Expanding Opportunity in Higher Education: Leveraging Promise

3. Lowering Barriers to College Access: Opportunities for More Effective Coordination of State and Federal Student Aid Policies

INTRODUCTION Nearly forty years ago, the federal and state governments initiated policies and programs—through a legislative partnership—in an effort to ensure access to higher education regardless of student and family economic circumstances. As a result, millions of students who otherwise could not have afforded college were able to enroll in higher education and attain degrees, which in turn propelled economic growth in the late 20th century (Advisory Committee, 2001). However, progress toward closing the opportunity gap that continues to exist for low- and moderate-income families remains elusive. Gaps in college participation rates are as great now as in the 1970s and appear to be widening despite rising economic returns to a college education (College Board, 2002b; Fitzgerald & Delaney, 2002; Kane, 2001). In addition, significant barriers to college enrollment exist, including the lack of accurate, timely information about college and financial aid; complex forms and financial aid processes; 53 BRIAN K. FITZGERALD Chapter Three Lowering Barriers to College Access: Opportunities for More Effective Coordination of State and Federal Student Aid Policies and shortfalls in student aid, especially grant aid (Ellwood & Kane, 2000; Advisory Committee, 2002, 2003). Better coordination of federal and state policies and more effective utilization of resources and programs can mitigate access barriers and increase enrollment opportunities for low- and moderate-income students. Aligning federal and state policies can significantly simplify the process by which lowincome students demonstrate eligibility for aid. This can create transparency and certainty for students, especially if the shared eligibility standards are common to federal means-tested programs, and can permit identification of eligible populations in middle school. Linking assurances of financial aid with early intervention and support services can have powerful, positive effects on the academic preparation, college enrollment, and persistence of low-income students (St. John et al., 2002). This chapter documents these enrollment gaps and identifies the barriers to college enrollment that confront low-income, first generation, and minority students. The chapter explores and analyzes short- and long-term opportunities for improved policy making and coordination between states and the federal government in order to improve college access. The Federal Commitment to Access Ensuring equal educational opportunity for all citizens represents the most important federal role in higher education. Since the passage of the Higher Education Act (HEA) in 1965, need-based student financial aid has served as the primary federal postsecondary policy instrument, attempting to ensure that students who otherwise could not afford college have the financial resources to enroll and persist through degree completion. The 1965 Act also created early intervention programs, commonly known as the TRIO programs, which promote college awareness and assist students in preparing for college.1 Student aid in general, and grant aid in particular, are essential to the college enrollment of low- and moderate-income students. Grants are generally acknowledged as a more effective means of encouraging students to enroll and persist in postsecondary education, especially at a four-year institution , than loan or work aid (Wolanin, 2003). Today, the federal investment in student aid totals $55 billion a year, including almost $12 billion in grants, which, augmented by need-based grant aid from states and institutions, lowers the price of college for needy students (College Board, 2002a). The Federal Pell Grant program (Pell Grant), created in the 1972 Amendments to the HEA as a voucher program, currently provides 4.5 million low- and moderate-income recipients with grants up to a maximum of $4,050 (Department of Education, 2002a). The 1972 Amendments also created the State Student Incentive Grant program (SSIG), now the Leveraging Educational Assistance Partnership (LEAP) program, which consists of incentive grants to states that encourage creation and expansion of 54 Brian K. Fitzgerald grant and work-study programs (Wolanin, 2003). State grants, which in some states can exceed the Pell Grant maximum award, are key access tools for low- and moderate-income students. States’ Commitment to Access In the second half of the 20th century, states have made fundamental commitments to college access by creating and dramatically expanding public universities. By 2002–2003, state postsecondary appropriations reached nearly $64 billion (Palmer, 2002). As a result of these investments, 82 percent of all students and 75 percent of full-time students are enrolled in public sector institutions (College Board, 2002b). States have also supported need-based grant programs, and early outreach and intervention programs. In 2002, states collectively provided $6 billion in student aid, of which $3.9...