1. MAP in Context JUNE 3, 2016 ICCTA ANNUAL CONVENTION SPRINGFIELD, ILLINOIS KATHARINE GRICEVICH ILLINOIS STUDENT ASSISTANCE COMMISSION 1

2. College costs have grown faster than other sectors

3. A Challenge in Higher Education: Improving Affordability % Change in Lower 4 Family Income Quintiles 3 Percentage change in excess of inflation

4. HIGHER EDUCATION SYSTEM NEED-BASED AID WORKFORCE Illinois is different from other states.

5. Some Notable Differences Traditionally high level of bachelor’s degrees and an educated workforce Tradition of need-based aid. We have always been, in practice, a high tuition/high aid state. Used to be a leader in affordability Well-known for assisting non-traditional students with need-based aid Considerable autonomy for public institutions in setting tuition and fees

6. Where our students attend school … There are about 21 million postsecondary students in the U.S. About 4% of those (about 850,000 students) are in Illinois. Our student distribution is much different than the national average. We are 48 th out of 51 for students attending public universities; 8 th for students at cc; 9 th for students in for- profits, and 11 th for students in not-for-profits. ILLINOIS U.S.

9. Illinois and Other States – Financial Aid Nine states award about 70% of the state need-based undergraduate aid in the U.S.. CA, NY, PA, and IL are typically the top four. Illinois is also among the top states in terms of total grant aid awarded. (GA and FL award most of theirs as merit aid, while others support a mix of need and merit.)

10. (MAP) The Monetary Award Program

11. MAP has always evolved to meet changing needs. Phased in beginning 1967 from existing programs: the State Scholarship Program and Upperclass Grant Program. FY69: $18.4m serving 29,415 students with an average award of $627.  CC T&F: $140  PU T&F: $263  Private T&F: $1,463

12. MAP Changes in the 1970s & 1980s Hospital school students and half-time students gain eligibility Eligibility extended from 4 to 5 year equivalent Pell counted as a resource Began “piggybacking” on federal application process, resulting in 12% increase in awards in FY83 MAP formula introduced, a tool to balance number of awards with amount of need covered

13. MAP Changes in the 1990s & 2000s Introduction of new federal methodology for determining aid eligibility  Increased MAP eligibility and required additional rationing Some proprietary school students become eligible MAP paid credit hour system introduced  Better for part-time students and those who work Reduction factors helped to extend processing Suspense dates began in Oct 2001 and have moved earlier as more students apply and apply earlier, T&F increases, and $ doesn’t keep up.

14. How is MAP awarded?

15. MAP-Approved Institution Criteria In order for an institution to become a MAP- approved school, it must: Provide an organized 2-year program of collegiate grade in the liberal arts or sciences Be based in the State of Illinois Meet additional requirements specified in ISAC rules Institutions operating for profit must also offer degree programs approved by IBHE for at least three years and have a majority of their students enrolled in those degree programs.

16. MAP Recipient Eligibility Criteria be a U.S. citizen or an eligible non-citizen be an Illinois resident demonstrate financial need be enrolled at least 3 hours/term at an approved Illinois college, in a degree or certificate program maintain satisfactory academic progress as determined by the college not be in default on any student loan not have received a bachelor’s degree not have used the equivalent of 135 MAP paid credit hours comply with federal Selective Service registration requirements

17. FAFSA Applications

18. MAP Formula Costs - Resources = Maximum Eligibility  Costs = T + Mandatory Fees + living allowance  Resources = Adjusted EFC + 80% Pell Award capped at the lowest of Maximum Eligibility, actual current T&F, or max. award allowed by statute  Maximum for FY15 was $4,720 Other factors helping to ration include an EFC cap ($9K) and an assumption of minimum “self-help” Must have at least $300 need to receive a grant

19. MAP-eligible Suspended Applications

20. How Does MAP Awarding Work?

21. Eligible Applications by Month and Sector of First-Choice School

22. …AND HOW ARE THEY DOING? Who is receiving MAP?

23. A “typical” MAP recipient would be … Female White Dependent on parental income (or “traditional”) Living in the collar counties Lacking discretionary income to pay for college Attending a community college

24. Characteristics of MAP Recipients About one in five IL undergraduates receives MAP About 65% of MAP recipients are female About 40% of MAP awards go to underserved minorities – students self-identified as Black or Hispanic About 40% of MAP recipients are adult learners All MAP recipients have great need: average family income is about $31,000 for dependent students and $19,000 for independent students MAP recipients ACT scores are the same as the state average: 20.5 About 47,000 MAP recipients attend part-time

25. MAP Grants at All Institutions by Race, Ethnicity

26. Public Universities MAP Recipient and All Student 6-Year Graduation Rates at Public Universities

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28. MAP recipients graduate at the same rate as other students at the same schools but …. MAP-eligible students don’t attend college at the same rate as students who are from higher income families and They disproportionately attend schools with lower graduation rates.

32. MAP Breakdown by Sector, FY2015 Offered Award % of Awards Offered Accepted Award % of Awards Accepted Acceptance Rate $ Awards (in $M) Average Award Public Universities54,21829%43,16734%80%$153.26$3,550 Private Non-Profit Institutions 49,52326%38,65630%78%$151.66$3,923 Community Colleges75,92640%42,12133%55%$39.77$944 Proprietary Institutions7,8514%4,4553%57%$12.47$2,799 Total187,518100%128,399100%68%$357.16$2,782

35. FY2006ChicagoCollar Rest of State Public Universities25.4%36.9%37.7% Private NFP Institutions29.1%47.6%23.3% Community Colleges23.8%31.8%44.4% Proprietary Schools47.7%42.0%10.3% All26.9%37.4%35.7% FY2015ChicagoCollar Rest of State Public Universities31.8%43.6%24.6% Private NFP Institutions28.3%52.7%19.0% Community Colleges28.5%38.8%32.6% Proprietary Schools41.6%45.0%13.4% All29.9%44.5%25.6% Regional Distribution of MAP

36. MAP Coverage of Average Tuition and Fees at Public Universities 36

37. MAP Coverage of Average Tuition and Fees at Community Colleges Uncovered: $0 Covered: $1,731 Uncovered: $1,916 Covered: $1,710 37

38. MAP coverage leaves increasing gaps In FY2002, the maximum MAP grant covered 100% of the average tuition and fees at a public university; 34% in FY2015 and 32% in FY2016. The combination of a MAP grant ($4,720), a Pell grant ($5,730) and a Stafford Loan ($5,500 to $9,500) is no longer sufficient to cover the full cost of attendance at an IL public university ($25,000 to $30,000). Expenses aside from tuition and fees and room and board are increasing, too. The College Board estimates these other expenses to be $4,500 for students at 4-year schools and $5,500 for students at community colleges.

39. (A SAMPLING) MAP Concerns

40. Too little money to meet demand (esp. THIS year), with T&F coverage eroding Huge number of suspended applications Unknown effects of Early FAFSA this fall: How will applicants’ behavior change? How should we account for and support …  Students not thinking of college far in advance (e.g. independent students, 1 st -gen students who don’t see college in reach)  Students at schools w/o resources to support FAFSA completion and college exploration  Students at open admission institutions, who don’t have early deadlines for financial aid applications

41. More MAP Concerns Renewed emphasis on performance, especially completion, from policy-makers and public Too much loan debt and too little awareness of repayment options And, of course: the budget delay.  How do we most responsibly communicate with students about a program that has been reliably funded for most of the last 50 years, for which all parties voice support, but which has received only half the expected FY16 amount so far?  The system has been built on trust. What kind of belief in the system can students (or schools) have after this delay?

42. Surviving MAP Funding Bills APPROVED SB 2059 – “Stopgap I” from EAF P.A. 99-0502 (4/15/16)99-0502 Funded MAP at $169,798,700, allowing first-term claims to be paid within three days of the approp CSU at about 60% of its prior year approp; most other public universities, IMSA, and the two main community college budget lines at around 30-31% of prior-year budgets Supporters emphasized that this was intended to be a stopgap, not a total FY16 approp or a new baseline for FY17 budgeting. 42

43. ON THE GOVERNOR’S DESK: SB 2046 – FY16 higher ed funding – Sent to Governor 4/4/16 House Dems’ initiative Governor’s office said he’d veto; has until approx. June 13 to act. MAP at an increased level ($397m); no other ISAC grant programs Public universities, community colleges, and the Illinois Math and Science Academy (IMSA). HB 4167 – FY16 MAP funding – Sent to Governor 5/23/16 House Dems’ initiative $227,274,400 from GRF for MAP, bringing total (when combined with “Stopgap I”) to about $397m No identified funding source or offset. (Has been explanation for past vetoes) 43

44. “Bridge funding” bills filed Tuesday (HB 6585 / SB 3435) do NOT include student financial aid programs On the other hand, with the exception of those “bridge funding” bills, all FY16 and FY17 budget bills filed so far by Democrats and Republicans fund MAP at least at the FY15 final level. 44

45. 217 / 785-9278 KATHARINE.GRICEVICH@ISAC.ILLINOIS.GOV WWW.ISAC.ORG LOCAL OUTREACH STAFF: WWW.ISAC.ORG/ISACORPSWWW.ISAC.ORG/ISACORPS MAP INFO.: WWW.ISAC.ORG/MAPMATTERSWWW.ISAC.ORG/MAPMATTERS Questions?