Transcript HISTORY OF STATE GRANT AID IN LOUISIANA

Louisiana’s First Choice for College Access
Louisiana Postsecondary Education Review Commission
December 14, 2009
Presented By:
Melanie Amrhein
Executive Director
Student Aid Sources
• Federal
• State
• Institutional
2
Statutory Bodies Responsible for Student Financial Aid
Louisiana Board of Regents is responsible for the formulation of
financial aid policy as it relates to the state’s tuition policy and Master
Plan for Higher Education (Act 695 of the 2004 Regular Session of the
Louisiana Legislature)
Louisiana Student Financial Assistance Commission administers
assigned state and federal scholarship programs and the Federal Family
Education Loan Program (FFELP) within the BOR (Act 409 of the 2009
Regular Session). Composition represents all higher education
management boards, the Governor’s Office, Board of Elementary and
Secondary Education, Board of Regents, LA Association of
Independent Colleges and Universities and the Louisiana banking
community.
Louisiana Office of Student Financial Assistance is responsible for
performing the functions of all programs assigned its two governing
bodies.
3
History of State Grant Aid in Louisiana
1939 – 2000
1975 – Present
1989 – 1998
1992 – 1998
1998 – Present
2007 – Present
2007 – Present
T.H. Harris Scholarship
LA LEAP Grant (SSIG)
Tuition Assistance Plan (TAP)
LA Honor Scholarship
TOPS
LA GO Grant
Early Start (Dual Enrollment)
4
Louisiana Office of Student Financial Assistance
Programs Administered
Current Appropriation
Type of Program
Programs Currently Funded
Type
TOPS –Taylor Opportunity
Program for Students
SGF
SD
$107,963,639 Merit Based Aid
$21,904,501
LEAP- Leveraging
Educational Assistance
Partnership
SGF
Fed
$1,024,687 Need Based Aid
$445,165
SLEAP - Special Leveraging
Educational Assistance
Partnership
SGF
Fed
Go Grant Match Need Based Aid
$481,694
Louisiana Go Grant
SGF
$34,226,000 Need Based Aid
Early Start
SGF
$6,500,000 Dual Enrollment
HCELP – Health Care
Educators Loan Program
(MOU with BOR)
SGF
$2,000,000 Loan Forgiveness
Rockefeller State Wildlife
Scholarship
SD
SGF – State General Fund
$60,000 Loan Forgiveness
SD – Statutory Dedication
Fed – Federal Funds
5
2009-2010 Appropriation
6
Financial Aid Comparisons
(Based on 2007-2008 NASSGAP Data)
Aid based on Need
Aid based on Need and Merit
Aid based on Merit
Special Purpose 7
Financial Aid Overview
Cost of Attendance (COA)
-Expected Family Contribution (EFC)
=Financial Need
- Aid and Resources
= Remaining Financial Need
8
Financial Aid Overview
• Cost of Attendance (COA) – set by school
– Tuition and Fees
– Books and Supplies
– Room and Board
– Transportation
– Personal Expenses
National Average for 4 year public
Louisiana Public 4-Year Average
National Average for 2 year public
Louisiana Public 2-Year Average
= $17,417
= $15,514
= $13,126
= $ 9,160
9
Financial Aid Overview
• Expected Family Contribution (EFC)
• Ability to Pay
o Parent’s Contribution (If Student is Dependent)
o Student’s Contribution
• Determined by Free Application for Federal
Student Aid
o
o
o
o
o
Income
Assets
Savings
Family size/Number in college
State of Legal Residence
10
Financial Aid Overview
• Grant Aid and Resources
• Need Based Aid – Provides access to postsecondary
education to students whose ability to pay is limited
o Federal Pell Grant
o Federal Academic Competitiveness Grant
o Federal SMART Grant
o State Grants
• Merit Based Aid – Provides a Reward for Talent/
Achievement /Ability/Other Non-Financial Criteria
o State Scholarships
o Institutional Scholarships
o Private Scholarships
11
62,659 Louisiana Undergraduates Received Pell Grant
Public Colleges and Universities (2007-2008)
Mean
Median
Mode
$2,873
$3,060
$4,310
Maximum Pell Grant for the 2007-2008 Award Year was $4,310.
12
Pell Grant Maximum Payment
Max Pell Award
$5,350
$5,500
$5,000
$4,731
$4,310
$4,500
$4,000 $4,050 $4,050 $4,050 $4,050
$4,000
$3,750
$3,500
$3,000
$3,125
$3,300
$3,000
$2,500
$2,000
13
Pell Grant Maximum Payment and
Tuition and Fees Comparison
Max Pell Award
Nation
South
Louisiana 4-year Public
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
The Nation and South data is enrollment weighted, current dollars tuition and fees for public fouryear schools for the nation and College Board southern region respectively. The source of the data
is The College Board Annual Survey of Colleges.
14
Taylor Opportunity Program for Students
(TOPS)
• Act 1375 of the 1997 Regular Session
of the Louisiana Legislature
• Merit Based Scholarship Program
• Award pays amount equal to public
tuition & certain fees
15
TOPS Academic Awards
Award Name
Minimum
Required
HS GPA
(Core)
Minimum ACT
Composite
(Based on
State Average)
Required
Curriculum
Award Value
8 Semesters or
12 Quarters
Opportunity
2.5
20
17.5 Credits
Prescribed
College Prep
Amount equal
to tuition and
some fees
Performance
3.0
23
17.5 Credits
Prescribed
College Prep
Amount equal
to tuition and
some fees plus
$400 stipend
Honors
3.0
27
17.5 Credits
Prescribed
College Prep
Amount equal
to tuition and
some fees plus
$800 stipend
16
TOPS Technical Award
Award Name
TOPS Tech
Minimum
Required
HS GPA (Core)
2.5
Minimum ACT
Composite
17
Required Curriculum
Option 1 – 17 credits
Technical Core
Option 2 - 19 credits
With career option plan
Award
Value
2 Years
Tuition at an
eligible
technical
college
Option 3 – 17.5 credits
Regular TOPS Academic
Core
17
TOPS Paid by School Type
(Cumulative as of November 20, 2009)
School Type
Cumulative
Awards to
Students*
Cumulative
$
% of Total
Awards
% of Total
Dollars
2 & 4 Year Public
Colleges and
Universities
400,793
$1,068,751,285
87.4%
89.8%
LCTCS Schools
15,773
$16,463,292
3.4%
1.4%
Private Colleges and
Universities
41,821
$105,265,174
9.1%
8.8%
18
$4,554
0.0%
0.0%
458,405*
$1,190,484,305
100.0%
100.0%
Proprietary Schools
Totals**
*Total Awards to students since inception, including 23,509 awards in Academic Year 1998-99, 29,120 in 1999-2000, 35,726 in 2000-2001,
40,856 in 2001-2002, 40,114 in 2002-2003, 41,044 in 2003-2004, 42,461 in 2004-2005, 42,503 in 2005-2006, 43,602 in 2006-2007, 42,122
in 2007-2008, 42,164 in 2008-2009, and 41,288 in 2009-2010 as of November 20, 2009.
**Includes TOPS Tech Early Start
18
Growth in TOPS Expenditures and Recipients
As of October 30, 2009
$ in Millions
Students
Note: The 2009-10 Academic Year data shows the amount appropriated and projected to be expended for the year and
the number of recipients to date.
19
Ethnicity of TOPS Recipients
20
TOPS Funding
54.0
67.4
90.2
104.0
104.6
110.5
117.1
116.9
120.6
116.6
122.8
129.9
21
TOPS Legislation by Session
Legislative Session
1997
Regular Session
Regular Session
1998
1st Extraordinary
Session
Bills Filed
1
0
1
0
14
1
Act 165
Acts 438, 777, 805, 1196, 1295, 1302, HCR 328
1999
Regular Session
31
7
2
0
2000
Regular Session
1st Extraordinary
Session
2nd Extraordinary
Session
13
6
0
0
46
8
0
0
2
1
0
0
0
0
29
11
Regular Session
2001
2002
2003
1st Extraordinary
Session
2nd Extraordinary
Session
Regular Session
1st Extraordinary
Session
Regular Session
Bills Enacted
Act 1375
Acts 69, 73, 105, 110, 133, SR 31
Acts 351, 1042, 1053, 1144, 1192, 1202, 1221,
SCR 131
Act 9
Acts 63, 81, 214, 220, 393, 401, 1121, 1235,
1237,
HCR 213, HSR 16
22
TOPS Legislation by Session (cont)
Legislative Session
Regular Session
2004
1st Extraordinary
Session
Regular Session
2005
1st Extraordinary
Session
Regular Session
1st Extraordinary
Session
2006
2nd Extraordinary
Session
2007
Regular Session
Regular Session
1st Extraordinary
Session
2008
2nd Extraordinary
Session
2009
Regular Session
Total
Bills Filed
29
Bills Enacted
Acts 472, 507, 625, 800, 804, HCR 266
6
0
0
11
5
Acts 105, 194, 348, 412, HR 108
4
2
Act 64, 65
7
0
0
0
0
0
3
14
2
4
0
0
0
0
7
213
3
57
Acts 372, 412
Acts 19, 652, 754, HR 150, SCR 97
Act 232, HCR 180, SCR 68
23
2008-2009 TOPS and Go Grant Comparison
TOPS
41,664
Students
$122,860,288
TOPS and
Go Grant
4,898 Students
$9,104,871 Go Grant
$13,388,118 TOPS
Go Grant
16,015
Students
$25,901,289
24
Louisiana Go Grant
• Approved in 2007 by Joint Education
Committees as part of the State
Financial Aid Policy
• Need Based Aid Program
• Provides supplemental funding to
help meet basic college costs
25
Go Grant Eligible Recipients
• Entering first time freshmen and designated reentering “non-traditional” students (25 or older)
were 1st eligible cohort
• New first time freshmen cohorts are added
annually
– 2009-10 marks third year and third cohort
26
Go Grant Funding/Students
Appropriation
(Spent)
Students
Awarded
2007- 2008
$15,000,000
($16,992,769)
11,062
2008-2009
$24,226,000
($26,026,000)
15,922
Year
27
Go Grant Framework
– Must receive a Pell Grant
– Must be in eligible cohort
– Must meet institution’s requirements for Admission
and Satisfactory Academic Progress
Full-time tuition and mandatory fees
+ $2000 (Education Cost Allowance)
= Louisiana Basic College Cost (LBCC)
-Student’s FT Federal Pell Grant Amount
=
Education Cost Gap (ECG)
The ECG was developed as an indicator of a student’s
basic financial need.
28
Go Grant Framework
• Prior to 2009-10, students with any ECG above 0
would receive a full award based on enrollment
status:
– Full Time = $2,000
– Half-time = $1,000
– Part-time = $ 500
The award would then be added to the student’s “Aid and
Resources” in their Institutional Cost of Attendance (COA)
29
Cost of Attendance (COA)
Set by each institution for determining
federal aid eligibility
National Average for 4 year public
Louisiana Average for 4 year public
National Average for 2 year public
Louisiana Average for 2 year public
= $17,417
= $15,514
= $13,126
= $ 9,160
30
Go Grant Calculation Examples
4 Yr Public
LBCC
=
$7,005
Pell
=
$4,731
ECG
=
$2,274
Go Award
=
$2,000
2 Yr Public
LBCC
=
$3,854
Pell
=
$3,750
ECG
=
$ 104
Go Award
=
$2,000
4 Yr Public
COA
=
$19,436
EFC
=
$0
Pell
=
$4,731
Unmet Need
=
$14,705
Go Award
=
$2,000
2 Yr Public
COA
=
$11,220
EFC
=
$3,300
Pell
=
$3,750
Unmet Need
=
$4,170
31
Go Award
=
$2,000
Go Grant Revisions
• Original projections predicted a needed
appropriation of $41,608,000 for 4th year
cohort
• Funding shortfall occurred in 2008-09 (2nd
year)
• Due to “level funding” for 3rd year, major
changes were made to the program
32
Go Grant Funding/Students
Year
Appropriation
(Spent)
Students Awarded
2007 - 2008
$15,000,000
($16,992,769)
11,062
2008 - 2009
$24,226,000
($26,026,000)
15,922
2009-2010
(Framework Change)
$24,226,000 +
10,000,000
20,401
(Projected)
2010-2011
(Retaining Framework)
$34,226,121
(Budget Request)
23,710
(Projected)
33
2009-10 Change to Framework
• ECG became the actual award amount
(capped at 2000)
• Minimum award was set at $200
• Maximum award was set for each
enrollment status:
– Full-Time Max = $2,000
– Half-time Max = $1,000
– Part-time Max = $ 500
34
Go Grant Calculation Examples
2008-2009
2009-2010
4 Yr Public
4 Yr Public
LBCC
$7,005
LBCC
- Pell
= ECG
Go Award
COA
- Pell
-
$4,731
= ECG
=
$2,274
Go Award
=
$2,000
=
=
$5,350
$1,905
$1,905
$19,436
2 Yr Public
2 Yr Public
LBCC
$7,225
$3,854
LBCC
$3,947
- Pell
-
$3,750
- Pell
-
$3,900
= ECG
=
$ 104
= ECG
=
$47
Go Award
=
$2,000
Go Award
=
$0
COA
=
$11,220
35
Go Grant Recipients by School Type
Data as of 12/3/09
36
Ethnicity of Go Grant Recipients
37
Other Student Aid
• Other Federal Grant Programs
• Student Loans
38
Students Completing Rigorous
HS Curricula for ACG
State Designated
(TOPS/Regents
Undergraduate FTE
Core)
2007-2008
IOWA
175,964
KENTUCKY (SREB)
174,782
1596
1693
Total (includes Honors and
Federally Defined
Coursework)
5811
7140
LOUISIANA (SREB)
167,252
5547
7390
OKLAHOMA (SREB)
151,840
3541
5485
S. CAROLINA (SREB)
158,663
2956
7896
39
Student Loans
Borrowing Limits Per Year
Dependent Students
• Freshmen
$3,500 Subsidized
$2,000 Unsubsidized
• Sophomore
$4,500 Subsidized
$2,000 Unsubsidized
• Other Undergrad
$5,500 Subsidized
$2,000 Unsubsidized
Independent Students Additional $4,000 Unsubsidized
40
Louisiana Federal Family Education Loan
Program (FFELP) and Direct Loan Program
5,723 Loans
$21,323,217
186,552 Loans
$854,187,337
8,587 Loans
$31,883,410
179,533 Loans
$865,627,866
41
Percentage of 2008 Graduates with Debt
and Average Debt Level
• Nation: 67% of students graduating from four-year
colleges and universities had student loan debt with
an average debt level of $23,200.
• Louisiana: 49% of students graduating from fouryear colleges and universities had student loan debt
with an average debt level of $17,827.
Source: Student Debt and the Class of 2008, The Project on Student Debt, December 2009.
Note: According to the report, these figures may understate average debt levels by as much as $5,000
and the percentage of students with debt by as many as 12 percentage points due to data limitations.
42
Case Studies
Student #1 Student #2
Parent Income
$ 29,000
$110,000
Taxes Paid (est)
Assets
Family Size
/Number in
College
$ 4,350
$
0
$ 27,500
$ 25,000
5/2
5/2
EFC
0
7,403
43
Financial Need Comparisons
4-yr Public
Student #1
Student #2
$19,436
$19,436
$0
$7,403
$19,436
$12,033
$5,350
$0
-ACG**
$750
$0
-TOPS
$3,668
$3,668
- GO Grant
$1,905
$0
= Remaining Need
$7,763
$8,365
COA
- EFC
= Financial Need
- Pell Grant*
*EFC = 0 – 4617, student qualifies for Pell Grant of $5350 - $976
**Academic Competitiveness Grant
1st year award = $750, 2nd year award = $1300
Sunsets in academic year 2010-11.
44
Financial Need Comparison
2 Yr Community College
Student #1
Student #2
$11,220
$11,220
$0
$7,403
$11,220
$3,817
$5,350
$0
-ACG**
$750
$10
-TOPS
$1,602
$1,602
$0
$0
$3,518
$2,215
COA
- EFC
= Financial Need
- Pell Grant*
- GO Grant
= Remaining Need
*EFC = 0 – 4617 , student qualifies for Pell Grant of $5350 - $976
**Academic Competitiveness Grant
1st year award = $750, 2nd year award = $1300
Sunsets in academic year 2010-11.
45