Making College Possible Grant and Scholarship Aid in California Hans Johnson Public Policy Institute of California Supported with funding from the College Access Foundation of California and the Donald Bren Foundation
Grants and scholarships are essential to many Californians College remains the best path to economic gains But it has become more expensive The majority of California s K 12 students are poor or near poor Aid allows many students to attend and complete college 2
Outline Sources of grant aid How important is grant aid? Policy and program challenges 3
Aid comes from various sources Major sources include Federal government State government Institutional grants offered by colleges Private scholarships Merit scholarships vs. need-based aid 4
Most aid is provided by federal and state governments 100% Distribution of total aid 75% 50% 25% 27% 7% 23% 6% 37% Institutional Aid Private Scholarships Local Aid State Aid Other Federal Aid Pell Grants 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 5
Aid sources vary across institutions Pell Grants Other federal grants State grants Institutional grants Local grants Private scholarships Share of aid 2011-12 0% 20% 40% 60% 80% 100% UC CSU Community college Private non-profit, 4-year Private for-profit, 4-year Private for-profit, 2-year
Aid sources vary across institutions Pell Grants Other federal grants State grants Institutional grants Local grants Private scholarships Share of aid 2011-12 0% 20% 40% 60% 80% 100% UC CSU Community college Private non-profit, 4-year Private for-profit, 4-year Private for-profit, 2-year
Outline Sources of grant aid How important is grant aid? Affordability Accessibility Completion Policy and program challenges 8
Public colleges are more affordable than private colleges 70,000 2008 09 2011 12 Total price of attendance ($) 60,000 50,000 40,000 30,000 20,000 10,000 16,466 17,485 22,819 19,700 26,924 31,198 37,418 35,323 46,092 51,590 57,706 55,546 0 Community colleges CSU UC Private for-profit Private non-profit Private non-profit research 9
but private colleges offer the most aid Amount of aid by family income Average aid per freshman in 2011 12 ($) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Community college CSU UC Private non-profit, 4-year Private for-profit, 4-year Family income ($): 0 30,000 30,000 48,000 48,000 75,000 75,000 110,00 110,000+ 10
Even so, net prices are lowest at public colleges Net price by family income Average net price per freshman in 2011 12 ($) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Community college CSU UC Private non-profit, 4-year Private for-profit, 4-year Family income ($): 0 30,000 30,000 48,000 48,000 75,000 75,000 110,00 110,000+ 11
with one exception Net Price for Low-income Freshmen at California Colleges Santa Clara Univ. Loyola Marymount Univ. Saint Marys College of California Biola Univ. Chapman Univ. Azusa Pacific Univ. Univ. of San Francisco Point Loma Nazarene Univ. Univ. of the Pacific California Lutheran Univ. California Baptist Univ. Univ. of San Diego Univ. of Redlands Pepperdine Univ. Univ. of La Verne Univ. of Southern California Occidental College San Jose State Univ. UC-Santa Cruz Cal Poly -San Luis Obispo Humboldt State Univ. Sonoma State Univ. CSU-Channel Islands CSU-Chico UC-Davis CSU-Northridge UC-San Diego San Francisco State Univ. UC-Merced UC-Santa Barbara UC-Irvine UC-Los Angeles CSU-East Bay UC-Riverside UC-Berkeley CSU-Sacramento CSU-San Marcos CSU-Long Beach Cal Poly-Pomona San Diego State Univ. CSU-San Bernardino CSU-Bakersfield Stanford Univ. CSU-Monterey Bay CSU-Fullerton CSU-Stanislaus CSU-Fresno CSU-Los Angeles CSU-Dominguez Hills 2011-12 ($) 0 5,000 10,000 15,000 20,000 25,000 30,000 Public colleges Private colleges 12
Public universities enroll three of every four low-income students Share of low-income freshmen Private for-profit, 4-year 15% Private nonprofit, 4-year 12% CSU 47% UC 26% 13
Just three public universities enroll more low-income freshmen than all the private universities combined Number of Low-income Freshmen at California Colleges, 2011-12 CSU-Northridge UC-Irvine CSU-Los Angeles UC-Riverside UC-Davis CSU-Long Beach CSU-Fresno UC-Los Angeles CSU-Fullerton UC-San Diego CSU-Sacramento UC-Santa Barbara San Francisco State Univ. San Jose State Univ. UC-Santa Cruz California State Polytechnic Univ.-Pomona CSU-San Bernardino San Diego State Univ. CSU-Dominguez Hills UC-Berkeley CSU-Bakersfield UC-Merced CSU-Chico CSU-East Bay CSU-Stanislaus Humboldt State Univ. Univ. of Southern California CSU-San Marcos California Polytechnic State Univ.-San Luis Obispo Sonoma State Univ. CSU-Monterey Bay California Baptist Univ. Azusa Pacific Univ. Univ. of La Verne Univ. of the Pacific Univ. of San Francisco CSU-Channel Islands Biola Univ. Loyola Marymount Univ. Chapman Univ. Univ. of Redlands Saint Marys College of California Stanford Univ. Pepperdine Univ. Santa Clara Univ. California Lutheran Univ. Point Loma Nazarene Univ. Univ. of San Diego Occidental College 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Public Private 14
Grant aid improves completion Students who receive aid are more likely to graduate Aid enables some to attend four-year colleges These colleges have much higher completion rates Performance-based grants do not lead to large increases in completion 15
Outline Sources of grant aid How important is grant aid? Policy and program challenges 16
Summary For many, college would probably not be possible without grant aid Aid is linked to higher rates of college completion Aid can encourage attendance at four-year colleges Performance-based grants do not appear to be more effective 17
Grant aid has not kept pace with rising costs Net price for low-income students receiving Title IV funds In January 2012 $ 2008 09 2011 12 Community colleges $ 5,759 $ 6,091 CSU 7,047 7,473 UC 8,795 8,746 Private for-profit 29,676 24,190 Private non-profit 20,190 19,216 Private non-profit research 10,874 11,191 18
Recommendations Help more students complete financial aid forms Direct additional funding to low-income students Make more institutions ineligible for state and federal grants Ensure aid does not exacerbate higher education cost inflation Avoid attaching more performance requirements to grant eligibility 19
SB 15 (Block) Senate Democrats Higher Education Funding Plan Eliminate 5% tuition increase at UC Repeal the 11% planned cut to Cal Grants A Maximum Award for Private Non-Profits Fund 7,500 additional Cal Grant A Competitive Awards and increase enrollment in 2015-16 by 5,000 for UC and 10,500 for CSU Establish Completion Incentive Grants to incentivize completion for low-income CSU students $1,000 grant for 30 units $1,500 grant for 60 units $2,000 grant for 90 units Plan paid for by raising tuition for out of state students, eliminating Middle Class Scholarship Fund, and tapping the new College Access Tax Credit Fund 20
Making College Possible Grant and Scholarship Aid in California Hans Johnson Supported with funding from the College Access Foundation of California and the Donald Bren Foundation
Notes on the use of these slides These slides were created to accompany a presentation. They do not include full documentation of sources, data samples, methods, and interpretations. To avoid misinterpretations, please contact: Hans Johnson(johnson@ppic.org; 415-291-4400) Thank you for your interest in this work. 22