1. Copyright © Edvisors Network, Inc. (www.edvisors.com) How to Improve FAFSA Completion Rates Mark Kantrowitz Senior VP and Publisher Edvisors.com

2. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 2 Increase in FAFSA Completion Rates Since 2007-08

3. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 3 Increase in Number of FAFSAs Filed Since 2007-08

4. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 4 Slowing Growth in Number of FAFSAs

5. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 5 FAFSA Completion by Degree Level and Income

6. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 6 FAFSA Completion by COA and Income

7. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 7 FAFSA Completion by Sector and Income

8. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 8 Leaving Money on the Table  Failure to file the FAFSA is a key problem In 2011-12, 2 million students would have qualified for Federal Pell Grants totaling $9.5 billion, had they filed the FAFSA These students might have qualified for an additional $2.9 billion in state and institutional grants 1.3 million would have qualified for the maximum Federal Pell Grant  Reasons these students did not file the FAFSA 46.7% thought they were ineligible 37.5% said that they had no demonstrated financial need 34.1% did not want to take on student loan debt 13.6% had no information on how to apply for financial aid 9.4% said that the financial aid application forms were too much work  Characteristics of students who do not file the FAFSA More likely to be enrolled at 2-year and low-cost colleges, especially community colleges More likely to be enrolled part-time and work full-time More likely to be independent and low-income

9. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 9 Timing Matters  Students who file the FAFSA in January, February or March receive more than twice as much grant funding, on average, as students who file the FAFSA later The most likely cause of the change in funding is very early state and institutional deadlines Some funding is awarded on a first-come, first-served basis until the money runs out  Of students who filed the FAFSA, low-income students are more likely to file the FAFSA later 32.6% of low-income students (AGI < $50,000) filed in January-March 25.9% of AGI < $25,000 44.8% of AGI $25,000 to $49,999 58.1% of middle-income students filed in January-March 70.5% of high-income students filed in January-March

10. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 10 Average Grant by Month FAFSA Filed

11. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 11 Impact of Filing the FAFSA on Six-Year Degree Attainment Six-Year Degree Attainment Rates Degree LevelDid Not File FAFSAFiled FAFSA Overall 44.1%52.4% Certificate 35.1%48.0% Associate’s Degree 17.4%19.6% Bachelor’s Degree 57.2%59.9% FAFSA completion contributes to degree attainment Greatest impact of FAFSA completion is on the receipt of Certificates

12. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 12 Low-Income Enrollment Shifting to Lower-Cost Colleges

13. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 13 Ratio of Annual Net Price to Total Income, 2011-2012 Institution Type < $50,000 $50,000 to $100,000> $100,000 Public 2-Year 34.7%10.8%5.5% Public 4-Year 57.2%21.2%11.9% Non-Profit 4-Year 81.8%31.1%18.5% For-Profit 100.8%26.5%14.7% Source: Analysis of data from the 2011-2012 National Postsecondary Student Aid Study (NPSAS) Net Price = College Costs – Gift Aid. Limited to families with positive net price. Net price is for one-year.

14. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 14 Federal Pell Grant Recipients Graduate with More Debt 14

15. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 15 Recommendations  Get low-income students to file the FAFSA by increasing awareness Emphasize that financial aid involves grants & scholarships, not just loans Students who work full-time while in school are half as likely to graduate You can’t get financial aid if you don’t apply  Encourage students to file the FAFSA sooner to get more money  Target community colleges for FAFSA completion campaigns Provide proactive one-on-one personalized counseling for filing the FAFSA FAFSA completion statistics should be made part of annual performance reviews for high school guidance counselors and college financial aid staff Require high school seniors to file the FAFSA as a graduation requirement and/or as a prerequisite for college admissions  Seek to standardize state deadlines to a later date or shift the FAFSA start date earlier (prior-prior year)  Simplify the FAFSA  Tie a free scholarship lottery to the FAFSA

16. Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 16 Thank You! Mark Kantrowitz Publisher, Edvisors.com Follow on Twitter @mkant Free Guide to Filing the FAFSA  A PDF version of the book, Filing the FAFSA, is available for free download at www.edvisors.com/fafsa-book www.edvisors.com/fafsa-book  Also sold in paperback format on Amazon.com for less than $10