ADVISORY COMMITTEE ON

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ADVISORY COMMITTEE ON STUDENT FINANCIAL
ASSISTANCE

• Presentation Prepared for
• NCHELP Spring Convention
• College Access Policy, Practice, and Research
• June 7, 2006
• St. Pete Beach, FL

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ACSFA
Overview of Presentation

• About the Advisory Committee
• Current Condition of Access Persistence
• Data on High School Students College
  Expectations Plans
• The Innovative Pathways Study
• Preliminary Research on College Awareness and
  Early Financial Aid Information
• Washington Update
• Questions for Future Research

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Advisory Committee Overview
ACSFA

• 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
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Advisory Committee Overview Key Findings
from Empty Promises
ACSFA
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Advisory Committee Overview Key Findings
from Empty Promises
ACSFA
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Current Condition of Access and
Persistence High School Students College
Expectations and Plans
ACSFA
Source ACSFA, Winter 2006 Access Persistence
Expectations in 10th grade of earning at least a
BA are related to SES in both cohorts. Among the
new cohort, there has been a dramatic shift
upwards in these expectations. However,
increased expectations in 10th grade melted into
more modest increases in plans in the 12th grade.
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Current Condition of Access and
Persistence College-Qualified High School
Students College Expectations and Plans
ACSFA
Source ACSFA, Winter 2006 Access Persistence
Even among college-qualified students in the
current cohort (ELS2002/04), degree expectations
do not translate into large increases in the
percentage of 12th graders who plan to enroll in
a four-year college immediately upon graduation.
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Current Condition of Access Persistence Current
Levels of Work-Loan Burden
ACSFA
Source Thomas Mortenson, NCES, NPSAS 2004 data
Cost of attendance minus expected family
contribution minus total grants Cost of
attendance minus total grants
Net price or work-loan burden at four-year
public colleges is at an all-time high for
students from low- and moderate-income families.
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Current Condition of Access Persistence
ACSFA
Source Analysis of NELS88/92. Courtesy of JBL
Associates.
The likelihood of enrolling in a four-year
college within two-years of high school
graduation increases with family income. In
addition, low-income students are also more
likely to not enroll in any college at all.
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Current Condition of Access Persistence Bachelor
s Degree Attainment
ACSFA
Source Analysis of NCES, Courtesy of JBL
Associates
College-qualified high school graduates who begin
at a 2-year college are far less likely to attain
a bachelors degree than those beginning at a
4-year.
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Innovative Pathways Study Update
ACSFA

• Kick-off hearing on April 4, 2006
• Purpose
• Three-year study to identify innovative
  programs and
• strategies implemented from middle school
  through college
• that increase the likelihood that students
  from low- and moderate-
• income families attain a baccalaureate
  degree.
• Outcome
• Series of reports with recommendations for
  federal, state, and
• institutional policymakers and
  community-based organizations.
• Focus on
• Low- and moderate-income students
• Baccalaureate degree completion
• Direct and indirect impact on financial
  barriers
• Study design focus groups, site visits,
  regional
• hearings, data analysis

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Innovative Pathways Study Update
ACSFA

• Innovative Pathways in Middle School and High
  School
• -- Academic Preparation Alignment of Standards
  and Access to a College-Prep Curriculum
• -- Early Financial Aid Information
• Innovative Pathways in the Transition from
• High School to College
• -- Credit-Based Transition Programs
• -- Secondary School Counseling and Mentoring
• -- Improvements to Need-Based Financial Aid
• -- Simplification of Need Analysis and Program
  Eligibility Determination
• Innovative Pathways in Higher Education
• -- Academic Preparation Remediation
• -- The Role of Community Colleges
• -- Strategies for Non-Traditional Students
• -- Student Support Services at 2- and 4-year
  Institutions

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Preliminary Findings on College Awareness and
Early Financial Aid Information
ACSFA

• Examined efforts in public school districts to
  link high school reform efforts to early
  financial aid information and college awareness
  initiatives.
• Preliminary recommendations
• Provide better information about financial aid
  during the middle and early high school years.
• Encourage involvement of parents, especially of
  first-generation and low-income students.
• Designate an office that focuses on
  college-preparatory services within every school
  district.
• To leverage funding, establish partnerships with
  external organizations.

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Washington Update SIMPLIFICATION RECOMMENDATIONS
IN LEGISLATION

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Washington Update SIMPLIFICATION RECOMMENDATIONS
IN LEGISLATION
ACSFA

• The Deficit Reduction Act of 2005 partially
  implemented several Committee recommendations,
  including
• -- Raising the auto-zero threshold to 20,000
• -- Aligning the auto-zero and Simplified Needs
  Test (SNT) eligibility with federal means-tested
  program eligibility
• -- Increasing the Income Protection Allowance
• -- Standardizing the treatment of college
  savings plans
• Nine out of ten Committee recommendations have
  been included in whole or in part in HEA
  reauthorization legislation.

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Washington Update Advisory Committee Ongoing and
Future Activities
ACSFA

• Keeping the importance of financial aid on the
  front burner
• March 2006 Policy Brief on the Toolbox
  Revisited
• Monitoring the Secretarys Commission on the
  Future of Higher Education
• Monitoring the implementation of the Academic
  Competitiveness Grants and National SMART Grants
• Monitoring the implementation of other changes
  made to need analysis, the FAFSA, and Title IV in
  the Deficit Reduction Act
• Other potential new charges from Congress
• Study of college textbook prices

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Questions for Future Research
ACSFA

• How much financial aid information do students
  need prior to their senior year? What should
  this information be and how should it be
  disseminated?
• What are some innovative strategies and
  programs for increasing access and attainment of
  low- and moderate-income students?
• What is a reasonable amount of student loan debt
  for low- and moderate-income students to incur?
• What are some effective strategies for educating
  low-income students about the benefits of
  assuming a reasonable amount of loan debt for
  educational expenses?

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ACSFA
Contact Information
Nicole A. Barry Deputy Director nicole.barry_at_ed
.gov Michelle Asha Cooper Assistant
Director michelle.cooper_at_ed.gov [phone]