Opportunity for Higher Education Socioeconomic Diversity Alliance Intro Financial Barriers to Opportunity for Higher Education Socioeconomic Diversity Alliance University of Chicago January 18, 2016 Tom Mortenson Senior Scholar The Pell Institute for the Study of Opportunity in Higher Education

Financial Barriers Education Pipeline Family Income Financial Barriers Consequences Restoring college affordability

Financial Barriers Education Pipeline Bottleneck in Higher Education Consequences Proposals

% of Total Graduated from HS Overview of 6-year Graduation Rates for Entire Population of Low-income Students Enrollment & Graduation Breakdown of the Bottom Income Quartile under Age 24 Total Population 100% While the college persistence gap is smaller than the access gap for low income students, there is far greater inequity between low and high income students who enroll in college. COLLEGE ACCESS GAP (55% of total) % of Total Graduated from HS 72% 72% HS Grad Rate % of Low Income < 24 Population % of Total Enrolled in College 45% 61% Enrollment Rate of HS Graduates COLLEGE PERSISTENCE GAP (37% of total) 18% 6-yr Bachelor’s Grad Rate of Enrolled Students % of Total With a Bachelor’s Degree 8% High income student % 91% 81% 73% Size of gap b/t low and high income students 1.3x 1.8x 8.8x Source: Postsecondary Opportunity – postsecondary.org Note: The 18% 6 year graduation rate of enrolled students in the bottom quartile includes students who attend Community College

Financial Barriers Education Pipeline Family Income Financial Barriers Consequences Restoring college affordability

Financial Barriers Education Pipeline Family Income Financial Barriers Consequences Restoring college affordability

Financial Need Analysis Model Cost of Attendance Tuition and fees Room and board Books and supplies Personal and medical care Transportation Less: Expected family contribution Income and assets Family size Number of children enrolled in college Equals: Financial need Gift aid: grants, scholarships, waivers Earnings from work/study Education loans: subsidized/unsubsidized Stafford, PLUS Federal tax credits

Financial Barriers Education Pipeline Family Income Financial Barriers Consequences Restoring college affordability

Tertiary Type-A Degree Attain 25-34 yr olds OECD 2003 45

Projected Tertiary Type-A Degree attain OECD 2020 48

Financial Barriers Education Pipeline Family Income Financial Barriers Consequences Restoring college affordability

Restoring College Affordability: Recommendations for Reauthorization of the Higher Education Act $13,000 Pell Grant maximum award $2000 Super Pell Grant Federal-State partnership for financing Pell Grant program College Work-Study for all students Income contingent education loan repayment Admissions lottery for class-selective Title IV institutions Rigorous evaluation of all financial aid programs for effectiveness

Contact Information: Email me to request this PowerPoint: tom@postsecondary.org Final