1. Louisiana’s First Choice for College Access LASFAA Fall Conference October 27, 2011 Presented By: Melanie Amrhein Executive Director

2. State Programs Update  TOPS  GO Grant  Early Start  State Matching Funds Grant  GA Functions  LAConnect

3. TOPS Funding By State Fiscal Year as of 8/4/2011 54.067.490.2104.0104.6110.5117.1116.9120.6116.6122.9129.9144.4154.4 The 2011-12 data is current appropriation subject to change if a constitutional amendment passes in October 2011.

4. TOPS 2010-11 Appropriation Grad Act - Tuition Funding Source Core Curriculum Changes Graduates of 2014 19 Credits Governance Commission Merit vs Need Potential Legislative Actions Award Amounts

5. GO GRANT 2011-12 Award Year $26,429,108 (same as 2010-11) School Allocations and Deadlines 5th Year Cohort Projecting 30,000 Eligibles $1,000 Full Time Annual Award Amount 2012-13 Budget Request Fully Fund Program at $51,737,333 Continue to allocate to campuses New Methodology is Under Consideration Need vs Merit – BOR Study

6. Go Grant Funding/Students YearAppropriationStudents Awarded 2007- 2008 $2,000 annual award based on Estimated Cost Gap $15,000,00010,409 2008-2009 $2,000 annual award based on Estimated Cost Gap $24,226,00015,973 2009-2010* Award Amount Changed to Accommodate Anticipated Funding in Executive Budget 26,429,108 22,355 2010-2011 $900 annual award (New Framework proposed based on Cost of Attendance) $26,429,10830,738 2011-2012 $1,000 annual award $26,429,108 30,000 (projected) 6

7. The Research Questions

8. Research questions: Pell Study How does the level and mix of financial assistance affect fall-to-fall same school student retention in Louisiana among Pell Grant recipients? Can we observe differences in the retention of Pell Grant recipients versus students in other financial classifications (needy non-Pell recipients and no- need students)?

9. Research questions: Pell Study Can we identify flex points in the size and composition of financial aid awards where additional dollars yield diminishing or no returns? Can we help Louisiana package aid more efficiently by eliminating “overpayment” to some students and shifting that money to students who might otherwise be inclined to drop out?

10. Research questions: Pell Study How does the GO Grant interact with the Pell Grant in terms of impact on student retention? What is the best use of the state’s financial aid investment in TOPS Scholarships and GO Grants?

11. Increasing the gift percentage from <30 percent to 55-<60 percent corresponds to a 26 percentage point increase in the retention rate, while increasing the percentage of need met with gift aid from 55 to <60 percent to 70-<80 percent increases retention by only 4 points.

12. Adding the Go Grant alone increases the percentage of need met with gift aid by 14 percentage points and provides a 5.6 percentage point improvement in retention All pairwise comparisons of means are significant except for retention rate between Pell+TOPS and Pell+GO+TOPS

13. Simulation parameter We repackaged student’s GO Grants in the range of $0 to $4,000 with a target of meeting 55 percent of need with gift aid In some cases, $4,000 grants were not sufficient to bring a group of students up to the 55 percent of need met w/gift target In other cases, totally eliminating their GO Grants did not bring them down to the 55 percent We took the resulting financial aid package for each subset and estimated a new retention rate based on actual historical behavior of students who had received that level of financial assistance with that level of academic preparation

14. The simulation results show that you could increase retention and it would be cost-neutral* Gift %Actual Results (2007-08 and 08-09)Simulated ResultsChange Retention %# StudentsRetention %# StudentsRetention %# Students <30%41%13857%192+16%+54 30-4056%44562%496+6%+51 40-5059%1,03764%1,121+5%+84 50-5563%56765%590+2%+23 55-6072%44267%412-5%-30 60-7069%80869%806---2 70-8074%66474%669--+5 80+81%1,14577%1,083-4%-62 * The simulation at 55% actually projected a two-year savings of $780,000

15. 2012-13 GO Grant Framework Allocation to School Based on Pell Eligible Enrollment from Prior Year First Consider Student’s Eligibility for State and Federal “Gift Aid” Programs, i.e. Pell, SEOG, TOPS If the Combination of these Programs does Not Meet the 55% Threshold, GO Can be Added up to that Threshold. Institutional Aid May be Added Beyond the 55% Threshold Institutions May Implement a Common Award Amount across all COA, Based on COA Categories or Packaged Individually Annual Award Amounts May Range from $500 to $4000

16. Financial Need Living on Campus – 2011-12 Max Pell + TOPS Max Pell COA $ 15,499 $15,499 -EFC * $ 0 $ 0 = Financial Need $ 15,499 $15,499 -Pell Grant $ 5,550 $ 5,500 -TOPS + Stipend $ 4,278(63.4%) $ 0 (35%) =Remaining Need $ 5,671 $ 9,999 - Go Grant $ 0 $ 3,000 (54.8%) Remaining Need $ 5,671 $ 6,999 55% of need = $8,524

17. Financial Need Living on Campus – 2011-12 Min Pell + TOPS Min Pell COA $ 15,499 $15,499 -EFC * $ 5,273 $ 5,273 = Financial Need $ 10,226 $10,226 -Pell Grant $ 555 $ 555 -TOPS + Stipend $ 4,278(47%) $ 0 (5.4%) -Remaining Need $ 5,393 $ 9,671 - Go Grant $ 800 (55%) $ 4,000 (50%) Remaining Need $ 4,593 $ 5,671 55% of need = $5,624

18. How Can Schools Package Go Within Framework Identify Challenges Work Towards Common Solutions Advisory Committee Can Take Lead Task Force Could Be Created LOSFA Can Lend Some Technological Support

19. Early Start Expenditures and Recipients As of August 4, 2011 Notes: (1) The 2008-2009 data only includes state funding for the first half of the year and does not include the cost of the program for the second half of the year that was assumed by the participating colleges and universities. (2) The 2011-12 Academic Year data shows the amount appropriated and projected to be expended for the year and the projected number of recipients. $ in Millions Students

20. Early Start 2011-12 Award Amount Paid for Technical Courses was revised back to $100 per credit hour School Allocations HCR 23 requests a comprehensive study of all dual enrollment programs funded by the state. The results will influence framework changes especially as they relate to TOPS Tech ES and ES. Automation of Early Start Application April, 2012 Via LAConnect 2012-13 Appropriation Request $6,000,000

21. State Matching Funds Grant State Portion of LEAP/SLEAP Program that Remained in Budget for AY 2011-12 Framework Kept Consistent with Former Program Remains in Continuation Budget for 2012-13 Future Uncertain – Could go back to State General Funds – Could be utilized to Supplement GO – Could Continue as Separate Line Item in Budget

22. LOSFA Past, Present and Future Past 45 years as designated Guarantor for LA under FFEL Present Providing services for outstanding loan portfolio Default Prevention, Delinquency Aversion and Default Recoveries Future Provide services to WDF borrowers Operate under Voluntary Flexible Agreement with USDE

23. Federal Register and Solicitation of Proposals Federal Register issued May 31, 2011 Authorizes and Encourages Guaranty Agencies to Submit Proposals for Services under Voluntary Flexible Arrangements (VFA) Solicitation of questions to Federal Register requested by June 9, 2011 Conference call with USDE on questions held June 13, 2011 Deadline for submission of proposals was August 1, 2011

24. GA Responsibility Areas GA Responsibility Area I – Lender Claims Review/Payment and Default Collections GA Responsibility Area II – Delinquency and Default Prevention and Management GA Responsibility Area III – Community Outreach, Financial Literacy and Debt Management, School Training and Assistance, and School Oversight GA Responsibility Area IV – Lender and Lender Servicer Oversight

25. LOSFA’S DECISION  Enter into VFA arrangement with consortium of agencies with similar structure (i.e. state agencies) 1.State-designated College Access and Student Success Agencies (SCASSA)  Twelve state agencies  Develop Common Platform  Default Prevention, Financial Literacy/Outreach, Lender Review 2.Eagle Users Consortium  Five agencies currently on Eagle (SallieMae) platform  Default Prevention, Financial Literacy/Outreach, Lender Review

26. FAO Communication Advisory Committee – 2011-12 New Representatives Bulletins/Blast E-mails – Program Announcements/Changes System Feedback Loop – FAO Feedback Training Webinars – Provided by Scholarship/Grant and Information Technolgy

27. Louisiana Connect Landing Page SLIDE 27