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State Funded Financial Aid

April 14, 2010

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State Funded Financial Aid

• State Funded Financial aid is appropriated in the Long Bill by the General Assembly.

• The Commission sets policy to determine student/institutional eligibility

• State funded financial aid is roughly $100 million annually.

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Colorado Financial Aid Resources

• Need-Based Aid– Assistance for students that would otherwise not be able to afford to

attend• Merit-Based Scholarships

– Assistance based only on student performance (unfunded in FY2010)• Work-Based Aid

– Students earn these funds through working, no less than 70% of the funds are allocated based on need

• State-Funded Categorical Programs– Includes aid for military and law enforcement dependents, Federal

LEAP, the Native American Student Assistance Program, Nursing loan forgiveness, & National Guard Scholarships.

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10 Year History- Colorado State Funded Student Assistance Programs

Fiscal YearNeed-Based

GrantsMerit-Based

GrantsWork-Based

AidCategorical Programs Total State Aid

1999-2000 $38,423,152 $13,826,078 $14,248,944 $6,513,899 $73,012,073

2000-2001 $42,199,077 $14,371,810 $14,811,367 $7,177,010 $78,559,264

2001-2002 $47,598,002 $14,874,498 $15,359,754 $7,554,066 $85,386,320

2002-2003 $51,550,101 $14,874,498 $16,612,357 $8,049,044 $91,086,000

2003-2004 $46,002,682 $6,877,309 $15,030,062 $8,296,701 $76,206,754

2004-2005 $45,935,202 $6,434,287 $15,003,374 $8,790,113 $76,162,976

2005-2006 $52,285,488 $1,500,000 $15,003,374 $10,005,122 $78,793,984

2006-2007 $60,096,963 $1,500,000 $14,884,300 $11,281,496 $87,762,759

2007-2008 $67,023,546 $1,500,000 $14,884,300 $11,766,432 $95,174,278

2008-2009 $74,294,146 $1,500,000 $16,612,357 $12,862,293 $105,268,796

2009-2010 $74,294,146 $0 $16,612,357 $13,025,841 $103,932,344

5 year change 62% -100% 11% 48% 36%

10 year change 93% -100% 17% 100% 42%

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Need-Based Grants;

74294146; 70%Merit-Based Grants; 1500000; 1%

Work-Based Aid; 16612357; 16%

Categorical Programs; 13362293; 13%

FY2009 State Financial Aid Resources

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Need-Based Grants; 74294146; 71%

Work-Based Aid; 16612357; 16%

Categorical Pro-grams; 13025841;

13%

FY2010 State Financial Aid Resources

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Need Based Program

Undergraduate Students• In 2007 the Commission approved a new need based

financial aid model known as Colorado’s College Responsibility Program (CCRP). Under the CCRP awards a minimum grant to Level 1 students.

• The program was designed to ensure that high need students would have access to financial aid regardless of when they applied.

Graduate Students• Level 1 students enrolled in SMART fields and medical

fields are eligible-no set minimum.

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CCRP Model

• A Level 1 student is defined as 150% of the Maximum Pell EFC. In the current year, the maximum EFC for Pell eligibility is $4,617, so a Level 1 student is any student with an EFC less than or equal to $6,926.

• Currently, Level 1 students receive a minimum of $850/year if enrolled full-time. Institutions have the flexibility to offer pro-rated awards for part-time students.

• Next year, the maximum EFC for Pell Eligibility will be $5,273, opening Level 1 to students with an EFC up to $7,910.

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Number of Students Receiving Colorado State Student Aid from SURDS

Fiscal Year State Need-Based 2004 26,811

2005 25,508

2006 28,832

2007 32,504

2008 47,9852009 51,768

Change 04-0993.08%

Since the introduction of the CCRP program, the number of students served has increased each year.

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Average Need-Based Award

Fiscal Year State Need-

Based

2004 1,4912005 1,4762006 1,5362007 1,6052008 1,3932009 1,354

Change 04-09 -9.20%

Although the number of students who receive state funded need based grants have increased, the average award has decreased.

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Allocations to Institutions

• Undergraduate Need Based Aid:– Allocations are made based upon an index using

the average Cost of Attendance by Tier. There are three tiers of institutions in the formula; Tier 1 is Research, Tier 2 is State Colleges and Tier 3 is Community Colleges.

– The allocation is then driven by the number of eligible Level 1 FTE projected to enroll based upon the prior three years.

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Flexibility Built into Formula

• Amount per student Tier 3 $ 967

Tier 2 $1,179 Tier 1 $1,312

• Institutions with more part-time enrollment have added flexibility

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Allocations of Other State Aid

• Graduate Need Based Aid: Allocated based on the number of eligible FTE enrolled in SMART programs.

• Work Study: Allocations are distributed based upon a base year and have been increased/decreased proportionally as the appropriation has changed.

• Leveraging Education Assistance Programs (LEAP)-Federal grants matched by state aid to high need students.

• Merit Aid was zeroed out for the FY2010 budget as was the pre-collegiate scholarship.

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How Do Students Access State Aid?

• Students must be Colorado residents to receive state funded aid.

• Once a student completes a Free Application for Federal Student Aid (FAFSA), the institution has the information needed to award the student.

• Eligible students will receive any state financial aid as part of their award package from institutions.

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Beyond State Aid

• Federal Aid (Pell Grants, Federal Work Study, and federal categorical grants), institutional aid, private scholarships, and loans are also available.

• The financial aid office will package grant aid first, then work-study, then loans. If a student receives a scholarship after the FA office has packaged the aid, the FA office will back out the least desirable aid first (higher interest or unsubsidized loans).

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Sources of Financial Aid Fiscal Year 2009

Type of Aid Amount of Aid

Institutional 327,883,102

Federal 253,293,835

State 108,500,982

Loans 972,425,090

Other 62,174,048

Total 1,724,277,057

Federal Pell Grant11%

Federal Loans56%Federal

Other3%

State6%

Institutional19%

Other4%

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Pell Grant Changes

• Higher Education Opportunity Act (2008) increased Pell eligibility and grant amounts.

• Max Pell Grant Since 2008 2007-2008 $4,310 (average Pell $2,528) 2008-2009 $4,731 (average Pell $2,803) 2009-2010 $5,350 2010-2011 $5,550

Beginning July 1, 2009 Year Round Pell grants are available.

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Pell FTE as a Percentage of Res UG FTE 2009

FY2008-09

Pell Recipient FTE 08-09

Undergrad Res FTE 08-09

Percentage Pell FTE

Adams State College 1,099 1,383 79.49%

Pueblo Community College 2,515 3,761 66.87%

Otero Junior College 651 1,123 57.99%

Trinidad State Junior College 683 1,283 53.22%

Colorado State University - Pueblo 1,602 3,300 48.55%

Lamar Community College 290 674 43.03%

Community College of Denver 2,027 4,933 41.08%

Morgan Community College 389 999 38.98%

Aims Community College 1,167 3,031 38.50%

Community College of Aurora 1,273 3,338 38.12%

Pikes Peak Community College 2,821 7,624 37.00%

Mesa State College 1,578 4,484 35.19%Metropolitan State College of Denver 5,416 15,621 34.67%

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Pell FTE as a Percentage of Res UG FTE 2009

FY2008-09Pell Recipient FTE 08-09

Undergrad Res FTE 08-09

Percentage Pell FTE

Northeastern Junior College 427 1,343 31.80%University of Colorado Denver 2,131 7,124 29.92%Front Range Community College 2,784 9,945 28.00%

University of Colorado at Colorado Springs 1,491 5,423 27.50%Arapahoe Community College 1,112 4,370 25.45%Western State College 363 1,453 24.98%Red Rocks Community College 1,199 4,841 24.77%Fort Lewis College 539 2,426 22.23%University of Northern Colorado 1,672 7,937 21.07%

Colorado Northwestern Community College 139 686 20.21%Colorado State University 3,179 16,120 19.72%University of Colorado at Boulder 2,850 15,917 17.90%Colorado School of Mines 401 2,744 14.61%Colorado Mountain College 291 2,143 13.56%

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AVS; 1604790; 1%

Four Year Public; 74380552; 41%

Non-Profit Private; 5580294; 3%

Proprietary; 42237693; 23%

Two Year Public; 58784683; 32%

Pell Dollars to Colorado Residents in FY2009

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Questions