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State Financial Aid Redesign
Sarah Pingel
Policy Analyst
Connecticut Planning Commission for Student Financial Aid
October 29, 2015
What we do
We believe in the power of learning from experience
and we know informed policymakers create better
education policy.
Presentation Roadmap
National Trends in Higher Education and State Aid Principles to Guide State Aid Policymaking
2015 Legislative Trends in State Aid Programs Questions and Discussion
State Support for Higher Education
Source: SHEEO
$ B
$10 B
$20 B
$30 B
$40 B
$50 B
$60 B
$70 B
$80 B
$90 B
$100 B
2009 2010 2011 2012 2013 2014
Major Uses of State and Local Government Support for Higher Education
Operations, Research, & Continuing Education Total Aid
State Support for Higher Education
Source: SHEEO
$ B
$10 B
$20 B
$30 B
$40 B
$50 B
$60 B
$70 B
$80 B
$90 B
$100 B
2009 2010 2011 2012 2013 2014
Major Uses of State and Local Government Support for Higher Education
Operations, Research, & Continuing Education Total Aid
National Spending on Student Aid
In 2014 constant dollars Source: NASSGAP
$9.2 B
$9.63 B
$9.98 B
$10.67 B
$11.02 B
$11.46 B $11.7 B $11.63 B
$11.48 B $11.47 B $11.69 B
$8. B
$11. B
$14. B
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total State Aid Expenditures
Connecticut State Aid Expenditures
In 2014 constant dollars Source: NASSGAP
$82.43 M $79.73 M
$109.45 M $115.37 M
$139.2 M $140.56 M $147.63 M
$151.4 M $144.91 M
$140.88 M $146.98 M
$173.62 M $181.61 M
$188.23 M
$201.37 M $207.95 M
$216.28 M $220.81 M $219.52 M $216.66 M $216.38 M
$220.65 M
$45.42 M $44.67 M $50.04 M $51.93 M
$57.27 M $57.66 M $57.18 M $57.27 M $55.59 M $55.43 M $55.08 M
$. M
$50. M
$100. M
$150. M
$200. M
$250. M
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
State Financial Aid Expenditures in Connecticut, US, and New England
Connecticut US Average NEBHE Average
Calculated in 2014 constant dollars Source: NASSGAP
-150.00%
-100.00%
-50.00%
0.00%
50.00%
100.00%
150.00%
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5-Year Percent Change in State Aid Expenditures by State, 2010-2014
CT: 0.44% decrease
US Average: 0.07% decrease
Creating New Programs, Revising Existing
• 1 in 2 bills considered in states in 2015 intend to create a new program
• At least 17 new state aid programs have been authorized or created in to-date in 2015
• 16 changes proposed to existing eligibility requirements across the states
Common State Policy Responses
Funding
Recipients
New Program
Increase Recipients and/or Award Amount
Restrict Recipients and/or Award Amount
Program is Unfunded or Eliminated
+
+
-
-
Common State Policy Responses
Funding
Recipients
New Program
Increase Recipients and/or Award Amount
Restrict Recipients and/or Award Amount
Program is Unfunded or Eliminated
+
+
-
-
Redesigning State Financial Aid
Organizations represented: • Each of the regional higher education compacts: SREB, MHEC, WICHE, NEBHE • Oklahoma State Regents • California Legislative Analyst’s Office • National Governors Association • American Enterprise Institute • Urban Institute
• Simplifying application processes
– California A.B. 1091
• Foster Care Students
– Alabama H.B. 148/ S.B. 157
– Arizona H.B. 2022
• Undocumented Students
– California A.B. 206
– Connecticut H.B. 5797, H.B. 5800, S.B. 398
Student-Centered
• Student Information Tools
– California A.B. 721
– Indiana H.B. 1042
• Legislative Reports
– Connecticut S.B. 393
– Florida H.B. 7125
• Institutional Eligibility
– California A.B. 25
Goal-Driven, Data Informed
• Award Duration
– Arkansas H.B. 1011
– Tennessee H.B. 118
• Rethinking Deadlines
– Oregon H.B. 2407
• Credit Hour Loads
– Oklahoma H.B. 2180
Timely and Flexible
• Competency-Based Education
– Oklahoma S.B. 504
– Texas H.B. 3027/ S.B. 1312
• Career and Technical Education
– Colorado H.B. 1275
• Alternative Eligibility Pathways
– Ohio S.B. 78
Broadly Inclusive
Sarah Pingel
Policy Analyst
(303) 299-3695
@sarah_pingel
www.ecs.org
www.statefinancialaidredesign.org
Questions?