An Investigation of the Perceptions of LowIncome Students of Color Concerning College Costs and Fina

1
An Investigation of the Perceptions of Low-Income
Students of Color Concerning College Costs and
Financial Aid InformationResearch In
Action Presenters Jennifer A. Waters, Ph.D.,
Executive Director Pearl Natali, M.B.A.,
Associate Director Student Financial Services
Columbia College Chicago Chicago, IL
2
Session Summary - Research

• Part I
• Review of dissertation research study findings
  on how low-income students of color valued
  college cost and financial aid information
  designed, packaged, and marketed by their
  institution and how they utilized this
  information in making an enrollment decision.
• Part II
• In addition to reviewing the major research,
  practical application of the research findings
  will be discussed.

3
The Problem

• Stagnant growth in the number of low-income
  students of color enrolling in and completing
  postsecondary education in private 4-year
  institutions.
• Common barrier to education is understanding
  college costs and financial aid resources.
• What role do higher education institutions play
  in informing low-income students of color about
  college costs and financial aid resources?

4
Part I

• Research Foundation
• Literature Review Foundations and Existing
  Research
• Methodology and Research Process
• Results of the Study

5
Literature Review

• Access and Equity Issues in Higher Education for
  Low-Income Students of Color
• College Awareness and Aspirations
• Academic Preparation
• Affirmative Action

6
Literature Review (cont.)

• Cost as a Barrier to Higher Education
• Rising Costs and Declining Resources
• Changing Trends in Federal Aid Policy
• The Role of the States and the Institution

7
Literature Review (cont.)

• Understanding College Costs, Financial Aid,
  College Choice Process
• College Choice Process
• Understanding College Costs and Financial Aid
  Information
• Complexity of Financial Aid

8
Research Question

• The purpose of this study was to explore and thus
  more fully understand the process of how
  low-income students of color
• learn about, interpret, and understand the
  variety of information they receive about college
  costs and financial aid resources from
  institutions
• value and utilize college cost and financial aid
  information designed, packaged, and marketed to
  them by institutions through students aid
  processes
• utilize the cost and aid information in making an
  enrollment decision.

9
Guiding Research Questions

• How acquisition of college cost and financial aid
  information occurred.
• How the information increased student knowledge
  and understanding of costs and aid.
• Whether the design of information and how it was
  communicated to students by their institution was
  effective in increasing understanding.
• How the students understanding of costs and aid
  influenced their decision to enroll.

10
Methodology and Research Process

• Qualitative Methodology is exploratory in nature
  and reflects research questions develop
  understanding of a particular phenomenon.
• Sample of 15 first-year full-time students
  successfully enrolled at a participating 4-year
  private institution.
• Low-income status (Pell Grant eligible), 2.00
  GPA, non-white racial background, first-year
  student of at least 18 years of age, full-time
  enrollment.

11
Methodology and Research Process (cont.)

• 10 female and 5 male of varying ethnic
  backgrounds, majority first-generation college
  students and engaged in their college experience
  with extracurricular activity.
• Informants agreeing to the interview process
  participated in a 45-60 minute interview that was
  conducted with a semi-structured interview
  protocol.
• Organized according to categories, themes and
  patterns in reference to research question.

12
1. How acquisition of college cost and financial
aid information occurred.

• Sources of Information
• High School
• Family/Peers
• Higher Education Institution
• Information Gathering Approaches
• Online Sources
• Informal Conversation
• Structured/Mandatory Programming

13
Information Gathering Approaches and Enrollment
Phases

• Structured Mandatory ProgrammingPre-Application
  Phase
• 2. OnlineApplication Phase
• 3. Informal ConversationAcceptance and
  Enrollment Phase

14
The Institution Expectation Phases

• Application Phase
• Expectations were minimal and needs were
  specific.
• Students seeking tuition dollar and housing
  information through websites and publications.
• College Acceptance Phase
• Admitted and completed the FAFSA awaiting Award
  Letter.
• Award Letter single most important communication.
• A minority of students sought out the institution
  to assist in understanding the award letter.

15
2. Knowledge and Understanding of College Cost
and Financial Aid Information

• Understanding of Financial Situation
• Complexity of the Financial Aid Process
• College Costs and Financial Aid Information Now
  and Then

16
Understanding of Financial Situation

• Students were found to have a good working
  knowledge of the costs but became less certain as
  they spoke about other costs associated with
  attending (i.e., books, transportation).
• Students understanding of aid mirrored their
  understanding of costs.
• Students possessed a good working knowledge of
  aid programs and their bottom line, but revealed
  serious gaps in understanding how costs were
  covered in further discussion.

17
Complexity of the Financial Aid Process (FAFSA
Application)

• Difficulties are often pointed to and are
  surrounded by the application process.
• Students reported little or no problems with the
  application itself but rather with lack of
  understanding of the process by which their
  information is used.
• All students completed the process before
  interaction with the institution.

18
College Cost and Financial Aid Information
Before Enrollment

• Students accepted college costs were high and
  family contribution was not possible.
• Students rationalized their decisions in
  different and individualized ways.
• Some chose to commute, some accepted future debt,
  some avoided altogether.

19
After Enrollment

• Perceptions about cost and aid changed
  dramatically.
• Those who were confident upon enrollment now felt
  confused and overwhelmed about their future.
• Less confident in the financial decisions they
  had made.

20
3. Institutional Communication and Design

• Expectations of students regarding college cost
  and aid information from the institution.
• Responsibility of educating students regarding
  costs and aid information.
• Student perceptions and evaluation of how
  institutions design and market college cost and
  financial aid information.

21
Expectations for Information

• Students reported low-to-minimal expectations for
  information from their institution.
• Students were not clear on the role of the
  institution and felt they did not know enough to
  ask questions.
• Some students attributed their low expectations
  to their low interest level in the topic.
• Those students who required additional
  information were hesitant to share these feelings
  with the institution.

22
Allocation of Responsibility

• Students overwhelmingly indicated an equal
  (50/50) sharing of responsibility between
  themselves and the institution in understanding
  costs and financial aid information.
• Many agreed that they were not seeking out enough
  information and also they did not utilize many of
  the services available by the institution.

23
Design of Institutional Information

• Many students expressed confusion and
  apprehension in how to navigate institutional
  information regarding cost and aid information.
• Motivation was also an issue and many students
  felt that the institution could not help them
  even if they asked.
• Students also felt that the institution did not
  properly prioritize these issues for the students.

24
4. Cost and Aid Information and the Decision to
Enroll

• College aspirations and goals of students.
• How cost and aid information influenced their
  decision to enroll.
• Recommendations from students.

25
College Aspirations and Goals

• Majority of students expressed very early and
  specific goals regarding college enrollment.
• Aspirations and goals influenced mainly by parent
  or close family member.
• Decisions to attend a four-year university or
  college were made well in advance of obtaining
  cost or aid information.

26
How Decisions Were Made

• Many students addressed their concerns by
  limiting their choices and options in attending
  (i.e., commuting, staying close to home).
• In addition to limiting choices, students chose
  their college based on a recommendation from a
  peer or family member who had been previously
  successful in enrolling in college.
• Students discussed how they did not directly
  consider costs or financial aid information in
  making their college enrollment decision.

27
What do Students Want in Regard to Cost and Aid
Information?

• Students talked about how important it is to
  receive cost and aid information in a one-to-one
  in-person format.
• They desire more information regarding the
  whys instead of the what to dos.
• Information based on their personal situation.
• More priority given to cost and aid issues during
  the enrollment process.
• More emphasis on understanding the larger
  financial impact of their college financing
  choices.

28
Part II

• Summary of Findings
• Research in Action at Columbia College Chicago

29
Summary of Major Findings

• Unusually high college aspirations cause students
  to overlook important financing information
  during the application and enrollment process.
• Low-income status causes students to initially
  limit college choices thus affecting eventual
  enrollment--not cost itself.
• Informal peer and family networks primary source
  for information--not the institution.
• Often this information is incomplete and not
  current and effects eventual enrollment and
  graduation.

30
What Should We Tell Students?

• Movement should move from application and process
  complexity to more education and guidance.
• Emphasis is often on obtaining scholarship
  dollars, not comprehensive understanding.
• Primary objectives and goals are not clear to
  students and families when financing a college
  education.
• Emphasize responsibility early in the process.

31
Research in Action - 1. Prospective Student
Handbook

• Emphasize early planning with progressive
  check-lists for families on things they need to
  consider or accomplish in the prospective student
  phase.
• Application phase triggers the beginning stages
  of financial planning includes comparing costs,
  seeking scholarship information and identifying
  funding options.
• This process is transferable to other
  institutions to encourage other college
  consideration.

32
What Can Institutions do to Improve College Cost
and Aid Understanding?

• Recognize and Define Roles and Responsibilities
• Move beyond a process model and design holistic
  communication processes that promote financial
  outcomes.
• Recognize the multiple levels of knowledge and
  information sources that students and families
  arrive with before they arrive at the
  institution.
• Educate students and families on managing their
  educational finances so that they may share this
  information with future students to encourage
  future enrollments.

33
Research in Action- 2. Youre In, Lets Plan

• This handbook is the students first introduction
  to CCCs holistic financing process, illustrating
  expectations and emphasizing responsibility.
• Accepted phase triggers the beginning stages of
  critical decision making regarding their
  financial plan which includes confirming costs,
  selecting payment method and funding resources.

34
Research in Action -3. Financial Workbook/Award
Letter

• Capitalize on the interest in the Award Letter
  process by continuing to guide students and
  families to chose and execute their chosen
  financial plan.
• Workbook stresses participation and guides
  families in completing several tasks designed to
  inform them on how they are paying for college.
• Responsibility and active participation continue
  to be central themes in delivering content to
  families.

35
Understand Students and Develop Relationships

• Students and families were unclear about the role
  of the institution in assisting them with their
  college finances.
• Colleges and universities can begin by asking
  students about their families, previous college
  experience and financial plans.
• Consider also racial and family composition in
  designing communications and interventions.

36
Research in Action - 4. The Money Part Workshop

• Workshop emphasizes individualized planning for
  student and family reflecting need for
  individualized attention.
• Workshop objectives
• Enable individualized planning.
• Provide a framework for continuous and long-term
  decision-making.
• Illustrate the importance of involvement of the
  student and their support network.
• Specifically marketed by peers to incoming
  students.

37
Ongoing Planning by Defining Financial
Educational Outcomes

• Define and outline the critical information and
  knowledge that is critical for enrollment and
  persistence to graduation.
• Outcomes should include budgeting, borrowing
  effects and limits, goals for financial
  independence in creating financial confidence for
  the student.
• Educate students and families continuously at
  various interventions during their enrollment
  life at the institution.

38
Research in Action -5. Workshops and Financial
Literacy Programs/ 6. Payer Type Marketing

• Continuous workshops offered to students during
  the academic year regarding budgeting,
  scholarship searches and managing finances
  collaboratively with other offices on campus.
• Students continuously informed and marketed to by
  their chosen Payer Identity when they enter the
  institution.
• Communications are customized and personalized
  and delivered in-person, phone and email.

39
Discussion and Questions

• How can your institution use this information?
• How can we develop additional research to inform
  our marketing efforts?
• How can we continue to increase the successful
  matriculation of low-income students of color in
  private, higher educational institutions?

40
Presenter Contact Information

• Jennifer A. Waters jwaters_at_colum.edu
• Pearl Natali pnatali_at_colum.edu
• Copies of the full dissertation are available
  through Loyola University Chicago-Dissertation
  Abstracts Online.
• Thank you we hope you have enjoyed our
  presentation.

41
(No Transcript)