Student Financial Aid Kristen Thornton

History of Student Financial Aid

Higher Education Act of 1965

1980’s State Funding

Between Years- tuition has increased over 225%

Tuition is now stabilizing, with minimal increases

1.2 Trillion dollars of student debt in 2014

What is Student Financial Aid

Aid provided by a variety of sources to fund a

student’s education

Award letters

Financial award may have restrictions or tied to

performance

Some students decide not to pursue financial aid

99% of Concordia students receive financial aid

Types of Student Financial Aid

Grants

Merit Based

Needs Based

Scholarships

Loans

Subsidized

Unsubsidized

Work Study

Tax Credits

Trends in Student Financial Aid

Creating a campus

Disadvantages for low income and first generation college students

Creating a Campus

Merit Based

Athletics

Arts

Academic achievement

Need Based

Financial need

Lower income students

First generation students

Merit based grants are more available

Financial need no longer a priority

Pell grant not increasing at same rate as tuition

Creating a Campus

Institutions utilizing financial aid as a way to form the campus

Increases enrollment- $1000 increases enrollment probability by 7%

Increases persistence

Psychologically feel more connected to university

Higher GPA

Tinto Theory

Scholarship versus Grant

Receiving a scholarships increase matriculation by 86% versus calling it a grant

Tuition discrimination

Changes the student landscape of the institution

University of Alabama- Attracting National Scholars (top 1% of PSAT)

Disadvantages for Low Income and

First Generation College Students

Unaware of total college cost

Situated Learning Theory

Complicated financial aid process

Lack of support from high school counselors

Average ratio in high poverty areas is 1056:1

Tuition price will deter students from even applying

Awards may not assist low income students

Tax Deductions

Merit based more than Needs based

Complications to Apply for Financial Aid

Free Application for Federal Student Aid (FAFSA) is complicated to complete

Provide tax information from prior tax year

Verification forms

Estimated Family Contribution

Assistance Starts in High School

Students need to understand financial aid process earlier

Individual attention and guidance to complete college applications AND FAFSA

Colleges should assist

Different federal options for lower income and first generation students

Impacts of Student Financial Aid

Post-secondary education may no longer be available to all

The student debt bubble could burst

1.7 Trillion in loan debt

44% in default within 3 years

Federal government could add more regulations

Basis Peoria Charter School

First Generation Students unaware of financial aid process

Budget sheets for students to record total college cost

Personalize college counselors

Assisting students as early as 8th grade

Scholarship Board

FAFSA sessions with Arizona State University

100% college entrance rate from high school

Improving Student Financial Aid

Discussion: How can we improve student financial aid?

Sticker price versus net cost

Types of aid available

How loans operate

Utilizing financial aid to full potential

More resources for High School students at the START of their high school

career

Resources for students already in college

Conclusion

Post secondary education is considered nationally as a priority of economic

success

States do not consider the funding to be a high priority

Financial aid is not just a way for students to fund higher education but a

strategic approach for institutions to create the campus environment

ReferencesDoyle, W. R. (2010). Changes in institutional aid, 1992-2003: The evolving role of merit aid.

Research in Higher Education, 51(8), 789-810. doi:http://dx.doi.org/10.1007/s11162-010-9177-0

Dynarski, S., & Scott-Clayton, J. (2013). Financial aid policy: Lessons from research. The Future of Children, 23(1)

Retrieved from

https://proxy01.cuaa.edu/login?url=http://search.proquest.com/docview/1519297903?accountid=10245

Goldrick-Rab, B. S. (2016, August 28). What Colleges Can Do Right Now to Help Low-Income Students Succeed. Retrieved

September 11, 2016, from http://www.chronicle.com/article/What-Colleges-Can-Do-Right-Now/237589

Field, K. (2005). Change in pell-grant formula is likely to drive up loans and work hours. The Chronicle of Higher

Education, 51(26), A21-A23. Retrieved from

https://proxy01.cuaa.edu/login?url=http://search.proquest.com/docview/214672143?accountid=10245

Financial Aid Counseling [Personal interview]. (2016, September 09).

Friedman, S. (2015). NEW REPORTS LOOK AT STUDENT AID, STUDENT DEBT. Journal

of College Admission, (226), 13. Retrieved from

https://proxy01.cuaa.edu/login?url=http://search.proquest.com/docview/1675174587?accountid=10245

Kim, J., Desjardins, S. L., & Mccall, B. P. (2009). Exploring the effects of student expectations about financial aid on

postsecondary choice: A focus on income and Racial/Ethnic differences. Research in Higher Education, 50(8), 741-

774. doi:http://dx.doi.org/10.1007/s11162-009- 9143-x

Stater, M. (2009). The impact of financial aid on college GPA at three flagship public institutions. American Educational

Research Journal, 46(3), 782-815. Retrieved from

https://proxy01.cuaa.edu/login?url=http://search.proquest.com/docview/200445166?accountid=10245

Zimpher, B. N. (2016, August 16). Free College? The U.S. Should Look at State Models That

Are Already Working. Retrieved September 11, 2016, from http://www.chronicle.com/article/Free-College-The-US-

Should/237467