REALITY C H E C K : H I S P A N I C - S E R V I N G I N S T I T U T I O N S O N T H E T E X A S B O R D E R STRATEGIZING FINANCIAL AID TABLE OF CONTENTS This brief was written by: Deborah A. Santiago, Vice President FOREWORD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 for Policy and Research, Excelencia in Education EXECUTIVESUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A PDF version is available on the web at www.EdExcelencia.org OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 POLICYENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 THEROLEOFFINANCIALAID . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Excelencia in Education accelerates higher education success for Latino stu- STATECONTEXT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 dents by providing data-driven analysis Texas Border. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 of the educational status of Latinos, and by promoting education policies and in- Profile of financial aid in Texas Border Institutions. . . . . . . . . . . . . . . . . . . . . . . . 11 stitutional practices that support their academic achievement. A not-for-profit Financial aid practices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 organization, Excelencia is building a net- work of results-oriented educators and PROMISINGFINANCIALAIDSTRATEGIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 policymakers to address the U.S. econ- omy’s need for a highly educated work- force and for civic leadership. In POLICYRECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 addition, Excelencia in Education is rec- ognized as a leading information source SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 on Latinos in higher education. For more information, please visit REFERENCES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 www.EdExcelencia.org. CAMPUSTEAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 TG is a public, nonprofit corporation that helps create access to higher educa- ACKNOWLEDGMENTS tion for millions of families and students This brief was developed with the support of the TG Public Benefit Grant Program. The brief through its role as an administrator of includes summaries of site visits and interviews with staff and administrators as well as focus the Federal Family Education Loan Pro- groups with students at each of the eight campuses. We gratefully acknowledge their gram (FFELP). Since 2005, TG has contributions and insights. awarded nearly $15 million in grant funding through the TG Public Benefit The brief benefited from input and review by representatives from each of the institutions Competitive Grant Program for need- highlighted in the brief. The brief also benefited from input by Victor Saenz, Assistant Professor, based aid, academic and support services Higher Education Administration, The University of Texas at Austin, and several graduate for students and families, and education students. In addition, the brief was reviewed by Sarita Brown, President, Sally Andrade, research. For more information about Research Associate, Excelencia in Education, and Jacob Fraire, Assistant Vice President, TG, TG’s Public Benefit Program, please visit Educational Alliances. The author is solely responsible for any errors in content. http://www.tgslc.org/publicbenefit/ The opinions expressed in this report the author’s and do not necessarily represent the views of index.cfm TG, its officers or employees. © 2010 by Excelencia in Education. Material may be duplicated with full attribution. ABOUT THE AUTHOR Deborah A. Santiago is co-founder and Vice President for Policy and Research at Excelencia in Education and brings her extensive experience in education policy and research to the challenge of accelerating Latino student success. 1 EXCELENCIA IN EDUCATION F E S OREWORD XECUTIVE UMMARY T I he economy of the last few years significant models for serving Latino ncreasing college degree completion is an important goal. has been a sobering experience for students. Excelencia in Education first As Latino representation in U.S. higher education grows, a many families in the United States. examined these institutions in 2008 reality check of institutional practices that support Latino Today people feel the budget cuts, and released ALASS: Accelerating students’ access, persistence, and graduation is needed. This reductions in earnings and loss of jobs. Latino Student Success at Texas Border brief examines financial aid strategies aimed at increasing Nonetheless, employers, workers and Institutions: Possibilities and Challenges. enrollment, academic success and degree completion at eight students recognize we live in an The brief reviewed enrollment and Texas Hispanic-Serving Institutions (HSIs) located along the internationally competitive marketplace, graduation trends at these Texas border U.S.-Mexico border serving low-income communities. and to participate effectively in this institutions, highlighted promising knowledge-based economy requires a programs and strategies for increased The following colleges and universities along the Texas college degree. participation and success of Latino border rank among the top institutions, both statewide and students, and offered policy recom- nationally, in enrolling and graduating Latino students: Thus, degree completion has become a mendations to further improve success •Texas A&M International University major policy topic. Federal, state and rates for the State’s Latino students. •The University of Texas at Brownsville local education leaders are attempting Now, in these tough economic times, to track students by enrollment, •The University of Texas at El Paso Excelencia in Education — with persistence, transfer and graduation •The University of Texas Pan American support from TG — returns to these patterns. Philanthropic leaders are supporting coalitions to institutions to examine how they handle financial aid and •Laredo Community College focus the attention of policy makers and donors on the fulfill their social contract with their students. •Texas Southmost College United States’ floundering position in its rates of higher education graduates. The reality check for our nation is, we must invest in our •El Paso County Community College District nLatino students in these Texas border institutions had future by investing in today’s students. Helping today’s •South Texas College At the same time, the composition of the student body limited knowledge about their financial aid options. Many college students earn degrees ensures America’s future will continues to evolve with greater numbers of first generation did not consider student loans to be financial aid, and These institutions have increased access during challenging be rich with talent and human capital ready to assume college-goers; among them are large numbers of Latino they did not know how to navigate the financial aid economic times and are implementing strategies to address leadership roles and contribute to our society. students. Higher education is expected to serve these process or to identify multiple information sources both the students’ and the institutions’ financial constraints in students. This is today’s reality. without institutional guidance. efforts to improve student persistence and degree completion. The following are key findings, financial aid strategies, and Ironically, eight Texas border colleges and universities, in one Sarita E. Brown nFinancial aid staff described a general aversion by Latino policy recommendations for addressing the access and of our country’s most-impoverished regions, are consciously President students to borrowing, but also noted that current retention of Latino students in the Texas border region. serving 21st Century students and have designed nationally Excelencia in Education increases in college costs and economic constraints have resulted in an overall increase in the number of Latino Findings students taking out loans to pay for college. nThe low-income of many Latino families in the Texas nDefault management was a concern for the Texas border border and the ongoing economic crisis have resulted in a colleges and universities. Institutions did not want to need for most students to work while going to college. jeopardize Pell grant eligibility for all students by having These financial constraints limit Latino students’ high default rates, but staff also recognized loans were persistence and completion rates. becoming an increasing necessity for students to pay for nFederal financial aid is critical for Latino students to pay college costs (especially at public universities). for college. In 2008-09, almost 75 percent of students in nInstitutional leaders were concerned they would not have Texas relied on federal resources to pay for college. sufficient resources or staff to provide the same level of nTexas and federal financial aid programs have various information and services to students previously provided criteria for participation and renewal and are onerous for from lenders and guarantors before the change to federal institutions and for students to track. Direct Loans. 2 3 REALITY CHECK: HISPANIC-SERVING INSTITUTIONS ON THE TEXAS BORDER STRATEGIZING FINANCIAL AID EXCELENCIA IN EDUCATION Policy Recommendations their service area and have identified both early college high schools and dual enrollment programs as effective strategies The following are recommendations to consider for policy- for increasing access and completion of a college degree. makers that build from the strategies of the HSIs along the Texas border that can benefit all students, including Latinos. Encourage “intrusive” services by institutions. The Increase investment in work-study programs. Federal institutions in this brief know their student population well and seek to implement institutional strategies in the best policy efforts in the last year have focused predominately on interests of their students as they see fit, without limiting Pell grants and loans. Both of these forms of financial aid are students’ choices or options. While some of the campus critical for Latino students. However, in this constrained administrators noted a reluctance to serve in loco parentis (a economic environment, students increasingly need to work Latin term for “in the place of a parent”), the majority of while they are enrolled to manage their living and college institutions noted the importance of not assuming their expenses. Work-study is a valuable program for institutions and students were aware of all of their options when making has financial support from the state and federal levels. However, financial aid choices. work-study has received little attention in policy conversations. Provide appropriate training and materials for default Guarantee need-based aid for qualified students. management and financial literacy. Institutions expressed Finding and receiving sufficient financial aid to pay for college serious concerns about the limited training and support for is a complex and cumbersome process. Providing potential and loan default management and financial literacy needed for both current students with a guarantee of their eligibility for Effective financial aid strategies eligible for federal financial aid to continue their college institutions and students with limited resources to manage their financial support has been effective for enrolling and retaining education until they graduate from high school. This study of the Texas border colleges and universities identi- financial aid options well. Quality materials and training in low-income students at several of the Texas border institutions fied the following effective financial aid strategies for improv- (4) EMERGENCYLOANSANDINSTALLMENT/PAYMENTPLANS and has the potential to be effective at a larger scale. default management can help institutions improve their ing the access, persistence and graduation of Latino students. provide access and retention for students who lack a financial aid strategies to low-income students. Financial Continue to expand early college high schools or credit history or who have limited income and prefer to literacy programs targeting low-income students can help these (1) CAMPUS-BASEDWORK-STUDYPROGRAMSallow a student dual enrollment programs. The campuses along the Texas pay as they go. These institutional strategies also provide students manage their financial aid options. to work and earn income while enrolled and provide border are engaged with other educational institutions in a temporary safety net for students who become financial support beyond tuition and fees. By keeping economically vulnerable. However, these programs can be students on campus and creating additional a financial risk for institutions if students do not repay. opportunities to become aware of and use institutional services, students have possibilities for increased (5) INTEGRATIONORCOORDINATIONOFOUTREACH interaction with faculty, staff and other students, often ACTIVITIES, PROGRAMINFORMATION, ANDSTUDENT resulting in a stronger sense of belonging at the campus. SERVICESwithin an institution and among universities and community colleges through collaboration (such as (2) GUARANTEEDNEED-BASEDSCHOLARSHIPSprovide low- joint application processes) simplify and align the income students with sufficient institutional aid to cover financial aid process for current and prospective students. college costs that remain after federal and state aid is These modes of integration can increase student included. These scholarships serve as a powerful retention to completion within the institution and/or outreach and retention tool to support low-income facilitate a student’s transfer to a partner institution. students by providing a clear message of institutional commitment to access and affordability. (6) IMPROVEDSTUDENT/CUSTOMERSERVICEANDSTAFF (3) EARLYCOLLEGEHIGHSCHOOLSANDDUALENROLLMENT TRAININGcan result in increased student participation in financial aid options and greater accuracy by staff of PROGRAMSallow students to earn college course credits institutional policies and funding opportunities. while still in high school (often without expense to the student) by having institutions work with nearby school (7) INCREASEDOUTREACHin high schools, in community districts. Entering college with academic credits lowers colleges, at community events, online, and as part of the total expenses for the student’s family and can orientation sessions or freshmen seminars is labor intensive, shorten the time to completion. One challenge for Texas but such an institutional investment often results in greater border institutions, however, is the growing number of access to financial information and resources for students high school students who complete an associate’s degree and increases their participation in financial aid programs. before they graduate. Currently, these students are not 4 5 REALITY CHECK: HISPANIC-SERVING INSTITUTIONS ON THE TEXAS BORDER STRATEGIZING FINANCIAL AID EXCELENCIA IN EDUCATION O P E VERVIEW OLICY NVIRONMENT C D ommunities along the U.S.-Mexico border in Texas The research for this brief involved a mixed methodology at uring the first decade of the 21st Century, public affordable), increase efficiency and effectiveness, and have among the lowest average income levels in the each institution, including: policy debates about higher education began to demonstrate accountability for student learning outcomes. country. The public institutions of higher education located in focus on college completion or graduation rates as a major At the same time, there is recognition of the growing (a) review of institutional data; (b) interviews with the that region, however, rank at the top statewide and nationally national issue. In 2009, President Obama set a goal for the demographic diversity, limited educational attainment, and president and financial aid administrators; and (c) focus in enrolling and graduating Latino students. Because Latinos United States to have the highest proportion of college increasing demands for a well-educated workforce to address groups with Latino students. Data from interviews, focus are a rapidly growing but underrepresented group in higher graduates in the world by 2020. Similarly, numerous major economic competitiveness issues. Concurrently, the group discussions, document analysis, and site visit education, there is a need to better understand the role that foundations, non-profit organizations, and states economic downturn has limited state funds and left many observations were synthesized to address: financial aid plays and to identify effective institutional emphasized the need for attention and more investment to states without sufficient resources to provide adequate need- 1. Perspectives of senior campus leadership about how financial assistance practices that support Latino student increase college degree attainment as critical for ensuring the based financial aid for all eligible students. their institution financially assists and supports Latino enrollment, persistence and graduation. This issue brief nation’s skilled workforce and economic competitiveness. students’ participation and success. At the institutional level, colleges and universities are juggling examines the institutional financial aid policies and practices their commitment to access and completion with local 2. Institutional financial offerings and strategies with of the following eight institutions along the Texas border to While the Obama Administration and leading organizations economic constraints and specific needs of their service area. evidence of improving the access, persistence, and address what colleges and universities can do to accelerate have focused on aspirational national goals for degree Pressure continues to escalate from federal, state, and completion of their students. Latino student degree completion. attainment, media attention has highlighted the escalation community policy makers and taxpayers to increase efficiency 3. Potential implications of recent or proposed changes of college costs and growing student debt loads to pay for •Texas A&M International University and effectiveness and to demonstrate accountability for in state and federal financial assistance policies to college at the very time the nation has been experiencing an student learning outcomes. Leading institutions face increased •The University of Texas at Brownsville serve the growing population of Latino and other economic crisis, increased unemployment, and retraining of enrollments in challenging economic times and are •The University of Texas at El Paso low-income students. displaced workers. implementing budget-reduction strategies to address both the •The University of Texas Pan American Institutions of higher education are confronted by challenges In 2010, at the state level, higher education institutions are students’ and the institutions’ financial constraints in efforts •Laredo Community College to balance their public purpose, limited capacity, increasing under increasing pressure to reduce costs (make college to improve retention and degree completion. college costs, and ever growing emphases on both productivity •Texas Southmost College and college completion. How are colleges and universities with •El Paso County Community College District notable enrollments of Latino students addressing the •South Texas College economic realities of low-income families within this arena? That question defines the context for this issue brief. It builds on a previous publication — Accelerating Latino Student Success at Texas Border Institutions (ALASS): Possibilities and Challenges (Santiago, 2008) — that examined efforts of Texas border institutions to accelerate Latino student success. The analysis in this first brief also identified financial aid as a critical factor for increasing both the participation and the educational attainment of Latino students at those campuses. In this dynamic environment the eight colleges and universities participating in the ALASS project shared their institutional data, practices, and observations about additional opportunities for improvement with the staff of Excelencia in Education. This brief summarizes what we learned about them and the national significance of their strategies for use of financial aid. The brief also provides policy recommendations based upon the findings and strategies by these institutions to strengthen and expand access, persistence, and completion of postsecondary education for their students—the majority of whom are Latinos. 6 7 REALITY CHECK: HISPANIC-SERVING INSTITUTIONS ON THE TEXAS BORDER STRATEGIZING FINANCIAL AID EXCELENCIA IN EDUCATION T R F A S C HE OLE OF INANCIAL ID TATE ONTEXT T T he initial purpose of financial aid to pay for college was exas is tackling the challenge of meeting the institutions represent less than 10 percent of public to make higher education accessible to more students educational needs of its future workforce and taxpayers institutions in the state; yet in 2008, they enrolled more than and to expand their options of college choices. However, with Closing the Gaps by 2015: The Texas Higher Education 30 percent of Hispanics and awarded more than 30 percent there is some evidence to suggest that both access and choice Plan. Adopted by the state higher education authority in of degrees to Hispanics in Texas (Santiago, 2008). Thus, are constrained for Latino and other underrepresented 2000 with strong support from educational, business, and these institutions are taking responsibility and accelerating students today. For example, Latino undergraduate students political leaders throughout Texas (Texas Higher Education their participation and success efforts for all of their students received the lowest average financial aid award of any Coordinating Board, 2000), the plan is based on solid and especially for Hispanic students to help meet the state racial/ethnic group in 2003-04 (Santiago & Cunningham, research that references the human capital required for Texas goals spelled out in the Texas Closing the Gaps plan. 2005), and they are concentrated in a relatively small number to remain economically competitive (Murdock, 2002; The role of financial aid is critical to meeting the participation of institutions identified as Hispanic-Serving Institutions Perryman Group, 2007). Closing the Gaps outlines how the and success goals in Closing the Gaps by 2015. In 2009, (HSIs). Given the high and growing importance of loans for demographic changes affecting Texas will impact the state’s students paying for college in Texas relied heavily on federal many students to be able to pay for college, the lower average higher education system. It sets goals for closing the financial aid. Almost 75 percent of financial aid received by aid award for Latino students can be partially explained by educational attainment gap within Texas and between Texas show that Latino students are more likely to be first- students came from federal financial aid to pay for college. In the lower percentage of Latino students who take such loans, and leading states in four areas: participation (enrollment), generation and low-income students than many other comparison, 15 percent of financial aid came from institutions and their concentration in HSIs may be the result of their success (completion of degrees and certificates), excellence, groups, are more likely to apply for financial aid than other and 7 percent of financial aid came from the State. Further, the decision to attend lower-cost institutions such as community and research. Of particular importance for Texas and for the groups, only as likely as others to receive some form of type of financial aid received by the majority of students in colleges or to enroll part-time (Cunningham & Santiago, United States is the goal to close the gaps in enrollment and financial aid, are more likely to make enrollment decisions Texas was in the form of loans. In 2009, almost 60 percent of 2008). These findings focus, however, on student choices and graduation by 2015, with numeric goals set by racial/ethnic to limit college costs (such as enrolling at less expensive the financial aid students received was in the form of loans, 40 not on institutional or government efforts. group (Texas Higher Education Coordinating Board, 2007). institutions, enrolling part-time, or commuting) than other percent in grants, and 1 percent was from work-study programs students, and are more likely to work full-time while (Texas Higher Education Coordinating Board, June 2010). At the federal policy level, the Free Application for Federal In April 2010, the Texas Higher Education Coordinating enrolled (Santiago & Cunningham, 2005). Given the goal Student Assistance (FAFSA) has been simplified, the Family Board (Coordinating Board) released an acceleration plan for to increase college completion, efforts to address the Federal Education Loan program (FFELP) has been phased Closing the Gaps by 2015. It noted that one of the highest Sources of Financial Aid for Types of Aid in Texas — FY2009 financial need of students to improve access and success are Students in Texas — FY2009 Grants 41% out, public student loans are now distributed by the federal priorities to attain the ambitious goals was to focus on strategies also receiving increased attention. Federal 74% Loans 58% government, and Pell grants have been increased in policy that will increase the success of Hispanic and African American State 7% Work-study 1% efforts to expand college access and support degree completion However, there is growing evidence that financial students (Texas Higher Education Coordinating Board, 2010). Institutional 15% Total: 100% (Health Care and Education Reconciliation Act of 2010). constraints are limiting Latino students’ access and success. For Texas institutions of higher education, the Coordinating Other 4% Source: Texas Higher Education A Pew Hispanic Center survey (Lopez, 2009) found that the Board acceleration plan identified the following strategies to Total: 100% Coordinating Board, June 2010 At the state policy level, there have been efforts to increase Source: Texas Higher Education primary reason for the modest educational attainment increase participation or enrollment in higher education: scholarships and give early notifications of aid eligibility in Coordinating Board, June 2010 aspirations of most Latino youth (16- to 25-year-old) was some states (California, Georgia, Indiana) while there has nActively engage with local school districts to provide due to financial considerations. About 75 percent of survey Hispanic students in Texas are more likely to be economically been increasing efforts to increase merit aid for higher access to rigorous, high quality, dual credit opportunities respondents who ended their education before or after high disadvantaged and less likely to enroll in college. In 2006-07, education at the expense of need-based aid at other states for qualified high school students. school graduation stated they did so because they had to about 60 percent of Hispanic high school graduates were (Florida, Texas). Further, institutional policies to address support their family. These financial considerations nIncrease outreach efforts, dissemination of information, considered economically disadvantaged, compared to 12 college costs and improve financial aid and to increase access continue even for many students who enroll in college. A and financial aid counseling to high school students, percent of white students. Of these, only 39 percent of and success for public purposes are often predicated on the recent study by Public Agenda (Johnson et al., 2010) focusing on Hispanic and African-American populations. economically disadvantaged Hispanics enrolled directly into larger state and federal policy options provided to institutions. reported that the primary reason young adults drop out of college by fall 2007 (Creusere, et. al., 2010). While these However, there is evidence that institutions are becoming The numbers required to meet each of the stated goals by college is due to their inability to balance working to make economically disadvantaged students may have accessed more innovative about their financial assistance policies. For 2015 are especially large for Hispanics. The Texas border money and going to classes. Balancing work and school was college, they will continue to face financial challenges to example, there are public and private institutions that have institutions of higher education on the U.S.-Mexico border an even bigger barrier than finding money for tuition. persist and complete a degree. guaranteed to provide financial aid with no loans for students are a vital resource to meet this goal. Combined, those eight Those who dropped out are almost twice as likely to cite from families below a certain income level. problems juggling work and school as their main problem as Considering the current policy environment and economic they are to blame the cost of a college education (54 percent constraints, the attention to the role of financial aid in to 31 percent). This analysis seems to reinforce the helping students pay for college has increased. National data challenges for retaining Latino students. 8 9 REALITY CHECK: HISPANIC-SERVING INSTITUTIONS ON THE TEXAS BORDER STRATEGIZING FINANCIAL AID EXCELENCIA IN EDUCATION TEXAS BORDER Leaders of the eight Texas border institutions in this study challenges include academic preparation and college recognized the need to accelerate progress to serve their readiness, access to college, student retention and academic The Texas border region is one of the poorest regions in the not know how to navigate the financial aid process or communities, to meet the state’s ambitious goals, and to progress, college cost affordability, and timely completion. United States. In 2008-09, 10 of the counties in the service area how to locate multiple information sources without increase their operational efficiency. These leaders also While financial aid was not formally listed in the where these border institutions are located were listed among institutional guidance. recognized that the collective commitment of their acceleration plan summaries, all institutional leaders noted the 60 poorest counties in the U.S. by per capita income. nFinancial aid staff described a general aversion by Latino institutions is necessary, but not sufficient, to reach the the need to implement financial aid strategies to ensure nThe Texas border region has a high concentration of students to borrowing, but also noted that current state’s goals. The strategies in the acceleration plans of the students could access and persist to degree completion. The Latino students enrolled in higher education. While increases in college costs and economic constraints have Texas border colleges and universities also addressed the following section provides more context to understand the about 28 percent of college students in Texas were Latino resulted in an overall increase in the number of Latino numerous challenges the institutions face in providing a institution’s strategies to improve student retention and in 2008-09, over 90 percent of students enrolled at the students taking out loans to pay for college. quality higher education in their respective regions. These degree completion. eight border institutions were Latino. The first ALASS report (Santiago, 2008) summarized nThe low-income of many Latino families in the Texas acceleration plans designed by the Texas border institutions PROFILE OF FINANCIAL AID IN TEXAS BORDER INSTITUTIONS border and the ongoing economic crisis have resulted in to continue their leadership in enrolling and graduating the need for most students to work while going to Hispanic students. Their aggregated acceleration plans Given the low-income status of the communities along the college. These financial constraints limit students’ identified the following goals: Texas border, the role of financial aid to help students in persistence and completion rates. nTexas border institutions targeted enrollment growth to these communities pay for college is critical. nMany of the students along the Texas border are first- increase over 50 percent from 2005 to 2015. That rate is Of federal financial aid programs, Pell grants were essential generation and low-income students. About 60 percent more than three times the projected national enrollment for Latino students in Texas border institutions to pay for of the university students were enrolled full-time, while growth and twice that of Texas in the same period. college. The average amount of federal loans (both only 34 percent of community college students were nThe Texas border institutions committed to increase their subsidized and unsubsidized), however, tended to be higher enrolled full-time. awards of certificates and degree by over 90 percent from than the average amount of Pell grants. In 2008-09; nLatino students at these institutions had limited 2005 to 2015. In comparison, public institutions nThe average Pell grant for Latinos students enrolled at knowledge of their financial aid options. Many did not statewide were projected to increase their degrees awarded these campuses was $3,150, the average Supplemental consider student loans to be financial aid, and they did by 40 percent. Educational Opportunity Grant (SEOG) was $816, and the average work-study award was $2,053. nThe average unsubsidized loan amount for Latinos BORDER INSTITUTION PROFILES students enrolled at these campuses was $3,790 and the Combined, the following eight border institutions enrolled 5 per- and working students. These institutions also share a history of average subsidized loan was $3,527. cent of all Hispanic undergraduates in the United States in 2005, limited state financial support to improve their access and quality nOne campus, South Texas College, did not offer federal but ranked among the top institutions in the nation in enrolling of education, a disadvantage that was recognized and addressed loans for students. and awarding degrees to Hispanics (IPEDS, 2005-06). for the universities through the South Texas/Border Initiative. nThe average loan amount for Latino students at these Public Universities Community Colleges campuses was higher than the average grant amount The University of Texas at Brownsville Texas Southmost College received to pay for college. The University of Texas at El Paso El Paso County Community College District The University of Texas-Pan American South Texas College Average Federal Financial Aid Awards for Latino Students at Texas Border Institutions, 2008-09 Texas A&M International University Laredo Community College Institution Pell grant SEOG Work-Study Unsubsidized Subsidized Texas A&M International University $3,360 $667 $2,159 $3,833 $4,063 These border institutions have not explicitly formed a consor- The University of Texas-Pan American $3,433 $912 $1,987 $3,678 $3,945 tium, but they do share similar challenges and characteristics in The University of Texas at Brownsville* $3,082 $629 $2,703 $5,358 $3,967 providing a quality higher education to their respective communi- The University of Texas at El Paso $3,328 $761 $2,541 $4,816 $4,432 ties. For example, undergraduate enrollment at these institutions Laredo Community College $2,923 $538 $1,438 $1,860 $1,881 is over 75 percent Hispanic. Further, a large percentage of stu- El Paso County Community College District $3,091 $1,536 $1,685 $3,206 $2,875 dents at all these institutions are first-generation college-goers, South Texas College $2,835 $673 $1,863 — — low-income students, older than traditional college-age, female, *Data on Texas Southmost College is included with The University of Texas at Brownsville Source: TG School Fact Sheets, 2009 10 11 REALITY CHECK: HISPANIC-SERVING INSTITUTIONS ON THE TEXAS BORDER STRATEGIZING FINANCIAL AID EXCELENCIA IN EDUCATION Of Texas financial aid programs, the TEXAS Grant program was $1,518. In addition, the average Texas Educational These financial aid practices are integral to the institutions’ and Texas Educational Opportunity Grant (TEOG) program Opportunity Grant for Latinos at the four community efforts to increase student access and retention. However, were essential to help Latino students pay for college. colleges was $1,498. administrators and staff at the Texas border institutions identified areas of concern they must continue to address in nThe average Texas Grant for Latinos students enrolled at nThe amount of institutional aid available for students av- the current financial aid environment to help their students. the four universities was $4,697, and the average Texas eraged close to $1,000 at the community colleges and They shared the following: Grant for Latino students at the four community colleges $1,025 at the universities. The number of students who are both working full-time and enrolled full-time is growing at several institutions. The Average State and Institutional Financial Aid Awards for Latino Students at Texas Border Institutions, low-income of many Latino families along the Texas border 2008-09 and the ongoing economic crisis have resulted in a need for Institution TEXAS Grant TEOG Institutional Grant Texas A&M International University $4,726 — $860 most students to work while going to college. These financial The University of Texas-Pan American $4,743 — $911 constraints limit Latino students’ persistence and completion The University of Texas at Brownsville $4,482 — $1,287 rates. As a result, institutions see the need to implement The University of Texas at El Paso $4,837 — $1,032 financial aid strategies to increase student retention. Laredo Community College $1,501 $1,388 $518 El Paso County Community College District $1,463 — $1,482 Latino students in these Texas border institutions had South Texas College $1,590 $1,538 $755 limited knowledge about their financial aid options. Texas Southmost College $1,519 $1,541 $1,211 Many did not consider student loans to be financial aid, and Source: TG School Fact Sheets, 2009 they did not know how to navigate the financial aid process or to identify multiple information sources without also acknowledged that loans are becoming an increasingly institutional guidance. necessary component of support for students to afford college FINANCIAL AID PRACTICES Texas and federal financial aid programs have various costs (especially at public universities). criteria for participation and renewal and are onerous These eight Texas border institutions used financial aid as a tool nOffer information and access to services during evening Many institutions relied upon the investments and practices for institutions and for students to track. For example, to increase enrollment and persistence in recognition of finan- and weekend hours. of the Federal Family Education Local Program (FFELP) the grade point average and number of credits required to cial considerations as the primary reasons for students leaving lenders to provide financial literacy, default management nShare financial aid information to all students using be eligible for each of the financial aid programs are not without a higher education degree. The colleges and universi- technical assistance, information and other services for multiple approaches, including electronic, paper, and in- uniform. Some students lose eligibility for programs due to ties were proactive in using the financial strategies within their students. Staff were concerned the elimination of FFELP person approaches to reach more students with accurate their inability to track the requirements and to document control to address student academic success and completion. would require institutions to find other sources of support and timely information. the progress needed to maintain their financial aid awards. to provide the information and support previously offered Further, the institutions along the U.S.-Mexico border nLink college enrollment or registration with completion Financial aid staff described a general aversion by Latino by FFELP service providers. continually reviewed and reevaluated their financial aid of financial aid applications. students to borrowing. However, the current increases in policies and procedures. The following list summarizes their Undocumented students can enroll at institutions but nIncorporate evaluation metrics and data collection into college costs and economic constraints have resulted in an financial aid practices to increase student enrollment, are not eligible for federal financial aid. An area of office practices. increased need for Latino students to take out loans to pay persistence and graduation. These efforts are consistent with a concern for institutional leaders was providing financial nEngage community leaders to increase awareness of for college. recent College Board report that also identified these specific assistance for undocumented students. While there is some financial aid options. procedures as ones that colleges should consider when Financial aid programs continue to change and become state financial aid that can assist these students in paying for assessing their financial aid strategies (JBL Associates, 2010): nCoordinate activities with local high school counselors more complex. Providing effective information and college, undocumented students do not have access to and representative to provide college and financial aid customer services for students with financial need and federal financial aid resources — resources essential for most nProvide bilingual services and materials for outreach and information to students. limited financial literacy requires more extensive training students paying for college in Texas. continual support to students. nIntegrate financial aid counseling with other outreach and and prepared staff than most institutions currently have Changing the TEXAS grant to include merit-based criteria nConduct information sessions for students interested in orientation efforts. available and information systems to accurately track the aid was a concern for some institutions. For some campuses, college and communicate financial aid opportunities in a status for each student. nPartner with other education institutions in the service there was concern this would decrease the number of low- manner that is culturally and linguistically appropriate. area to offer financial aid counseling to all students. Default management was a major concern for institutions. income students who received aid to pay for college. While nInvolve the families of students when providing financial nSupport state or regional efforts to improve application Institutions did not want to jeopardize Pell grant eligibility many of the institutional representatives saw this change in the aid materials and activities. rates, such as GO Centers. for all students by having high default rates, but institutions TEXAS grant as a concern, this perspective was not uniform. 12 13 REALITY CHECK: HISPANIC-SERVING INSTITUTIONS ON THE TEXAS BORDER STRATEGIZING FINANCIAL AID EXCELENCIA IN EDUCATION P (2) Guaranteed need-based scholarships provide low- nThe Achieve Early College High School initiative at ROMISING FINANCIAL AID STRATEGIES income students with sufficient financial aid South Texas College (STC) provides students in local (institutional and private) to cover college costs that high schools with the opportunity to earn college T remain after federal and state aid is awarded. These credits and become college ready. In addition, the his study of Texas border colleges and universities faculty, staff and other students. This often results in a scholarships serve as a powerful outreach and retention college’s dual-enrollment program provides more than identified the following effective financial aid strategies stronger sense of belonging at the campus. The following tool to support low-income students by providing a 5,500 students across more than 30 school districts the for improving the access, persistence and graduation of Latino are two examples of such programs: clear message of institutional commitment to access and opportunity to earn college credit in areas such as students. These strategies go beyond the institutional practices nStudent Tech Services (STS) at El Paso Community affordability. These scholarships are contingent upon history, math and science, as well as in technical trades, identified in the previous section of the brief. These strategies College District (EPCC) hires students to work various availability of funds and are only available for four including precision manufacturing and automotive. include increasing the size and scope of campus-based work- departments and events within the District to provide consecutive years of enrollment to encourage timely study programs, guaranteed need-based scholarships, early nThe Dual Credit Initiative at Laredo Community hands-on support in technology needs. STS students are degree completion. For example, college high schools and dual enrollment programs, College partners with local school districts to provide most often placed with experienced faculty and staff emergency loans and payment plans, integration of outreach, nUTPA Advantage is the tuition guarantee program at eligible high school juniors and seniors with the members in a field closely related to their field of study. This information and services, improved customer service and staff the University of Texas Pan-American (UTPA). opportunity to earn up to 12 college credits before program uses student fees to employ students and provides training, and increased outreach. Colleges and universities Eligible students must have family incomes of high school graduation. This saves up to a semester’s these students with professional experience, customer service interested in improving the academic success of their students $35,000 or less, be Texas residents, complete the worth of college costs for students. training, and limited management opportunities while may consider the usefulness of this list of institutional FAFSA, enroll for 15 credits or more per semester, earning an income. Business and industry partnerships also strategies to retain and graduate Latinos and other students. and be making satisfactory academic progress. (4) Emergency loans and installment/payment plans provide employment in the El Paso area for students. provide access and retention for students who lack a nUTEP Promise Plan at the University of Texas-El (1) Campus-based work-study programs allow a student nStudent Employment Initiative at the University of Texas credit history or who have limited income and prefer to Paso (UTEP) covers all tuition and mandatory fees. to work and earn income while enrolled and provide at Brownsville (UTB) and Texas Southmost College (TSC) pay as they go. These strategies also provide a temporary Eligible students must have family incomes of $30,000 financial support beyond tuition and fees. Given that most is a part of the institutions’ student retention and time to safety net for students who become economically vul- or less, be Texas residents, complete 30 credits a year, of the students enrolled in South Texas institutions graduate strategy. Eligible students must be enrolled at least nerable. However, these programs can be a financial risk and earn a GPA of 2.0 or higher. First time transfer commute to campus and are employed either full or part- 15 hours, maintain a 2.75 GPA or higher, and have for institutions if students do not repay. The following students to UTEP are also eligible. The scholarship is time while enrolled, creating jobs on campus enables completed at least 12 credits at UTB/TSC. Some of the are two examples of the plans examined at the Texas only available for four consecutive years of enrollment. students to earn money while they learn, creates additional positions include peer mentors/tutors, peer facilitators, lab border institutions. opportunities for students to become aware of and use coordinators, supplemental instruction leaders, and (3) Early college high schools and dual enrollment nThe Emergency Tuition and Fees loan program at institutional services, and increases their interaction with instructor assistants. programs give more local students an opportunity to go UTPA provides students an alternative other than to college and compete academically in higher education cash payment for applicable tuition and fee costs per and allow students to earn course credits (often without semester. Students must not be on financial aid or expense to the student) by having institutions work with must have exhausted all their financial aid for the nearby school districts. Entering college with academic purpose of paying tuition and fees to qualify for this credits lowers the total expenses for the student’s family loan by the institution. and can shorten the time to completion. One challenge nEasy Pay at UTEP allows students to pay 20 percent for Texas border institutions, however, is the growing down on their tuition at the beginning of the number of high school students who complete an semester, and then pay the remainder of the tuition associate’s degree before they graduate. Currently, these bill in four equal monthly payments. students are not eligible for federal financial aid to continue their college education until they graduate from (5) Integration or coordination of outreach activities, high school. Among the programs identified at the Texas program information and student services within border institutions are the following: an institution and among universities and community colleges through collaboration (such as joint application nThe Early College High School Initiative at El Paso processes) simplify and align the financial aid process for Community College (EPCC) allows students to current and prospective students. These modes of simultaneously earn a high school diploma and an integration can increase student retention to completion Associate Degree in four years. EPCC has partnered within the institution and/or facilitate a student’s transfer with seven local school districts to provide five early to a partner institution. For example, college high schools serving more than 1,500 students. 14 15 REALITY CHECK: HISPANIC-SERVING INSTITUTIONS ON THE TEXAS BORDER STRATEGIZING FINANCIAL AID EXCELENCIA IN EDUCATION nUTB Scorpion Scholars Scholarship at the University institution to improve customer service and increase P OLICY RECOMMENDATIONS of Texas at Brownsville (UTB) integrates financial aid students’ access to financial aid programs for which with student support services within the institution. they may be eligible. In addition, STC has invested T The scholarship provides entering freshman and recent heavily to increase the number of staff supporting his brief examined the policy environment, financial high school graduates from the Rio Grande Valley a financial aid activities and the number of trainings aid participation, and promising institutional practices four year renewable scholarship that covers tuition and available to staff throughout the year to ensure designed to increase the college enrollment, persistence and fees, student housing, book expenses (up to $500.00), accurate information to students. completion of Latino students. Understanding what and the special designation of being a University nFinancial aid labs have been established at several influences Latino students’ financial aid choices and which Scorpion Scholar (USS). In turn, the (USS) program institutional practices are effective in enrolling, retaining, South Texas institutions with fully staffed financial aid provides students with intrusive educational elements and graduating Latino students is directly relevant to other computer labs open year-round to improve access to — such as a peer mentor, college success workshops, institutions that are only beginning to experience growth in both financial aid information and services. The lab student life events, learning communities and a the number of their non-traditional students. The findings environment also creates opportunities for students to program advisor — to help retain these students while of this brief are intended to inform the programs and interact with each other and share information about enriching there campus experience. services at institutions with growing Hispanic enrollment, as navigating the financial aid process and potential nThe University of Texas-El Paso (UTEP) and El Paso resources to help pay for college. well as state and federal policymakers addressing the broader growth of Hispanic students throughout higher education. Community College (EPCC) offer joint admissions nThe TAMIU Debit Card improves customer service and joint financial aid applications to prospective and to students by simplifying financial transactions for Based on the findings of this brief, the following are recom- current students. They share forms, entrance students. The card is a refund disbursement card used mendations for consideration by policy makers for improv- counseling information, and a “check status” tool for for financial aid services, business services and access ing Latino college completion using financial aid strategies. students who are concurrently enrolled in each to other the benefits. campus to track their financial aid information at Increase investment in work-study programs. Federal both institutions. (7) Increased outreach provided in high schools, in policy efforts in the last year have focused predominately on community colleges, at community events, online, and nThe University Success Center at Texas A & M Pell grants and loans. Both of these forms of financial aid are Encourage “intrusive” services by institutions. The as part of orientation sessions or freshmen seminars are critical for Latino students. However, in this constrained International University (TAMIU) provides a one-stop institutions in this brief know their student population well labor intensive, but such an institutional investment economic environment, students increasingly need to work shop for students to access needed services to apply for and seek to implement institutional strategies in the best often results in greater access to financial information while they are enrolled to manage their living and college admission, take placement exams, register for classes, interests of their students as they see fit, without limiting and resources for students. While these strategies are not expenses. Work-study is a valuable program for institutions and apply for financial aid, request transcripts, pay for classes, students’ choices or options. While some of the campus generally identified as specific programs, they are has financial support from the state and federal levels. However, buy books, and obtain academic advising services. administrators noted a reluctance to serve in loco parentis (a effective when implemented continuously. For example, work-study has received little attention in policy conversations. Latin term for “in the place of a parent”), the majority of nCollege Connection is a student orientation program nSeveral of the institutions in South Texas have Guarantee need-based aid for qualified students. institutions noted the importance of not assuming their at Laredo Community College designed to disseminate integrated information about financial aid options in Finding and receiving sufficient financial aid to pay for students were aware of all of their options when making information on admissions, LCC programs, transfer new student orientations, first year success courses, college is a complex and cumbersome process. Providing financial aid choices. options, testing, student activities, financial aid, and align financial strategy with educational potential and current students with a guarantee of their advising, and early registration. Sessions are scheduled Provide appropriate training and materials for strategy; new student orientation includes financial eligibility for financial support has been effective for by the Student Success Center prior to each semester. default management and financial literacy. aid component. enrolling and retaining low-income students at several of the Institutions expressed serious concerns about the limited (6) Improved student/customer service and staff nSeveral institutions have also developed an extensive Texas border institutions and has the potential to be training and support for loan default management and training can result in increased student participation in effective at a larger scale. outreach strategy at local high schools. Staff/alumni/ financial literacy needed for both institutions and students financial aid programs and greater accuracy by staff of mentors visit local high schools several times a week Continue to expand early college high schools or with limited resources to manage their financial aid options institutional policies and funding opportunities. These and attend community events to assist students with dual enrollment programs. The campuses along the Texas well. Quality materials and training in default management strategies generally focus on being much more directive college and financial aid awareness and issues. They border are engaged with other educational institutions in can help institutions improve their financial aid strategies to with students and improving internal institutional also offered evening programs to increase awareness, their service area and have identified both early college high low-income students. Financial literacy programs targeting policies and practices. For example, coordinated scholarship drives (to raise private funds), schools and dual enrollment programs as effective strategies low-income students can help these students manage their nFaculty and administrators at STC have conducted and FAFSA drives to help high school students for increasing access and completion of a college degree. financial aid options. multiple studies on the financial aid process at the complete their financial aid forms. 16 17 REALITY CHECK: HISPANIC-SERVING INSTITUTIONS ON THE TEXAS BORDER STRATEGIZING FINANCIAL AID EXCELENCIA IN EDUCATION