California Institute:
Congressional Briefing
on Student Financial Aid
September 26, 2007
Anne McKinney, CCC
Allison Jones, CSU
Carolyn Henrich, UC
Sam Kipp, EDFUND
Congressional Briefing
on Student Financial Aid
September 26, 2007
Anne McKinney
Presenter
California Community Colleges
o Mission – To provide upward social and economic mobility
through a commitment to open access and student success by
delivering high quality, affordable and comprehensive higher
education
o Number of colleges – 109
o Number of students – 2.5 million
o Demographics – Through the California Master Plan for Higher
Education, the CCC is designated as the State’s “open door“ for
citizens of any race, age, gender or income level
o Governance structure – Chancellor’s Office (state agency); 72 local
districts and governing boards; 109 colleges
o Unique – California Community Colleges have legislatively
designated multiple missions: associate degrees and
certificates; transfer; basic skills and English language
proficiency; economic and workforce development and lifelong
learning
o Diversity – African American 8%; Asian 12%; Hispanic 29%; White
35%; Other 16%
Federal Aid at
California Community Colleges
Grants to Students:
o Pell Awards – $598 m/256,000 students
o Federal Work Study – $25.4 mil/13,000
students
o Federal SEOG – $29 m/61,000 students
o Federal Loans – $128 m/42,000 students
Outreach -- Financial Aid staff held over 71,000
financial aid events for their own students, high
schools, community & faith-based groups/1.3M
persons served
Other Aid Resources Utilized at California
Community Colleges
State Aid:
o Cal Grants – $76 m/67,000 students
o Institutional Aid – Board of Governors (BOG)
Fee Waivers -- $273 m/717,000 students
o Scholarships – $15 m/15,000 students
o Private Loans – not tracked
o Specialized programs – $12-15m/3,000
students
Academic Competitiveness
Grant (ACG) Program
Purpose: Additional resources for needy students
– up to $750 for 1st academic year & up to $1,300 for 2nd
Eligibility: Student must be:
–
–
–
–
Federal Pell Grant recipient
U.S. citizen
enrolled full time in a degree program
have completed a rigorous secondary school program
See: http://www.ed.gov/admins/finaid/about/ac-smart/2007/state-programs07.html
– maintain cumulative GPA of 3.0 or higher
Restrictions:
– ACG + Pell Grant may not exceed cost of attendance
– Grants ratably reduced to ensure grants to all eligible
– Awards reduced by USDE if funds insufficient
California Community College Issues
Issues: ACG Definitions
Sec 401A states: “….a full-time student … U.S. citizen….in the case of a
student enrolled or accepted for enrollment in -- (A) the first academic
year of a program of undergraduate education at a two- or four- year
degree- granting institution of higher education…”.
Recommendations:
Extend ACG participation to eligible students enrolled in “certificate
programs in which units can be applied as credit towards a degree”.
Extend participation to include prorated awards for “part-time” eligible
students and eligible “non-citizens”.
Allow participating institutions to define the student’s award year and
academic year as contained in the Senate Reauthorization proposal.
Redefine ACG eligibility period as “up to the first 4 semesters of study (or
FT equivalence) in an eligible program with degree applicable
coursework” and realign ACG payments to be in equal increments for all
payment periods.
Contact Information
Anne McKinney
Asst. Vice Chancellor
Federal Government Relations
916-445-1780
AMCKINNEY@CCCCO.EDU
The California State University
Allison G. Jones
Assistant Vice Chancellor
Academic Affairs
Office of the Chancellor
The California State University
The California State University:
Mission and Governance
– Mission
To provide high-quality, accessible, affordable, and
student-focused education
Prepare graduates for the workforce
Significant impact on economy of California
– 23 campuses
– 450,000 students
Largest public university-system in country
– Governance
25-member Board of Trustees, the majority of whom are
appointed by the governor to 8-year terms
Faculty, alumni, and two student trustees serve 2-year
terms
The California State University
– 23 Campuses –
CSU Bakersfield
CSU Channel Islands
CSU Chico
CSU Dominguez Hills
CSU East Bay
CSU Fresno
CSU Fullerton
Humboldt State
CSU Long Beach
CSU Los Angeles
California Maritime
Academy
CSU Monterey Bay
CSU Northridge
Cal Poly Pomona
CSU Sacramento
CSU San Bernardino
San Diego State
San Francisco State
San Jose State
Cal Poly San Luis Obispo
CSU San Marcos
Sonoma State
CSU Stanislaus
The California State University - Students
– A diverse mix
Average undergraduate age is 25
44% are independent from parents
25% have dependents
80% work and 36% work 30 hours or more
30% are first generation in family to attend
college
40% from households where English in not the
primary language spoken
54% are students of color
Unique Characteristics of the CSU (Pt. 1)
– Affordability
Average annual student fee (“tuition”) = $3199 (2006-07)
– Diversity
CSU provides more than half of all undergraduate degrees
granted to state’s Latino, African American, and Native
American students
12 Hispanic Serving Institutions
– Community Service
More than 185,000 students participate in community
service annually, donating nearly 30 million hours, the
minimum wage equivalent of $200 million
In 2005-06, more than 25% of CSU’s total Federal Work
Study funding was designated for community service
placements, well above the national average of 14% and
more than triple the minimum federal requirement
Unique Characteristics of the CSU (Pt. 2)
Workforce Preparation
– CSU graduates help drive California’s aerospace, healthcare,
entertainment, information technology, biomedical, international trade,
education, and multimedia industries.
CSU confers 65 percent of California’s bachelor’s degrees in business,
52 percent of its bachelor’s degrees in agricultural business and
agricultural engineering, and
45 percent of its bachelor’s degrees in computer and electronic
engineering.
– The California State University also educates the professionals needed
to keep the state running.
It provides bachelor’s degrees to teachers and education staff (87 percent),
criminal justice workers (89 percent),
social workers (87 percent) and
public administrators (82 percent).
– Altogether, about half the bachelor’s degrees and a third of the
master’s degrees awarded each year in California are from the
California State University.
All Sources of Aid at CSU
(2005-06)
Total aid (all sources)
– 235,757 students (unduplicated) received $1.8 billion ($7,548 average)
Grants to Students (federal, state, and institutional)
– 178,272 students received $842 million ($4,723 average)
– Of above, Pell Grants received by 116,198 students totaling $317 million
($2,727 average), which represents 17.8% of total aid
– Grants represent 47.3 percent of total aid
Work Study
– 8,100 students received $18.3 million ($2,261 average)
– Work Study represents 1% of total aid
Loans to Students
– 139,362 students received $919 million ($6597 average)
– Loans represent 51.7% of total aid
Federal Aid at CSU
(2005-06)
Grants:
– Pell: 116,198 awards totaling $317 million
17.8% of all aid
– SEOG: 20,322; $11.2 million; $550 average; .6% of all aid
– BIA:117; $345K; $2951 average; .0%
– Other Federal Grants: 1,642; $2.9 million; $1,774 average;
.2%
Federal Work-Study
– 8,100; $18.3 million; $2,261 average; 1% of total aid
Federal Loans
– 137,010; $869 million; $6,342 average; 48.4 of all aid
Hispanic Serving Institutions
Other Aid Resources Utilized at CSU (2006-07)
State Aid
– Cal Grants: 56,879; $166 million; $2909 average; 9.3% of all aid
Institutional Aid
– State University Grants: 107,433; $228 million; $2,122 average;
12.8% of all aid
– EOP Grants: 20,091; $17.4 million; $866 average; 1% of all aid
Scholarships: 11,581; $23.5 million; $2,026 average;
1.3% of all aid
Private Loans: 4,344; $31.9 million; $7,346 average;
1.8% of all aid
Other: 37,066; $76.4 million; $2061 average; 4% of all
aid
How Federal Policymaking Affects the CSU
Increasing Pell Grants
– Academic Competitiveness Grants (ACG)
– National Science and Mathematics Access
to Retain Talent Grants (SMART)
TEACH grants: provide $4000/year in
scholarships to encourage outstanding
candidates to teach in high need
schools and/or high need subject areas
CSU Priorities in the 110th Congress
Pell Grants:
– Support overall funding increases
– Support Year-Round provision– 2nd Grant for students to pursue year-round
study to shorten time-to degree
Early Intervention Programs
– Expand GEAR UP and TRIO, vital to preparing underrepresented students for
college and decreasing need for remediation
In 2005-06, 17 key systemwide and 169 campus outreach programs served 1,462 K12 schools, serving 162,240 students
Key to student success
Hispanic Serving Institutions
– Advocate Title V changes to expand and strengthen Hispanic Serving
Institutions
Campus-based Aid Programs
– Support altering current campus-based aid distribution formula to assure
allocation of funds on a fair-share basis to institutions with growing
populations of students with need and to new campuses, which have been
most disadvantaged by current formula
Veterans Benefits
– Support legislation that increases and improves benefits to expand higher
education opportunities for veterans, especially for Reserve and National
Guard in particular
Contact Information
Allison Jones
ajones@calstate.edu
562.951.4744
OR
CSU Office of Federal Relations
Jim Gelb, George Conant, Lucy Hamilton-Duncan
202.434.8060
Student Financial Support at
the University of California
California Institute for
Federal Policy Research
September 2007
Overview
UC is a comprehensive public research institution and
California’s Land-Grant University
The Regents of UC oversee this “public trust,” which is
autonomous under the California Constitution
10 campuses
230,000 students; 180,000 undergraduates
More than half of UC students receive grants &
scholarships
More than two-thirds receive some federal aid (inc. loans)
29% of UC undergraduates receive Pell Grants, which is
the highest percentage of any comparable research
institution
Federal Aid at UC
Pell Grants
Academic Competitiveness Grants
SMART Grants
SEOG – Supplemental Educational
Opportunity Grants
Perkins Loans
Federal Work Study
Federal Student and Parent Loans
Typical on-campus undergrad
cost to attend UC
$7,446
$ 892
$1,475
$2,412
$11,755
$23,980
fees
health insurance premiums
books & supplies
incidental expenses
housing and food
Total
Net Cost of UC by income
$0
$24,000
$1,630
$5,600
$20,000
$16,000
$14,380
$14,380
$12,750
$14,080
$8,780
Parent
Contribution
Grant Support
$12,000
Student Loan
and Work
Expectation
$8,000
$4,000
$9,600
$9,600
$9,600
$9,600
$9,900
$20K Annual
Income
$40K Annual
Income
$60K Annual
Income
$80K Annual
Income
Independent
Student
$0
(Living on campus: $23,980)
UC Concerns about the federal
need-analysis formula
The federal need analysis process is
inequitable, particularly in areas where
housing costs are high
The formula needs updating to reflect the
increasing proportion of income that
families devote to housing costs
HEA Title IV Need Analysis
The need analysis process is outlined
in the Higher Education Act as a means
to determine the amount of money a
student and the student’s family may
be reasonably expected to contribute
toward postsecondary education in a
given academic year
Expected Family Contribution
Available income of the student and the
student’s parents
Number of dependents in the family
Dependents in postsecondary
education
Net assets of the student and parents
Age of the parents
Additional parental employment
expenses
Income Protection Allowance
22% housing
78% everything else
An updated formula would reflect
regional sensitivity
The revised formula would improve the
fairness in targeting Pell Grants and
ACG/SMART Grant dollars
A formula change would also affect
students’ eligibility for federal loans
Sample Data
The “family” we use to illustrate this
case has two parents and two children;
one in college
Income is $35,000 per year
Local housing costs are based on
HUD’s 2007 estimates of “Fair Market
Rent” for two-bedroom rental of
standard quality
On average the current allowance covers
70% of US housing costs
Changes in EFC
Family Location
Expected Family
Contribution
Revised EFC (annual)
Brownsville
no change
Great Falls
no change
Knoxville
no change
Wichita
no change
Provo
no change
Kenosha
$2,968
no change
Seattle
$2,698
Minneapolis
$2,673
Miami
$1,761
San Diego
Boston
$501
$0
Changes in Pell Awards
Family Location
Expected Pell Award Revised Expected Pell
(annual)
Award (annual)
Brownsville
no change
Great Falls
no change
Knoxville
no change
Wichita
no change
Provo
no change
Kenosha
$1,342
no change
Seattle
$1,612
Minneapolis
$1,637
Miami
$2,639
San Diego
$3,809
Boston
$4,310
Contact Information
Carolyn Henrich
University of California
Office of Federal Governmental
Relations
1608 Rhode Island Avenue, N.W.
Washington, D.C. 20036
202.974.6308, office
carolyn.henrich@ucdc.edu
EDFUND
Dr. Samuel M. Kipp III
President
Rancho Cordova, CA
EDFUND Overview
EDFUND, a California nonprofit public-benefit
corporation, is the nation’s second largest
provider of student loan guarantee services
under the Federal Family Education Loan (FFEL)
Program
EDFUND was created in 1997 as an auxiliary of
the California Student Aid Commission because it
was not possible to provide competitive,
responsive, high-quality student loan services
within a state agency structure.
Federal Loan Volume in California FY 2005-06
Others
$1.5 Billion
27%
EDFUND
$2.9 Billion
51%
Direct
Loans
$1.3 Billion
22%
EDFUND guarantees more than 50% of the FFEL Loan
Volume in the state of California
EDFUND Accomplishments
1,600 schools nationwide use EDFUND as their
guarantor
Saved students more than half a billion dollars in
college costs
Provide more than 600 free training and outreach
sessions to students and institutions each year
Reduced loan default rate from 14.4 to 8.6 percent
Employ more than 600 resident Californians adding
$54 million a year to the state’s economy in salaries
and benefits
Collected nearly $4 billion in unpaid defaulted loans
Generate millions of dollars of tax revenue for the
state
Helping Student Borrowers
During Their Entire Education Experience
Outreach publications and services help students
and families make informed choices about paying
for college
Partner with students, parents, schools and lenders
to ease the application and origination process
Provide entrance and exit counseling, enrollment
status updates and other borrower support services
during in-school and grace periods
Offer counseling, financial and debt management,
delinquency and default prevention assistance
during the entire repayment period
Collection recovery and loan rehabilitation
Innovative EWC Program
Helps Highest Risk Borrowers
Students who withdraw before degree or
program completion are personally counseled
in our Voluntary Flexible Agreement (VFA) Early
Withdrawal Counseling Program and are:
– Almost twice as likely to return to school;
– Much less likely to become delinquent at any time
during their first year after leaving school;
– Much more likely to return to or remain in a positive
repayment status one year after leaving school; and
– One-third less likely to default within two years of
leaving school
Important Loan Issues for
California Students and Institutions
California has the most ethnically and economically
diverse student population in the country.
– The future of the state’s economy depends on making
access to postsecondary education a reality for all students.
Loans, particularly federal loans, are the single
largest source of financial aid for California
students.
Continued access to loans and timely, high quality,
responsive support services are critical to
maximizing California students’ chances for
successful educational and repayment experiences.
Guaranty agencies, such as EDFUND, play a critical
role by providing innovative programs and support
services that best meet the distinct needs of all
California students.
Contact Info:
Dr. Samuel M. Kipp, III
President
(916) 526-8010
SKipp@edfund.org
Jack Gorman
Director - Washington, DC Office
202.997.9736
jgorman@edfund.org
California Institute:
Congressional Briefing
on Student Financial Aid
September 26, 2007
Anne McKinney, CCC
Allison Jones, CSU
Carolyn Henrich, UC
Sam Kipp, EDFUND