Adam J.A. Lips. University of Pittsburgh ... Low- an

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Loan Replacement Grants for Low- and
Moderate-Income Students A Typology of Programs

• Adam J.A. Lips
• University of Pittsburgh
• Association for the Study of Higher Education
  Conference
• Jacksonville, Florida
• November 8, 2008

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Background

• Postsecondary Enrollment Inequity
• Low- and moderate-income students
  disproportionately in broad-access institutions
• Financial Aid Trends as a Factor
• Government shift from grants to loans
• Institutional shift from need-based to
  merit-based

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Background

• Loan Replacement Grants (LRGs)
• Eliminate or greatly reduce loan amounts
• Target low- and moderate-income students
• Over 50 new LRGs since 2003
• No standard definition
• No system of organization

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Background

• Function of Typologies
• Organize using characteristics
• Highlight diversity
• Facilitate future research
• Non-hierarchical

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Rationale

• Define Loan Replacement Grant
• Present Population of Active LRGs
• Establish a Typology

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Procedures

• Search for Lower-Income Student Aid Initiatives
• TICAS Project on Student Debt
• Document Program Specifics
• Award terms and conditions
• Formulate Loan Replacement Grant Definition
• Develop Typology Based on Characteristics

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LRG Definition

• Institutions must
• Practice need-blind admission
• Meet 100 of demonstrated need
• Reduce or eliminate student loans by replacing
  them with grant aid (19,000 loan max)
• Publicize clear eligibility requirements
• Base awards on need no merit or narrow
  restrictions
• Address direct billed cost with grant aid
• 49 Four-Year Institutions 61 LRGs

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LRG Programs
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LRG Typology of Programs

• No-Loan LRGs
• Award Eligibility
• All Aid Eligible
• Income Level Eligible
• Award Composition
• Work Included
• No Work

• Loan Cap LRGs
• Award Eligibility
• All Aid Eligible
• Income Level Eligible
• Award Composition
• Per-Year Cap
• Four-Year Cap

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No-Loan LRGs
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No-Loan LRGs

• Income Level Eligible, Work Included
• Washington University in St. Louis
• Families earning less than 60,000
• Need met with grant aid and federal work study
• Income Level Eligible, No Work
• College of William and Mary - Gateway
• Virginia families earning less than 40,000
• Need met entirely with grant aid

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No-Loan LRGs

• All Aid Eligible, Work Included
• Davidson College The Davidson Trust
• All students qualifying for financial aid
• Need met with grant aid and federal work study
• All Aid Eligible, No Work
• No Current Programs

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Loan Cap LRGs
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Loan Cap LRGs

• Income Level Eligible, Per Year Cap
• University of Chicago Odyssey Scholarship
• Family income between 60,000 and 70,000
• Loan amount limited to 3000/year
• Income Level Eligible, Four Year Cap
• Emory University Emory Advantage
• Family income between 50,000 and 100,000
• Loan amount limited to 15,000 over four years

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Loan Cap LRGs

• All Aid Eligible, Per Year Cap
• Massachusetts Institute of Technology (MIT)
• All students qualifying for financial aid
• Loan amount limited to 4750/year
• All Aid Eligible, Four Year Cap
• University of Virginia Access U.Va.
• All students qualifying for financial aid
• Loan amount limited to 17,000 over four years

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Future Research

• Effectiveness Studies
• Program Proliferation
• Comparison of Types
• Program Sustainability

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Loan Replacement Grants for Low- and
Moderate-Income Students A Typology of Programs

• Adam J.A. Lips
• University of Pittsburgh
• ajalips_at_gmail.com