The California Community College System and for-profit Kaplan University recently announced an agreement allowing community college students to enroll in online Kaplan courses for $215 per credit. Although this price is 42 percent less than the normal Kaplan sticker price, it is still more than $1,000 per class (a Kaplan class is typically five or six credits), or more than 10 times what it costs at a community college (a typical-four credit course at a community college costs just over $100). A few thoughts and questions come to mind:

1. If the legislature raised community college fees from $26 per credit to Kaplan’s discounted cost, it would bring in eight times more tuition revenue, or almost $3 billion more in 2008-09. With that kind of money, I imagine the community colleges could afford to educate their own students. (Just to be clear, we’re not advocating this approach.)

2. Students who take advantage of this agreement can then transfer into one of Kaplan University’s bachelor degree programs. How about the students – about 64,000 in 2008-09 – who transfer to the California State University or University of California? What assurances do they have that their Kaplan credits will count towards transfer to CSU or UC? With Kaplan’s tuition topping UC’s by 64 percent and CSU’s by 222 percent, does taking advantage of this agreement with Kaplan lock students into higher priced education beyond community college as well?

The state promises affordable college access and then points students to pricy for-profit colleges to get community college credits. Did someone somehow get two of the Governor’s 2010 goals – privatizing prisons and protecting higher education – mixed up?

- Debbie Frankle Cochrane
Program Director

Click here to read the California Community College and Kaplan University Press Release

Posted by Shannon Gallegos at 3:52 PM | Permalink

In California and nationally, very few former foster youth make it to or through college, and cost is a major obstacle. A new report shows that despite federal and state programs and policies intended to help them afford college, surprisingly few California foster youth who apply for student aid receive all the grants they should.

Together, federal Pell Grants, state Cal Grants, and jointly funded Chafee Grants can add up to almost $12,000 for a foster youth at a California community college, $16,000 at a California State University, and more than $20,000 at a University of California campus. Of identifiable California foster youth who filled out a FAFSA (Free Application for Federal Student Aid) in 2008-09, 84 percent were eligible for a Pell Grant, 17 percent were offered a Cal Grant, and just nine percent received a Chafee Grant, which is specifically for foster youth. Only four percent of these very low-income students received all three grants.

Our report, Hopes & Hurdles: California Foster Youth and College Financial Aid, examines the reasons behind this trend, from a lack of awareness about financial aid options to barriers within the aid programs themselves that pose particular challenges for foster youth. “The financial aid system isn’t working for foster youth,” said Debbie Cochrane, the report’s lead author and program director at the Institute for College Access & Success. “These students have beaten the odds to go to college, but not being able to get the grants they need puts their future in jeopardy.”

Early deadlines and GPA requirements make it harder for foster youth to get Cal Grants. Due to instability in their home and academic lives, these students are less likely to make college plans and apply for financial aid by the program’s March 2 deadline. In addition, many have attended multiple high schools, which must quickly cooperate to calculate a student’s GPA. Funding for Chafee Grants is so limited that fewer than half of the eligible applicants receive one. Also, Chafee Grants often arrive so late in the semester that students may have already fallen behind in classes or dropped out because they could not afford to buy books or pay their rent.

“Life in the child welfare system creates serious hurdles for foster youth who want to go to college, and problems with the way essential programs like Cal Grants and Chafee Grants operate can put higher education even farther out of reach,” said Cochrane.

The report recommends guaranteeing Cal Grants for foster youth; increasing cooperation between counties, the California Department of Social Services, and the California Student Aid Commission; extending foster care supports to age 21; and improving the funding and administration of Chafee Grants.

Read the report

Posted by Shannon Gallegos at 2:34 PM | Permalink

In direct contrast to federal efforts to increase college access during the current recession, today Governor Schwarzenegger proposed eliminating all new Cal Grants, along with deep cuts to public university systems and other essential state programs and services. The Cal Grant program has been an integral part of California’s commitment to college access and affordability for more than 50 years. Since 2001, all qualified graduating high school students have been guaranteed a Cal Grant.

“The Governor’s alarming threat to eliminate Cal Grants sends a discouraging signal about college affordability to all Californians,” said Lauren Asher, acting president of the Institute for College Access & Success. “Students and families are counting on Cal Grants in these tough times, and the proposed cuts will wreak havoc with college plans for this fall.”

The Governor seeks to cut approximately $250 million from the state budget by:
• Eliminating all new Cal Grants for students at both public and private colleges; and
• Reducing the value of renewal Cal Grants for all returning University of California (UC) and California State University (CSU) recipients by lowering the share of enrollment fees their grants will cover. (Renewal Cal Grant recipients at other colleges would not experience cuts.)

We estimate that more than 200,000 students statewide – over two-thirds of all current students offered Cal Grants – would lose all or part of the Cal Grant they were counting on to help pay for college this fall. These students will see their financial aid packages reduced by between $576 and $9,708. Based on our analysis, here is a snapshot of these high- achieving, financially needy students and what is at stake for them.

At least 118,300 students would lose their entire grant, worth up to $9,708, this fall: Eliminating allnew Cal Grants would deny approximately 118,300 students access to aid dollars they needed and expected for the 2009-10 academic year. These students have very low to moderate incomes, and vary greatly in age and type of college, although nearly half would have attended community colleges.
• 26,000 students face cancelled Cal Grant A offers. A typical Cal Grant A student has a 3.45 grade point average (GPA) and a family income of $48,733.
• 84,500 students face cancelled Cal Grant B offers. Cal Grant B students, who receive 70% of new awards and would therefore be among the hardest hit, come from much needier families. A typical Cal Grant B student earns slightly above a 3.0 GPA, and has a family income of $17,791.
• 7,800 students face cancelled Cal Grant C offers. A typical Cal Grant C student has a 2.67 GPA and a family income of $21,859.
• The elimination of new awards affects both young adults and older students: 88,000 new High School and Transfer Entitlement students, whose average age is between 18 and 22, would lose their grant offers, as would 30,300 new Competitive and Cal Grant C students, whose average age is between 29 and 33.
• Eliminating new awards affects students at all types of public and private colleges, but community college students would lose the largest share – 45 percent – of new Cal Grant offers.
• Cal Grants A and B provide four years of eligibility for students, including transfers from community colleges to four-year schools. An estimated 110,500 students would not be able to receive these new grants in 2009-10, and over four years could miss out on as much as $38,000 each in needed aid.

At least 90,000 returning students would lose part of their Cal Grant this fall: An estimated additional 90,000 UC and CSU students would see their promised renewal grants reduced by up to $600 for 2009-10, a result of the Governor’s proposal to eliminate support for fee increases.

“The loss of Cal Grants will push lower income students off the college track, delay their progress, or leave them even deeper in debt as they struggle to make ends meet. Making it harder for Californians to get the training and education they need puts our state’s troubled economy at even greater risk, now and in the future,” said Asher. The Public Policy Institute of California recently found that California needs more than a million new college-educated workers by 2025 to protect the state economy from decline.

Posted by Shannon Gallegos at 4:02 PM | Permalink

The Institute for College Access & Success has updated the fact sheet "Quick Facts About Financial Aid and Community Colleges, 2007-08," where we focus on community college students who apply for financial aid and attend full time.

About one in four full-time college students in the U.S. -- 2.2 million students -- attends a community college. Of full-time community students who applied for financial aid, 80 percent did not get as much aid as they needed in 2007-08. We also found that although a relatively small percentage of community college students take out private student loans, these borrowers were much more likely than their peers at four-year institutions to miss out on cheaper federal loans.

Additional findings from the fact sheet include:

• While community college students are more likely to receive federal Pell Grants than four-year college students because of their lower incomes, they are less like to receive state or school grants, or federal work-study.

• Community college students are most likely to have "unmet need" after taking advantage of available sources of financial aid. For these students, the gap between what they can afford, including aid, and the full cost of college is similar to students at public four-year colleges.

• Federal Stafford loans, which any student can qualify for regardless of income, are safer and more affordable than private loans. Relatively few community college students borrow student loans of any type, but those who do unnecessarily turn to private loans more frequently than students at other types of colleges.

Read the fact sheet here

Posted by Shannon Gallegos at 4:33 PM | Permalink

By Debbie Frankle Cochrane, Program Director

California is at the brink. Yesterday Governor Schwarzenegger stated that the state will "face insolvency within weeks." Come February, there simply won’t be enough money to pay the bills. Earlier this morning the California state controller released his plan for keeping the state operating, which includes painful measures like delaying financial aid payments to college students, and withholding the payments that the disabled, the elderly, the blind, and the very poor depend on.

These delays – right now for 30 days but contingent on a budget resolution – will have devastating effects for Californians. We’ve written before about how state budget delays gamble students' ability to go to college, and it’s getting hard to remember the times when the state has made good on its promise of college affordability in a timely way. But these delays take the gamble to a whole new level, putting Californians' futures, health, and lives in jeopardy.

It is not noble to adhere to rigid political ideologies when lives are in the balance. All sides need to compromise and resolve the budget crisis as soon as possible.

Posted by Edie Irons at 12:23 PM | Permalink

by Debbie Frankle Cochrane, Research Analyst

This morning, the National Center for Public Policy and Higher Education released their fifth biennial Measuring Up reports. This series details how well individual states are doing on important performance measures including preparation, participation, affordability, completion, benefits, and learning.

By Measuring Up’s standards, California received the highest grade (C-minus) in the nation for college affordability. In fact, it received the only non-failing grade in this category. Because of the way this category is measured, California has always performed relatively well: low fees at community colleges help the state appear more affordable than it is for many students.

This (barely) passing grade should not be overblown, as the report also points out that the affordability of California colleges is declining. For every federal dollar that goes to Californians in grant aid, the state itself puts in only 56 cents, relatively little of which goes to community college students. When considering total costs and taking financial aid into account, the lowest income students still need 58% of their family income to afford to attend a California community college. Thanks to higher amounts of financial aid available to them, those same students would need slightly less – 57% of family income – to attend a public four-year college in the state. So how exactly are community colleges the affordable college option?

Low fees are only part of the affordability puzzle. To stay afloat, California needs to increase its commitment to college affordability by increasing grant aid – which can cover all related costs, not just tuition and fees – for the students who need it most.

Posted by Shannon Gallegos at 5:36 PM | Permalink

By Laura Szabo-Kubitz, Policy Associate

In times of financial instability, the need is even greater for programs that promote college accessibility and affordability. Bad economic times lead more people to turn to education as a solution, which we’re seeing with record numbers of students across the country applying for aid. While larger reforms are needed, those who work in financial aid can make a big difference in students’ lives by taking small steps.

Recently, I visited the financial aid office websites of more than twenty colleges to find out whether or not their schools participate in federal student loan programs. I was surprised at how often I had difficulty finding an answer, so I began to look for office phone numbers to ask directly. Some sites had user-friendly layouts where I was able to find information quickly. However, I was surprised how difficult several schools’ sites were to navigate. In an attempt to offer students helpful information, some sites offered an overwhelming amount of it. As a result, key pieces of information – like contact information or types of available aid – got lost in the mix, thus negating the sites’ intended purpose as a helpful tool.

If students are unable to locate a simple phone number on a website, how are they supposed to get the vital information they need? Putting the aid office’s contact information very clearly and visibly on the financial aid office homepage is a simple step that all financial aid offices – not to mention all student services – should take today. It’s quick, easy, and it just might make all the difference.

Posted by Shannon Gallegos at 9:06 AM | Permalink

The California Postsecondary Education Commission (CPEC) recently took a look at how affordable a community college education really is for students and their families. The Institute for College Access & Success submitted the following comment to the Commission prior to their September 23-24 meeting, where the report was discussed.

Commissioners:

The Institute for College Access & Success conducts research and advocacy geared toward helping students access and succeed in college, regardless of income or background. A primary focus of the Institute is looking at college affordability issues within California, and for community college students specifically.

We would like to commend the Commission for looking at this issue, which is rarely addressed in a broader context than the system's low fee levels. The report brings much needed attention to the fact that a CCC education is less affordable than it used to be, and that the problem is worst for the lowest-income students and families.

We are concerned that the Commission's analysis of California community college affordability is too narrow. By focusing only on students who live with their parents, the analysis excludes the majority of students enrolled in the colleges, including four out of every ten full-time students. Also, the definition of "minimum costs" used throughout the report dramatically underestimates the costs that students face, or what the institutions themselves tell students about college costs. Using such a narrow focus minimizes the extent of the affordability problem at the community colleges.

Financial aid is a crucial element in looking at college costs, and we are glad that the issue was broached in this analysis. By looking only briefly at grant aid amounts for students who receive it, and in tandem with the Commission's definition of "minimum costs", this again undercuts the true scope of affordability challenges for community college students. Specifically, the Commission's analysis failed to mention how relatively few community college students receive Cal Grants, the state's own need-based aid program, and how Cal Grant award levels have stagnated, worsening affordability issues even for the lucky recipients.

We would welcome an opportunity to discuss these issues and concerns around community college affordability with Commissioners or Commission staff.

Sincerely,

Debbie Frankle Cochrane
Research Analyst

Robert Shireman
President

Posted by Shannon Gallegos at 11:40 AM | Permalink

By Deborah Frankle Cochrane, Research Analyst

California's budget delays are affecting college students' ability to get their financial aid. In addition to more than 100,000 students who may face delays in getting the Cal Grants that they’ve been promised, there are 25,000 high-achieving, low-income students whose grants may or may not be funded at all. The Governor’s initial January budget proposal cut the already underfunded "competitive" Cal Grant program that serves those 25,000 students, most of whom go to community college, and its status has been uncertain ever since.

During last year's budget crisis, some colleges were able to help students by providing the grant aid up front and getting reimbursed after a budget was signed. Others – largely the community colleges and California State Universities, where the majority of Cal Grant recipients attend – didn’t have the resources to help in this way, and students were left not knowing when they would have money to buy books.

This year, the situation is worse. It’s already late August, and students' college plans may depend on whether or when the grant money they’re counting on will come through. The good news is that the competitive Cal Grant program is not eliminated in the Governor's latest budget revision, released earlier this week. This is a notable shift: the California legislature has already signaled its desire and intention to maintain the program, and the Governor’s change of heart means it is likely to survive.

The bad news is that the students who need these grants still don't have the security they need to make plans, and it's not clear when they will. Have they put deposits down at campuses that they may not be able to attend? Have they registered for classes, not knowing how they'll pay for them? Or have they given up their spot, missed important registration dates, or decided not to go to college? These decisions will cost California, and these Californians, a lot more than a few thousand dollars.

Posted by Edie Irons at 2:57 PM | Permalink

By Laura Szabo-Kubitz, Research Associate

The currently proposed cut to the Competitive Cal Grant program would disproportionately affect community college students, who make up 73% of the program’s recipients. While the legislature has demonstrated its commitment to these students by keeping the program in their own version of the budget, its fate will remain unclear until Governor Schwarzenegger signs a budget, in late June at the earliest. Students who stand to lose their grants under the current proposal tend to be older, with lower incomes and higher GPAs than other Cal Grant recipients. As a result of their age, many are no longer eligible for the Entitlement Cal Grant which requires that one must have graduated from high school within the past year.

Over 69,000 financially eligible students applied for a Competitive Cal Grant by the March 2 deadline this year, and around 12,000 were tentatively awarded one. The California Student Aid Commission recently sent these recipients a postcard indicating that they may not receive their award due to the proposed budget cuts.

We recently heard from one Competitive Cal Grant recipient who had received this postcard but was confused about what it meant for her. After being rejected for a competitive grant last year – as five out of six eligible recipients are – this woman, a single mother of five who had previously gone on welfare to care for her child who was ill with cancer, was finally able to pursue her dream of a higher education.

But how can this hardworking, responsible woman make informed decisions about college if she doesn’t know how much aid she can expect to receive? How does she know whether to reduce her work hours, make childcare arrangements, or put down a deposit at the college she wishes to attend? All of this begs the question about the strength of the state's commitment to higher education and helping people improve their lives and the lives of their children by increasing their education and skills. And as this woman states quite eloquently, not only will her children’s lives improve if she is able to get an education, but the state will save money if she is able to exit the welfare system.

This woman’s story clearly illustrates students', and particularly non-traditional students', need for timely, clear, and accurate information about financial aid to make good decisions about college-going choices. For $57 million in state savings, we're taking this ability away from 12,000 would-be college-bound students who, as more highly educated individuals, are likely to give back to the state and their families in many ways as residents, employees, and parents. The stakes are too high to play budget roulette with California's future.

Posted by Edie Irons at 8:57 AM | Permalink

By Deborah Frankle, Research Analyst

The budget stalemate in Sacramento is about to have serious repercussions for new and returning college students in California. Approximately 266,000 students are expected to receive Cal Grants to help cover fees, books, dorm costs and other expenses, but the agency that administers the Cal Grant will not have the funds for the scholarships until--unless--the state budget is approved. And with classes starting in the next couple weeks, it looks unlikely that this will happen in time to help students with initial college expenses.

We contacted several financial aid offices throughout the state to see how colleges were handling this, and it appears that the approaches vary in the different segments. At the University of California and some campuses in the California State University system, the colleges are dipping into other resources to front the aid with no discernable difference to students, at least in the short term. At other CSUs, fees covered by Cal Grants are not an issue because the college can allow the student to pay later, when the Cal Grant money arrives. However, the $1,551 that helps pay for textbooks, room and board, and other educational costs will not be dispersed. And it looks like community college recipients, whose only state grant funds come from the books-and-rent portion of Cal Grant B, won’t be receiving any Cal Grant money anytime soon.

These Cal Grant B recipients will then be most affected by the budget crisis, and three out of four of them attend a community college (45% of all Cal Grant Bs) or a CSU (29%) – the systems with the least resources to help tide students over until grant money arrives.

We estimate that as many as 137,000 students in these two segments alone may be impacted by this situation. Recent high school graduates in this population have an average family income of $20,573 for a family of 4. Older Cal Grant B recipients are even needier, with an average family income of $14,322 for a family of 3.

These are not students who can simply make ends meet without the grants designed to help make college accessible to them. At best, the inability to purchase required textbooks and supplies early in the term means that students will be unable to keep up in class; at worst, they may drop out of college without having had a fighting chance to succeed.

Our students deserve better.

Posted by Edie Irons at 10:11 AM | Permalink