Reimagining Aid Design and
Delivery
WASFAA
Phoenix 2013
 Presenters:
 Ron Day, Kennesaw State University
 Patricia Hurley, Glendale Community College
 Susan Murphy, University of San Francisco
 Moderator:
 Tami Sato, Southern California College of Optometry
Gates Foundation Goals
 (1) to shift the national conversation on federal financial
aid toward ideas that will make college more affordable,
while giving students the support and encouragement
they need to earn their degree or credential;
 (2) to seed the field with innovative policies that can
make that happen
Grantees
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Alliance for Excellent Education (AEE)
America’s Promise Alliance (APA)
Association of Public & Land-Grant Universities (APLU)
Center for Law & Social Policy (CLASP)
Committee for Economic Development (CED)
Excelencia in Education (EE)
HCM Strategists (HCM)
Institute for Higher Education Policy (IHEP)
Grantees
 National Association of Student Financial Aid Administrators
(NASFAA)
 National College Access Network (NCAN)
 National Urban League (HUL)
 New America Foundation (NAF)
 The Education Trust (ET)
 The Institute for College Access & Success (TICAS)
 US Chamber of Commerce’s Institute for a Competitive Workforce
(CoC)
 Young Invincibles (YI)
Grantees’ Principles
 US has fallen from 1st to 12th in earned degrees
 By 2018 will be 3,000,000 degrees short
 Full-time summer employment covered average tuition
in 2008, now covers only 40%
 Economic gain from degree does not balance debt
 Focus aid to neediest students
 Program changes should result from policy decisions,
not quick budget fixes
 Include students in the conversation
Grantees’ Principles
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Control or reduce tuition costs
More transparency
Streamline - one grant/one loan
Reward colleges based on outcomes
Institution accountable for student success
Simplify application and awarding process
NASFAA
 Process
 Participants and Presenters
 Proposals
 Skin in the Game
 Pell Well
 Loan Reform
Proposals
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Loan programs
Loan repayment/debt
Pell Grant
Consumer information
Simplification
Tax-benefit reform
Institutional accountability
Loan Program
 One loan program – eliminate Perkins and PLUS (HCM, TICAS,
NAF, CoC, YI )
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One annual loan limit (TICAS, NAF, HCM)
Annual limit $8,750 undergrad/$30,000 grad (HCM)
Set aggregate limit to 150% of program (HCM, NAF)
Eliminate Perkins (AEE)
Eliminate interest subsidy (AEE, HCM, NCAN, NAF)
No loans for low-income, interest free loans for middle
income (ET)
Loan Program
 Convert loan to grant when student completes on time
(EE)
 Lower interest rates to under-represented, low-income
groups (NUL)
 Allow colleges to set lower loan limits (NAF, NASFAA)
 Establish “Student Loan Eligibility Index” that
incorporates college readiness to determine if student is
eligible to borrow (NASFAA)
Loan Repayment
 Income- based repayment (HCM, CED, ET, TICAS, IHEP, NASFAA,
NCAN, NAF, YI)
 Eliminate interest subsidy (HCM)
 Eliminate deferments and forbearances (HCM)
 Allow bankruptcy (NAF)
 Forgiveness if student completes program (CoC)
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PELL
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Higher Pell for high demand professions (CoC, YI, CoC)
Additional Pell for 12 - 15 units (HCM, NASFAA)
Higher Pell for good academic performance (AEE, TICAS)
“Pell Well” (NASFAA)
Make Pell an Entitlement (IHEP, NAF, EE)
Reinstitute Year-Round Pell (NCAN, NASFAA, NAF)
Convert FWS to Pell Works career-related jobs (YI)
PELL
 Restore ATB ( NAF)
 Pell-Ready Grant ($1800) for college prep/remedial
(HCM)
 Change SEOG to PellPlus for schools with most lowincome graduates to increase grad rates (YI)
 Convert Pell to loan if student does not complete (AEE)
 Provide eligibility in high school (NASFAA)
 Limit to 125% of program length (NAF)
PELL
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Eliminate Pell – replace with state grant (CED)
Separate fund for remedial study (EE)
Increase grant amounts (HCM, NASFAA, TICAS, IHEP, YI)
Expand to high school students taking AP or dual
enrollment (CoC)
Consumer Information
 Establish data standards that all colleges use
(CoC, HCM,
TICAS, NCAN)
 Establish national common record system (CoC
 Expand Gainful Employment job/wage information to
all programs (CoC, YI, CLASP, IHEP, NASFAA, NAF)
 Provide persistence/graduation rates (YI, AEE, CLASP, NAF)
 Return on Investment Index (ET)
 Disseminate information via social media (EE)
Consumer Information
 Better and more loan counseling (YI
 More information in K-12 (YI, NCAN)
 Standardized award letters (YI, NCAN, NAF, )
 Require financial literacy programs (NUL)
 More collaboration with community (NUL, NCAN)
Simplification
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One grant/one loan (CoC, YI, HCM)
Prior – Prior Year Income in need analysis (HCM, NCAN)
Eliminate credit/clock hour distinctions (HCM)
Eliminate FAFSA and apply via tax return (CED, EE, NAF)
Reduce need analysis to AGI and family size (HCM, AEE, TICAS)
Auto-0 EFC for TANF/SSI families (HCM)
Use IRS DRT for schedules and write-offs (HCM)
College assist parents in completing the FAFSA (APA)
Tax-benefit Reform
 Align aid with job market demands (CoC)
 Simplify tax credits into one credit (YI, HCM, AEE, APLU,
CLASP, ET)
 Eliminate tax credits for higher incomes (IY, CED, NCAN, ET)
 Eliminate tax exemptions for 501(3)(c) bonds for nonprofit colleges and direct funds to Pell (IY)
 Restrict credit to full-time students (AEE)
 Require SAP for credit (APLU)
Tax-benefit Reform
 Make credits fully refundable (IHEP, CLASP, IHEP)
 Eliminate refundability (HCM)
 Eliminate tax credits (TICAS, NAF)
Institutional Accountability
 Tie institutional eligibility to retention/graduation rates (APA,
AEE, ET, NCAN, NAF, CoC)
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Reduce aid to schools with high default rates (APLU, HCM, TICAS)
Eliminate default rates for low-participation schools (TICAS)
Require a minimum % of low-income students (ET)
Require students to work 10hrs/week to receive aid (ET)
Require completion within 150% of program (ET)
“Institutional effectiveness index” (HCM)
Institutional Accountability
 Use campus-based program funding to incentivize
student outcomes (NASFAA)
 Require cost disclosure (NUL)
 Require institutional match for Pell from higher cost
schools (NAF)
 Base FWS funding on career-related jobs (YI)
Resources
NASFAA: Reimagining Financial Aid to Improve
Student Access and Outcomes
www.nasfaa.org/EntrancePDF.aspx?id=13287
NASFAA: Policy Theme Matrix:
www.nasfaa.org/EntrancePDF.aspx?id=13701
Resources
Alliance for Excellent Education
http://www.all4ed.org/files/SysteminNeedofRepair
Association of Public & Land-Grant Universities
http://aplu.org/document.doc?id=4276
Center for Law & Social Policy
http://www.clasp.org/admin/site/documents/files/final
-RADD-WhitePaper-Feb-2013.pdf
Resources
Committee for Economic Developmment
http://www.ced.org/images/content/issues/postsecondary/A_Ne
w_Partnership_Financial_Aid_Report.pdf
Excelencia in Education
http://www.edexcelencia.org/sites/default/files/latinolens_excel
enciawhitepaperfeb2013.pdf
HCM Strategists
http://www.hcmstrategists.com/content/FINAL_Steering_Comm
ittee_Report.pdf
Resources
Institute for Higher Education
http://wwww.ihep.org/assets/files/publications/m-r/remagining-aid-designand-delivery-final-january-2013.pdf
National College Access Network
http://www.collegeaccess.org/ROIfromFSA
New America Foundation
http://newamerica.net/sites/newamerica.net/files/policydocs/NAF_Reblanaci
ng%20Resourcess%20FINAL.pdf
The Education Trust
http://www.edtrust.org/sites/edtrust.org/files/Doing_Away_With_Debt.pdf
Resources
The Institute for College Access & Success
http://ticas.org/files/pub/TICAS_RADD_White_Paper.pdf
US Chamber of Commerce Insitute for a Competitive Workforce
http://icw.uschamber.com/sites/default/files/Redesigning%20Fina
ncial%Aid.pdf
Young Invincibles
http://younginvincibles.org/wp-content/uploads/2012/11/StudentPerspective-on-Federal-Financial-Aid-Reform.pdf
QUESTIONS??