1. INSTITUTIONAL NEED-BASED AID, PERSISTENCE, AND TARGETING SCARCE RESOURCES Marvin Smith, Director of Student Financial Services Beth Barnette Knight, Director Office of Student Scholarships Michele J. Hansen, Executive Director Office of Student Data, Analysis, and Evaluation Enrollment Management Advisory Council (EMAC) February 18, 2015

2. Agenda Marvin: Framing the continued discussion from December 17, 2014 presentation Beth: Historical overview of institutional need based aid programs at IUPUI Michele: Data analysis of institutional aid and programming impact on persistence All: Continued discussion of our institutional need-based aid goals as related to enrollment management 1

3. Questions to Ponder (continued) How much need-based institutional aid do we need to ________? How much support programming do we need to help need-based institutional aid recipients persist and what will it cost? How should we allocate scarce resources? 2

4. Quotable… “To give away money is an easy matter and in any man's power. But to decide to whom to give it and how large and when, and for what purpose and how, is neither in every man's power nor an easy matter.” -Aristotle 3

5. Strategic Enrollment Management and Financial Support “Over the past decade, strategic enrollment management (SEM) has become a major force in the organization and practice of higher education. With limited financial resources for financial aid, institutions must balance the need to attract and admit a freshman class that fits well with the institution and also provide the necessary financial support to allow for diversity in student body. This is not a simple task.” Strategic Enrollment Management — A Guidebook, Educational Policy Institute http://www.educationalpolicy.org/pdf/SEM%20Guide.pdf 4

6. IUPUI Need-Based Aid Strategies “ Get the right money to the right students in the right way at the right time” Make IUPUI affordable for low income and low-to- middle income Indiana families Link need-based aid programs with academic and social supports needed to promote persistence Decrease student debt-load at the time of graduation Create programs which build on existing Federal or State financial aid programs Target ICHE performance funding goals Target improved rankings Target improved persistence 5

7. Key ICHE Performance Funding Metrics Degree completion –At-risk degree completion (Pell Eligible) High impact degree completion (STEM Fields) Persistence On-time graduation (What is the change in a school’s two-year and four-year graduation rates for first-time, full-time students?) http://www.in.gov/che/2772.htm 6

8. Institutional Gift Aid of Peers Selected Peer Group US News Rank Institutional Gift Aid 12-13 Retention Rate* Grad Rate** IUPUI 194$4,81972%42% Ball State 174$5,99178%59% University of South Florida 161$4,32889%63% University of Louisville 161$8,59078%53% Virginia Commonwealth University 156$4,87287%57% University of Illinois at Chicago 149$6,47980%57% University of Alabama at Birmingham 149$6,68380%54% IUPUI Ranklowest Second lowestlowest * Retention Rate: Percent of First-Timers Pursuing Bachelor’s Fall 2012 and Returning Fall 2013 * *Graduation Rate for those who began Fall 2007 Source: College Navigator data 7 NOTE: With about 20,000 IUPUI undergrads receiving financial aid, adding $1,000 of institutional aid to every aid package could cost up to $20,000,000 annually—so a thoughtful, selective process is essential to control expenditures.

9. IUPUI Retained vs Not Retained Fall 2013 First-Time, Full-Time Students (Indianapolis Only) Level of Unmet Need of Retained = $4173.69 VS Level of Unmet Need of NOT Retained = $6688.04 A difference of approximately $2500 Having low levels of unmet financial need or having high levels of socioeconomic status (SES) is associated with Academic Achievement and Persistence for First-Year Beginners Source: Michele Hansen report http://crg.iupui.edu/Portals/133/PropertyAgent/15158/Files/702/Hansen- IUPUI%20Retained%20Students%20Compared%20to%20Not%20Retained%20Students%202013%20Cohort.pdfhttp://crg.iupui.edu/Portals/133/PropertyAgent/15158/Files/702/Hansen- IUPUI%20Retained%20Students%20Compared%20to%20Not%20Retained%20Students%202013%20Cohort.pdf 8

10. IUPUI Retained vs Not Retained If the campus were to decide to create a $2500 grant to similar students to offset that amount of financial need in an attempt to improve retention, then $2.7 million in additional funding for each cohort would be required to raise the Not Retained to the same level as Retained ($2.7M X 4 cohorts = $10,800,000) This example was used only to demonstrate how costly it can be to begin to address unmet financial need Any future IUPUI need-based grants would have to designed based on affordability, target population, and enrollment goals 9

11. Remember the dilemma… IUPUI is a “college of choice” for low income students in Indiana by many measures Students facing unmet financial need must make difficult choices… –Work more? –Study less? –Borrow more? –Increase credit card debt? –Don’t pay bills? –Don’t enroll? –Drop a class? –Drop out? 10

12. Beth Barnette Knight Historical overview of institutional need based aid programs at IUPUI 11

13. Estimated Undergraduate Institutional Aid for AY2014-15 12 23% of Institutional Aid is for Financial Need-based Awards

14. IUPUI Pell Pledge Grant To be eligible, the student must:  Be a resident of the state of Indiana  Have received the award in a prior aid year or be a first time college student  Apply by submitting the Free Application for Federal Student Aid (FAFSA) by the priority deadline of March 10 for the appropriate aid year and meet federal student aid programs requirements (e.g. U.S. Citizen or eligible non-citizen)  Have minimum SAT score of 1000 (Math and Critical Reading sections only) or ACT score of 21  Be enrolled full-time (12 semester credit hours or more) at the end of the 100% refund period for the semester it is awarded  Be eligible to receive Federal Pell grant Recipients must maintain a 2.5 cumulative GPA  Award amount ranges from $200 - $1000 based on unmet need. (The average award amount this year was $960)  Currently this population receives no support programming 13

15. Number of Pell Pledge Recipients and Total Amount Awarded by Year Academic YearNumber of AwardsAvg. Award Amt. Dollars Spent 2008-09 16$1,754 $28,065 2009-10 43$2,358 $101,393 2010-11 66$1,811 $119,537 2011-12 82$1,796 $147,285 2012-13 70$932 $65,244 2013-14 156$931 $145,175 2014-15 190$960 $182,311 14

16. IUPUI 21st Century Scholars Grant Designed to help meet the remaining financial need for 21st Century Scholars who enroll full time To be eligible students must be receiving 21st Century Scholarship funds from the state of Indiana and have a FAFSA on file by the priority deadline of March 10th Students who meet eligibility are automatically awarded Eligible recipients:  Have received the award in a prior aid year or be a first time college student  Must be enrolled in a four-year degree seeking program of study  Must be enrolled full-time (12 semester hours or more)  Must maintain a 2.5 cumulative GPA  Must attend the IUPUI Summer Bridge Academy  Must meet Satisfactory Academic Progress (SAP) guidelines Awards range from $200 to $2,000 depending upon unmet need (The average award amount this year was $1,730) 15

17. Number of 21 st Century Scholars Grant Recipients and Total Amount Awarded by Year Academic YearNumber of AwardsAvg. Award Amt. Dollars Spent 2008-09163$3,850 $627,599 2009-10282$4,042 $1,139,801 2010-11380$2,631 $1,000,150 2011-12471$2,720 $1,280,961 2012-13482$1,831 $882,367 2013-14870$1,829 $1,590,765 2014-151,218$1,730 $2,107,174 16

18. IUPUI and IUB Grant Award Comparison 17 Basic Award Eligibility Criteria2008200920102011201220132014 Maximum Award Amounts by Year IUPUI 21st Century Grant Must receive state 21st Century Grant. Be enrolled fulltime, maintain satisfactory academic progress (SAP) and maintain a 2.0 cumulative GPA. Meet all unmet need up to COA (no cap) Award capped at $5000 Award capped at $3000 Award capped at $2000 Pell Pledge Must receive Federal Pell Grant. Have a minimum SAT score of 1000 or ACT of 21. Must be enrolled fulltime and maintain a 2.5 Cumulative GPA. Meet all unmet need up to full tuition and mandatory fees (no cap) Award capped at $3000 Award capped at $2000 Award capped at $1000 IUB 21st Century Covenant Must receive state 21st Century Grant. Be enrolled fulltime, maintain satisfactory academic progress (SAP). Meet all unmet need up to COA (no cap), including books, room, board, transportation and personal up to the amount of financial need (no cap) No change in award max. Pell Promise Must receive Federal Pell Grant. Have a minimum SAT score of 1200 or ACT of 27. Must be enrolled fulltime and maintain a 3.0 Cumulative GPA. Meet all unmet need up to full tuition and mandatory fees (no cap) No change in award max.

19. Michele Hansen Data analysis of institutional aid and programming impact on persistence 18

20. First-Time, Full-Time Beginners 19

21. Annual Unmet Financial Need and One-Year Retention 20 Analyses include only students who completed FAFSA

22. Unmet Financial Need Unmet Financial Need Academic Year Fall 2013 Full-Time Beginners FAFSA Completers NOne-Year Retention IUPUI IN No FAFSA on file 31573% No Unmet Financial Need (FAFSA on file) 81378% $1 to $1000 Unmet Need 22473% >$1000 to $2000 Unmet Need 12575% >$2000 to $3000 Unmet Need 24175% >$3000 to $4000 Unmet Need 16265% >$4000 to $5000 Unmet Need 15672% >$5000 to $6000 Unmet Need 16873% >$6000 to $7000 Unmet Need 14964% >$7000 to $8000 Unmet Need 14769% >$8000 to $9000 Unmet Need 12058% >$9000 to $10,000 Unmet Need 13750% >$10,000 Unmet Need 49541% Total 325267% 21

23. Peer Institutions Retention 2012, Four-Year Graduation and Six-Year Graduation 2007 First-Time, Full-Time Beginners Bachelor Degree Seeking Peer InstitutionsOne-Year Retention Four-Year Graduation Six-Year Graduation University at Buffalo - SUNY88%52%72% Temple University89%39%66% Univ. of South Florida89%36%63% Univ. of Illinois-Chicago80%30%57% Virginia Commonwealth87%30%57% Univ. of Alabama-Birmingham80%29%53% Univ. of Cincinnati85%25%63% Univ. of Louisville78%25%53% Univ. of Utah88%24%60% Univ. of Colorado-Denver75%16%41% Univ. of New Mexico78%15%48% IUPUI72%15%42% Wayne State University77%11%32% Source: National Center for Education Statistics http://nces.ed.gov/collegenavigator/?q=IUPUI&s=IN&id=151111#retgrad 22

24. Pell Grant Recipients (SES indicator) 23

25. Pell Grant and Pell Pledge Recipients 24

26. Pell Grant First-Time, Full-Time Beginners 25

27. First-Time, Full-Time Beginners 26 Note: In 2008 students received a higher award value

28. Characteristics of Students Receiving Pell Grant Institutional Aid Compared to Students Receiving Pell Grant Pell Institutional Aid Recipients significantly (had significantly): Higher levels of Unmet Financial Need Annual ($7,072 compared to $6,860) Higher SAT scores (1096 compared to 967) Higher HS GPAs (3.47 compared to 3.31) Less likely to be African American (2% compared to 18%) Less likely to be Female (55% compared to 65%) Less likely to be First Generation (38% compared to 53%) Less likely to be 21 st. Century Scholar State Fund Recipient (6% compared to 35%) Higher One-Year Cumulative IU GPA (2.78 compared to 2.40) 27 *Figures based on 2013 cohort; these aspects were consistently different based on analyses conducted for each cohort year.

29. Pell Pledge Institutional Aid Recipients and Summer Bridge: One-Year Retention Rates 28

30. 21 st Century Scholars 29

31. 21 st Century Scholars 30

32. 21 st Century Scholars State Grant Recipients and Institutional Grant Recipients: One-Year Retention Rates (IUPUI IN) 31

33. 21 st Century Scholars Institutional Grant Recipients and Peer Mentoring: One-Year Retention Rates 32

34. 21 st. Century Scholars Institutional Grant Recipients and Summer Bridge: One-Year Retention Rates 33

35. 21 st Century Scholars Institutional Grant Program Participants: One-Year Retention Rates 34 Differences in one-year retention rates significantly different based on logistic regression results. HS GPA, SAT Score, Registration Date and Unmet Financial need entered in first step of model as covariates.

36. Logistic Regression: 21 st Century Scholar Institutional Grant Academic Support Program Participation and One-Year Retention BS.E.WaldSig.Odds Ratio Step 1HSGPA.63.228.27.0041.87 SAT Score.00 3.04.0811.00 Registration Date.01.002.70.1011.01 Unmet Financial Need Annual.00 86.44.0001.00 Step 2 HSGPA.62.228.01.0051.86 SAT Score.00 3.39.0661.00 Registration Date.00 1.18.2781.00 Unmet Financial Need Annual.00 75.34.0001.00 No Summer Bridge or Peer Mentoring -.48.168.79.003.62 35

37. Characteristics of Students Receiving 21 st Century Scholar Institutional Grant Program Participants Compared to Nonparticipants (No Peer Mentoring or Summer Bridge) 21 st Century Scholar Institutional Grant Program Participants (Summer Bridge and/or Peer Mentoring) had significantly: Lower Levels of Unmet Financial Need Annual ($3,496 compared $5,584) Higher HS GPAs Earlier Registration Times Higher One-Year Cumulative GPAs (2.53 compared to 1.92) *Figures based on 2013 cohort; these aspects were different based on analyses conducted including students from all cohort years. 36

38. 21 st Century Scholars NOT Institutional Grant Recipients and Summer Bridge: One-Year Retention Rates 37

39. Characteristics of Students Receiving 21 st Century Scholar Institutional Grant Program Participants Compared to 21 st Century Scholar State Fund Recipients 21 st Century Scholar Institutional Grant Program Participants had significantly: Higher Levels of Unmet Financial Need Annual ($4,038 compared $2,714) Earlier Registration Times No significant differences in gender, ethnicity, academic preparation *Figures based on 2013 cohort; these aspects were consistently different based on analyses conducted for each cohort year. 38

40. 2013 Beginners: 21 st Century Scholar State Aid and Federal Pell Grant Recipients N=3490 39 Federal Pell Grant NoYesTotal 21st Century Scholar State Aid No 19459712916 Yes 61513574 Total 200614843490

41. Ideas for Discussion With record growth of 21 st Century Scholars, should we expand institutional financial support for these students? How will required programming be expanded? Should we expand Pell Pledge program? Should we require programming (and the funding for the programing)? Should we consider a new “low-to- middle income” aid program for students that can only borrow $5500 to assist with rest of tuition/fees? 40

42. How Much Need-Based Institutional Aid does IUPUI Need? Current need-based programs (IUPUI Pell Pledge and IUPUI 21st Century Scholars Grant) need to be funded at higher levels to maximize effectiveness and increase participation in support programming If IUPUI were to agree that we should offer as much need-based aid as we do in merit-based in-state scholarships (approximately $8M), then we would need to add approximately $5M to our need-based aid budget This budget increase would allow us to double our spending for both of our current grant programs while also establishing another grant program to help offset financial need for another target population 41