Student Financial Aid Kristen Thornton
History of Student Financial Aid
Higher Education Act of 1965
1980’s State Funding
Between Years- tuition has increased over 225%
Tuition is now stabilizing, with minimal increases
1.2 Trillion dollars of student debt in 2014
What is Student Financial Aid
Aid provided by a variety of sources to fund a
student’s education
Award letters
Financial award may have restrictions or tied to
performance
Some students decide not to pursue financial aid
99% of Concordia students receive financial aid
Types of Student Financial Aid
Grants
Merit Based
Needs Based
Scholarships
Loans
Subsidized
Unsubsidized
Work Study
Tax Credits
Trends in Student Financial Aid
Creating a campus
Disadvantages for low income and first generation college students
Creating a Campus
Merit Based
Athletics
Arts
Academic achievement
Need Based
Financial need
Lower income students
First generation students
Merit based grants are more available
Financial need no longer a priority
Pell grant not increasing at same rate as tuition
Creating a Campus
Institutions utilizing financial aid as a way to form the campus
Increases enrollment- $1000 increases enrollment probability by 7%
Increases persistence
Psychologically feel more connected to university
Higher GPA
Tinto Theory
Scholarship versus Grant
Receiving a scholarships increase matriculation by 86% versus calling it a grant
Tuition discrimination
Changes the student landscape of the institution
University of Alabama- Attracting National Scholars (top 1% of PSAT)
Disadvantages for Low Income and
First Generation College Students
Unaware of total college cost
Situated Learning Theory
Complicated financial aid process
Lack of support from high school counselors
Average ratio in high poverty areas is 1056:1
Tuition price will deter students from even applying
Awards may not assist low income students
Tax Deductions
Merit based more than Needs based
Complications to Apply for Financial Aid
Free Application for Federal Student Aid (FAFSA) is complicated to complete
Provide tax information from prior tax year
Verification forms
Estimated Family Contribution
Assistance Starts in High School
Students need to understand financial aid process earlier
Individual attention and guidance to complete college applications AND FAFSA
Colleges should assist
Different federal options for lower income and first generation students
Impacts of Student Financial Aid
Post-secondary education may no longer be available to all
The student debt bubble could burst
1.7 Trillion in loan debt
44% in default within 3 years
Federal government could add more regulations
Basis Peoria Charter School
First Generation Students unaware of financial aid process
Budget sheets for students to record total college cost
Personalize college counselors
Assisting students as early as 8th grade
Scholarship Board
FAFSA sessions with Arizona State University
100% college entrance rate from high school
Improving Student Financial Aid
Discussion: How can we improve student financial aid?
Sticker price versus net cost
Types of aid available
How loans operate
Utilizing financial aid to full potential
More resources for High School students at the START of their high school
career
Resources for students already in college
Conclusion
Post secondary education is considered nationally as a priority of economic
success
States do not consider the funding to be a high priority
Financial aid is not just a way for students to fund higher education but a
strategic approach for institutions to create the campus environment
ReferencesDoyle, W. R. (2010). Changes in institutional aid, 1992-2003: The evolving role of merit aid.
Research in Higher Education, 51(8), 789-810. doi:http://dx.doi.org/10.1007/s11162-010-9177-0
Dynarski, S., & Scott-Clayton, J. (2013). Financial aid policy: Lessons from research. The Future of Children, 23(1)
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Goldrick-Rab, B. S. (2016, August 28). What Colleges Can Do Right Now to Help Low-Income Students Succeed. Retrieved
September 11, 2016, from http://www.chronicle.com/article/What-Colleges-Can-Do-Right-Now/237589
Field, K. (2005). Change in pell-grant formula is likely to drive up loans and work hours. The Chronicle of Higher
Education, 51(26), A21-A23. Retrieved from
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Financial Aid Counseling [Personal interview]. (2016, September 09).
Friedman, S. (2015). NEW REPORTS LOOK AT STUDENT AID, STUDENT DEBT. Journal
of College Admission, (226), 13. Retrieved from
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Kim, J., Desjardins, S. L., & Mccall, B. P. (2009). Exploring the effects of student expectations about financial aid on
postsecondary choice: A focus on income and Racial/Ethnic differences. Research in Higher Education, 50(8), 741-
774. doi:http://dx.doi.org/10.1007/s11162-009- 9143-x
Stater, M. (2009). The impact of financial aid on college GPA at three flagship public institutions. American Educational
Research Journal, 46(3), 782-815. Retrieved from
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Zimpher, B. N. (2016, August 16). Free College? The U.S. Should Look at State Models That
Are Already Working. Retrieved September 11, 2016, from http://www.chronicle.com/article/Free-College-The-US-
Should/237467