copyright © edvisors network, inc. () how to improve fafsa completion rates mark kantrowitz senior...

Copyright © Edvisors Network, Inc. (www.edvisors.com)

How to Improve FAFSA Completion Rates

Mark KantrowitzSenior VP and Publisher

Edvisors.com

Confidential, Distribute Only as permitted by Edvisors Network, Inc.Copyright © Edvisors Network, Inc. (www.edvisors.com) 2

Increase in FAFSA Completion Rates Since 2007-08

Less than $50,000 $50,000 to $99,999 $100,000 or more Total0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

67%

47%

39%

58%

67%

49%43%

59%

76%

66%61%

72%

Improvements in FAFSA Completion Rates by Income2003-04 2007-08 2011-12


Increase in Number of FAFSAs Filed Since 2007-08

Less than $50,000 $50,000 to $99,999 $100,000 or more Total -

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Increases in Number of FAFSA Filed by Income2003-04 2007-08 2011-12


Slowing Growth in Number of FAFSAs

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 -

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

11.4 million

14.0 million 14.6 million

16.4 million

19.5 million

21.1 million21.9 million 21.8 million

21.2 million

Number of Financial Aid Applications


FAFSA Completion by Degree Level and Income

Overall Certificate Associate's Degree Bachelor's Degree0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

76% 76% 74%79%

66%

51%

58%

72%

61%

48%42%

69%

FAFSA Completion by Income and Degree Level, 2011-12Less than $50,000 $50,000 to $99,999 $100,000 or more


FAFSA Completion by COA and Income

Less than $10,000 $10,000 to $19,999 $20,000 to $29,999 $30,000 or more0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

59%

83%89% 87%

41%

71%77% 77%

31%

55%

72%76%

FAFSA Completion by AGI and Cost of Attendance, 2011-12Less than $50,000 $50,000 to $99,999 $100,000 or more


FAFSA Completion by Sector and Income

Public 4-Year Non-Profit 4-Year For-Profit 4-Year Public 2-Year Non-Profit 2-Year For-Profit 2-Year0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

77% 78%

89%

66%

77%

90%

68%75% 78%

52%

64%

73%

63%

76% 77%

39%

71%

61%

FAFSA Completion by Sector and Income, 2011-12Less than $50,000 $50,000 to $99,999 $100,000 or more


Leaving Money on the Table Failure to file the FAFSA is a key problem

• In 2011-12, 2 million students would have qualified for Federal Pell Grants totaling $9.5 billion, had they filed the FAFSA

• These students might have qualified for an additional $2.9 billion in state and institutional grants

• 1.3 million would have qualified for the maximum Federal Pell Grant

Reasons these students did not file the FAFSA• 46.7% thought they were ineligible• 37.5% said that they had no demonstrated financial need• 34.1% did not want to take on student loan debt• 13.6% had no information on how to apply for financial aid• 9.4% said that the financial aid application forms were too much work

Characteristics of students who do not file the FAFSA• More likely to be enrolled at 2-year and low-cost colleges, especially

community colleges• More likely to be enrolled part-time and work full-time• More likely to be independent and low-income


Timing Matters Students who file the FAFSA in January, February or

March receive more than twice as much grant funding, on average, as students who file the FAFSA later• The most likely cause of the change in funding is very early

state and institutional deadlines • Some funding is awarded on a first-come, first-served basis

until the money runs out

Of students who filed the FAFSA, low-income students are more likely to file the FAFSA later• 32.6% of low-income students (AGI < $50,000) filed in

January-March• 25.9% of AGI < $25,000 • 44.8% of AGI $25,000 to $49,999

• 58.1% of middle-income students filed in January-March• 70.5% of high-income students filed in January-March


Average Grant by Month FAFSA Filed

January

February

March AprilMay

JuneJuly

August

September

October

November

December

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

Average Grant by Month FAFSA Filed, BPS:04/09All Grants Federal Grants State and Institutional Grants


Impact of Filing the FAFSA on Six-Year Degree Attainment

Six-Year Degree Attainment Rates

Degree Level Did Not File FAFSA Filed FAFSA

Overall 44.1% 52.4%Certificate 35.1% 48.0%Associate’s Degree 17.4% 19.6%Bachelor’s Degree 57.2% 59.9%

• FAFSA completion contributes to degree attainment• Greatest impact of FAFSA completion is on the receipt

of Certificates


Low-Income Enrollment Shifting to Lower-Cost Colleges

Less than $25K

$25K to $50K

$50K to $75K

$75K to $100K

$100K to $125K

$125K to $150K

$150K to $175K

$175K to $200K

$200K to $225K

$225K to $250K

$250K or more

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Distribution of Enrollment by Degree Program and AGI, 2011-2012Bachelor's Degree Associate's Degree Certificate

Adjusted Gross Income (AGI)


Ratio of Annual Net Price to Total Income, 2011-2012

Institution Type < $50,000$50,000 to $100,000 > $100,000

Public 2-Year 34.7% 10.8% 5.5%

Public 4-Year 57.2% 21.2% 11.9%

Non-Profit 4-Year 81.8% 31.1% 18.5%

For-Profit 100.8% 26.5% 14.7%

Source: Analysis of data from the 2011-2012 National Postsecondary Student Aid Study (NPSAS)Net Price = College Costs – Gift Aid. Limited to families with positive net price. Net price is for one-year.


Federal Pell Grant Recipients Graduate with More Debt


Recommendations Get low-income students to file the FAFSA by increasing

awareness• Emphasize that financial aid involves grants & scholarships, not just loans• Students who work full-time while in school are half as likely to graduate• You can’t get financial aid if you don’t apply

Encourage students to file the FAFSA sooner to get more money Target community colleges for FAFSA completion campaigns

• Provide proactive one-on-one personalized counseling for filing the FAFSA• FAFSA completion statistics should be made part of annual performance

reviews for high school guidance counselors and college financial aid staff• Require high school seniors to file the FAFSA as a graduation requirement

and/or as a prerequisite for college admissions

Seek to standardize state deadlines to a later date or shift the FAFSA start date earlier (prior-prior year)

Simplify the FAFSA Tie a free scholarship lottery to the FAFSA


Thank You!

Mark KantrowitzPublisher, Edvisors.comFollow on Twitter @mkant

Free Guide to Filing the FAFSA A PDF version of the book,

Filing the FAFSA, is available for free download at www.edvisors.com/fafsa-book

Also sold in paperback format on Amazon.com for less than $10

http://www.edvisors.com/fafsa-book

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