Community Colleges Can Help More Students Access Unclaimed Financial Aid

From left: Charlene Dukes, President, Prince George’s Community College; Marc S. Herzog, Chancellor, Connecticut Community College System; George Boggs, President, American Association of Community Colleges; Gaston Caperton, President, The College Board

Many of the students who need financial aid the most, especially community college students, are not applying for it, according to new research released by the College Board Advocacy & Policy Center.

The report, The Financial Aid Challenge, found that less than 60 percent of eligible community college students completed the Free Application for Federal Student Aid (FAFSA) in 2007-08, compared with 77 percent of eligible students at four-year colleges and universities.

“The [report] further examines the startling fact that millions of dollars are left on the table each year by eligible students who just aren’t applying,” said College Board President Gaston Caperton at a news conference with community college leaders and other experts earlier this month in Washington, DC.

“Community colleges are a critical part of the U.S. education system,” he said. “Today, community colleges serve nearly half of all undergraduates in the United States. It is essential that the education community provide the counseling necessary to increase the number of deserving students who receive need-based financial aid so that they can become part of the educated and skilled workforce our country requires to compete in the global economy.”

Two-year schools have seen dramatic increases in enrollment in the past few years, and many of their students are low-income, first-generation and minority students who may not have sophisticated financial literacy, said George Boggs, president and CEO of the American Association of Community Colleges, at the news conference.

That so many eligible students miss out on federal funds shows the need for a change in the financial aid process, Boggs said, while noting recent efforts to simplify the federal form.

Without financial aid, these students often are forced to attend school part time or work more than 20 hours, the report said. This reduces their chances of completing a degree and hurts the chances of meeting national goals for educational attainment.

The report is part of a series of community college initiatives from the College Board Advocacy & Policy Center. It highlights information on successful programs, policies and approaches, and provides valuable recommendations on financial aid administration for leaders who are seeking to increase the number of students applying for and receiving financial aid.

It offers several recommendations to improve financial aid services for campuses, including offering bilingual services, offering extended hours, using online media, building partnerships with secondary schools and community organizations, and linking financial aid applications to enrollment or registration.

The Financial Aid Challenge also highlights success stories. For example, in 2001 the Connecticut Community College system created an integrated and centralized division to handle the administrative and technological functions of financial aid management across the state. Since those changes, the Connecticut system has seen the number of students applying for and receiving aid more than double at a time when enrollment has grown by 25 percent. In the 2008-09 academic year, 63 percent of the Connecticut system’s students applied for aid, compared to 42.5 percent of community college students nationwide. Connecticut Community College System Chancellor Marc Herzog estimates that the centralized office has saved nearly $2 million.

Another successful community college program, focused on multicultural students, is run by Kentucky’s Bluegrass Community and Technical College (BCTC). While the entire Kentucky Community and Technical College System has seen significant growth in the numbers of multicultural students overall, BCTC has experienced the largest growth among the following groups: Hispanic/Latino students, 89 percent; black or African American students, 74 percent; and Asian students, 93 percent.

“The value of community colleges is most apparent in times of high unemployment, when those who have lost jobs enroll in college for additional education or training so that they may reenter the job market,” said Ronald Williams, vice president of the College Board. “Our hope is that this report, through its identification of successful financial aid practices, will help community college leaders around the country respond more effectively to the challenges facing students who are seeking to gain access to available federal and state financial aid.”