Learning to Lead: Admissions in the 21 st Century Webinar Series

1. Learning to Lead: Admissions in the 21st Century Webinar Series April 28, 2011

2. Mission: To increase the number of students who earn a college degree and who are prepared to succeed in the 21st century. Approach:

3. Areas of Focus • College Affordability & Financial Aid • Cracking the Student Aid Code • Rethinking Student Aid • Trends in Higher Education • Education Pays • Simplifying State Aid Processes College Preparation & Access • Arts at the Core • The CollegeKeys Compact™ • School Counselor Advocacy • Teacher Advocacy • Minority Male Achievement • Undocumented Students and the DREAM Act • The National Commission on Writing • College Admission & Completion • College Completion Agenda • Access, Admissions & Success: Education and the America Future • Admissions in the 21st Century • Access & Diversity Collaborative • Community College Transfer & Retention

4. Rethinking Student Aid: Parent and Student Focus Groups

5. Rethinking Student Aid: A “Package” of Recommendations Simplify federal student aid system Eligibility determination and application process Provide information about college “early and often” Improve federal loan process Application, loan limits, borrower protections Create federal savings program for students from low-income families Reward institutions that support student success

6. RSA Research Objectives Learn parents’ and students’ reactions to RSA recommendations Understanding Support Questions Assess recommendations’ impact on… College aspirations and access College planning Ability to complete college degree Publish findings: Cracking the Student Aid Code

7. Research Methodology • Phase 1: Qualitative • 8 in-person focus groups • Baltimore, Chicago, Dallas, San Francisco • “Barrier” students, parents, “non-traditional” students • 2 online bulletin board focus groups • National, college students • 6 in-depth interviews • “New” Americans’ perspective

8. Research Methodology • Phase 2: National Quantitative Surveys • 1,000 parents: telephone; income qualified; with children between 11 and 21 • Complete survey in English or Spanish • 1,000 college students: online; had experienced completing FAFSA • 250 “non-traditional” students: online; income qualified; age 25+; completed FAFSA

9. Cracking the Student Aid Code Key Findings

10. College education is critical, even in current economy • Students believe more strongly than parents

11. All believe in opportunity & access, especially students

12. Cost and application process are perceived barriers • Parents and non-traditional students are most concerned about costs; parents are most concerned about the application process

13. Lack of knowledge re: costs is problem for lower income or less educated parents • Less than half (46%) of all respondents feel informed

14. Less awareness of Pell Grants among lower income, Latino & less educated parents • A majority (77%) of all respondents are aware of Pell Grants; Latinos notably unaware

15. Student and Parent Reactions to RSA Recommendations

16. RSA Recommendation #1 The study group recommends using tax information directly from the Internal Revenue Service to determine how much federal financial aid a student will get, instead of requiring families to fill out the FAFSA. The IRS would give information from the family’s most recent tax return to the U.S. Department of Education to figure out how much federal financial aid a student would receive.

17. Use IRS Data Instead of FAFSA 74% of parents and about 90% of students support recommendation; but students not “very” supportive “I like the fact this eliminates the 'double work' we are asked to do for FAFSA. There’s less paperwork, less work.”

18. Use IRS Data Instead of FAFSA • Fewer “very supportive” ratings reflect concerns • Mistrust of IRS (mistakes, inefficiency, privacy) • Tax return can’t capture true picture of household finances • Household finances change year to year • Nontraditional households (e.g., divorced parents filing separately) • Families who don’t file tax returns

19. Use IRS Data Instead of FAFSA Respondents’ preference for status quo reflects questions, concerns and fear of unknown

20. Use IRS Data Instead of FAFSA • What would be very important in order to increase support for using IRS data?

21. RSA Recommendation #2 The federal government would increase the amount students can borrow from the federal student loan program to help them pay for increasing college tuition costs and other expenses.

22. Increase Maximum Annual Loan • Parents & non-traditional students most supportive of recommendation “This would help me finish school sooner because I wouldn’t have to get a job or pay for the loans while in school. I would love to get more federal loans so I don't have to use my credit card.”

23. RSA Recommendation #3 People who take out federal student loans would not be asked to pay more than 15% of their yearly net income (that is, income after taxes) in loan payments. So, if a borrower loses her job or experiences a cut in salary, loan payments would be reduced. After 20 years, any remaining loan amount would be forgiven.

24. Protect Borrowers in Repayment • Parents and students support this recommendation; non-traditional students most supportive “That would be a dream come true! Part of my hesitation with loans now is the burden of them after I finish college. This would make me much more comfortable taking out loans.”

25. Protect Borrowers in Repayment • Recommendation increases willingness to borrow

26. RSA Recommendation #4 The federal government would create and contribute money to college savings accounts for children from low and moderate income families. Students would be able to use these funds only for college, even if they decided to go later in life. Unused savings would go back to the government.

27. College Savings Accounts • Support is high, particularly among non-traditional students “It’s like Social Security. You would get a statement telling you how much money is in the account. I would show it to my kids and say, ‘see how much money there is for college? You can go’.”

28. RSA Recommendation #5 All households who file tax returns would receive information about how much Pell Grant their children would get if they were in college at that time. Families would also get information about financial aid and tuition costs in their state. This information would be provided each year starting when the children at home are young.

29. Early Information • Greatest overall support for this recommendation “There is no downside to this. This is giving people more information and hope and thoughts that they never had before.”

30. Early Information • Parents and students understand the benefits

31. Early Information • Most supportive: • African-American and Latino parents and college students • College students whose parents not educated beyond high school • “Somewhat supportive” ratings may reflect concerns about using IRS data to generate annual early information report

32. In Their Own Words “This definitely would have impacted my own preparation. Neither of my parents went to college so they had no idea what options were available for financial aid or what colleges were best in our state.” “Immigrant parents don’t know how much it costs here to go to college. They need to see, very early, what the costs are. This is the difference between dreaming and planning.”

33. Rethinking Student Aid: A “Package” of Recommendations The recommendations in their entirety are more appealing than each individually Participants agree on the following impact if proposals are implemented It will be easier to apply for federal aid Families will have a framework for planning & saving Borrowing will be less intimidating More will have hope that college is possible

34. College Board Taking Action • State Need-Based Grant Study • Collaborating with 5 states to model impact of simplified FAFSA & need analysis formula on budget and distribution of need-based state grant • Five Ways Education Pays • Consumer-friendly information for students & parents • Early Information Pilot • Working with one or more states to create structure, content & medium for annual communication • Get Schooled College Affordability Challenge • Winner recently announced at Clinton Global Initiative U

35. Q & A: Submitting Questions To submit a question: Click on the Question Mark icon (?) on the floating toolbar (as shown at the right). This will open the Q&A window on your system only. Type your question into the small dialog box and click the Send Button. Q&A icon

36. For More Information: Read the Cracking the Student Aid Code report at http://advocacy.collegeboard.org. If you have questions, please email Kathleen Little (klittle@collegeboard.org) or Anne Sturtevant (asturtevant@collegeboard.org).

37. Next Learning to Lead Webinar: Leadership, Access and Institutional Mission – May 18, 1 p.m. EDT Register at http://advocacy.collegeboard.org/admission-completion/admissions-21st-century.