1. 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

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

4. Financial Barriers Education Pipeline Bottleneck in Higher Education
Consequences
Proposals

19. % 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

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

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

38. 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

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

45. Tertiary Type-A Degree Attain 25-34 yr olds OECD 200345

48. Projected Tertiary Type-A Degree attain OECD 202048

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

50. 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

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Final