Promoting Access

1. 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 aduke@clasp.org June 2006

2. Factors Determining Student Access • Tuition • 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) • Living expenses beyond tuition • 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

3. Financial Aid: Need-Based Aid • Federal Pell Grants: • 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

4. How is Need-Based Aid Awarded? • 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 off-campus 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

5. Financial Aid: Campus-Based Programs • Federal Work Study • 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) • Supplemental grant for the neediest students, usually full-time • Awards ($100-$4,000) depend upon need and funding level of school attending, but very little money goes to adult students

6. Problems with Grant Aid • 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 • 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 lower-priced 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).

7. Other Challenges • 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

8. What about Undocumented Immigrants? • 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) • In some states, undocumented high school graduates treated more favorably (CA) • Policy changes to promote access: • 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

9. Other Forms of “Aid” • Merit-Based Aid—Squeezing out need-based aid • 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 • 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

10. Maximizing Federal Financial Aid • 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?

11. Key elements of flexible aid for low-income adults and youth • LTHT students are eligible if enrolled in certificate or degree programs • Can be used for developmental education and for non-credit 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

12. Examples of Flexible State Aid Georgia HOPE Grants • 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 • 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.

13. 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.

14. More Examples of Innovative Aid • 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. • 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

15. Other Sources of Support • Temporary Assistance for Needy Families (TANF) • 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

16. Leveraging Other Sources of Support • Maximizing access to TANF, WIA, etc. requires: • 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?

17. Individual Development Accounts • Matched savings accounts for low-income individuals • Postsecondary education and training an allowable use • In some cases, exempt from federal public assistance asset limitations

18. Access and Outreach Campaigns • Kentucky’s Go Higher media campaign includes encouraging adults to return to school at all levels (GED to college certificate or degree) • 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

19. Access and Outreach Campaigns • Educational Opportunity Centers • 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

20. Admissions Policies • What is required for entrance? • Use of Ability-to-Benefit tests