Transcript Promoting Access - The Working Poor Families Project

Promoting Access
Working Poor Families Project
Academy on Increasing Postsecondary
Access & Success for Low-Income Adults
Amy-Ellen Duke
Center for Law and Social Policy
[email protected]
June 2006
Factors Determining Student
Access
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Tuition
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Living expenses beyond tuition
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Varies by state and region (avg. community college tuition
$2,191in 2005; higher in New England and Mid-Atlantic
states, lower in West and Southwest)
For community college students, this is usually much higher
than tuition costs ($11,691 total avg cost)
Financial Aid availability (partially dictates access and
persistence)
Funds & referrals from TANF, WIA, TAA, etc.
Outreach Campaigns
Admission policies
Financial Aid: Need-Based Aid
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Federal Pell Grants:
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Maximum 2004-05 award: $4,050 (minimum $400)
Amount of award depends on a combination of your
expected family contribution, the cost of attendance,
FT or PT attendance
Campus-Based Aid
Subsidized and Unsubsidized Loans (must be
enrolled at least half time)
State Grant Aid
Institutional Aid: usually awarded to traditional
students
How is Need-Based Aid Awarded?
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Student completes the Free Application for Federal
Student Aid (FAFSA)
Need is determined through a formula
 Cost of Attendance (COA)
Expected Family Contribution (EFC)
Financial Need
COA = tuition and fees; housing and food allowance for offcampus students; and allowances for books, supplies,
transportation, loan fees, and, if applicable, child care
EFC determined through complex formula which includes
an income protection allowance, asset protection
allowance
If EFC is below a certain level ($3,850 if FT), the student is
eligible for a Pell Grant
Financial Aid: Campus-Based
Programs
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Federal Work Study
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Provides part-time jobs for FT and PT students with
financial need. Program encourages work related to
student’s course of study and community service work.
Earn at least the federal minimum wage, but can be higher
depending on type of work.
Award depends on when apply, level of need, and funding
level of school
Federal Supplemental Educational Opportunity Grants
(FSEOGs)
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Supplemental grant for the neediest students, usually fulltime
Awards ($100-$4,000) depend upon need and funding level
of school attending, but very little money goes to adult
students
Problems with Grant Aid
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Geared toward traditional students and traditional
programs (not responsive to curricular innovation)
Low-income (LT 200% FPL) adult students receive less
aid than traditional students, though more likely to
receive grants
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Half time or more: $6,489 vs. $7,990
Less than half time: $1,843 vs. $3,011
Why? 1) Because low-income adults concentrated at lowerpriced community colleges that offer little institutional grant
aid. 2) Those attending LTHT less likely to have applied for
aid than other students. 3) LTHT students who applied for aid
less likely to receive it because their eligibility is limited for
many federal, state, or institutional aid programs due to
LTHT status (often only covers tuition and fees, not living
expenses).
Other Challenges
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Working adults, due to earnings, often have
too high an EFC to qualify for aid
LTHT students COA too low to qualify (new
changes in federal rules will allow LTHT
students to include room and board in their
COA for limited periods)
May not be degree seeking
May not have a high school diploma or GED
What about Undocumented
Immigrants?
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Increasing numbers of undocumented immigrants testing
tuition and financial aid policies
Range of state policies from charging in-state tuition (TX, CA,
UT, NY, WA, OK, IL) to attempting to bar entrance (VA, AK)
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In some states, undocumented high school graduates treated
more favorably (CA)
Policy changes to promote access:
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Charge undocumented immigrants in-state tuition, which is
significantly lower than out-of-state tuition in most states
Make financial aid accessible to undocumented students
(federal aid programs are not)
Make tuition and aid dependent on residency status, not
citizenship
Do not require documentation
Leave to institution’s discretion
Other Forms of “Aid”
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Merit-Based Aid—Squeezing out need-based aid
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State-level programs (e.g., Georgia HOPE Scholarship)
Significant shift from need-based to merit-based aid over
past 15 years at state level (i.e., Georgia’s HOPE program is
twice as large as the federal Pell Grant program in the state)
Tax Credits—Not applicable to low-income students
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Hope: Tax credit up to $1,500 for families of students
attending first 2 years of college at least HT basis
Lifetime Learning Credit: Geared toward older students and
working adults. Max credit up to $2,000 per tax filer (20% of
qualified higher ed expenses up to $10,000)
Problem with both: Must have tax burden to qualify
Maximizing Federal Financial Aid
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Rethink where state support for higher education
goes—i.e. subsidies to keep tuition low vs. need-based
aid.
Streamline curriculum approval process so can do more
of workforce education on for-credit side of college
Ensure that shorter “chunks” are part of longer
certificate so that meet minimum program length
requirement for federal aid
Reexamine Ability to Benefit policies—is GED being
used as AtB test? If so, works against dual enrollment
model
Are cutoff scores for entry to for-credit occupational
programs set at level that accurately reflects what’s
needed to succeed?
Key elements of flexible aid for
low-income adults and youth
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LTHT students are eligible if enrolled in certificate or
degree programs
Can be used for developmental education and for noncredit occupational programs (if articulated to certificates
and degrees)
Aid can be used for short modules if they are part of
certificate or degree programs
Can be combined with Pell grants, up to the total cost of
attendance
Not merit-based
Students without a high school diploma or GED eligible
May not be tied to degree attainment or time-limited
Examples of Flexible State Aid
Georgia HOPE Grants
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Open to any GA resident without a BA. Pays tuition,
books and fees for technical certificates and diplomas (not
degrees). Average amount of annual aid is about $900.
Can cover developmental ed, open to those taking as few
as 3 credits at a time, can be combined with Pell grants.
Served 116,000 students in FY 04 with funding of about
$102 million. WA state considering similar program.
Illinois Monetary Award Program
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Need-based student aid open to less than half time
students who do not have a BA. Serves about $128,000
students; FY 06 funding is about $347 million. Expanding
to year around aid in 07-08.
More Examples of Innovative Aid
Minnesota State Grants, Postsecondary Child Care
Grants, State Work-Study
 $115 million in need-based grants to 70,000 students.
Can take as few as 3 credits.
Arkansas Workforce Improvement Grant
 Need-based aid for adults over 24 pursuing certificate
or degree at public institutions. Intended to help
adults who make too much money to qualify for Pell
but not enough to pay for college. Can take as few as
3 credits per semester. Recently expanded from
$500,000 annually to $3.7 million annually.
More Examples of Innovative Aid
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Louisiana’s Opening Doors demonstration
offered students a $1,000 scholarship beyond
any other financial aid they received for each
of two semesters ($2,000 total) if they
maintained at least half-time enrollment and a
2.0 (or C) GPA.
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Evaluation showed that those who participated in
the demonstration were more likely to enroll in
college full time, passed more courses and earned
more credits, and had higher rates of registration in
college in the second and third semesters after
registering in the demonstration
Other Sources of Support
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Temporary Assistance for Needy Families (TANF)
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Not just for TANF recipients (can be used for parents up
to 200% of poverty)
Provide TANF supportive services (child care,
transportation) for time spent in class
Use TANF funding as student aid, e.g., tuition, work
study jobs, book allowances, uniforms, etc. Many not
eligible for Pells.
Also consider: Workforce Investment Act dollars,
Trade Adjustment Assistance, Unemployment
Insurance
Leveraging Other Sources of Support
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Maximizing access to TANF, WIA, etc.
requires:
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Exploring if these programs could provide more
financial support for postsecondary workforce
ed than they currently do and if so, overcoming
the barriers to expanding that support
Discerning if these programs view referrals to
postsecondary workforce ed and financial aid as
an essential part of their mission. If not, what
policy disincentives prevent more of those
referrals from occurring?
Individual Development Accounts
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Matched savings accounts for low-income
individuals
Postsecondary education and training an
allowable use
In some cases, exempt from federal public
assistance asset limitations
Access and Outreach Campaigns
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Kentucky’s Go Higher media campaign includes
encouraging adults to return to school at all levels
(GED to college certificate or degree)
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State developed a guide for states seeking to develop
similar initiatives with the first hurdle convincing adults that
they need to return to school
Texas’ College for Texans campaign developed
specific ads for adult learners, including Spanish
speakers
Access and Outreach Campaigns
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Educational Opportunity Centers
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Federally funded through the Higher Education
Act, this program provides counseling and info on
college admissions and financial aid options to
adults who want to enter or continue
postsecondary education
Mix of CBOs and two- and four-year institutions
operate the 139 EOC programs
Admissions Policies
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What is required for entrance?
Use of Ability-to-Benefit tests