Louisiana’s First Choice for College AccessLouisiana Postsecondary Education Review Commission

December 14, 2009Presented By:

Melanie AmrheinExecutive Director

Student Aid Sources

• Federal

2

• Institutional

• State

Statutory Bodies Responsible for Student Financial Aid

Louisiana Board of Regents is responsible for the formulation of financial aid policy as it relates to the state’s tuition policy and Master Plan for Higher Education (Act 695 of the 2004 Regular Session of the Louisiana Legislature)

3

Louisiana Student Financial Assistance Commission administers assigned state and federal scholarship programs and the Federal Family Education Loan Program (FFELP) within the BOR (Act 409 of the 2009 Regular Session). Composition represents all higher education management boards, the Governor’s Office, Board of Elementary and Secondary Education, Board of Regents, LA Association of Independent Colleges and Universities and the Louisiana banking community.

Louisiana Office of Student Financial Assistance is responsible for performing the functions of all programs assigned its two governing bodies.

History of State Grant Aid in Louisiana

1939 – 2000 T.H. Harris Scholarship

1975 – Present LA LEAP Grant (SSIG)

1989 – 1998 Tuition Assistance Plan (TAP)

1992 – 1998 LA Honor Scholarship

1998 – Present TOPS

2007 – Present LA GO Grant

2007 – Present Early Start (Dual Enrollment)

4

Louisiana Office of Student Financial AssistancePrograms Administered

SGF – State General Fund SD – Statutory Dedication Fed – Federal Funds 5

Programs Currently Funded Type Current Appropriation Type of Program

Louisiana Go Grant SGF $34,226,000 Need Based Aid

Early Start SGF $6,500,000 Dual Enrollment

Rockefeller State Wildlife Scholarship

SD $60,000 Loan Forgiveness

TOPS Taylor Opportunity Program for Students

SGFSD

$107,963,639$21,904,501

Merit Based Aid–

LEAP Leveraging Educational Assistance Partnership

SGFFed $445,165

$1,024,687 Need Based Aid-

SLEAP Special Leveraging Educational Assistance Partnership

SGFFed

Go Grant Match$481,694

Need Based Aid-

HCELP Health Care Educators Loan Program (MOU with BOR)

SGF $2,000,000 Loan Forgiveness–

2009-2010 Appropriation

6

Aid based on Need Aid based on Need and Merit Aid based on Merit Special Purpose7

Financial Aid Comparisons(Based on 2007-2008 NASSGAP Data)

Financial Aid Overview

Cost of Attendance (COA)

-Expected Family Contribution (EFC)

=Financial Need

- Aid and Resources

= Remaining Financial Need

8

• Cost of Attendance (COA) – set by school– Tuition and Fees– Books and Supplies– Room and Board– Transportation – Personal Expenses

National Average for 4 year public = $17,417

Louisiana Public 4-Year Average = $15,514

National Average for 2 year public = $13,126

Louisiana Public 2-Year Average = $ 9,160

Financial Aid Overview

9

• Expected Family Contribution (EFC)• Ability to Pay

o Parent’s Contribution (If Student is Dependent)o Student’s Contribution

• Determined by Free Application for Federal Student Aido Incomeo Assetso Savingso Family size/Number in collegeo State of Legal Residence

Financial Aid Overview

10

• Grant Aid and Resources• Need Based Aid – Provides access to postsecondary

education to students whose ability to pay is limitedo Federal Pell Granto Federal Academic Competitiveness Granto Federal SMART Granto State Grants

• Merit Based Aid – Provides a Reward for Talent/ Achievement /Ability/Other Non-Financial Criteriao State Scholarshipso Institutional Scholarships o Private Scholarships

Financial Aid Overview

11

62,659 Louisiana Undergraduates Received Pell GrantPublic Colleges and Universities (2007-2008)

Mean $2,873Median $3,060Mode $4,310

Maximum Pell Grant for the 2007-2008 Award Year was $4,310.12

Pell Grant Maximum Payment

13

Pell Grant Maximum Payment and Tuition and Fees Comparison

The Nation and South data is enrollment weighted, current dollars tuition and fees for public four-year schools for the nation and College Board southern region respectively. The source of the data is The College Board Annual Survey of Colleges. 14

Max Pell Award Nation South Louisiana 4-year Public

Taylor Opportunity Program for Students (TOPS)

• Act 1375 of the 1997 Regular Session of the Louisiana Legislature

• Merit Based Scholarship Program

• Award pays amount equal to public tuition & certain fees

15

TOPS Academic Awards

Award Name

Minimum Required HS GPA (Core)

Minimum ACT Composite(Based on State Average)

Required Curriculum

Award Value8 Semesters or 12 Quarters

Opportunity 2.5 20 17.5 CreditsPrescribed College Prep

Amount equal to tuition and some fees

Performance 3.0 23 17.5 Credits Prescribed College Prep

Amount equal to tuition and some fees plus$400 stipend

Honors 3.0 27 17.5 CreditsPrescribed College Prep

Amount equal to tuition and some fees plus$800 stipend

16

TOPS Technical Award

Award Name

Minimum RequiredHS GPA (Core)

Minimum ACT Composite Required Curriculum

Award Value2 Years

TOPS Tech 2.5 17 Option 1 – 17 creditsTechnical Core

Option 2 - 19 creditsWith career option plan

Option 3 – 17.5 creditsRegular TOPS Academic Core

Tuition at an eligible technical college

17

*Total Awards to students since inception, including 23,509 awards in Academic Year 1998-99, 29,120 in 1999-2000, 35,726 in 2000-2001, 40,856 in 2001-2002, 40,114 in 2002-2003, 41,044 in 2003-2004, 42,461 in 2004-2005, 42,503 in 2005-2006, 43,602 in 2006-2007, 42,122 in 2007-2008, 42,164 in 2008-2009, and 41,288 in 2009-2010 as of November 20, 2009.

**Includes TOPS Tech Early Start

TOPS Paid by School Type (Cumulative as of November 20, 2009)

School TypeCumulative Awards to Students*

Cumulative $

% of Total Awards

% of Total Dollars

2 & 4 Year Public Colleges and Universities

400,793 $1,068,751,285

87.4% 89.8%

LCTCS Schools 15,773 $16,463,292 3.4% 1.4%

Private Colleges and Universities

41,821 $105,265,174 9.1% 8.8%

Proprietary Schools 18 $4,554 0.0% 0.0%

Totals** 458,405* $1,190,484,305

100.0% 100.0%

18

Growth in TOPS Expenditures and RecipientsAs of October 30, 2009

Note: The 2009-10 Academic Year data shows the amount appropriated and projected to be expended for the year and the number of recipients to date.

$ in Millions Students

19

Ethnicity of TOPS Recipients

20

TOPS Funding

54.0 67.4 90.2 104.0 104.6 110.5 117.1 116.9 120.6 116.6 122.8 129.9

21

TOPS Legislation by SessionLegislative Session Bills Filed Bills Enacted

1997 Regular Session 1 1 Act 1375

1998Regular Session 0 0  1st Extraordinary

Session14 1 Act 165

1999 Regular Session 31 7 Acts 438, 777, 805, 1196, 1295, 1302, HCR 328

2000

Regular Session 2 0  1st Extraordinary

Session13 6 Acts 69, 73, 105, 110, 133, SR 31

2nd Extraordinary Session

0 0  

2001

Regular Session 46 8Acts 351, 1042, 1053, 1144, 1192, 1202, 1221,

SCR 1311st Extraordinary

Session0 0  

2nd Extraordinary Session

2 1 Act 9

2002Regular Session 0 0  1st Extraordinary

Session0 0  

2003 Regular Session 29 11Acts 63, 81, 214, 220, 393, 401, 1121, 1235,

1237, HCR 213, HSR 16

22

TOPS Legislation by Session (cont)

Legislative Session Bills Filed Bills Enacted

2004Regular Session 29 6 Acts 472, 507, 625, 800, 804, HCR 2661st Extraordinary

Session0 0  

2005Regular Session 11 5 Acts 105, 194, 348, 412, HR 1081st Extraordinary

Session4 2 Act 64, 65

2006

Regular Session 7 0  1st Extraordinary

Session0 0  

2nd Extraordinary Session

0 0  

2007 Regular Session 3 2 Acts 372, 412

2008

Regular Session 14 4 Acts 19, 652, 754, HR 150, SCR 971st Extraordinary

Session0 0  

2nd Extraordinary Session

0 0  

2009 Regular Session 7 3 Act 232, HCR 180, SCR 68Total 213 57  

23

2008-2009 TOPS and Go Grant Comparison

TOPS41,664

Students$122,860,288

Go Grant16,015

Students$25,901,289

TOPS and Go Grant

4,898 Students$9,104,871 Go Grant$13,388,118 TOPS

24

Louisiana Go Grant

• Approved in 2007 by Joint Education Committees as part of the State Financial Aid Policy

• Need Based Aid Program

• Provides supplemental funding to help meet basic college costs

25

Go Grant Eligible Recipients

• Entering first time freshmen and designated re-entering “non-traditional” students (25 or older) were 1st eligible cohort

• New first time freshmen cohorts are added annually– 2009-10 marks third year and third cohort

26

Go Grant Funding/Students

YearAppropriation

(Spent)Students Awarded

2007- 2008$15,000,000

($16,992,769)11,062

2008-2009$24,226,000

($26,026,000)15,922

27

Go Grant Framework– Must receive a Pell Grant– Must be in eligible cohort– Must meet institution’s requirements for Admission

and Satisfactory Academic Progress

Full-time tuition and mandatory fees

+ $2000 (Education Cost Allowance)

= Louisiana Basic College Cost (LBCC)

-Student’s FT Federal Pell Grant Amount

= Education Cost Gap (ECG)

The ECG was developed as an indicator of a student’s basic financial need.

28

Go Grant Framework

• Prior to 2009-10, students with any ECG above 0 would receive a full award based on enrollment status:

– Full Time = $2,000– Half-time = $1,000– Part-time = $ 500

The award would then be added to the student’s “Aid and Resources” in their Institutional Cost of Attendance (COA)

29

Cost of Attendance (COA)

Set by each institution for determining federal aid eligibility

National Average for 4 year public = $17,417

Louisiana Average for 4 year public = $15,514

National Average for 2 year public = $13,126

Louisiana Average for 2 year public = $ 9,160

30

Go Grant Calculation Examples4 Yr Public

COA = $19,436

EFC = $0

Pell = $4,731

Unmet Need = $14,705

Go Award = $2,000

4 Yr Public

LBCC = $7,005

Pell = $4,731

ECG = $2,274

Go Award

= $2,000

2 Yr Public

LBCC = $3,854

Pell = $3,750

ECG = $ 104

Go Award

= $2,000

2 Yr Public

COA = $11,220

EFC = $3,300

Pell = $3,750

Unmet Need = $4,170

Go Award = $2,00031

Go Grant Revisions

• Original projections predicted a needed appropriation of $41,608,000 for 4th year cohort

• Funding shortfall occurred in 2008-09 (2nd year)

• Due to “level funding” for 3rd year, major changes were made to the program

32

Go Grant Funding/Students

2009-2010(Framework Change)

$24,226,000 + 10,000,000

20,401 (Projected)

2010-2011(Retaining Framework)

$34,226,121 (Budget Request)

23,710 (Projected)

33

YearAppropriation

(Spent) Students Awarded

2007 - 2008$15,000,000

($16,992,769)11,062

2008 - 2009$24,226,000

($26,026,000)15,922

2009-10 Change to Framework

• ECG became the actual award amount (capped at 2000)

• Minimum award was set at $200

• Maximum award was set for each enrollment status:– Full-Time Max = $2,000– Half-time Max = $1,000– Part-time Max = $ 500

34

Go Grant Calculation Examples

4 Yr Public

LBCC $7,225

- Pell - $5,350

= ECG = $1,905

Go Award = $1,905

COA $19,436

4 Yr Public

LBCC $7,005

- Pell - $4,731

= ECG = $2,274

Go Award = $2,000

2 Yr Public

LBCC $3,854

- Pell - $3,750

= ECG = $ 104

Go Award = $2,000

2 Yr Public

LBCC $3,947

- Pell - $3,900

= ECG = $47

Go Award = $0

COA = $11,220

2008-2009 2009-2010

35

Go Grant Recipients by School Type

Data as of 12/3/09

36

Ethnicity of Go Grant Recipients

37

Other Student Aid

• Other Federal Grant Programs

• Student Loans

38

Students Completing Rigorous HS Curricula for ACG

2007-2008 Undergraduate FTE

State Designated(TOPS/Regents

Core)

Total (includes Honors and Federally Defined

Coursework)

IOWA 175,964

1596 5811

KENTUCKY (SREB)174,782

16937140

LOUISIANA (SREB)167,252 5547 7390

OKLAHOMA (SREB)151,840 3541 5485

S. CAROLINA (SREB)158,663 2956 7896

39

Student LoansBorrowing Limits Per Year

Dependent Students• Freshmen $3,500 Subsidized

$2,000 Unsubsidized• Sophomore $4,500 Subsidized

$2,000 Unsubsidized• Other Undergrad $5,500 Subsidized

$2,000 Unsubsidized

Independent Students Additional $4,000 Unsubsidized

40

Louisiana Federal Family Education Loan Program (FFELP) and Direct Loan Program

$854,187,337

$21,323,217

$865,627,866

$31,883,410

41

186,552 Loans

5,723 Loans

179,533 Loans

8,587 Loans

Percentage of 2008 Graduates with Debt and Average Debt Level

Source: Student Debt and the Class of 2008, The Project on Student Debt, December 2009.

Note: According to the report, these figures may understate average debt levels by as much as $5,000 and the percentage of students with debt by as many as 12 percentage points due to data limitations.

• Nation: 67% of students graduating from four-year colleges and universities had student loan debt with an average debt level of $23,200.

• Louisiana: 49% of students graduating from four-year colleges and universities had student loan debt with an average debt level of $17,827.

42

Case Studies

Student #1 Student #2

Parent Income $ 29,000 $110,000

Taxes Paid (est) $ 4,350 $ 27,500

Assets $ 0 $ 25,000

Family Size/Number in

College5/2 5/2

EFC 0 7,403

43

Financial Need Comparisons4-yr Public

*EFC = 0 – 4617, student qualifies for Pell Grant of $5350 - $976

**Academic Competitiveness Grant

1st year award = $750, 2nd year award = $1300

Sunsets in academic year 2010-11. 44

Student #1 Student #2

COA $19,436 $19,436

- EFC $0 $7,403

= Financial Need $19,436 $12,033

- Pell Grant* $5,350 $0

-ACG** $750 $0

-TOPS $3,668 $3,668

- GO Grant $1,905 $0

= Remaining Need $7,763 $8,365

Financial Need Comparison2 Yr Community College

*EFC = 0 – 4617 , student qualifies for Pell Grant of $5350 - $976

**Academic Competitiveness Grant

1st year award = $750, 2nd year award = $1300

Sunsets in academic year 2010-11.

45

Student #1 Student #2

COA $11,220 $11,220

- EFC $0 $7,403

= Financial Need $11,220 $3,817

- Pell Grant* $5,350 $0

-ACG** $750 $10

-TOPS $1,602 $1,602

- GO Grant $0 $0

= Remaining Need $3,518 $2,215