Presentation on theme: "Aid in the Age of Uncertainty Funding Opportunity in Today’s Challenging Economic Environment: A Practitioner’s Viewpoint Georgette R. DeVeres Claremont."— Presentation transcript:
Aid in the Age of Uncertainty Funding Opportunity in Today’s Challenging Economic Environment: A Practitioner’s Viewpoint Georgette R. DeVeres Claremont McKenna College CERPP Symposium January 23, 2009
Concerns National Landscape –Current Economy –Students in current in education pipeline –Sufficient dollars Institutions –Enrollment priorities –Institution Cash flow –Family finances –Stabilize current student enrollment
The “Haves & Have-nots” The current economic situation is causing a realignment of the haves and have-nots in higher education. The haves are public universities, community colleges, and highly sought-after private institutions. The have-nots are just about everyone else. Martin Van Der Werf Director, Chronicle Research Services
Student Aid Risks Do not meet enrollment targets Federal and State financial aid budget cuts Academic quality Fluctuation in family income/resources
Moving Targets Enrollment –Retention/Attrition Federal Resources State Resources Institutional Resources –Private gifts and endowment earnings Financial Need
Why does it Matter? How your institution responds to increasing demand for resources to assure educational opportunity will affect the success of disadvantaged students and, by extension, the overall well-being of the country. Does your institution’s strategic plan address changing demographics? Will your mission and/or enrollment objectives change in light of these forecasted changes?
Future Concerns Access –Students not in educational pipeline –Recruitment programs –Educational preparation Who will be impacted? –Low-Income and Middle-Income students –Greater financial aid budget pressures Investment in human capital and educating Americans
Current Financial Aid System Inadequate funding Confusing application process Recruitment challenges –Merit vs. need –Low-Income students –Middle-Income students
Institution-Wide Planning & Action Changing demographics not simply an issue for financial aid and enrollment managers. Institutions will need to rethink their missions and markets – whom will they serve and how? Will the institution survive or thrive? To thrive in the future, institutions must focus on the right issues and have the fortitude to act. Remember, what’s good for the student will be good for the institution and good for society.
Stimulus Packages Congressional proposals –Increases to maximum Pell Grant award –Increase student loan maximum –Extended student loan grace period Long-term vs. Short-term solutions Advocate –Current students –Future students –Larger financial aid pool
“Out of crisis comes opportunities” Barack Obama
Goals for the Federal Student Aid System The most important purpose of student aid is to expand the educational opportunities available to those young people and adults who face financial barriers to college enrollment and success.
Rethinking Student Aid Basic Principles Federal student aid should be: Targeted to those in need Adequately funded Clear, transparent, well-communicated Predictable
Basic Principles (continued) Federal student aid should: Be student focused Support both access and success Use taxpayer funds efficiently
Recommendations Simplify the federal student aid system Improve the federal loan process Develop a federal savings program for low- income families Reward states and institutions that support student success
Simplification: Early Communication Communicate with families annually about educational opportunity o IRS data to US Dept of Education o Pell Grant award o State grants o Federal loans and tax credits o Average price at public institutions in state o Importance of academic preparation
Help Low-Income Families to Plan and Save Create federal accounts for children in low-income families Annual deposits proportional to the Pell Grants for which children would be eligible. Permit funds to earn tax-free interest analogous to federal 529 programs Allow use of funds only for postsecondary education Permit access to these funds for individuals at any age
Support Student Success and Degree Completion Provide incentive grants to colleges and universities o Campus-based funds that encourage retention and completion for low- and moderate-income students o Allow institutions wide discretion use of funds to encourage student success o Require a portion of the funds to support student employment o Pilot programs based in a few states or institutions
Proactive Continue to strengthen early awareness practices –Academic preparation –Financing opportunties Encourage families from low-income and middle-income back grounds to save for college Influence public policy Serve as advocates