DRAFT

BRIEFING MEMO:

THE DIGITAL DIVIDE

ADVISORY COMMITTEE ON

STUDENT FINANCIAL ASSISTANCE

**WASHINGTON, D.C.**

**APRIL 2004**

# INTRODUCTION

# 

# The digital divide refers to inequities that exist in access to technology (Education Week, 2004). There are many different aspects to the concept of the digital divide. For instance, it can represent access to computer usage, Internet usage, location of usage, or type of connection speed to the Internet. This memo explores the status of the digital divide in the United States, noting areas where gaps exists between obtaining access and not obtaining access. It begins with a broad overview of the use of technology in America. The memo then identifies indicators that impact the likelihood of a person accessing a computer and the Internet. It also discusses how home, school, and public libraries impact access. Lastly, the memo concludes with a brief analysis of how this information relates to the Advisory Committee on Student Financial Assistance's study on simplifying need analysis and application for Title IV funds.

# 

# OVERVIEW OF TECHNOLOGY USAGE IN THE UNITED STATES

According to a 2001 study, 174 million Americans, or about two-thirds of
the U.S. population, had access to computers. The same study reported
that 90 percent of children between the ages of 5-17 used computers
(DOC, 2002). A different study on Internet access published in 2003
estimated that 126 million Americans, or 63 percent of the U.S.
population, utilized the Internet (Madden, 2003). In addition, this
study revealed that the most common method for accessing the Internet
was through a dial-up connection. The study also showed, however, that
one-third of all people who access the Internet at home have some type
of high-speed Internet access and this figure is expected to grow
rapidly in the next few years (Madden, 2003). For example, in a 13-month
period from 2000 to 2001, usage of high speed-Internet access in homes
increased by 116 percent (DOC, 2002). A home is the most common place
for a person to use the Internet: over 43 percent of the U.S. population
accesses the Internet from a home. Other common locations to access the
Internet include work (19.6 percent), school (11.9 percent), and the
public library (5.4 percent) (DOC, 2002).

### INDICATORS OF THE DIGITAL DIVIDE

# INCOME

There are several strong variables that impact whether or not a person
uses a computer or the Internet. One indicator is income. Individuals
from high-income households are more likely to have access to a computer
and the Internet than people from low-income households. In 2001, only
37.5 percent of the population from the lowest-income households used
computers and only 25 percent utilized the Internet. In contrast, 88
percent of individuals from the highest-income households used computers
and 78.9 percent had access to the Internet. Although there is a large
gap among computer and Internet access based on income, this gap
continues to narrow. For example, the Department of Commerce (2002)
reports that the fastest growth rate for Internet use is among
low-income families. Between 1997 and 2001 the use of the Internet for
people from the lowest-income households increased at an annual rate of
25 percent. In comparison, individuals from the highest-income families
increased their Internet use at an annual rate of only 11 percent.

# RACE

A person's race also influences a person's likelihood of accessing a
computer and the Internet in the United States. Whites access computers
and the Internet at higher rates than blacks and Hispanics. During 2001,
the computer and Internet usage rates for whites was 70 percent and in
2003 the Internet usage rate was 64 percent. In comparison, 55.7 percent
of all blacks had access to a computer in 2001 and 51 percent used the
Internet in 2003. Hispanics had a computer usage rate of 48.8 percent in
2001 and an Internet usage rate at 62 percent in 2003 (DOC, 2002 and
Madden, 2003). Although the gap between whites versus blacks and
Hispanics is significant, it continues to decrease over time. Between
1998 and 2001 the annual growth rates of Internet usage for blacks and
Hispanics were 31 percent and 26 percent, respectively. Whites and Asian
Americans had smaller overall annual growth rates of 19 percent and 21
percent, respectively (DOC, 2002).

# EDUCATION

Educational attainment is another factor that impacts the digital divide
in the United States. The higher a person's level of education, the more
likely he or she is to use a computer and the Internet. In 2001, 86.9
percent of the population who possessed some education beyond a
bachelor's degree used a computer and 83.7 percent utilized the
Internet. On the other hand, 47.3 percent of those who only had a high
school diploma used a computer and only 39.8 percent had access to the
Internet (DOC, 2002). Just as the influence of income on Internet access
is getting smaller, the influence of education level on the digital
divide also appears to be decreasing. Between 1998 and 2001 the use of
the Internet for individuals with some education beyond a bachelor's
degree increased annually at a rate of 9 percent. Meanwhile, the growth
rate for persons with only a high school diploma increased annually at a
rate of 30 percent (DOC, 2002).

# DIGITAL DIVIDE MEASURED BY LOCATION OF ACCESS

# 

# HOME

A digital divide exists in homes throughout America. While 77 percent of
whites use a computer at home, only 41 percent of blacks and Hispanics
have access to a computer at home. Eighty percent of children from
families with annual earnings of more than \$75,000 use computers at
home. In comparison, 31 percent of children from families earning less
than \$20,000 have access to a computer at home (DeBell and Chapman,
2003). Twenty-eight percent of fourth graders and 24 percent of eighth
graders who receive free or reduced-price lunches do not have computers
in their homes. On the other extreme, 7 percent of fourth graders and 5
percent of eighth graders who do not receive subsidized lunches lack
access to a computer at home (NAEP, 2003). Similarly, children from
high-income families are more than twice as likely to have home Internet
access than children from low-income families. However, the greatest
gains in home Internet access from 2000 to 2002 were among
African-American families (314 percent growth rate) and low-income
families (123 percent growth rate) (The Corporation for Public
Broadcasting, 2003).

One of the most significant reasons why some households never connect to
the Internet is cost. In a 2001 survey, the largest specific response to
why households do not have Internet in their homes was "too expensive."
A quarter of all households who fell under this category volunteered
this response. Not surprisingly, a person's likelihood of citing cost as
a factor is correlated to income. Lowest-income households who do not
have Internet access listed cost as a factor 34.7 percent of the time.
The response for the highest-income group was 6 percent (DOC, 2002). The
dawning shift to high-speed Internet poses an additional problem for the
digital divide, as broadband and DSL Internet access can cost up to five
times more than a dial-up connection[^1]. Currently, the average annual
income of broadband families is \$72,000 and the average income of
families who plan to get broadband is \$65,000 (The Corporation for
Public Broadcasting, 2003).

# 

# SCHOOL

Access to computers and the Internet in schools has partially narrowed
the digital divide gap for children. Market Data Retrieval (2003)
reported that national student-to-computer ratios dropped from 125-to-1
in 1984 to 4-to-1 in 2003 and the ratio of students to instructional
computers with Internet access in public schools decreased from 12.1 to
1 in 1998 to 4.8 to 1 in 2002. In 2001, 80.7 percent of children ages
10-17 from the lowest-income families used computers at school. This
figure was relatively comparable to the 88.7 percent of children ages
10-17 from the highest-income category that used computers at school.
Unfortunately, the gap for Internet access in public schools is much
larger between the lowest- and highest-income groups. In 2001, 34.3
percent of children ages 10-17 from the lowest-income group accessed the
Internet at school. Almost 63 percent of children ages 10-17 from the
highest-income families could utilize the Internet at school (DOC,
2002).

The extent of the digital divide enumerated above is further exacerbated
by the limited capacity of high poverty schools to use both computers
and the Internet. A 2002 study revealed that 33 percent of high-poverty
schools classified a majority of their teachers as beginners in using
technology. For low-poverty schools, the percentage was much lower, at
18 percent (Market Data Retrieval, 2002)[^2]. Teachers in schools
classified as "needing improvement," according to the No Child Left
Behind Act of 2001 (NCLB), are less likely to use computers or the
Internet than teachers at other schools.[^3] Sixty-one percent of
schools needing improvement report that more than a majority of their
teachers use the Internet for instruction and 79 percent report a
majority of their teachers use a computer. For all schools, however,
these percentages are much higher: 74 percent of all schools report that
a majority of teachers use the Internet for instruction and 84 percent
report that a majority of teachers use a computer (Market Data
Retrieval, 2003).

Additionally, limited access to computers outside of school hours also
contributes to the digital divide. During 2002, only 53 percent of
public schools with access to the Internet made computers available to
students outside of regular school day hours. Almost all (96 percent) of
public schools that did offer Internet access outside of the regular
school day offered hours after school, and 74 percent offered hours
before school (Kleiner and Lewis, 2003). At the same time less than half
(43 percent) of all K-12 schools own laptop computers (Market Data
Retrieval, 2003). In the case of schools that do own laptops, very few
lend them out to students. During 2002, 8 percent of public schools lent
laptop computers to students. The median number of laptops these schools
had available to lend was 7 computers, or 1 per 16 students (Kleiner and
Lewis, 2003).

## 

## **LIBRARY**

Ninety-five percent of public libraries in the United States offer free
access to computers and the Internet. This has contributed to overall
library visits increasing by more than 17 percent between 1996 and 2001.
Despite gains in federal, state, and private funding in recent years,
the quality of access varies substantially between poorer libraries and
well-funded ones. Inequities exist in regards to hardware, software,
number of computer terminals, and connectivity speed (Gates Foundation,
2004). The likelihood that a person will use the library as a location
to gain access to the Internet is also related to a person's race and
income level. In 2001, 19 percent of all black Internet users and 13.8
percent of all Hispanic Internet users utilized public libraries to gain
access. Meanwhile, 11.6 percent of all Asian American Internet users and
8.6 percent of all white Internet users gained access through public
libraries. Low-income individuals are also seeking out opportunities at
public libraries in greater numbers than upper-income individuals.
Approximately 20 percent of all individuals from the lowest-income group
who use the Internet accessed it at public libraries. This is compared
to 7.2 percent of all Internet users from the highest-income group (DOC,
2002).

# ANALYSIS

In order to simplify the application process for Title IV aid, the
Department of Education (ED) could implement a simplified paper form,
the FAFSA-EZ, and explore the implementation of a telefile application
to replace the existing paper FAFSA. Although, the Internet is becoming
an increasingly popular medium for applying for financial aid, a large
percentage of financial aid applicants will be unable to utilize the
FAFSA on the WEB, or will have a harder time using the Web as a means to
apply for financial aid.[^4] Even though there are other Internet access
locations besides a home (i.e., schools and public libraries) that help
to decrease the digital divide, it can not be assumed that all potential
financial aid applicants would be able to utilize these locations.
Individuals with lower-income levels are more likely to fill out a paper
application because these individuals are more likely to complete a
FAFSA at home, which is where low-income individuals are also less
likely to have access to the Internet. A study released in 2003 found
that students with lower incomes are more likely to apply for student
aid using a paper FAFSA because they want to complete the application at
home, where they may not have Internet access, but where they do have
direct and private access to the background data required to complete
the application (i.e., tax returns, bank account information, Social
Security numbers) (Jackson, 2003). Therefore, it is necessary to focus
the same amount of attention on simplifying and reducing the amount of
time it takes to complete the paper FAFSA as is focused on improving
FAFSA on the Web.

Secondly, ED could modify FAFSA on the WEB so that any improvements do
not exclusively require high-speed Internet connections. A digital
divide exists between those who have access to high-speed Internet
connections versus those who do not. Any web changes that require
financial aid applicants to utilize a high-speed Internet connection
will only attenuate the digital divide and further decrease the value
and usage of the FAFSA on the Web.

# REFERENCES

Advisory Committee on Student Financial Assistance. "Summary of the
Advisory

Committee's Hearing, Holiday Inn on the Hill, Washington, DC, February
5, 2004." Washington, DC: 2004.

Bill and Melinda Gates Foundation. "Toward Equality of Access: The Role
of Public

Libraries in Addressing the Digital Divide." 2004. Available \[online\]:
<http://www.imls.gov/pubs/pdf/Equality.pdf>.

The Corporation for Public Broadcasting. \"Connected to the Future: A
Report on

Children's Internet Use From The Corporation for Public Broadcasting.\"
2003. Available \[online\]:
<http://www.cpb.org/ed/resources/connected/>.

DeBell, Matthew, and Chapman, Chris. \"Computer and Internet Use by
Children and Adolescents in 2001.\" Washington, DC: U. S. Department of
Education. National Center for Education Statistics. 2003. Available
\[online\]: <http://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2004014>.

Education Week. "Technology in Education." 2004. Available \[online\]:

<http://www.edweek.org/rc/issues/technology-in-education/>.

Jackson, Charmaine. "Divided We Fall: The Federal Government Confronts
the Digital Divide." In NASFAA Journal of Student Aid. Vol. 33, No. 3,
pp. 21-39. Washington, DC: 2003.

Kleiner, Anne, and Lewis, Laurie. \"Internet Access in U.S. Public
Schools and Classrooms: 1994-2002.\" Washington, DC: U. S. Department of
Education. National Center for Education Statistics. 2003. Available
\[online\]: <http://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2004011>.

Madden, Mary. "America's Online Pursuits: The Changing Picture of Who's
Online and What They Do." Washington, DC: Pew Internet & American Life
Project. 2003. Available \[online\]:
<http://www.pewinternet.org/reports/toc.asp?Report=106>.

Market Data Retrieval, \"Technology in Education,\" 2003. Available
\[online\]: <http://www.schooldata.com/mdrtechhilites.asp>.

Market Data Retrieval, \"Technology in Education,\" 2002.

U. S. Department of Education. National Center for Education Statistics.
National Assessment of Educational Progress. "The Nation\'s Report
Card." 2003. Available \[online\]:
<http://nces.ed.gov/nationsreportcard/>.

U. S. Department of Commerce. National Telecommunications and
Information Administration. "A Nation Online: How Americans are
Expanding Their Use of the Internet." 2002. Available \[online\]:
<http://www.ntia.doc.gov/ntiahome/dn>.

[^1]: Broadband and DSL are commonly referred to as high-speed Internet
    connections because they enable users to connect to the Internet at
    speeds 10 to 20 and 50 times faster, respectively, than a dial-up
    connection.

[^2]: The U. S. Department of Education defines poverty status of a
    school by the percentage of enrolled students eligible for free or
    reduced-price lunches. A high-poverty school is where 50 percent or
    more of the student body is eligible for free or reduced-price
    lunches. A low-poverty school is where less than 25 percent of the
    student body is eligible for free or reduced-price lunches.

[^3]: Under the No Child Left Behind Act of 2001 all states must set
    annual Academic Yearly Progress Standards (AYP), or goals for all
    their schools and students. Schools that do not meet a state's AYP
    two years in a row are identified as needing improvement.

[^4]: Mr. Daniel Madzelan, Director of Forecasting & Policy Analysis at
    the Office of Postsecondary Education for the U. S. Department of
    Education, reported, at the February 5, 2004 Advisory Committee on
    Student Financial Assistance hearing, that for the 2003-2004 award
    year 71 percent of the 12.3 million financial aid applications were
    processed electronically.