1. Financial Aid Need & Postsecondary Access in Iowa: New Insights into Enduring Issues Anthony Girardi, Ph.D. Iowa College Student Aid Commission April 12, 2012

2. During this presentation, I will discuss 1. Trends in FAFSAs 2. Trends in Eligibility for State Need- Based Aid 3. State Need-Based Aid and Credential Attainment

3. Trends in FAFSAs how well are we promoting access and awareness of financial aid state of financial need among Iowa residents issues affecting the awarding of state need-based financial aid

4. Financial Aid Applications (FAFSAs) by Iowa Residents 130,000 for 2004-05 201,000 for 2010-11 Increase of 54%

5. Financial Aid Applications (FAFSAs) by Iowa High School Seniors* 58% of Seniors filed FAFSAs in 2004-05 69% of Seniors filed FAFSAs in 2010-11

6. FAFSAs from HS Seniors* 22,400 for 2004-05 26,623 for 2010-11 24% increase

7. Applicants’ Age

8. Age Distribution 2004-05 compared to 2010-11

9. Number of FAFSAs by Gender

10. Total FAFSAs with EFC=0

11. FAFSAs with EFC=0 as % of Total FAFSAs

12. EFC Frequency 2009-10 Academic Year

13. Adjusted Gross Income (Applicants for 2009-10)

14. Iowa Household Income and Adjusted Gross Income of Aid Applicants

15. Average AGI by Gender

16. Number of Applicants with EFC=0 by Gender

17. Percentage of Total FAFSA Filers with EFC=0 by Gender

18. Average EFC by Sector of 1 st Choice School 2010-11

19. Average EFC by Year and Sector of 1st Choice School

20. Pell-Eligible Applicants 54% of Applicants were Pell-eligible in 2010-11 Maximum EFC for Pell-eligibility has increased over time.

21. Number of Applicants Eligible for Iowa Aid Programs

22. Percentage of Applicants Eligible for Iowa Aid Programs

23. Percentage of Applicants Eligible for Iowa Aid Programs: Applicants whose 1 st Choice School is in Applicable Sector

24. Percent of Eligible Applicants who Received Iowa Aid – Applicants whose 1 st Choice School is any Iowa School

25. Average EFC for All Applicants and for Recipients of Iowa Aid

26. State Need-Based Aid and Credential Attainment Matched FAFSA and Aid Records to Enrollment and Graduation Data Analysis of relationship between state need- based grant aid in first year of college and credential attainment These are NOT graduation rates.

27. Issues in Analyzing Effect of Need-Based Aid on Persistence Difficulty in distinguishing between effects of aid and effects of personal, family, and institutional characteristics Other outcomes are not analyzed. Limitations of data

28. Iowa State Need-Based Aid Programs Summary 1.Iowa Grant All Sectors Max: $1,000 2.Iowa Tuition Grant: Eligible Private Non-Profit 4-Year Institutions Eligible Private For-Profit 4-Year Institutions Max: $4,000 3.Iowa Vocational Technical Tuition Grant Iowa Community Colleges Max: $1,200 4.Other Iowa need-based aid programs were not considered in this analysis 5.Merit-Based scholarship programs were not considered.

29. Analysis includes students who have need but did not receive aid. –filed after FAFSA filing deadline –do not meet program residency requirements –do not meet program citizenship requirements –FSA eligibility –do not meet other state aid program criteria –administrative –Unsatisfactory Academic Progress is NOT a factor in non-receipt of aid Part-Time Students with need receive financial aid

30. Credential Attainment within 6 Years by EFC Matched Students Only 2005-06 Cohort Only

31. Credential Attainment Within 6 Years Iowa Need-Based Aid Recipients and Non-Recipients

32. Total Number of Need-Based Aid Recipients and Non-Recipients Includes NSC Matches Only Iowa Private Non-Profit 4-Year Colleges and Universities

33. Degree or Other Award Attainment Within 6 Years Iowa Need-Based Aid Recipients and Non-Recipients Iowa Private Non-Profit Four Year Institutions Only

34. Credential Attainment within 6 years by EFC and Receipt of State Need-Based Aid in First Year Cohorts 2002-2006 Combined

35. Credential Attainment within 6 Years by EFC and Gender Matched Students Only 2005-06 Cohort Only

36. Credential Attainment Rate by Receipt of State Need-Based Aid in First Year and First Generation Status 2002-2006 Cohorts Combined

37. Summary and Implications –A relationship exists (statistical significance) between state need-based aid and credential attainment rates. –This analysis is open to many sources of bias –State need-based aid has an effect on persistence –State (and Federal) need-based policies matter