1. Louisiana’s First Choice for College Access Louisiana Postsecondary Education Review Commission December 14, 2009 Presented By: Melanie Amrhein Executive Director

2. Student Aid Sources Federal 2 Institutional State

3. Statutory Bodies Responsible for Student Financial Aid Louisiana Board of Regents is responsible for the formulation of financial aid policy as it relates to the state’s tuition policy and Master Plan for Higher Education (Act 695 of the 2004 Regular Session of the Louisiana Legislature) 3 Louisiana Student Financial Assistance Commission administers assigned state and federal scholarship programs and the Federal Family Education Loan Program (FFELP) within the BOR (Act 409 of the 2009 Regular Session). Composition represents all higher education management boards, the Governor’s Office, Board of Elementary and Secondary Education, Board of Regents, LA Association of Independent Colleges and Universities and the Louisiana banking community. Louisiana Office of Student Financial Assistance is responsible for performing the functions of all programs assigned its two governing bodies.

4. History of State Grant Aid in Louisiana 1939 – 2000T.H. Harris Scholarship 1975 – PresentLA LEAP Grant (SSIG) 1989 – 1998Tuition Assistance Plan (TAP) 1992 – 1998LA Honor Scholarship 1998 – PresentTOPS 2007 – PresentLA GO Grant 2007 – PresentEarly Start (Dual Enrollment) 4

5. Louisiana Office of Student Financial Assistance Programs Administered SGF – State General Fund SD – Statutory Dedication Fed – Federal Funds 5 Programs Currently FundedType Current Appropriation Type of Program Louisiana Go GrantSGF$34,226,000Need Based Aid Early StartSGF$6,500,000Dual Enrollment Rockefeller State Wildlife Scholarship SD$60,000Loan Forgiveness TOPSTaylor Opportunity Program for Students SGF SD $107,963,639 $21,904,501 Merit Based Aid– LEAPLeveraging Educational Assistance Partnership SGF Fed $445,165 $1,024,687 Need Based Aid-SLEAPSpecial Leveraging Educational Assistance Partnership SGF Fed Go Grant Match $481,694 Need Based Aid- HCELPHealth Care Educators Loan Program (MOU with BOR) SGF$2,000,000Loan Forgiveness–

6. 2009-2010 Appropriation 6

7. Aid based on Need Aid based on Need and Merit Aid based on Merit Special Purpose 7 Financial Aid Comparisons (Based on 2007-2008 NASSGAP Data)

8. Financial Aid Overview Cost of Attendance (COA) -Expected Family Contribution (EFC) =Financial Need -Aid and Resources = Remaining Financial Need 8

9. Cost of Attendance (COA) – set by school –Tuition and Fees –Books and Supplies –Room and Board –Transportation –Personal Expenses National Average for 4 year public = $17,417 Louisiana Public 4-Year Average = $15,514 National Average for 2 year public = $13,126 Louisiana Public 2-Year Average = $ 9,160 Financial Aid Overview 9

10. Expected Family Contribution (EFC) Ability to Pay o Parent’s Contribution (If Student is Dependent) o Student’s Contribution Determined by Free Application for Federal Student Aid o Income o Assets o Savings o Family size/Number in college o State of Legal Residence Financial Aid Overview 10

11. Grant Aid and Resources Need Based Aid – Provides access to postsecondary education to students whose ability to pay is limited o Federal Pell Grant o Federal Academic Competitiveness Grant o Federal SMART Grant o State Grants Merit Based Aid – Provides a Reward for Talent/ Achievement /Ability/Other Non-Financial Criteria o State Scholarships o Institutional Scholarships o Private Scholarships Financial Aid Overview 11

12. 62,659 Louisiana Undergraduates Received Pell Grant Public Colleges and Universities (2007-2008) Mean $2,873 Median $3,060 Mode $4,310 Maximum Pell Grant for the 2007-2008 Award Year was $4,310. 12

13. Pell Grant Maximum Payment 13

14. Pell Grant Maximum Payment and Tuition and Fees Comparison The Nation and South data is enrollment weighted, current dollars tuition and fees for public four- year schools for the nation and College Board southern region respectively. The source of the data is The College Board Annual Survey of Colleges. 14 Max Pell Award Nation SouthLouisiana 4-year Public

15. Taylor Opportunity Program for Students (TOPS) Act 1375 of the 1997 Regular Session of the Louisiana Legislature Merit Based Scholarship Program Award pays amount equal to public tuition & certain fees 15

16. TOPS Academic Awards Award Name Minimum Required HS GPA (Core) Minimum ACT Composite (Based on State Average) Required Curriculum Award Value 8 Semesters or 12 Quarters Opportunity2.52017.5 Credits Prescribed College Prep Amount equal to tuition and some fees Performance3.02317.5 Credits Prescribed College Prep Amount equal to tuition and some fees plus $400 stipend Honors3.02717.5 Credits Prescribed College Prep Amount equal to tuition and some fees plus $800 stipend 16

17. TOPS Technical Award Award Name Minimum Required HS GPA (Core) Minimum ACT CompositeRequired Curriculum Award Value 2 Years TOPS Tech2.517 Option 1 – 17 credits Technical Core Option 2 - 19 credits With career option plan Option 3 – 17.5 credits Regular TOPS Academic Core Tuition at an eligible technical college 17

18. *Total Awards to students since inception, including 23,509 awards in Academic Year 1998-99, 29,120 in 1999-2000, 35,726 in 2000-2001, 40,856 in 2001-2002, 40,114 in 2002-2003, 41,044 in 2003-2004, 42,461 in 2004-2005, 42,503 in 2005-2006, 43,602 in 2006-2007, 42,122 in 2007-2008, 42,164 in 2008-2009, and 41,288 in 2009-2010 as of November 20, 2009. **Includes TOPS Tech Early Start TOPS Paid by School Type (Cumulative as of November 20, 2009) School Type Cumulative Awards to Students* Cumulative $ % of Total Awards % of Total Dollars 2 & 4 Year Public Colleges and Universities 400,793$1,068,751,28587.4%89.8% LCTCS Schools15,773$16,463,2923.4%1.4% Private Colleges and Universities 41,821$105,265,1749.1%8.8% Proprietary Schools18$4,5540.0% Totals**458,405*$1,190,484,305100.0% 18

19. Growth in TOPS Expenditures and Recipients As of October 30, 2009 Note: The 2009-10 Academic Year data shows the amount appropriated and projected to be expended for the year and the number of recipients to date. $ in Millions Students 19

20. Ethnicity of TOPS Recipients 20

21. TOPS Funding 54.067.490.2104.0104.6110.5117.1116.9120.6116.6122.8129.9 21

22. TOPS Legislation by Session Legislative SessionBills FiledBills Enacted 1997Regular Session11Act 1375 1998 Regular Session00 1st Extraordinary Session 141Act 165 1999Regular Session317Acts 438, 777, 805, 1196, 1295, 1302, HCR 328 2000 Regular Session20 1st Extraordinary Session 136Acts 69, 73, 105, 110, 133, SR 31 2nd Extraordinary Session 00 2001 Regular Session468 Acts 351, 1042, 1053, 1144, 1192, 1202, 1221, SCR 131 1st Extraordinary Session 00 2nd Extraordinary Session 21Act 9 2002 Regular Session00 1st Extraordinary Session 00 2003Regular Session2911 Acts 63, 81, 214, 220, 393, 401, 1121, 1235, 1237, HCR 213, HSR 16 22

23. TOPS Legislation by Session (cont) Legislative SessionBills FiledBills Enacted 2004 Regular Session296Acts 472, 507, 625, 800, 804, HCR 266 1st Extraordinary Session 00 2005 Regular Session115Acts 105, 194, 348, 412, HR 108 1st Extraordinary Session 42Act 64, 65 2006 Regular Session70 1st Extraordinary Session 00 2nd Extraordinary Session 00 2007Regular Session32Acts 372, 412 2008 Regular Session144Acts 19, 652, 754, HR 150, SCR 97 1st Extraordinary Session 00 2nd Extraordinary Session 00 2009Regular Session73Act 232, HCR 180, SCR 68 Total21357 23

24. 2008-2009 TOPS and Go Grant Comparison TOPS 41,664 Students $122,860,288 Go Grant 16,015 Students $25,901,289 TOPS and Go Grant 4,898 Students $9,104,871 Go Grant $13,388,118 TOPS 24

25. Louisiana Go Grant Approved in 2007 by Joint Education Committees as part of the State Financial Aid Policy Need Based Aid Program Provides supplemental funding to help meet basic college costs 25

26. Go Grant Eligible Recipients Entering first time freshmen and designated re- entering “non-traditional” students (25 or older) were 1 st eligible cohort New first time freshmen cohorts are added annually –2009-10 marks third year and third cohort 26

27. Go Grant Funding/Students Year Appropriation (Spent) Students Awarded 2007- 2008 $15,000,000 ($16,992,769) 11,062 2008-2009 $24,226,000 ($26,026,000) 15,922 27

28. Go Grant Framework –Must receive a Pell Grant –Must be in eligible cohort –Must meet institution’s requirements for Admission and Satisfactory Academic Progress Full-time tuition and mandatory fees + $2000 (Education Cost Allowance) = Louisiana Basic College Cost (LBCC) -Student’s FT Federal Pell Grant Amount = Education Cost Gap (ECG) The ECG was developed as an indicator of a student’s basic financial need. 28

29. Go Grant Framework Prior to 2009-10, students with any ECG above 0 would receive a full award based on enrollment status: –Full Time = $2,000 –Half-time = $1,000 –Part-time = $ 500 The award would then be added to the student’s “Aid and Resources” in their Institutional Cost of Attendance (COA) 29

30. Cost of Attendance (COA) Set by each institution for determining federal aid eligibility National Average for 4 year public = $17,417 Louisiana Average for 4 year public= $15,514 National Average for 2 year public = $13,126 Louisiana Average for 2 year public = $ 9,160 30

31. Go Grant Calculation Examples 4 Yr Public COA=$19,436 EFC=$0 Pell=$4,731 Unmet Need=$14,705 Go Award=$2,000 4 Yr Public LBCC=$7,005 Pell=$4,731 ECG=$2,274 Go Award=$2,000 2 Yr Public LBCC=$3,854 Pell=$3,750 ECG=$ 104 Go Award=$2,000 2 Yr Public COA=$11,220 EFC=$3,300 Pell=$3,750 Unmet Need=$4,170 Go Award=$2,000 31

32. Go Grant Revisions Original projections predicted a needed appropriation of $41,608,000 for 4 th year cohort Funding shortfall occurred in 2008-09 (2 nd year) Due to “level funding” for 3 rd year, major changes were made to the program 32

33. Go Grant Funding/Students 2009-2010 (Framework Change) $24,226,000 + 10,000,000 20,401 (Projected) 2010-2011 (Retaining Framework) $34,226,121 (Budget Request) 23,710 (Projected) 33 Year Appropriation (Spent)Students Awarded 2007 - 2008 $15,000,000 ($16,992,769) 11,062 2008 - 2009 $24,226,000 ($26,026,000) 15,922

34. 2009-10 Change to Framework ECG became the actual award amount (capped at 2000) Minimum award was set at $200 Maximum award was set for each enrollment status: –Full-Time Max = $2,000 –Half-time Max = $1,000 –Part-time Max = $ 500 34

35. Go Grant Calculation Examples 4 Yr Public LBCC$7,225 - Pell-$5,350 = ECG=$1,905 Go Award=$1,905 COA$19,436 4 Yr Public LBCC$7,005 - Pell-$4,731 = ECG=$2,274 Go Award=$2,000 2 Yr Public LBCC$3,854 - Pell-$3,750 = ECG=$ 104 Go Award=$2,000 2 Yr Public LBCC$3,947 - Pell-$3,900 = ECG=$47 Go Award=$0 COA=$11,220 2008-20092009-2010 35

36. Go Grant Recipients by School Type Data as of 12/3/09 36

37. Ethnicity of Go Grant Recipients 37

38. Other Student Aid Other Federal Grant Programs Student Loans 38

39. Students Completing Rigorous HS Curricula for ACG 2007-2008 Undergraduate FTE State Designated (TOPS/Regents Core) Total (includes Honors and Federally Defined Coursework) IOWA 175,964 15965811 KENTUCKY (SREB) 174,782 1693 7140 LOUISIANA (SREB) 167,252 55477390 OKLAHOMA (SREB) 151,840 35415485 S. CAROLINA (SREB) 158,663 29567896 39

40. Student Loans Borrowing Limits Per Year Dependent Students Freshmen$3,500 Subsidized $2,000 Unsubsidized Sophomore$4,500 Subsidized $2,000 Unsubsidized Other Undergrad$5,500 Subsidized $2,000 Unsubsidized Independent Students Additional $4,000 Unsubsidized 40

41. Louisiana Federal Family Education Loan Program (FFELP) and Direct Loan Program $ 854,187,337 $21,323,217 $ 865,627,866 $ 31,883,410 41 186,552 Loans 5,723 Loans 179,533 Loans 8,587 Loans

42. Percentage of 2008 Graduates with Debt and Average Debt Level Source: Student Debt and the Class of 2008, The Project on Student Debt, December 2009. Note: According to the report, these figures may understate average debt levels by as much as $5,000 and the percentage of students with debt by as many as 12 percentage points due to data limitations. Nation: 67% of students graduating from four-year colleges and universities had student loan debt with an average debt level of $23,200. Louisiana: 49% of students graduating from four- year colleges and universities had student loan debt with an average debt level of $17,827. 42

43. Case Studies Student #1Student #2 Parent Income$ 29,000$110,000 Taxes Paid (est)$ 4,350$ 27,500 Assets$ 0$ 25,000 Family Size /Number in College 5/2 EFC 07,403 43

44. Financial Need Comparisons 4-yr Public *EFC = 0 – 4617, student qualifies for Pell Grant of $5350 - $976 **Academic Competitiveness Grant 1 st year award = $750, 2 nd year award = $1300 Sunsets in academic year 2010-11. 44 Student #1Student #2 COA $19,436 - EFC $0$7,403 = Financial Need $19,436$12,033 - Pell Grant* $5,350$0 -ACG** $750$0 -TOPS $3,668 - GO Grant $1,905$0 = Remaining Need $7,763$8,365

45. Financial Need Comparison 2 Yr Community College *EFC = 0 – 4617, student qualifies for Pell Grant of $5350 - $976 **Academic Competitiveness Grant 1 st year award = $750, 2 nd year award = $1300 Sunsets in academic year 2010-11. 45 Student #1Student #2 COA $11,220 - EFC $0$7,403 = Financial Need $11,220$3,817 - Pell Grant* $5,350$0 -ACG** $750$10 -TOPS $1,602 - GO Grant $0 = Remaining Need $3,518$2,215