304.558.0699 (phone) 304.558.1011 (fax) kanawha blvd. east suite 700 charleston, wv 25301 financial...

1018 Kanawha Blvd. East • Suite 700 • Charleston, WV • 25301 304.558.0699 (Phone) • 304.558.1011 (Fax) • www.hepc.wvnet.edu

Financial Aid

in West Virginia

A Presentation to the House and Senate Education Committees

Office of Financial Aid and Outreach ServicesMarch 17, 2005

Financial Aid Presentation - March 17, 2005 - 2 -

Merit-Based Financial Aid Programs• PROMISE Scholarship Program

The PROMISE Scholarship is intended to increase the number of students going to college in WV, to develop an educated workforce that will attract high skill, high wage jobs and to provide an incentive for all WV students to perform at a high academic level. Total amount awarded was $30,403,235 to 8,648 students during the 2004-05 academic year.

• Engineering, Science and Technology Scholarship ProgramThis program is designed to attract talented students to WV colleges and universities to major in engineering, science and technology fields and to help WV retain such students to work in related occupations to maintain economic stability and stimulate growth in the state. If recipients do not fulfill the service requirement in the state the award must be repaid. Total amount awarded during 2004-05 was $519,916 to 183 students.

• Underwood-Smith Teacher Scholarship ProgramThe purpose of the Underwood-Smith Teacher Scholarship Program is to improve the quality of education in WV public schools by enabling state residents with outstanding academic abilities to enter teaching careers in K-12 education in WV. The award must be repaid if recipient does not fulfill service requirement in the state. Total amount awarded was $233,021 to 51 students during the 2004-05 academic year.

• Robert C. Byrd Honors Scholarship ProgramThis federal program is designed to promote student excellence and achievement and to recognize exceptionally able students who show promise of continued excellence. These $1,500 scholarships are awarded on the basis of merit for study at an institution of higher education to incoming college students based on respective application competition from each of West Virginia 's Congressional Districts. Recipients may apply for renewal consideration for a total of four (4) years of assistance. Total amount awarded during 2004-05 was $206, 941 to 140 students.


Need-Based Financial Aid Programs

• West Virginia Higher Education Grant ProgramThe West Virginia Higher Education Grant Program is designed to ensure that academically able and financially needy students in WV have access to higher education at eligible institutions. As the primary state-level need-based student aid program, the Grant Program helps facilitate the development of the state’s human resources and provide eligible students the opportunity to contribute to the full extent of their capabilities. For 2004-05, $20,800,000 was awarded to 10,308 students.

• Higher Education Adult Part-time Student (HEAPS) Grant ProgramThe HEAPS Program was created to provide financial assistance to financially needy students who enroll on a part-time basis in a degree or certificate program and also to provide access to short-term postsecondary certificate, industry recognized credential or other skill development programs in demand occupations. During the 2003-04 academic year, 3,507 students received a total of $3,407,582.


Other Financial Aid Programs

• Medical Student Loan ProgramOriginating in 1987, this program was created to provide loans to medical students who are enrolled or accepted for enrollment in one of West Virginia’s three medical schools. Recipients must be pursuing an allopathic or osteopathic medical degree. For 2003-04, the total amount awarded was $1,354,228 to 291 students.

• Health Sciences Scholarship ProgramThis program provides an incentive for health professions students to become rural practitioners in WV or to teach in one of the state’s nursing programs. Medical students qualify for $20,000 and graduate nursing and physician assistant students qualify for $10,000. If participants do not fulfill a service requirement, the scholarship must be repaid. Over 60 participants in the program are currently practicing in rural WV or have become nursing faculty. The total amount awarded during 2003-04 was $300,000 to 11 medical students and 8 graduate nurse practitioners.


Why Have Financial Aid Programs?

• Access to postsecondary education.

• Affordability of postsecondary education.

• Alter expectations of high school students and parents.

• Attainment of postsecondary degrees.


Types of Need-Based Financial Aid

• There are two types of need-based financial aid -- gift aid and self-help aid. For each type, there are two categories—need-based and non-need-based, also called merit-based.

• Gift aid, as the name implies, does not have to be repaid and does not require a work commitment on the part of the recipient. It consists of grants and scholarships from federal, state, institutional, and private sources. Grants usually are awarded on the basis of need. Scholarships usually are awarded based on the student’s merit, such as academic performance or talent in a particular area.

• Self-help aid requires either repayment or a work commitment on the part of the recipient. Most loans for higher education costs are either directly from and/or are subsidized by the federal government. Federal educational loans are available to both students and parents. In addition, some states and schools have their own educational loan programs. Wages earned under the Federal Work-Study (or FWS) Program, state work-study programs, and institutional need-based employment are examples of self-help aid.


• EFC Definition: The dollar amount that a family is expected to pay towards a student’s education costs. This federal calculation is based on family earnings, assets, number of students in college and family size.

• WV Higher Education Grant Program recipients with an EFC of $4,000 or less and PROMISE eligibility may receive both awards.

Expected Family Contribution (EFC)


Financial Aid Need Calculation

Principles of Need Analysis

• A family’s estimated ability to pay, or EFC figure, is calculated using a process known as “need analysis.” Need analysis is based upon the principles that:

– To the extent they are able, parents have the primary responsibility to pay for the education of their dependent children;

– Students also have a responsibility to help pay for their educational costs;

– Families should be evaluated in their present financial condition; and– A family’s ability to pay for educational costs must be evaluated in

an equitable and consistent manner, while recognizing that special circumstances may alter a family’s ability to pay.

Financial Aid Formula

Cost of Attendance - Expected Family Contribution = Financial Need


Student Financial Aid Package at New River Community and Technical College

Sophomore, dependent, commuter student with three in the family and one in college with income of $17,124. Student has ACT score of 18 and a GPA of 2.98.

Cost of Attendance Financial Aid AwardsTuition and Fees $2,624 Federal Direct Loan $2,625

(declined)Room & Board $2,000 Federal Pell Grant $4,050Books & Supplies $1,200 WV Higher Ed. Grant $1,836Transportation $1,600Personal & Other Exp. $1,616 Total Financial Aid $5,886

Total Cost $9,040 Unmet Need $3,154

Family Contribution (EFC) $0

Financial Need $9,040


Student Financial Aid Package at Marshall University

Sophomore, dependent, on-campus student with four in the family and one in college with income of $55,000. Student has ACT score of 28 and a GPA of 3.5.

Cost of Attendance Financial Aid AwardsTuition and Fees $3,818 PROMISE Scholarship

$3,818Room & Board $6,060 John Marshall Scholarship

$1,250Books & Supplies $ 800 Transportation $ 0 Total Financial Aid

$5,068Personal & Other Exp. $2,452

Unmet Need $3,062

Total Cost $13,130

Family Contribution (EFC) $5,000

Financial Need $8,130


Academic Year 2003-2004

Certificate Graduates 202

# with loans 93

% of grads with loans 46%

Average debt $8,366

Associate Graduates 2,325

# with loans 1,079

% of grads with loans 46.4%

Average debt $11,330

Baccalaureate Graduates 7,416

# with loans 4,415



All Graduates 9,943

# with loans 5,587



West Virginia Public College Graduates Loan Debt


• Full tuition and mandatory fees at any public college or university in WV.

• For students attending a private college or university, $3,160 (FY 05) is awarded towards tuition expenses.

What Does the PROMISE Scholarship Cover?


• 3.0 GPA in the high school core and overall coursework,

• 21 on the ACT (plus a minimum of a 20 in each of the four subject areas); or

• 1,000 on the SAT (plus a minimum of

490 in verbal, and 480 in math).

PROMISE Scholarship Academic Requirements


• PROMISE recipients must maintain a cumulative 3.0 GPA.– As a freshman, a student can retain the

scholarship if he/she receives a 2.75 GPA, but the following year he/she will need to boost the GPA to the required cumulative 3.0.

• Students must complete 30 credit hours per academic year.

PROMISE Scholarship Renewal Requirements


• 12,554 awards have been offered to students since fall 2002.

• 11,054 awards have been accepted and used by students since fall 2002.

• Participation in 2002 was 87%.



PROMISE Scholarship Utilization


EFC level Number of Students Percentage

$0-$1,000 592 14.5%

$1,001- $2,000 217 5.3%

$2,001- $3,000 226 5.5%

$3,001- $4,000 248 6.1%

$4,001-$5,000 212 5.2%

$5,001-$6,000 150 3.7%

$6,001-$7,000 150 3.7%

$7,001-$8,000 155 3.8%

$8,001-$9,000 145 3.5%

$9,001-$10,000 148 3.6%

$10,001-$15,000 519 12.7%

$15,001-$20,000 400 9.8%

$20,001+ 830 20.3%

EFC not Reported 97 2.4%

Total 4,089 100%

PROMISE Recipients by EFC 2004


• As West Virginia composite scores continue to improve, ACT sub-scores are also on the rise. Between 2000 and 2004, sub-scores for all WV test takers have improved in every subject except science. Although significant deficiencies between WV and national averages for math and science continue, WV students are now close to the national average for reading and have exceeded the national average in English.

• Outreach and financial aid programs such as the PROMISE Scholarship and the WV Higher Education Grant may be significant influences on improved performance of students entering West Virginia colleges and universities.

2000 and 2004 ACT Scores Commentary


Year

# of WV High School Graduates

# Enrolled in WV Institutions

% Enrolled in WV Institutions

# Enrolled in Out-of-State Institutions

% Enrolled in Out-of-State Institutions

# Enrolled in WV or Out-of-State Institutions

% Enrolled in WV or Out-of-State Institutions

1999 20,504 8,768 42.76% 2,116 10.32% 10,884 53.08%

2000 20,010 8,778 43.87% 2,211 11.05% 10,989 54.92%

2001 19,142 8,568 44.76% 2,223 11.61% 10,791 56.37%

2002 17,833 8,295 46.51% 1,786 10.02% 10,081 56.53%

2003 17,971 8,941 49.75% 1,732 9.64% 10,673 59.39%

College Going Rate, 1999-2003


FISCAL YEAR 2006 High Model Low Model

Revenue

Appropriation Transfers (Est.) $37,921,651 $37,921,651

Investment Earnings (Est.) $300,000 $300,000

Non-Federal Grants $0 $0

Other Collections $0 $0

Total Revenue $38,221,651 $38,221,651

Expenses

Administrative Costs (Est.)

$300,000 $300,000

Scholarships Paid (Est.) $38,927,499 $38,379,574

Total Expenses $39,227,499 $38,679,574

Ending Balance ($124,398) $423,526

PROMISE Scholarship Revenue and Expenditures for FY 2006


• In 2002, 77% of WV Grant recipients continued as enrolled students in 2003.

• In 2002, 92% of PROMISE recipients continued as enrolled students in 2003.

• In 2002, 73% of general population freshmen continued as enrolled students in 2003.

• Students who receive some type of financial aid continue on with their education (despite the possibility of losing their aid) at higher rates than the general population.

Enrollment Retention of Financial Aid Recipients vs. General Populationat Public Institutions


• West Virginia residency.

• Filing of FAFSA by March 1.

• Completion of Common Application for State Level Financial Aid by March 1.

Non-Academic Eligibility Criteria for Receiving the PROMISE Scholarship and/or the WV Higher Education Grant


• Demonstrate financial need.

• Meet the eligibility requirement of a 2.0 cumulative GPA.

WV Higher Education Grant Program Requirements


• 40,773 eligible applications were submitted with EFC less than $6,000.– 35,564 students with EFC of $4,000 or less– 5,209 students with EFC between $4,001

and $6,000

• 10,308 students received the grant.

• Over $20.8 million was awarded.

WV Higher Education Grant Program Overview from 2004-2005


• Awards range from $350 to $2,756, depending on remaining need.

• The grant is applied towards tuition and fees.

• Students must enroll as full-time undergraduates at an approved institution located in West Virginia or Pennsylvania to receive the grant.

WV Higher Education Grant Program Awarding Criteria


• Market statewide program availability.

• Gather applications, using March 1 deadline.

• Collect grade information from WV Department of Education.

• Collect national test scores from ACT and SAT.

• Provide participating institutions with electronic roster of all applicants.

• Rank academically eligible applicants by need – beginning with $0 EFC.

• Award eligible students based on available funds.

• Mail letter to recipients.

• Transmit electronic rosters of recipients to all participating institutions.

• Repeat award process in June, October, and February.

Need-Based Financial Aid Application and Award Process


EFC levelNumber of Students

Percentage

$0-$1,000 5,679 55.1%

$1,001-$2,000 1,477 14.3%

$2,001-$3,000 1,360 13.2%

$3,001-$4,000 1,121 10.9%

$4,001-$5,000 623 6.0%

$5,001-$6,000 48 0.4%

Total 10,380 100%

WV Higher Education Grant Program Recipients by EFC 2004


FY 2005PROPOSED

FY 2006

State Appropriation $18,000,000 $22,451,925*

Federal Match S/LEAP ** $829,754 $800,000

Higher Education Resource Assessment (HERA) Funds

$1,800,000 $1,800,000

TOTAL $20,629,754 $25,051,925

*FY 2006 – Governor Manchin’s Proposed Budget**FY 2006 – Bush Proposed Budget Eliminates Funding, SLEAP – Special Leveraging Educational Assistance Partnership Program LEAP -- Leveraging Educational Assistance Partnership Program

WV Higher Education Grant Program Funding Sources


WV Higher Education Grant

PROMISE Scholarship

Financial Aid Type Need-Based Merit-Based

Number of Awards 10,308 8,648

Participating Schools

•WV public college/university•WV independent college/university•WV proprietary school•PA college/university

•WV public college/university•WV independent college/university

Award Amounts70% of public tuition or equivalent amount for independent institution

($600 annually in PA)

full public tuition amount or equivalent for independent institution

Award Funds

Lottery: $18,000,000

HERA: $1,800,000

Federal: $600,000

Lottery: $27,000,000

Supplemental: $3,000,000

Renewal Criteria•2.0 cumulative GPA•24 earned credit hours per year

•3.0 cumulative GPA•30 earned credit hours per year

2004-2005 Comparison of Financial Aid


• This program is designed to encourage and enable needy WV students to continue their education on a part-time basis at the postsecondary level.

• In certain fields of study, full-time students can be eligible for HEAPS.

Higher Education Adult Part-time Student (HEAPS) Grant Program


• Must be a WV resident who is enrolled or accepted in a part-time certificate or degree program.

• Have either a high school diploma or GED.

• Maintain a 2.0 cumulative GPA and be making satisfactory progress.

• Demonstrate financial need.

Eligibility Requirements for HEAPS


GOVERNOR’S REQUEST

General Revenue

PROMISE Scholarship $10,921,651

Lottery Revenue

Higher Education Grant Program

$22,451,925

HEAPS Grant Program $6,000,422

PROMISE Scholarship $27,000,000

Governor Manchin’s FY 2006 Budget Request for Financial Aid


West Virginia Higher Education Policy CommissionOffice of Financial Aid and Outreach Services1018 Kanawha Boulevard, East, Suite 700Charleston, WV 25301

(304) 558-4417 or1-888-825-5707

www.hepc.wvnet.edu www.collegeforwv.comwww.promisescholarships.org

Contact Information

http://www.hepc.wvnet.edu/

http://www.collegeforwv.com/

http://www.promisescholarships.org/

304.558.0699 (phone) 304.558.1011 (fax) kanawha blvd. east suite 700 charleston, wv 25301 financial...

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