“Colleges and universities have never been as important as they are today. Economic competitiveness depends upon a state’s ability to educate and train its citizens and attract and retain talent.”

National Governors Association Center For Best Practices

The Knowledge Economy

21,600

30,800

35,700

37,600

49,900

59,500

70,400

95,700

Less than HS

HS Diploma

Some College

Associate's

Bachelor's

Master's

Doctorate

Prof. Deg.

Education Earnings

Source: Education Pays 2004, College Board

Average Annual Income for Families by Educational Attainment of Householder - 1967 to 2004

Source: Postsecondary Education Opportunity

2004

15

12

18

21

20

22

36

18

0 10 20 30 40 50

Total

Work Experience/OJT

Postsecondary vocational certificate

Bachelor's degree

Bachelor's degree plus work experience

Master's degree

Doctorate

Professional degree

Source: Louisiana: Featured Facts, 2005, SREB

Projected Increases in Job Openings by Education or Training Required - United States, 2002 -2012

%

The Array of Benefits of Higher Education

Increased tax revenues

Greater productivity

Increased consumption

Increased workforce flexibility

Decreased reliance on government financial support

Public Private

Economic

SocialReduced tax revenues

Increased charitable giving/community service

Increased quality of civic life

Improved ability to adapt to and use technology

Higher salaries and benefits

Employment

Higher savings levels

Improved working conditions

Improved health/life expectancy

Improved quality of life for offspring

Better consumer decision-making

Source: U.S. Census Bureau, ACS 2003

Population with a Bachelor’s Degree or Higher

32,000 -

28,000 -

30,000 -

26,000 -

24,000 -

22,000 -

20,000 -

18,000 -

16,000 - 15%

25%

20%

30%

40%

35%

Per

C

apit

a I

nc

om

e

No state with a low proportion of

Bachelor’s degrees has a high per capita

income.

No state with a high proportion of Bachelor’s

degrees has a low per capita

income.◆

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WV

CT

IDARKY

MS

ALOK

LA NM

TN

IN

NV

SDMTND

NCSC TX

AZ

WY

OHIA

UT

FLMI

PAWI

MEOR

GA

MONE

WA

VTHI

KS

VA

CA

IL

DE

AK RI

MN

NHNY

NJ MD MA

CO

Per Capita Income vs. Share of Adult Population with a Bachelor’s Degree or Higher (2003)

15.7

29.0

20.0

7.0

17.2

10.0

18.0

30.0

20.0

7.09.0

19.5

35.0

20.0

5.07.1

16.113.4

0

10

20

30

40

50

Less Than HighSchool

High School/NoCollege

Some College Associate's Bachelor's Graduate orProfessional

US South Louisiana

Source: US Census data: American Community Survey, 2005

Highest Educational Attainment of Population 25 Years and Older in 2005

%

Per Capita Personal Income as a Percent of U.S. Average—Louisiana, 1960-2004

Source: U.S. Census Bureau; Statistical Abstract of the United States, 2003

82.6%82.2%

74.3%77.7%

86.7%

75.8%

60%

80%

100%

120%

1960 1970 1980 1990 2000 2004

Louisiana Expenditures Per Capita (2002)

National Rank

Health and Hospitals 4th

Prisons 14th

Higher Education 39th

Elementary/Secondary Education 43rd

Highways 41st

“To close the economic gap, Louisiana must close the education gap.”

Source: Miles to Go, Southern Education Foundation (2006)

Main Points:

• The economy is rapidly changing.

• Economic prosperity (employment opportunity, competitive salaries, progressive public investments) is dependent on knowledge-based jobs.

The Issue:

Louisiana’s ability to compete in this economic environment demands ever larger numbers of highly-trained and educated workers.

Recent Progress

Public High School Graduation Rates*

70.058.5

68.8 68.0

0.0

25.0

50.0

75.0

100.0

1994 2004

%US LA US LA

(49th)

Source: Postsecondary Education Opportunity, July 2006

*Total Regular Diploma Recipients / 9th Grade Enrollment = H.S. Graduation Rate

(33rd)

40.031.2 38.1 37.1

0.0

25.0

50.0

75.0

1994 2004

%US LA US LA

(45th)

Source: Postsecondary Education Opportunity, July 2006

Chance for College by Age 19*

*Public High School Graduation Rate x College Going Rate

(32nd)

Degrees Awarded

1994-95 2004-05 Change

Certificate/Diploma 3,211 20%*

Associate: 2,730 4,459 63%

Baccalaureate: 14,880 17,537 18%

Master’s 3,933 5,034 28%

Doctorate 373 425 14%

Professional 711 792 11%

*LTC data were incorporated in 2003. The increase in certificates/diplomas awarded is for the two-year period 2003-2005.

Source: Board of Regents data

Educational AttainmentPopulation 25 and Older

2000 2005

Associate’s Degree: 3.1% 5.0%

Bachelor’s Degree: 12.4% 13.4%

Graduate/Professional 6.8% 7.1%

Source: U.S Census data

Public Postsecondary Enrollment GrowthPre-Katrina/Rita

*Includes LA Technical College, SOWELA and Fletcher

17,56317,786

192,921 196,958

185,976

178,990175,292

150,000

170,000

190,000

210,000

2000-01 2001-02 2002-03 2003-04* 2004-05*

210,484*214,744*

Postsecondary Enrollment GrowthPost Katrina/Rita

Note: 2003-04 through 2006-07 totals include LA Technical College, SOWELA and Fletcher

17,56317,786

192,845

192,921 196,958

185,976

178,990175,292

150,000

170,000

190,000

210,000

2000-01 2001-02 2002-03 2003-04 2004-05 2006-07

210,484214,744

Source: Board of Regents data

Louisiana High School Graduates and Post-Katrina Projections

38,600

39,700

40,800

41,000

41,500

41,80044,373

41,220

45,589

46,334

46,473

46,776

47,548

46,419

46,488

44,915

44,023

43,770

35,000

37,000

39,000

41,000

43,000

45,000

47,000

49,000

1995

1997

1999

2001

2003

2005

2007

2009

2011

Source: Projection of Total Number of Louisiana High School Graduates for School Years 2006-2007 TO 2011-2012; Education Estimating Conference, January 2007

Actual Projected

Katrina/RitaImpact }

Hurricane Impact on Enrollment

Source: Student Displacement in Louisiana After the Hurricanes of 2005: Experiences of Public Schools and Their Students, 2006, Rand.

Returned to original schools without enrolling elsewhere in Louisiana

Returned to original schools after having enrolled elsewhere in Louisiana

Did not return to original schools but enrolled in other Louisiana schools

Did not enroll in any Louisiana public school

65,397

11,863

41,870

52,978

Displaced Public School Students

To recover and improve economically, Louisiana must expand the participation of our remaining population in higher education:

• Traditional Pathway

• Non-traditional Pathway

“The data make it very clear that the largest pool of potential college students is the population of low- and moderate-income youth who do not complete high school college-qualified.”

Postsecondary Education Opportunity, March 2007

“The federal Advisory Committee on Student Financial Assistance estimates that cost factors prevent 22 percent of college-qualified high school graduates from attending college.”

Empty Promises: The Myth of College Access in America, Advisory Committee on Student Financial Assistance, 2002

Family Income Affects Chance for College

Source: The Pell Institute, Indicators of Opportunity in Higher Education

Income categories are broken down as follows: low-income—under $25,000; middle-income—$25,000 to $74,999; and high-income—$75,000 and above.

College Participation Rates by State for Students from Low-Income Families – FY2005

Source: Postsecondary Education Opportunity, February 2007

Bachelor’s Degree Attainment of 8th Graders by Family Income - 2000

%

16

4643

27

0

25

50

75

Low Income ModerateIncome

MiddleIncome

High Income

Source: Analysis of National Education Longitudinal Study of 1998/2000

Children in Louisiana, by Family Income Level

Source: National Center for Children in Poverty, 2006

>200% FPL 100-200% FPL <100% FPL

24%

24%52%

Abovelow income

52%

Low income48%

(National: 39%)

LA Approval Rates for Free and Reduced-Priced School Lunches – FY1993 - FY2005

30.0

40.0

50.0

60.0

70.0

1993 2005

%

Source: Postsecondary Education Opportunity, February 2007

Louisiana Children in Low-Income Families,by Residence

% 4655

44

0

25

50

75

100

Urban Suburban Rural

(129,891) (146,688) (69,575)

Source: National Center for Children in Poverty, 2006

Primary obstacles to access and success for low- and moderate-income students:

– Inadequate academic preparation

– Insufficient information, guidance and encouragement

– Unmet financial need

Overall Affordability Rankings:

1.New Hampshire2.Oklahoma3. Louisiana4.Mississippi

5.Georgia6. North Dakota

7. Kentucky8. Idaho9. Utah

10. Wisconsin

Educational Policy Institute (2006)

Affordability 2006

Source: Measuring Up 2006

Affordability 2006

Source: Measuring Up 2006

Adults

Louisiana Adult Participation in Postsecondary Education

– 2.3% of working population (47th)

Source: National Center for Public Policy and Higher Education

Storm Impact on Enrollment of Students Aged 25 and Over

53,116

72,200 72,790

61,17457,77956,529

30,000

40,000

50,000

60,000

70,000

80,000

2000-01 2001-02 2002-03 2003-04* 2004-05* 2005-06*

*Includes LA Technical College, SOWELA and Fletcher

Loan Debt

Student Loan Debt

“At public universities, debt levels for graduating seniors with student loans has more than doubled in the past decade.”

Project on Student Debt, National Center for Education Statistics (NCES), 2006

Percentage of Bachelor’s Degree Recipients Who Borrowed for Their Undergraduate

Education, 1999-2000

%

72

46

6268

0

25

50

75

100

Low-income Lowermiddle-income

Uppermiddle-income

Highestincome

Source: Choy and Li, 2005

Student Loan Debt

At public universities, debt levels for graduating seniors with student loans more than doubled, from $8,000 to $17,251, over the past decade (108% increase).

Louisiana’s average student loan debt: $18,751 (12th in nation)

Student Loan DebtSelected debt examples:

Grambling $30,000 85LSU-BR 19,258 49La. Tech 15,861 82Nicholls 12,738 48Northwestern 17,442 68Southeastern 12,527 58Southern-BR 23,000 90UNO 22,272 36

Avg. Graduate Debt(2004-05)

% of Graduates with Debt(2004-05)

“The most efficient way for a state to expand access to postsecondary education is to increase its investment in need-based grant aid.”

Expanding College Access: The Impact of State Finance Strategies, Lumina (2004)

“Need-based grants have a positive association with high school graduation rates and a substantial positive influence on college enrollment rates.”

Perne and Titus (2002)

“Lack of financial aid is one of the major barriers preventing low-wage workers from enrolling in and successfully completing postsecondary education.”

Lumina Foundation for Education

“Low-income adults receive less overall financial assistance and fewer grants than tradition-age students…Yet the majority of state financial aid policies are also not well suited for adult workers.

Workforce Strategy Center, December 2006

Distribution of State Grant Aid, 2003-04

Source: National Association of State Student Grant Aid Programs 2004

Total need-based state undergraduate aid

Total non-need-based state undergraduate aid

26%

74%

U.S. Average

Distribution of State Grant Aid, 2003-04

Source: National Association of State Student Grant Aid Programs 2004

Total need-based state undergraduate aid

Total non-need-based state undergraduate aid

24%26%

74%

LouisianaU.S. Average

98.7%

1.3%

Undergraduate Grant Dollars/FTEState Rankings

Louisiana

Merit-Based: $640 – 13th

Need-Based: $8 – 47th

Source: USDOE, National Center for Educational Statistics (NCES) Integrated Postsecondary Data System (IPEDS), 2004

Louisiana Need Based Financial Assistance Program for Low-

and Moderate-Income Students

Louisiana “GO Grant”

Simple plan to improve college access for targeted population and reduce student loan debt

Shared responsibility

Targeted at low/moderate-income and low-participating adults and high school graduates

Eligibility Criteria

Enrollment Criteria

• Louisiana resident• Admitted and enrolled as a certificate- or

degree-seeking undergraduate student• At a Louisiana public or private (LAICU)

college or university:– As a first time freshman or– Aged 25 or older and not enrolled in a college

or university in credit bearing courses for at least three years

Financial Need Criteria• Financial need is based on information

reported on the Free Application for Federal Student Aid (FAFSA)

• Student must be awarded the federal Pell grant (includes calculation of Expected Family Contribution)

• Student must have an Education Cost Gap (ECG) (unmet need) greater than zero

ECG for Full-time Students

Tuition and mandatory fees

$2,000 for textbooks, supplies, materials and other related education expenses

Louisiana Basic College Cost (LBCC)

LBCC

Federal grants (Pell, ACG)

Education Cost Gap (ECG)

+

-

=

=

ECG for Part-time Students

Tuition and mandatory fees

$1,000 for textbooks, supplies, materials and other related education expenses

Louisiana Basic College Cost (LBCC)

LBCC

Federal grants (Pell, ACG)

Education Cost Gap (ECG)

+

-

=

=

Award Amount

• Annual award of – $2,000 for fulltime students– $1,000 for part-time students

Renewal Eligibility Criteria

• Student eligibility will be reevaluated annually, using the ECG formula, for students with continued Pell eligibility who meet satisfactory academic progress (consistent with federal guidelines)

Projections

• Approximately 10,000 eligible first-time freshmen– 25% of incoming class

• Additional 1,000 students (estimated) aged 25 and older who have been out of school 3 years

Louisiana Pell Grant RecipientsFour-Year Institutions

Grambling 73 473LSU-BR 16 733LSU-Alexandria 47 243LSU-Shreveport 50 247La. Tech 39 645McNeese 38 578Nicholls 43 680Northwestern 49 893Southeastern 35 870Southern-BR 79 897SUNO 85 323UL-Lafayette 33 865UL-Monroe 46 644UNO 60 1137

Percentage of First-time, Degree-Seeking

with Pell (2004-05)

Number of First-time,Degree-Seeking

with Pell (2004-05)

Louisiana Pell Grant RecipientsTwo-Year Institutions

BRCC 74 1,152BPCC 51 394Delgado 55 1,433La. Delta N/AL.E. Fletcher 60 102LSU-Eunice 45 404LTC 54 2,176Nunez 75 311RPCC 52 106SLCC N/ASU-Shreveport 90 375Sowela 25 332

Percentage of First-time, Degree-Seeking

with Pell (2004-05)

Number of First-time,Degree-Seeking

with Pell (2004-05)

Pell Grant Participation Rate for Dependent Undergraduates by Parental Income

Source: Postsecondary Education Opportunity, March 2007

Louisiana MedianHousehold Income

$36,729

“Helping more Americans earn a degree is not only important for our economic standing, it’s essential to reinforcing what our country stands for.”

Secretary of Education Margaret Spellings, March 2007

7.0

17.2

10.0

7.0

16.1

9.0

5.0

13.4

7.1

0

10

20

Associate's Bachelor's Graduate or Professional

US South Louisiana

Source: US Census data: American Community Survey, 2005

Highest Educational Attainment of Population 25 Years and Older in 2005

%