91 to 1995-96. The share of Pell Grant funds going to proprietary institutions dropped from 39 percent to 17 percent, while the public community colleges' share increased from 23 percent to 42 percent. (See Table 5.)

Public Sector

• Inflation-adjusted aid available to students at public institutions more than doubled from 1990-91 to 1995-96. Federally sponsored loans accounted for over 55 percent of this growth. (See Table 3a and Figure 5.)

Independent Nonprofit Sector

• While aid to students at independent nonprofit institutions increased almost 80 percent during the same years (in constant dollars), most of this growth was in the form of borrowing (80 percent), and most of the increased loan volume occurred after 1993-94 in federal unsubsidized loans. In fact, unsubsidized borrowing volume doubled from 13 to 26 percent of all available aid in the independent sector. (See Table 4a and Figure 6.)

Proprietary Sector

• Inflation-adjusted aid to students in proprietary schools declined 16 percent from 1990-91 to 1995-96, as federal legislation and regulations tightened institutional participation in student aid programs. The only significant increase for proprietary institutions was in Stafford Unsubsidized Loans. (See Table 4a).