State Financial Aid Redesign

Sarah Pingel

Policy Analyst

Connecticut Planning Commission for Student Financial Aid

October 29, 2015

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How we do it

Presentation Roadmap

National Trends in Higher Education and State Aid Principles to Guide State Aid Policymaking

2015 Legislative Trends in State Aid Programs Questions and Discussion

Higher Education is Changing

State Support for Higher Education

Source: SHEEO

$ B

$10 B

$20 B

$30 B

$40 B

$50 B

$60 B

$70 B

$80 B

$90 B

$100 B

2009 2010 2011 2012 2013 2014

Major Uses of State and Local Government Support for Higher Education

Operations, Research, & Continuing Education Total Aid

State Support for Higher Education

Source: SHEEO

$ B

$10 B

$20 B

$30 B

$40 B

$50 B

$60 B

$70 B

$80 B

$90 B

$100 B

2009 2010 2011 2012 2013 2014

Major Uses of State and Local Government Support for Higher Education

Operations, Research, & Continuing Education Total Aid

National Spending on Student Aid

In 2014 constant dollars Source: NASSGAP

$9.2 B

$9.63 B

$9.98 B

$10.67 B

$11.02 B

$11.46 B $11.7 B $11.63 B

$11.48 B $11.47 B $11.69 B

$8. B

$11. B

$14. B

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Total State Aid Expenditures

Connecticut State Aid Expenditures

In 2014 constant dollars Source: NASSGAP

$82.43 M $79.73 M

$109.45 M $115.37 M

$139.2 M $140.56 M $147.63 M

$151.4 M $144.91 M

$140.88 M $146.98 M

$173.62 M $181.61 M

$188.23 M

$201.37 M $207.95 M

$216.28 M $220.81 M $219.52 M $216.66 M $216.38 M

$220.65 M

$45.42 M $44.67 M $50.04 M $51.93 M

$57.27 M $57.66 M $57.18 M $57.27 M $55.59 M $55.43 M $55.08 M

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$100. M

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

State Financial Aid Expenditures in Connecticut, US, and New England

Connecticut US Average NEBHE Average

Calculated in 2014 constant dollars Source: NASSGAP

-150.00%

-100.00%

-50.00%

0.00%

50.00%

100.00%

150.00%

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5-Year Percent Change in State Aid Expenditures by State, 2010-2014

CT: 0.44% decrease

US Average: 0.07% decrease

States Provide Significant Support

2015 Legislation Across the States: Introduced

2015 Legislation Across the States: Enacted

What did these bills intend to do?

Creating New Programs, Revising Existing

• 1 in 2 bills considered in states in 2015 intend to create a new program

• At least 17 new state aid programs have been authorized or created in to-date in 2015

• 16 changes proposed to existing eligibility requirements across the states

Common State Policy Responses

Funding

Recipients

New Program

Increase Recipients and/or Award Amount

Restrict Recipients and/or Award Amount

Program is Unfunded or Eliminated

+

+

-

-

Common State Policy Responses

Funding

Recipients

New Program

Increase Recipients and/or Award Amount

Restrict Recipients and/or Award Amount

Program is Unfunded or Eliminated

+

+

-

-

Redesigning State Financial Aid

Organizations represented: • Each of the regional higher education compacts: SREB, MHEC, WICHE, NEBHE • Oklahoma State Regents • California Legislative Analyst’s Office • National Governors Association • American Enterprise Institute • Urban Institute

Redesigning State Financial Aid: Principles to guide state aid policymaking

• Simplifying application processes

– California A.B. 1091

• Foster Care Students

– Alabama H.B. 148/ S.B. 157

– Arizona H.B. 2022

• Undocumented Students

– California A.B. 206

– Connecticut H.B. 5797, H.B. 5800, S.B. 398

Student-Centered

• Student Information Tools

– California A.B. 721

– Indiana H.B. 1042

• Legislative Reports

– Connecticut S.B. 393

– Florida H.B. 7125

• Institutional Eligibility

– California A.B. 25

Goal-Driven, Data Informed

• Award Duration

– Arkansas H.B. 1011

– Tennessee H.B. 118

• Rethinking Deadlines

– Oregon H.B. 2407

• Credit Hour Loads

– Oklahoma H.B. 2180

Timely and Flexible

• Competency-Based Education

– Oklahoma S.B. 504

– Texas H.B. 3027/ S.B. 1312

• Career and Technical Education

– Colorado H.B. 1275

• Alternative Eligibility Pathways

– Ohio S.B. 78

Broadly Inclusive

Sarah Pingel

Policy Analyst

spingel@ecs.org

(303) 299-3695

@sarah_pingel

www.ecs.org

www.statefinancialaidredesign.org

Questions?