Florida International University 5/15/2013. Southern Regional Forum 2012 Miami

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1 Southern Regional Forum 2012 Miami Pell Grants: Meeting the Needs of the Melting Pot Francisco Valines Director of Financial Aid Florida International University, FL Wayne Kruger Director of Financial Assistance Operations St. Petersburg College, FL Pell Grants: Meeting the Needs of the Melting Pot The economic recession has changed the mix of Pell Grant recipients. The Pell program is no longer a program solely for students in low income families; it now supports students from middle income and many previously high income families. In this session, participants will evaluate the shift in demographics among current Pell Grant recipients. Participants will examine detailed information provided by institutions about their Pell recipients and will assess how this information relates to early awareness and outreach activities Florida International University One of 11 State Universities in Florida, chartered 1965, first classes held 1972 with 5,667 students Title V HSI (60% Hispanic) Title III designation (waiver of Inst. Match for FWS/FSEOG) 2012 Student Headcount of 60,640 61% of students in 2012 received some sort of financial assistance totaling 400 million dollars 57% of students receiving financial assistance received the Pell Grant (34% of schools total population) 1

2 St. Petersburg College Founded in 1927 as a Community College Became state s first College in 2002 offering both 2 and 4 year degrees Title III designation (waiver of Inst. Match for FWS/FSEOG) 70% Independent Student Population with an average age of Student Headcount of 45,914 with about 70% of them being part time students 54% of students in 2012 received some sort of financial assistance totaling 170 million dollars 72% of students receiving financial assistance received the Pell Grant (38% of schools total population) Agenda: Overview of recent Pell changes, and discussion on what the intent was/is Review of trends and comparison between FIU and SPC Presentation of data and analysis/comparison between schools Future trend prediction and discussion Pell Grant Changes Maximums Since the Academic year we have seen a 37% increase in the maximum Pell grant award Maximum awards have gone from $4,050 to $5,550 Over that same period we have seen an almost tripling of Pell expenditures going from just under 13 billion in 2007 to 34 billion 2

3 Pell Grant Changes Maximums To the left is a chart showing the growth in the maximum Pell grant since , with a projection of To the right is a chart showing the growth in total Pell Grant Funding from , with tentative final numbers from Pell Grant Changes EFC Formula The income threshold as well as other factors for students to qualify for an automatic zero expected family contribution (EFC) have changed several times in the past few years In the threshold increased from $20,000 to $30,000 and also increased those that would qualify for the simplified needs test For they have lowered the threshold down to $23,000 but have left in place many of the other means by which students/families can qualify for auto zero or simplified needs test Pell Grant Changes 200% Yearly Pell Also known as 2 Pell in one year. This allowed students to received up to 200% of a Pell award within one year. Before this students could only receive 100% or two full time payments within an academic year. The thought was that giving students that ability to get Pell year round even if full time would lead to faster graduation and lower borrowing rates Lasted for the and award years and then was removed. 3

4 Pell Grant Changes Lifetime Amounts Initially this was set for any student who received their first Pell Grant on or after the award year and would limit the Pell Amount received to be the equivalent of 18 full time semesters of 900% lifetime. Changed for the award year to 12 full time semesters or its equivalent or 600% lifetime and it also removed the grandfather provision so that now all Pell on file (back to the 70 s) counts against the student lifetime amount. Application Growth and Pell Eligible FIU SPC Year Dep Pell Elig Indep Pell Eligible Total ISIR Year Dep Pell Elig Indep Pell Eligible Total ISIR FIU Growth Pell Growth SPC Growth Aid Yr Total Disbursed Amt Aid Yr Total Disbursed Amt

5 Number of Recipients vs. Headcount FIU SPC Pell Aid Yr Count Headcount , , , , , ,642 Pell Aid Yr Count Headcount Auto Zero EFC and Simplified Formula FIU SPC Year Auto Zero SNT Total ISIR Year Auto Zero SNT Total ISIR A Look at Total Income In trying to determine to what extent Pell Grant has reached into the middle class we needed to look at our students and determine a measure In looking at the FAFSA data the total income listed seemed to be the best measure. Total Income is the sum of the taxable and untaxed income, minus amounts reported in the income but excluded from the formula. This is before any deductions of income from U.S. income tax paid, State and other tax allowance, Social Security tax allowance, Income protection allowance, Employment expense allowance. In looking at total income growth during the same time period as our large increase in applicants, Pell recipients, and dollars we can see if those increases are going beyond the traditionally targeted low income students. 5

6 A Look at Total Income FIU SPC Aid Yr Avg TI Aid Yr Average TI Increase in Auto Zero EFC Percentage FIU SPC Year % of Total Auto Zero EFC Total ISIR % % % % % % % % Year % of Total Auto Zero EFC Total ISIR % % % % % % % % What does the data show us? Despite large increases in Pell recipients and Pell expenditure average total income of Pell recipients between FIU and SPC has gone up very little over the past 6 years. This suggests that the typical Pell recipient profile hasn t changed much. We have seen a large increase in those eligible for the maximum Pell despite no large increase in overall Total Income average. This suggests that there has been a shift for those that already would have qualified for Pell to be eligible for the maximum amount. It appears based on our institutional data that more students are qualifying for Pell grant but not because its reaching more middle class families, with the economic down turn more families are falling into lower income brackets and more families are applying for aid. 6

7 Pell Grants Future Possible Topics LEU affect Max increases in future years How do we pay for it Decrease in those eligible as economy improves Further changes to the formula Awareness and Outreach Activities: SPC FAFSA High School Nights, We have between 4 6 FAFSA nights per year are High Schools within our county. Work with the High Schools directly Used to concentrate on the areas with student that have the highest needs, now hit all areas equally Increased to sending the invitations to all juniors as well as seniors to increase attendance On campus FAFSA days and Verification Events Began rotation of events on our various campus throughout the year to The goal is to get more of our students to fill out the FAFSA as well as complete verification earlier to make the most our of campus based aid programs in conjunction with Pell. Awareness and Outreach Activities: FIU Off Campus Outreach, Over 30, direct outreach events across the county in 2012 Participate in the FIU JP Morgan Chase The Education Effect with Northwestern Senior High School On campus FAFSA Campaign and Clear2Go Campaign Remind current students to complete their FAFSA s by our March 1 priority deadline. Clear2Go tracks and sends reminders to students who have applied but not completed the financial aid process from May through the beginning of Fall classes. 7

8 Awareness and Outreach Activities: SPC State of Florida allows schools to charge a Financial Aid Fee to be used for various scholarships and institutional grants. It was determined that those that were Pell eligible were also getting the vast majority of other federal, state, and private grants Decision was to target our Institutional Grant funds to those that fall below Pell eligible but still had need. The $400 $800 per year award is enough to pay for half time enrollment in 1 or 2 terms. Which is the majority of our students. SALT on the money, Financial Awareness program St. Petersburg College has teamed with American Student Assistance to provide a FREE online program to help students manage money and student loans. Will allow students to track of your student loans, get loan advice from an expert counselor, look for a job or internship, search for scholarships, learn how to budget and manage your money wisely, and find out why credit and your credit report are so important Awareness and Outreach Activities: FIU State of Florida allows schools to charge a Financial Aid Fee to be used for various scholarships and institutional grants. Part of those funds are used as an Upper Division grant to full time Pell recipient Juniors and Seniors to encourage completion Part of those funds are target to not Pell eligible students with EFCs up to 8,000. Awards for both programs are $2,000. Tuition Differential funds go to 0 EFC Pell recipients to hold harmless against tuition increases Financial Awareness and Default Prevention All entering freshman are required to take First Year Experience class. One class session is devoted to Financial Aid. Participate in Grad Send off event where graduating students must go to pick up their cap and gowns and ceremony tickets. Questions or Thoughts Contact Information: Francisco Valines Florida International University valinesf@fiu.edu Wayne Kruger St. Petersburg College Kruger.wayne@spcollege.edu 8