Financial Aid Need & Postsecondary Access in Iowa:

New Insights into Enduring Issues

Anthony Girardi, Ph.D.Iowa College Student Aid Commission

April 12, 2012

During this presentation, I will discuss 1. Trends in FAFSAs2. Trends in Eligibility for State Need- Based Aid 3. State Need-Based Aid and Credential Attainment

Trends in FAFSAs• how well are we promoting access

and awareness of financial aid• state of financial need among Iowa

residents • issues affecting the awarding of state

need-based financial aid

Financial Aid Applications (FAFSAs) by Iowa Residents

130,000 for 2004-05201,000 for 2010-11Increase of 54%

-

50,000

100,000

150,000

200,000

250,000

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Financial Aid Applications (FAFSAs) by Iowa High School Seniors*

58% of Seniors filed FAFSAs in 2004-0569% of Seniors filed FAFSAs in 2010-11

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

All Iowa High School Seniors

FAFSAs from HS Seniors

FAFSAs from HS Seniors*

22,400 for 2004-0526,623 for 2010-1124% increase

0

25,000

50,000

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

13% of all FAFSAs

17% of all FAFSAs

Applicants’ Age

-

25,000

50,000

75,000

100,000

125,000

150,000

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

less than 25 years old

25 years and older

27%

39%

61%

73%

0

5

10

15

20

25

30

<=18 19-20 21-22 23-24 25-30 30-40 >40

%

2004-20052010-2011

Age Distribution2004-05 compared to 2010-11

Number of FAFSAs by Gender

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Women

Men

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Total FAFSAs with EFC=0

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

FAFSAs with EFC=0 as % of Total FAFSAs

EFC Frequency 2009-10 Academic Year

0%5%

10%15%20%25%30%35%40%45%50%

0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 > 20K

EFC

Adjusted Gross Income (Applicants for 2009-10)

0%5%

10%15%20%25%30%35%40%45%50%

Adjusted Gross Income

Iowa Household Income and Adjusted Gross Income of Aid Applicants

0%

5%

10%

15%

20%

25%

30% Iowa Households (US Census)

Aid Applicants (FAFSAs)

Average AGI by Gender

$38,000

$40,000

$42,000

$44,000

$46,000

$48,000

$50,000

$52,000

$54,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Average AGI - WomenAverage AGI - Men

-

10,000

20,000

30,000

40,000

50,000

60,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Women

Men

Number of Applicants with EFC=0 by Gender

Percentage of Total FAFSA Filers with EFC=0 by Gender

0%

5%

10%

15%

20%

25%

30%

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Women with EFC=0

Men with EFC=0

Average EFC by Sector of 1st Choice School2010-11

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Private For-Profit Private Non-Profit 4-Year

Public 2-Year Public 4-Year

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2004 2005 2006 2007 2008 2009 2010

Public 4-Year

Private Non Profit 4-Year

Private For-Profit

Public 2-Year

Average EFC by Year and Sector of 1st Choice School

Pell-Eligible Applicants

54% of Applicants were Pell-eligible in 2010-11Maximum EFC for Pell-eligibility has increased over time.

-

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

225,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

$3,850 $3,850 $3,850 $4,110 $4,041 $4,617 $5,273

Total FAFSAs

Pell-Eligible

49%

42%43%40%

38%

42%

54%

Number of Applicants Eligible for Iowa Aid Programs

-

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

All Applicants

ITG Non-Profit Eligible

ITG For-Profit Eligible

Voc-Tech Eligible

Iow a Grant Eligible

Percentage of Applicants Eligible for Iowa Aid Programs

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

ITG Non-Profit Eligible

ITG For-Profit Eligible

Voc-Tech Eligible

Iow a Grant Eligible

Percentage of Applicants Eligible for Iowa Aid Programs:Applicants whose 1st Choice School is in Applicable Sector

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Private Non-Prof it/ITG

Private For-Profit/ITG

Community College/Voc-Tech

Any Iow a School/Iow a Grant

Percent of Eligible Applicants who Received Iowa Aid – Applicants whose 1st Choice School is any Iowa School

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

ITG Non-Profit

ITG For-Profit

Voc-Tech

Iow a Grant

Average EFC for All Applicants and for Recipients of Iowa Aid

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

All Applicants

ITG Non-Profit Recipient

ITG For-Profit Recipient

Voc-Tech Recipient

Iow a Grant Recipient

State Need-Based Aid and Credential Attainment

• Matched FAFSA and Aid Records to Enrollment and Graduation Data

• Analysis of relationship between state need-based grant aid in first year of college and credential attainment

• These are NOT graduation rates.

Issues in Analyzing Effect of Need-Based Aid on Persistence

• Difficulty in distinguishing between effects of aid and effects of personal, family, and institutional characteristics

• Other outcomes are not analyzed. • Limitations of data

Iowa State Need-Based Aid Programs Summary

1. Iowa Grant • All Sectors • Max: $1,000

2. Iowa Tuition Grant: • Eligible Private Non-Profit 4-Year Institutions • Eligible Private For-Profit 4-Year Institutions • Max: $4,000

3. Iowa Vocational Technical Tuition Grant • Iowa Community Colleges• Max: $1,200

4. Other Iowa need-based aid programs were not considered in this analysis

5. Merit-Based scholarship programs were not considered.

• Analysis includes students who have need but did not receive aid. – filed after FAFSA filing deadline– do not meet program residency requirements– do not meet program citizenship requirements– FSA eligibility– do not meet other state aid program criteria– administrative– Unsatisfactory Academic Progress is NOT a factor in

non-receipt of aid• Part-Time Students with need receive financial

aid

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

1 thru

500

501 th

ru 10

00

1001 t

hru 15

00

1501 t

hru 20

00

2001 t

hru 25

00

2501 t

hru 30

00

3001 t

hru 35

00

3501 t

hru 40

00

4001 t

hru 45

00

4501 t

hru 50

00

5001 t

hru 55

00

5501 t

hru 60

00

6001 t

hru 65

00

6501 t

hru 70

00

7001 t

hru 75

00

7501 t

hru 80

00

8001 t

hru 85

00

8501 t

hru 90

00

9001 t

hru 95

00

9501 t

hru 10

000

10001

thru

1050

0

10501

thru

1100

0

11001

thru

1150

0

11501

thru

1200

0

12001

thru

1250

0

12501

thru

1300

0

13001

thru

1350

0

13501

thru

1400

0

1400

1 thr

u 1450

0

14501

thru

1500

0

15000

thru

Highes

t

Credential Attainment within 6 Years by EFCMatched Students Only2005-06 Cohort Only

0%

10%

20%

30%

40%

50%

60%

70%

2001-02 2002-03 2003-04 2004-05 2005-06

Aid Recipients

Non-Recipients

Credential Attainment Within 6 Years Iowa Need-Based Aid Recipients and Non-Recipients

Total Number of Need-Based Aid Recipients and Non-Recipients Includes NSC Matches Only

Iowa Private Non-Profit 4-Year Colleges and Universities

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

Aid Recipients

Non-Recipients

Degree or Other Award Attainment Within 6 Years Iowa Need-Based Aid Recipients and Non-Recipients

Iowa Private Non-Profit Four Year Institutions Only

0%

10%

20%

30%

40%

50%

60%

70%

80%

2001-02 2002-03 2003-04 2004-05 2005-06

Aid Recipients

Non-Recipients

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

1 thru

500

501 t

hru 1

000

1001

thru

1500

1501

thru

2000

2001

thru

2500

2501

thru

3000

3001

thru

3500

3501

thru

4000

4001

thru

4500

4501

thru

5000

5001

thru

5500

5501

thru

6000

6001

thru

6500

6501

thru

7000

7001

thru

7500

7501

thru

8000

8001

thru

8500

8501

thru

9000

Did Not Receive State Need-Based AidReceived State Need-Based Aid

Credential Attainment within 6 years by EFC and Receipt of State Need-Based Aid in First YearCohorts 2002-2006 Combined

Credential Attainment within 6 Years by EFC and GenderMatched Students Only2005-06 Cohort Only

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

1 thru

500

501 t

hru 1

000

1001

thru

1500

1501

thru

2000

2001

thru

2500

2501

thru

3000

3001

thru

3500

3501

thru

4000

4001

thru

4500

4501

thru

5000

5001

thru

5500

5501

thru

6000

6001

thru

6500

6501

thru

7000

7001

thru

7500

7501

thru

8000

8001

thru

8500

8501

thru

9000

9001

thru

9500

9501

thru

1000

0

1000

1 thru

10500

1050

1 thru

11000

1100

1 thru

11500

1150

1 thru

12000

1200

1 thru

12500

1250

1 thru

13000

1300

1 thru

13500

1350

1 thru

14000

1400

1 thru

14500

1450

1 thru

15000

1500

0 thru

High

est

MenWomen

Credential Attainment Rateby Receipt of State Need-Based Aid in First Year and First Generation Status2002-2006 Cohorts Combined

0%

10%

20%

30%

40%

50%

60%

70%

Not First Generation First Generation

Did Not Receive State Need-Based Aid

Received State Need-Based Aid

• Summary and Implications– A relationship exists (statistical significance)

between state need-based aid and credential attainment rates.

– This analysis is open to many sources of bias– State need-based aid has an effect on persistence– State (and Federal) need-based policies matter