REGENTS REPORT 

Student Migration and Its Economic Impact

In 1996, nationally less than one fifth of resident freshmen left their home states to attend college in another state, according to the Integrated Postsecondary Education Data Systems survey, conducted by the National Center for Education Statistics. South Dakotans who left to pursue higher education elsewhere represented 33.1% of college freshmen that had graduated from high school in the previous 12 months.

The chart to the left displays migration rates for South Dakota and its neighbors. While 33.1% of our resident freshmen emigrate to attend college in another state, 30.5% of the freshmen in South Dakota immigrate to enroll in one of our public or private higher education institutions.

This makes South Dakota a net exporter of college freshmen, as the chart to the right displays. The national average for emigration is 18% and the national average for immigration is 19.7%, both of which are considerably less than the movement in our state’s population.

Pell Grant Net Migration

Pell Grants are federal financial aid awarded to students from low-income families. Even though South Dakota is a net exporter of all freshmen students, it is a net importer of Pell Grant recipients, as the chart to the right displays. This means that more students who qualify for Pell Grants come to South Dakota for their education than leave our state to attend an institution elsewhere.

According to Postsecondary Education OPPORTUNITY, the source of data for this report, in 43 states the net migration rate for freshmen reflects the net migration for Pell Grant recipients, that is to say that if one is positive the other is positive as well. The reverse would also be true. In South Dakota, however, we could interpret the data to mean that state policies create a system that results in less needy students going elsewhere.

Pell Grant data provide an opportunity to measure the economic impact of the positive and negative net flows of students between states. Students spend a significant amount of real money on their education, which has both direct and indirect impact on the economies of the communities and states where they enroll. The table below was extracted from a total U.S. table compiled by Postsecondary Education OPPORTUNITY, based upon the Pell Grant End-of-Year Report.

Direct economic benefits to South Dakota from Pell Grant students equal the number of migrants times the average Pell Grant, which amounts to $1,532,390. Indirect economic benefits are calculated using the State of Washington Higher Education Coordinating Board’s national annual survey of cost of attendance at public institutions. The cost for tuition, fees, books, room, board, transportation, and other expenses equaled $13,060 in 1995-96. The number of students multiplied by the average cost of attendance for non-resident students gained South Dakota $13.6 million that year. When that is adjusted to reflect the indirect impact of money turning over in the economy, the gain to South Dakota is a substantial $24.5 million.

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Conclusion

(1) As a net exporter, South Dakota is losing non-needy students, who should be targeted for retention. (2) Non-resident students, both Pell Grant recipients and those who pay for college by other means, have a significant impact on the economy of South Dakota. (3) If South Dakota higher education policies were modified, more non-resident students could be attracted to fill the existing capacity of our institutions.