1. Alabama Student Grant Program – A Great Investment for Alabama

2. A Little Background Since 1978, when it was created by an act of the Alabama Legislature, the Alabama Student Grant Program (ASGP) has provided grant-in-aid to Alabama residents who select an independent institution in the State. The Legislature authorized a maximum grant of $1,200 per student each year. The maximum amount per student is currently only $300– less than the average cost of textbooks for one semester. Almost 7,000 Alabama students received the grant in 2011. * In the past five years, the total enrollment for our 14 member schools has increased 11% while the ASGP appropriation has decreased 52%.

3. ASGP History 1994-95$6,225,3598,338$948 1995-96$5,457,6118,636$816 1996-97$5,476,9988,718$816 1997-98$5,545,2809,029$780 1998-99$5,574,2889,141$772 1999-00$5,865,2547,786$768 2000-01$5,896,6997528$732 2001-02$5,307,0298,393$660 2002-03$4,969,25010,743$600 2003-04$1,618,0599,501$216 2004-05$1,523,6137,891$252 2005-06$2,130,8656,989$390 2006-07$2,678,5806,791$504 2007-08$3,374,4886,957$624 2008-09$2,423,6877,312$426 2009-10$2,299,0257,217$400 2010-11$2,131,4467,289$372 2011-12$1,623,5006,908$300 YearTotal Payments# Awards Max. Award

4. Lets Do the Math To provide a seat to a student in one of the state public universities the state pays, on average, over $14,700 per seat per year. If the same Alabama student attends an independent college or university in Alabama, state support is reduced to roughly $300 per student. If the ASGP was raised to $1,000 a student and AAICU schools enrolled 2,000 more Alabamians, the state would save $27.4 million per year over having those students attend the state's public universities ASGP represents.1% of the state's total annual expenditures on higher education--that.1% generates 14% of the state's annual bachelor's degrees and 24% of its professional degrees. * What a return on investment for our state and communities!

5. Our Competition—What other States Are Doing Grant assistance to encourage residents to attend independent institutions (In addition to the “HOPE” lottery scholarships)

6. (% of fall full-time students receiving Pell grants) AAICU SchoolsAll 4-yr Publics 2005-200649%32% 2006-200747%32% 2007-2008 40%33% 2008-200947%34% 2009-201047%32% 2010-201144%29% 2011-201246%31% Average Financial Aid Package: $9,500 Range: $4,000 to $19,000 Source: Office of Federal Student Aid, U.S. Dept of Education, IPEDS Why It Matters: AAICU Schools Serve a Higher Percentage of the State’s Poorest Students then the public 4- year schools

7. Institutional Grants to Full Time Freshman On average, students at Alabama’s independent colleges and universities receive more than $7,937 per year in aid directly from the institution. Together with state and federal aid, the generous institutional-based aid makes attendance at Alabama's independent colleges an affordable option for many Alabama residents. Source: The Institute for College Access & Success. College InSight, http://www.college-insight.org.The Institute for College Access & Successhttp://www.college-insight.org.

8. “Need Based” Aid: Alabama Student Assistance Program Virtually Non-existent 172,088 Alabama students received a Pell grant in 2012-2013 –121,017 public students –33,634 private for-profit students –17,437 independent college students Alabama is ranked 48th in the U.S. in need-based aid –94% of Alabama Pell grant recipients eligible for state need based aid (ASAP) did not receive it due to lack of funds –Only 8,261 ASAP awards were given in 2012 Scope of the ASAP problem not “fixable” under current budgets * Alabama Student Grant Program can be fixed with a $5 million increase

9. Conclusion Alabama students would be better served, by a spending strategy that makes the option to attend private college more affordable….by fully funding the ASGP. AAICU institutions can provide a way to save the state money and improve the options and outcomes for Alabama's students. Nationally, 79% of independent college graduates receive degrees in 4 years or less compared to 49% of state four-year college graduates *A great investment for Alabama: produce better results for students while saving the state an enormous amount of money - - a win-win for all!