Financial Aid Need

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Financial Aid Need Postsecondary Access in
Iowa New Insights into Enduring Issues
Anthony Girardi, Ph.D.Iowa College Student Aid
CommissionApril 12, 2012
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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
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• 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

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Financial Aid Applications (FAFSAs) by Iowa
Residents
130,000 for 2004-05 201,000 for 2010-11 Increase
of 54
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Financial Aid Applications (FAFSAs) by Iowa High
School Seniors
58 of Seniors filed FAFSAs in 2004-05 69 of
Seniors filed FAFSAs in 2010-11
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FAFSAs from HS Seniors

• 22,400 for 2004-05
• 26,623 for 2010-11
• 24 increase

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Applicants Age
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Age Distribution 2004-05 compared to 2010-11
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Number of FAFSAs by Gender
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Total FAFSAs with EFC0
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FAFSAs with EFC0 as of Total FAFSAs
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EFC Frequency 2009-10 Academic Year
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Adjusted Gross Income (Applicants for 2009-10)
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Iowa Household Income and Adjusted Gross Income
of Aid Applicants
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Average AGI by Gender
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Number of Applicants with EFC0 by Gender
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Percentage of Total FAFSA Filers with EFC0 by
Gender
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Average EFC by Sector of 1st Choice
School2010-11
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Average EFC by Year and Sector of 1st Choice
School
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Pell-Eligible Applicants
54 of Applicants were Pell-eligible in
2010-11 Maximum EFC for Pell-eligibility has
increased over time.
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Number of Applicants Eligible for Iowa Aid
Programs
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Percentage of Applicants Eligible for Iowa Aid
Programs
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Percentage of Applicants Eligible for Iowa Aid
ProgramsApplicants whose 1st Choice School is
in Applicable Sector
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Percent of Eligible Applicants who Received Iowa
Aid Applicants whose 1st Choice School is any
Iowa School
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Average EFC for All Applicants and for
Recipients of Iowa Aid
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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.

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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

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• Iowa State Need-Based Aid Programs Summary
• Iowa Grant
• All Sectors
• Max 1,000
• Iowa Tuition Grant
• Eligible Private Non-Profit 4-Year Institutions
• Eligible Private For-Profit 4-Year Institutions
• Max 4,000
• Iowa Vocational Technical Tuition Grant
• Iowa Community Colleges
• Max 1,200
• Other Iowa need-based aid programs were not
  considered in this analysis
• Merit-Based scholarship programs were not
  considered.

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• 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

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Credential Attainment within 6 Years by
EFC Matched Students Only 2005-06 Cohort Only
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Credential Attainment Within 6 Years Iowa Need-Based Aid Recipients and Non-Recipients
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Total Number of Need-Based Aid Recipients and Non-Recipients Includes NSC Matches Only
Iowa Private Non-Profit 4-Year Colleges and Universities
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Degree or Other Award Attainment Within 6 Years
Iowa Need-Based Aid Recipients and
Non-Recipients Iowa Private Non-Profit Four Year
Institutions Only
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Credential Attainment within 6 years by EFC and
Receipt of State Need-Based Aid in First
Year Cohorts 2002-2006 Combined
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Credential Attainment within 6 Years by EFC and
Gender Matched Students Only 2005-06 Cohort Only
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Credential Attainment Rate by Receipt of State
Need-Based Aid in First Year and First
Generation Status 2002-2006 Cohorts Combined
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• 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