“Colleges and universities have never been as important as they are today. Economic competitiveness depends upon a state’s ability to educate and train its citizens and attract and retain talent.” National Governors Association Center For Best Practices The Knowledge Economy

Education Earnings Source: Education Pays 2004, College Board

Average Annual Income for Families by Educational Attainment of Householder to 2004 Source: Postsecondary Education Opportunity 2004

Source: Louisiana: Featured Facts, 2005, SREB Projected Increases in Job Openings by Education or Training Required - United States, %

The Array of Benefits of Higher Education Increased tax revenues Greater productivity Increased consumption Increased workforce flexibility Decreased reliance on government financial support PublicPrivate Economic Social Reduced tax revenues Increased charitable giving/community service Increased quality of civic life Improved ability to adapt to and use technology Higher salaries and benefits Employment Higher savings levels Improved working conditions Improved health/life expectancy Improved quality of life for offspring Better consumer decision- making

Source: U.S. Census Bureau, ACS 2003 Population with a Bachelor’s Degree or Higher 32, , , , , , , , ,000 -  15%  25%  20%  30%  40%  35% Per Capita Income No state with a low proportion of Bachelor’s degrees has a high per capita income. No state with a high proportion of Bachelor’s degrees has a low per capita income. ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ WV CT ID AR KY MS AL OK LA NM TN IN NV SD MT ND NC SC TX AZ WY OH IA UT FL MI PA WI ME OR GA MO NE WA VT HI KS VA CA IL DE AK RI MN NH NY NJ MD MA CO Per Capita Income vs. Share of Adult Population with a Bachelor’s Degree or Higher (2003)

Source: US Census data: American Community Survey, 2005 Highest Educational Attainment of Population 25 Years and Older in 2005 %

Per Capita Personal Income as a Percent of U.S. Average— Louisiana, Source: U.S. Census Bureau; Statistical Abstract of the United States, 2003

Louisiana Expenditures Per Capita (2002) National Rank Health and Hospitals 4 th Prisons14 th Higher Education39 th Elementary/Secondary Education43 rd Highways41 st

“To close the economic gap, Louisiana must close the education gap.” Source: Miles to Go, Southern Education Foundation (2006)

Main Points: The economy is rapidly changing. Economic prosperity (employment opportunity, competitive salaries, progressive public investments) is dependent on knowledge-based jobs. The Issue: Louisiana’s ability to compete in this economic environment demands ever larger numbers of highly-trained and educated workers.

Recent Progress

Public High School Graduation Rates* % US LA US LA (49 th ) Source: Postsecondary Education Opportunity, July 2006 *Total Regular Diploma Recipients / 9th Grade Enrollment = H.S. Graduation Rate (33 rd )

% US LA USLA (45 th ) Source: Postsecondary Education Opportunity, July 2006 Chance for College by Age 19* *Public High School Graduation Rate x College Going Rate (32 nd )

Degrees Awarded Change Certificate/Diploma 3,211 20%* Associate: 2,730 4,459 63% Baccalaureate: 14,880 17,537 18% Master’s 3,933 5,034 28% Doctorate % Professional % *LTC data were incorporated in The increase in certificates/diplomas awarded is for the two-year period Source: Board of Regents data

Educational Attainment Population 25 and Older Associate’s Degree: 3.1% 5.0% Bachelor’s Degree: 12.4%13.4% Graduate/Professional 6.8% 7.1% Source: U.S Census data

Public Postsecondary Enrollment Growth Pre-Katrina/Rita *Includes LA Technical College, SOWELA and Fletcher 210,484* 214,744*

Postsecondary Enrollment Growth Post Katrina/Rita Note: through totals include LA Technical College, SOWELA and Fletcher 210, ,744 Source: Board of Regents data

Louisiana High School Graduates and Post-Katrina Projections Source: Projection of Total Number of Louisiana High School Graduates for School Years TO ; Education Estimating Conference, January 2007 Actual Projected Katrina/Rita Impact }

Hurricane Impact on Enrollment Source: Student Displacement in Louisiana After the Hurricanes of 2005: Experiences of Public Schools and Their Students, 2006, Rand. Returned to original schools without enrolling elsewhere in Louisiana Returned to original schools after having enrolled elsewhere in Louisiana Did not return to original schools but enrolled in other Louisiana schools Did not enroll in any Louisiana public school 65,397 11,863 41,870 52,978 Displaced Public School Students

To recover and improve economically, Louisiana must expand the participation of our remaining population in higher education: Traditional Pathway Non-traditional Pathway

“The data make it very clear that the largest pool of potential college students is the population of low- and moderate-income youth who do not complete high school college-qualified.” Postsecondary Education Opportunity, March 2007

“The federal Advisory Committee on Student Financial Assistance estimates that cost factors prevent 22 percent of college-qualified high school graduates from attending college.” Empty Promises: The Myth of College Access in America, Advisory Committee on Student Financial Assistance, 2002

Family Income Affects Chance for College Source: The Pell Institute, Indicators of Opportunity in Higher Education Income categories are broken down as follows: low-income—under $25,000; middle-income—$25,000 to $74,999; and high-income—$75,000 and above.

College Participation Rates by State for Students from Low-Income Families – FY2005 Source: Postsecondary Education Opportunity, February 2007

Bachelor’s Degree Attainment of 8 th Graders by Family Income % Source: Analysis of National Education Longitudinal Study of 1998/2000

Children in Louisiana, by Family Income Level Source: National Center for Children in Poverty, 2006 >200% FPL % FPL <100% FPL 24% 52% Above low income 52% Low income 48% (National: 39%)

LA Approval Rates for Free and Reduced- Priced School Lunches – FY FY2005 % Source: Postsecondary Education Opportunity, February 2007

Louisiana Children in Low-Income Families, by Residence % (129,891) (146,688) (69,575) Source: National Center for Children in Poverty, 2006

Primary obstacles to access and success for low- and moderate- income students: –Inadequate academic preparation –Insufficient information, guidance and encouragement –Unmet financial need

Overall Affordability Rankings: 1.New Hampshire 2.Oklahoma 3. Louisiana 4.Mississippi 5.Georgia 6. North Dakota 7. Kentucky 8. Idaho 9. Utah 10. Wisconsin Educational Policy Institute (2006)

Affordability 2006 Source: Measuring Up 2006

Affordability 2006 Source: Measuring Up 2006

Adults

Louisiana Adult Participation in Postsecondary Education –2.3% of working population (47 th ) Source: National Center for Public Policy and Higher Education

Storm Impact on Enrollment of Students Aged 25 and Over *Includes LA Technical College, SOWELA and Fletcher

Loan Debt

Student Loan Debt “At public universities, debt levels for graduating seniors with student loans has more than doubled in the past decade.” Project on Student Debt, National Center for Education Statistics (NCES), 2006

Percentage of Bachelor’s Degree Recipients Who Borrowed for Their Undergraduate Education, % Source: Choy and Li, 2005

Student Loan Debt At public universities, debt levels for graduating seniors with student loans more than doubled, from $8,000 to $17,251, over the past decade (108% increase). Louisiana’s average student loan debt: $18,751 (12 th in nation)

Student Loan Debt Selected debt examples: Grambling$30,00085 LSU-BR 19,25849 La. Tech 15,86182 Nicholls 12,73848 Northwestern 17,44268 Southeastern 12,52758 Southern-BR 23,00090 UNO 22,27236 Avg. Graduate Debt ( ) % of Graduates with Debt ( )

“The most efficient way for a state to expand access to postsecondary education is to increase its investment in need-based grant aid.” Expanding College Access: The Impact of State Finance Strategies, Lumina (2004) “Need-based grants have a positive association with high school graduation rates and a substantial positive influence on college enrollment rates.” Perne and Titus (2002)

“Lack of financial aid is one of the major barriers preventing low-wage workers from enrolling in and successfully completing postsecondary education.” Lumina Foundation for Education “Low-income adults receive less overall financial assistance and fewer grants than tradition-age students…Yet the majority of state financial aid policies are also not well suited for adult workers. Workforce Strategy Center, December 2006

Distribution of State Grant Aid, Source: National Association of State Student Grant Aid Programs 2004 Total need-based state undergraduate aid Total non-need-based state undergraduate aid 26% 74% U.S. Average

Distribution of State Grant Aid, Source: National Association of State Student Grant Aid Programs 2004 Total need-based state undergraduate aid Total non-need-based state undergraduate aid 24% 26% 74% Louisiana U.S. Average 98.7% 1.3%

Undergraduate Grant Dollars/FTE State Rankings Louisiana Merit-Based: $640 – 13 th Need-Based: $8 – 47 th Source: USDOE, National Center for Educational Statistics (NCES) Integrated Postsecondary Data System (IPEDS), 2004

Louisiana Need Based Financial Assistance Program for Low- and Moderate-Income Students Louisiana “GO Grant”

Simple plan to improve college access for targeted population and reduce student loan debt Shared responsibility Targeted at low/moderate- income and low-participating adults and high school graduates

Eligibility Criteria

Enrollment Criteria Louisiana resident Admitted and enrolled as a certificate- or degree-seeking undergraduate student At a Louisiana public or private (LAICU) college or university: –As a first time freshman or –Aged 25 or older and not enrolled in a college or university in credit bearing courses for at least three years

Financial Need Criteria Financial need is based on information reported on the Free Application for Federal Student Aid (FAFSA) Student must be awarded the federal Pell grant (includes calculation of Expected Family Contribution) Student must have an Education Cost Gap (ECG) (unmet need) greater than zero

ECG for Full-time Students Tuition and mandatory fees $2,000 for textbooks, supplies, materials and other related education expenses Louisiana Basic College Cost (LBCC) LBCC Federal grants (Pell, ACG) Education Cost Gap (ECG) + - = =

ECG for Part-time Students Tuition and mandatory fees $1,000 for textbooks, supplies, materials and other related education expenses Louisiana Basic College Cost (LBCC) LBCC Federal grants (Pell, ACG) Education Cost Gap (ECG) + - = =

Award Amount Annual award of –$2,000 for fulltime students –$1,000 for part-time students

Renewal Eligibility Criteria Student eligibility will be reevaluated annually, using the ECG formula, for students with continued Pell eligibility who meet satisfactory academic progress (consistent with federal guidelines)

Projections Approximately 10,000 eligible first-time freshmen – 25% of incoming class Additional 1,000 students (estimated) aged 25 and older who have been out of school 3 years

Louisiana Pell Grant Recipients Four-Year Institutions Grambling LSU-BR LSU-Alexandria LSU-Shreveport La. Tech McNeese Nicholls Northwestern Southeastern Southern-BR SUNO UL-Lafayette UL-Monroe UNO Percentage of First- time, Degree-Seeking with Pell ( ) Number of First-time, Degree-Seeking with Pell ( )

Louisiana Pell Grant Recipients Two-Year Institutions BRCC74 1,152 BPCC Delgado55 1,433 La. DeltaN/A L.E. Fletcher LSU-Eunice LTC 54 2,176 Nunez RPCC SLCCN/A SU-Shreveport Sowela Percentage of First- time, Degree-Seeking with Pell ( ) Number of First-time, Degree-Seeking with Pell ( )

Pell Grant Participation Rate for Dependent Undergraduates by Parental Income Source: Postsecondary Education Opportunity, March 2007 Louisiana Median Household Income $36,729

“Helping more Americans earn a degree is not only important for our economic standing, it’s essential to reinforcing what our country stands for.” Secretary of Education Margaret Spellings, March 2007

Source: US Census data: American Community Survey, 2005 Highest Educational Attainment of Population 25 Years and Older in 2005 %