Showing posts with label Pell Grant. Show all posts
Showing posts with label Pell Grant. Show all posts

Wednesday, March 23, 2011

Increasing % Pell-- What Does it Tell Us?


Over the last several years, UW-Madison has increased its tuition at a higher rate than its System peers, thanks to the Madison Initiative for Undergraduates. That shift has not been accompanied by a decline in the percent of students receiving Pell Grants--in fact there's been a 5.5 percent increase in % Pell since 2000. Some are saying that this means that low-income students have been "held harmless" from the rising tuition, and that further increases would likely not lead to diminished economic diversity on campus. Furthermore, we are told, we can look to the outreach campaigns of institutions like UVA and UNC-Chapel Hill (home to Access UVA and the Carolina Covenant respectively) for models of anti-"sticker shock" programs that "work."

These claims are terrific examples of why it's a bad idea to make causal claims based on correlational data. If you want to make those statements, you can look to those examples and find support for your agenda. But you shouldn't.

In fact, the increase in the percent Pell at UW-Madison over the last few years is consistent with increases in % Pell at many colleges and universities nationwide over that time period. The cause lies not in successful outreach campaigns, or the failure of tuition increases to inhibit student behavior, but mainly in the recession. The recession had two relevant effects: First, many people were laid off-- and thus saw a temporary loss of income. Thus, students from families that in 2007 were not Pell eligible found themselves eligible for the Pell in 2008. The Pell is based on current and not long-term disadvantage. So an increase in % Pell doesn't mean you coaxed "new" low-income students into attending Madison or did a better job retaining those you already enrolled, but rather that a greater proportion of those who were already UW-bound (or already enrolled) now found themselves eligible for the additional help. Second, the Pell reduced the number of jobs available to students not enrolled in college--thus lowering the opportunity costs associated with college (e.g. foregone earnings). This could have independently increased both enrollment and persistence.

Furthermore, during the same time period, as part of the legislation that increased the maximum Pell the federal government also increased the family income (AGI) a student could have and qualify for the Pell-- from $20,000 to $30,000. Thus, a whole bunch more people became Pell-eligible during the period in which the MIU was implemented. And, the maximum Pell was increased-- possibly helping to offset the increase in tuition.

Thus, it should abundantly clear that it would be incorrect to state that the increasing % Pell at UW-Madison over the last several years is evidence that tuition increases do not inhibit enrollment of low-income students and/or that additional investments in need-based financial aid hold students harmless.

Same goes for the "success" of programs like the Carolina Covenant. Don't get me wrong-- the program seems great, and feels great, and the leadership is great. And for sure, the program's data looks nice-- they've seen an uptick in the representation of Pell recipients on campus and increased retention over time. As an evaluation they show better outcomes than prior cohorts of students. But as compelling as those numbers seem to be, they cannot be interpreted as evidence that these changes are attributable to the program itself-- and that's where the burden of proof lies. Indiana saw increases in college enrollment among the children of low-income families when its 21st Century Scholars Program was implemented, but reforms to the k-12 system were made at the same time, and the economy was booming. The program "effects" may have been little more than happy coincidence. We cannot rely on the potential for such happy coincidences when crafting new policies and making decisions about affordability.

It's time to get honest about what data can and cannot tell us. I've heard too many claims around here that it can tell us whatever we want. While that's undoubtedly partially true under the best of circumstances, it is especially true when we take no steps to collect data systematically and use sophisticated tools when analyzing it. If we were really committed to holding students harmless from tuition increases, we'd have commissioned an external evaluation (external= not done by institutional researchers) and made the data available for analysis. There are plenty of talented folks on campus who know how to do this work-- why not ask them to take a look at what happened under MIU?

Thursday, March 11, 2010

Stand Up for SAFRA

It's all about the bankers-- again. As I've said in this blog numerous times, the Student Aid and Fiscal Responsibility Act is poised to dispense critical aid to low-income college students and the colleges they attend-- if the lending industry doesn't kill it first.

The savings that would result from a move to direct lending are substantial. Money would go directly to the neediest college students and to community colleges, a sector that is swamped and struggling in this recession. This investment in human capital is in so many ways a no-brainer-- it'll generate a large return, benefit folks in nearly every community in the country, and support the American dream.

Of course, the bankers will have none of it. In the current system they draw profits on the backs of students, lending them money and selling those loans to the government. They are so eager to hold onto those profits that they argue that the status quo is actually good for students. Disgusting, but not surprising. This is how the power elite maintains its position.

What's terribly sad is that some Democrats from states with pathetically low college attainment rates are actually buying into this hooey, giving credence to the banks' arguments that there are ways to save money while preserving their profits.

Senators Thomas R. Carper of Delaware, Blanche Lincoln of Arkansas, Ben Nelson of Nebraska, Bill Nelson of Florida, Mark Warner of Virginia and Jim Webb of Virginia ought to be ashamed of themselves. Just look at the state of their higher education systems:

  • Delaware ranks last in the nation in community college completion rates--just 10.8% of those who start at a two-year college finish an associates degree in 3 years.
  • Nebraska's commitment to low-income students is pathetic--for every dollar in federal Pell Grant aid to students, the state spends only 19 cents.
  • Arkansas has one of the largest black/white gaps in college completion in the country (16 percentage points)
  • Florida doesn't make college affordable--the state's poor and working-class families must devote 24% of their income, even after aid, to pay for costs at public four-year colleges.
  • Virginia is a place of great inequity--just 29% of black young adults are enrolled in college, compared to 42% of whites.

The children in these states deserve the support for an affordable higher education that SAFRA will provide. Their leaders should (quickly) stop stalling, develop backbones, and stand up to the banking industry.


Friday, May 22, 2009

Cal Grant on the Chopping Block

I thought we'd seen the worst of it when yesterday the California Community College system began discussing enrollment reductions of 250,000 students. Now California Governor Arnold Schwarzenegger has proposed to eliminate the Cal Grant--the state's Pell--affecting 100,000 low-income students each year.

I'm not sure where my nausea stems from at this very moment-- my pregnancy, or this insane bit of short-sighted policy-making. Forgive the Terminator, for he knows not what he does....

Thursday, February 26, 2009

Obama Gets It Right

God, I love having smart people in the administration!

This morning I listened as Bob Shireman and Ceci Rouse unveiled an ambitious, thoughtful plan to increase college completion rates among low-income students. DOE is on the right track-- the story is completion, rather than access, and to make advances requires some serious restructuring of incentives.

The part of the plan to Restore America's Leadership in Higher Education that I'm most excited about is the creation of reliable Pell Grant -- making its funding mandatory rather than discretionary, and indexing the maximum grant to grow at CPI + 1%.

What's more, they're proposing a five-year $2.5 bil incentive fund to stimulate state-federal partnerships to increase degree completion. The best part? These folks actually get that we DO NOT KNOW what will work, and therefore whatever states try out needs to be rigorously evaluated. Build the knowledge base and we'll improve policy and practice. Exactly the shot in the arm higher ed needs, if only they hold true to a good definition of rigor and require states to contract out those evaluations. I'd also suggest that evals of ongoing, rather than simply new, programs be allowed -- why waste time when we can start learning now?

Lastly: one thing I didn't hear that I'd like to -- let the financial aid experiments continue. The last administration called a halt to institutional efforts to try out innovations, and this was a mistake. We need to know more about how aid can better be distributed, not less. Let 'em go on.

Wednesday, January 14, 2009

Things Are Looking Up

Well, sort of. In my family, not so much -- we've all been knocked out by various colds, pneumonia, ear infections, etc for the last 7 days. But out there in the wider world -- things are starting to look downright perky for education!

For example:

--4 separate times today articles about increasing funding for community colleges crossed my desk
--MDRC issued some much more intriguing results from their Opening Doors aid study
--Arne Duncan talked about increasing the Pell Grant
--I read, and enjoyed, two bright and interesting memos to Obama-- one by Davis Jenkins and Julian Alssid, and the other by Jamie Merisotis
--Sociologist extraordinaire Linn Posey accepted an offer to join my department!
-- I heard that Gates is starting a value-added initiative

I'm sure there's more to come. It feels like a whole new world with Arne and Barack (and LDH?) at the helm....

Monday, January 5, 2009

Need-Sensitive Admissions: A Follow-up

Yesterday's New York Times has a "data" piece in the Education Life section titled "How Sensitive Are They?" It lists private schools with need-blind and need-sensitive policies, and statistics on the % of incoming freshmen who have their need fully met by an aid package, and the average % of need met (across all incoming freshmen with any need as determined by the college). In most cases, it looks like need-sensitive schools meet close to 100% of the need of incoming freshmen, and in turn most of their students have their need fully met. In contrast, schools that are need-blind meet a smaller % of demonstrated need and have lower proportions of their freshmen with need fully met.

Ok... again, duh: With fewer low-income kids to serve, you can meet more of their need. Why, oh why, didn't the Times include a column indicating the % of incoming freshmen receiving Pell grants, and the graduation rates of their minority (proxy for Pell in absence of another) students??? Talk about taking a one-sided approach to the story...

Thursday, September 18, 2008

Who Says This Election Shouldn't Be About Education?

The staggering economy is clearly hitting working families, investors ... and college students with financial need. The New York Times reports that the Federal Pell Grant Program faces a $6 billion shortfall.
Battered by a worsening economy, college students are seeking federal financial aid in record numbers this year, leading Bush administration officials to warn Congress that the most important federal aid program, Pell Grants, may need up to $6 billion in additional taxpayer funds next year.

Driving the increased applications for federal aid, in part, have been nontraditional students returning to school to improve their job skills during the economic downturn, said Terry W. Hartle, senior vice president for public affairs at the American Council on Education, which represents colleges and universities.

Estimates by the Department of Education suggest that the new president will face an unusually burdensome financing shortfall or the fallout that would accompany trimming the nation’s leading college aid program.

“There are a lot of things going on — more people are applying for student aid, more people are going to college, more people who qualify for the aid are showing up at school,” said Thomas P. Skelly, the Department of Education’s director of budget service, who wrote a memorandum detailing the problem to Congress.

As of July 31, 800,000 more students had applied for grants than on that date last year, according to the memorandum, which called the increase one of the largest ever year to year.

This year, more than six million low-income college students will receive Pell Grants ranging from $431 to $4,731, federal officials said.

Congress appropriated $14 billion for the grants for the current fiscal year, but because of the increase and because of accumulated shortfalls from previous years, lawmakers will need to add $6 billion in new funds next year or cut the size of the grants, Department of Education officials said.

Perhaps the Iraqi government with its oil-driven $79 billion surplus can bail the Bush Administration out of this mess it has created.