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Presentation Prepared for: The Illinois Board of Higher Education Higher Education Summit: “Dollars & Sense” November 9, 2005 Chicago, Illinois. G. Overview of Presentation. About the Advisory Committee Access and Persistence for Students from Low- and Moderate-Income Families:

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Presentation prepared for the illinois board of higher education higher education summit

Presentation Prepared for:

The Illinois Board of Higher Education

Higher Education Summit:

“Dollars & Sense”

November 9, 2005

Chicago, Illinois


Overview of presentation

G

Overview of Presentation

  • About the Advisory Committee

  • Access and Persistence for Students from Low- and Moderate-Income Families:

    • Defining terms

    • Identifying the problem

    • Pinpointing causes

    • Specifying solutions

  • ACSFA Reauthorization Recommendations


Overview of the advisory committee

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Overview of the Advisory Committee

  • Independent: created by Congress in 1986

  • Purpose:To advise Congress and the Secretary of Education on higher education and financial aid policy

  • Primary Goal:To make recommendations that increase access and persistence for low- and moderate-income students

An independent committee created by Congress to

advise on higher education and student aid policy


Defining terms

Defining Terms


Defining terms1

Defining Terms

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Cost of Attendance vs. Net Price

Cost of Attendance or Published Price:tuition and fees + room and board + books and supplies + transportation + basic living costs

Net price: cost of attendance – grant aid

(what students and families actually pay) or family work-loan burden

Net price or work-loan burden at four-year

public colleges is the best measure of access for students from low- and moderate-income families


Defining terms2

Defining Terms

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  • College Costs vs. Student Costs

  • “How much it costs colleges to operate and how much institutions charge for their product are linked only indirectly and inconsistently. When a college's costs go down, tuition does not typically drop with it.Ideas for reducing institutions' costswould not necessarily translate into savings for students unless colleges took steps to guarantee that result.”

    • Dr. David W. Breneman, Dean

    • Curry School of Education University of Virginia


Defining terms3

Defining Terms

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Lowering Costs for Whom?

“Slowing the spiraling published tuition levels is critical, but costs of attendance will always be too high to make college accessible to students from low-income families without innovative and generous programs of grant aid…any solution to the college affordability problem must involve reductions in the cost of quality education as well as increased and better-targeted subsidies for students with high-levels of economic need.”

Dr. Sandy Baum

Senior Policy Analyst, College Board

Professor of Economics, Skidmore College


Identifying the problem

Identifying the Problem


Identifying the problem1

Identifying the Problem

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Factors Affecting Access and Persistence

“… access and persistence behavior is very complex: a sequential process beginning before middle school with numerous factors involved, many of which are interrelated. These factors, of course, include: family income and background, including parents’ education; level of academic preparation; adequate counseling and mentoring; quality and timing of information; the delivery system, including application forms and processes; and, last but not least, financial aid.”

Dr. Juliet V. García, President

University of Texas at Brownsville

Former ACSFA Chair and Vice Chair


Identifying the problem2

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Identifying the Problem

ACSFA Focus: The Role of Financial Aid

“The message …is not that financial aid is more importantthan family background, or parents’ education, or academic preparation, or counseling, or information. Rather, the message is that inadequate financial aid, at the margin, has undermined all of our efforts and the hard work of students in all of the other areas, and—all things being equal—will continue to do so. … The nation needs a comprehensive strategy and approach that addresses all the factors simultaneously.”

Dr. Juliet V. García, President

University of Texas at Brownsville

Former ACSFA Chair & Vice Chair


Identifying the problem enrollment rate of high school graduates by income 1975 2003

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Identifying the ProblemEnrollment Rate of High School Graduates by Income, 1975-2003

Courtesy: Michael McPherson (2005)


Presentation prepared for the illinois board of higher education higher education summit

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Identifying the ProblemPercentage of 1992 High School Graduates Attending College in 1994, by Achievement Test and Socioeconomic Status Quartile

Source: Access Denied, p. 13


Presentation prepared for the illinois board of higher education higher education summit

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Identifying the ProblemPostsecondary Enrollment Rates of 1992 High School Graduates, by Family Income and Math Test Scores, at Four-year Public Colleges

Source: Education Pays 2004, pg. 30

Courtesy: Michael McPherson (2005)


Identifying the problem percentage of students who earned a ba by age 24

Identifying the ProblemPercentage of Students Who Earned a BA by Age 24

Source: Postsecondary Education Opportunity


Pinpointing causes

Pinpointing Causes


Presentation prepared for the illinois board of higher education higher education summit

Pinpointing Causes

Key Findings from Access Denied (2001)

  • Large differences persist in enrollment rates by income

  • Priorities have shifted to merit aid and affordability for the middle class

  • High unmet need for low-income students has a negative impact on their enrollment patterns


Pinpointing causes state grant aid need vs merit aid

Pinpointing CausesState Grant Aid: Need vs. Merit Aid

Need-based grants

Non need-based grants

Need-based grants

Non need-based grants

Source: Trends in Student Aid (2005)

Courtesy: Dr. Sandy Baum


Presentation prepared for the illinois board of higher education higher education summit

Pinpointing Causes

Contribution of Empty Promises (2002)

  • Focused only on those low-income students who were college-qualified, high school graduatesto isolate the effects of financial aid

  • Refined the discussion of financial barriers to focus on net priceor work/loan burden

  • Calculated aggregate national lossesfrom the access pipeline over the upcoming decade

  • Measured the impact of financial barriers across the full access pipeline through degree completion


Presentation prepared for the illinois board of higher education higher education summit

Pinpointing Causes

Key Findings from Empty Promises


Presentation prepared for the illinois board of higher education higher education summit

Pinpointing Causes

Key Findings from Empty Promises


Presentation prepared for the illinois board of higher education higher education summit

Pinpointing Causes

Key Findings from Empty Promises


Pinpointing causes key findings from empty promises

Pinpointing CausesKey Findings from Empty Promises


Presentation prepared for the illinois board of higher education higher education summit

Pinpointing Causes

Losses Attributable to Financial Barriers


Pinpointing causes the current condition of access work loan burden and net price

Pinpointing CausesThe Current Condition of Access:Work-Loan Burden and Net Price

Net price or work-loan burden at four-year public colleges is rising

steadily for students from low- and moderate-income families


Presentation prepared for the illinois board of higher education higher education summit

Pinpointing CausesThe Current Condition of Access:Work-Loan Burden and Net Price

In its publication, “What Every Student Should Know About Federal Aid,” the American Council on Education (ACE) illustrates that the financial aid package of the lowest income resident students at a state university can now include over $10,000 in annual work-loan burden: $2,300 in work and nearly $8,000 in loans per year.


Presentation prepared for the illinois board of higher education higher education summit

Pinpointing Causes

The Current Condition of Persistence:

Bachelor’s Degree Attainment by Income

Large differences exist in bachelor’s degree attainment rates

among college-qualified high school graduates by family income


Pinpointing causes the cost of public four year college as a percentage of family income

Pinpointing CausesThe Cost of Public Four-year College as a Percentage of Family Income

1992-1993

2003-2004

Source: Trends in College Pricing (2005) Courtesy: Dr. Sandy Baum


Presentation prepared for the illinois board of higher education higher education summit

Pinpointing CausesPercentage of Family Income Required to Pay for College at Public 4-year Colleges (2004)

Source: Measuring Up: the State-by-State Report Card (2004)


Pinpointing causes work loan burden and net price in illinois

Pinpointing CausesWork-Loan Burden and Net Price in Illinois

Source:

-


Presentation prepared for the illinois board of higher education higher education summit

Declining Purchasing Power of the MAP Grant:Change in Pell Grant and MAP maximum awards over the past ten years, adjusted for inflation

Pinpointing Causes

Source: Illinois Student Assistance Commission


Presentation prepared for the illinois board of higher education higher education summit

Pinpointing CausesDeclining Purchasing Power of the MAP Grant:Percentage of average tuition and fees covered by the maximum announced MAP award

Source: Illinois Student Assistance Commission


Specifying solutions

Specifying Solutions


Presentation prepared for the illinois board of higher education higher education summit

Specifying SolutionsLowering Unmet Need and Work-Loan Burden

Today, equalizing unmet need between low- and high-income

students would require additional grant aid of over $4,000.


Presentation prepared for the illinois board of higher education higher education summit

Specifying SolutionsACSFA Recommendations

  • ACSFA does not make recommendations to Congress or the Secretary of Education concerning budget levels or appropriations.

  • It was created to provide independent, bipartisan, technical and objective advice, not to make judgments about legislative funding priorities.

  • We transmitted our findings that:

    • Record-level work-loan burden at public colleges will exacerbate income-related gaps in access and persistence, and

    • Improvements in academic preparation, information, and counseling will not solve the problem.


Presentation prepared for the illinois board of higher education higher education summit

Specifying SolutionsACSFA Role in HEA Reauthorization and Reauthorization Recommendations

  • Provide technical assistance to House and Senate staff across a broad range of student aid issues.

  • Made two recommendations:

    • To create a new access and persistence partnership; and

    • To simplify student aid delivery, forms, and processes from middle school through degree completion.


Presentation prepared for the illinois board of higher education higher education summit

Specifying SolutionsACSFA Partnership Proposal

Recommendation: Create an access and persistence partnership between the federal government, states, colleges, and private philanthropic groups.

Purpose

  • Implement a comprehensive strategy effectively aimed at all of the factors that affect access and persistence.

  • Improve integration and coordination among existing programs.

    Objective:Provide low-income students with:

  • Adequate grant aid to reduce work-loan burden

  • Early assurances of financial access to four-year institutions

  • Incentives to increase participation in early intervention programs


Presentation prepared for the illinois board of higher education higher education summit

Specifying SolutionsACSFA Simplification Recommendations

  • The Student Aid Gauntlet Report

    • One-year study from Congress

    • Ten recommendations to simplify the application process and specific aspects of need analysis

  • Examples of Key Recommendations:

    • Create a comprehensive system of early financial aid information

    • Simplify and streamline FAFSA on the Web


Panel discussion and questions

Panel Discussion and Questions


Contact information

Contact Information

Judith N. Flink

Vice Chairperson of the Advisory Committee,

Executive Director of University Student Financial Services,

The University of Illinois

[email protected]

Nicole A. Barry

Deputy Director

[email protected]

Erin B. Renner

Assistant Director

[email protected]

(202) 219-2099


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