1. Learning to Lead: Admissions in the 21 st Century Webinar Series April 28, 2011

2. Mission: To increase the number of students who earn a college degree and who are prepared to succeed in the 21st century. Approach:

3. Areas of Focus College Preparation & Access – Arts at the Core – The CollegeKeys Compact – School Counselor Advocacy – Teacher Advocacy – Minority Male Achievement – Undocumented Students and the DREAM Act – The National Commission on Writing College Affordability & Financial Aid – Cracking the Student Aid Code – Rethinking Student Aid – Trends in Higher Education – Education Pays – Simplifying State Aid Processes College Admission & Completion – College Completion Agenda – Access, Admissions & Success: Education and the America Future – Admissions in the 21st Century – Access & Diversity Collaborative – Community College Transfer & Retention

4. Rethinking Student Aid: Parent and Student Focus Groups

5. Rethinking Student Aid: A Package of Recommendations Simplify federal student aid system Eligibility determination and application process Provide information about college early and often Improve federal loan process Application, loan limits, borrower protections Create federal savings program for students from low-income families Reward institutions that support student success

6. RSA Research Objectives Learn parents and students reactions to RSA recommendations Understanding Support Questions Assess recommendations impact on… College aspirations and access College planning Ability to complete college degree Publish findings: Cracking the Student Aid Code

7. Research Methodology Phase 1: Qualitative 8 in-person focus groups Baltimore, Chicago, Dallas, San Francisco Barrier students, parents, non-traditional students 2 online bulletin board focus groups National, college students 6 in-depth interviews New Americans perspective

8. Research Methodology Phase 2: National Quantitative Surveys 1,000 parents: telephone; income qualified; with children between 11 and 21 Complete survey in English or Spanish 1,000 college students: online; had experienced completing FAFSA 250 non-traditional students: online; income qualified; age 25+; completed FAFSA

9. Cracking the Student Aid Code Key Findings

10. College education is critical, even in current economy Students believe more strongly than parents

11. All believe in opportunity & access, especially students ParentsCollege Students Non-Traditional Students Total Agree Agree Strongly Total Agree Agree Strongly Total Agree Agree Strongly Everyone, regardless of their ability to pay for it, should be able to get a college degree if they want to 84%78%94%72%92%78%

12. Cost and application process are perceived barriers Parents and non-traditional students are most concerned about costs; parents are most concerned about the application process ParentsCollege Students Non-Traditional Students Total Agree Agree Strongly Total Agree Agree Strongly Total Agree Agree Strongly College costs are unaffordable for most families 74%53%78%38%81%55% Applying for financial aid for college is a time consuming process 77%50%73%33%56%22%

13. Lack of knowledge re: costs is problem for lower income or less educated parents Less than half (46%) of all respondents feel informed Total IncomeRace Parent Education <$28K $28- <48K $48K+AALatinoCauc HS or Less 2-yr Coll 4-yr Coll Grad I believe that I know how much it costs to attend the public colleges in my state 46%45% 51%43%53%45%40%46%56%

14. Less awareness of Pell Grants among lower income, Latino & less educated parents A majority (77%) of all respondents are aware of Pell Grants; Latinos notably unaware Total IncomeRace Parent Education <$28K $28- <48K $48K+AALatinoCauc HS or Less 2-yr Coll 4-yr Coll Grad Parents who are aware of Pell Grants 77%70%80%84%82%44%81%62%85%91%

15. Student and Parent Reactions to RSA Recommendations

16. RSA Recommendation #1 The study group recommends using tax information directly from the Internal Revenue Service to determine how much federal financial aid a student will get, instead of requiring families to fill out the FAFSA. The IRS would give information from the familys most recent tax return to the U.S. Department of Education to figure out how much federal financial aid a student would receive.

17. Use IRS Data Instead of FAFSA 74% of parents and about 90% of students support recommendation; but students not very supportive I like the fact this eliminates the 'double work' we are asked to do for FAFSA. Theres less paperwork, less work. Parents College Students Non- Traditional Students Total Supportive74%90%87% Very supportive34%19%30% Somewhat supportive40%71%57% Not very supportive11%8%10% Not at all supportive15%2%3%

18. Use IRS Data Instead of FAFSA Fewer very supportive ratings reflect concerns Mistrust of IRS (mistakes, inefficiency, privacy) Tax return cant capture true picture of household finances Household finances change year to year Nontraditional households (e.g., divorced parents filing separately) Families who dont file tax returns

19. Use IRS Data Instead of FAFSA Respondents preference for status quo reflects questions, concerns and fear of unknown Parents College Students Non-Traditional Students Would prefer to complete the FAFSA to apply for financial aid 66%64%67% Would prefer to have the IRS send tax data to the USED 34%36%33%

20. Use IRS Data Instead of FAFSA What would be very important in order to increase support for using IRS data? Parents College Students Non- Traditional Students Allowing households to give USED updated financial information if circumstances have changed since last tax year 73%71%84% Knowing that USED is subject to same privacy rules as IRS 71%63%82% Allowing families to review IRS information before it is sent to USED 65%55%73%

21. RSA Recommendation #2 The federal government would increase the amount students can borrow from the federal student loan program to help them pay for increasing college tuition costs and other expenses.

22. Increase Maximum Annual Loan Parents & non-traditional students most supportive of recommendation This would help me finish school sooner because I wouldnt have to get a job or pay for the loans while in school. I would love to get more federal loans so I don't have to use my credit card. Parents College Students Non-Traditional Students Total Supportive87%89%90% Very supportive53%44%52% Somewhat supportive34%45%38% Not very supportive7%9%7% Not at all supportive6%3%

23. RSA Recommendation #3 People who take out federal student loans would not be asked to pay more than 15% of their yearly net income (that is, income after taxes) in loan payments. So, if a borrower loses her job or experiences a cut in salary, loan payments would be reduced. After 20 years, any remaining loan amount would be forgiven.

24. Protect Borrowers in Repayment Parents and students support this recommendation; non- traditional students most supportive That would be a dream come true! Part of my hesitation with loans now is the burden of them after I finish college. This would make me much more comfortable taking out loans. Parents College Students Non-Traditional Students Total Supportive83% 90% Very supportive52%48%67% Somewhat supportive31%35%23% Not very supportive9%13%8% Not at all supportive8%4%2%

25. Parents College Students Non-Traditional Students I think that people will be more comfortable taking out student loans to finance their educations if this is passed. 82%94%93% I think that 20 years is a fair period of time during which to have to make loan payments. 80%83%90% Protect Borrowers in Repayment Recommendation increases willingness to borrow

26. RSA Recommendation #4 The federal government would create and contribute money to college savings accounts for children from low and moderate income families. Students would be able to use these funds only for college, even if they decided to go later in life. Unused savings would go back to the government.

27. College Savings Accounts Support is high, particularly among non-traditional students Its like Social Security. You would get a statement telling you how much money is in the account. I would show it to my kids and say, see how much money there is for college? You can go. Parents College Students Non-Traditional Students Total Supportive77%75%81% Very supportive41%37%49% Somewhat supportive36%39%32% Not very supportive11%15%11% Not at all supportive12%10%8%

28. RSA Recommendation #5 All households who file tax returns would receive information about how much Pell Grant their children would get if they were in college at that time. Families would also get information about financial aid and tuition costs in their state. This information would be provided each year starting when the children at home are young.

29. Early Information Greatest overall support for this recommendation There is no downside to this. This is giving people more information and hope and thoughts that they never had before. Parents College Students Non-Traditional Students Total Supportive89%92%93% Very supportive54%49%61% Somewhat supportive35%43%32% Not very supportive5%7%5% Not at all supportive6%1%2%

30. Early Information Parents and students understand the benefits Parents College Students Non-Traditional Students Knowing the approximate Pell Grant amount that my child could receive would make it easier for me to plan for my childrens college 91%-- Knowing the approximate Pell Grant amount that I could receive would have made it easier for me to prepare for my college --94%93% If I had known during my teenage years the approximate Pell Grant amount I could have received, I would have completed my education sooner -- 72% Having information about paying for college would help (parents/me) encourage (their children/my children) to think about going to college 88%--95% I would be very interested in sharing the information about Pell Grant awards and state financial aid with my child/children 87%--

31. Early Information Most supportive: African-American and Latino parents and college students College students whose parents not educated beyond high school Somewhat supportive ratings may reflect concerns about using IRS data to generate annual early information report

32. In Their Own Words This definitely would have impacted my own preparation. Neither of my parents went to college so they had no idea what options were available for financial aid or what colleges were best in our state. Immigrant parents dont know how much it costs here to go to college. They need to see, very early, what the costs are. This is the difference between dreaming and planning.

33. Rethinking Student Aid: A Package of Recommendations The recommendations in their entirety are more appealing than each individually Participants agree on the following impact if proposals are implemented It will be easier to apply for federal aid Families will have a framework for planning & saving Borrowing will be less intimidating More will have hope that college is possible

34. College Board Taking Action State Need-Based Grant Study Collaborating with 5 states to model impact of simplified FAFSA & need analysis formula on budget and distribution of need-based state grant Five Ways Education Pays Consumer-friendly information for students & parents Early Information Pilot Working with one or more states to create structure, content & medium for annual communication Get Schooled College Affordability Challenge Winner recently announced at Clinton Global Initiative U

35. Q & A: Submitting Questions To submit a question: Click on the Question Mark icon (?) on the floating toolbar (as shown at the right). This will open the Q&A window on your system only. Type your question into the small dialog box and click the Send Button. Q&A icon

36. Read the Cracking the Student Aid Code report at http://advocacy.collegeboard.org.http://advocacy.collegeboard.org If you have questions, please email Kathleen Little (klittle@collegeboard.org) or Anne Sturtevant (asturtevant@collegeboard.org).klittle@collegeboard.orgasturtevant@collegeboard.org For More Information:

37. Leadership, Access and Institutional Mission – May 18, 1 p.m. EDT Register at http://advocacy.collegeboard.org/admission- completion/admissions-21st-century. http://advocacy.collegeboard.org/admission- completion/admissions-21st-century Next Learning to Lead Webinar: