Consolidate non-Pell federal aid into a new state education grant tied to five state policy commitments and student responsibility requirements¶

Strategy · All strategies
Evidence · no claims cited

Description¶

The report recommends a new state-federal partnership that "combines existing, non-Pell Grant financial-aid resources into a state grant" worth more than $20 billion a year, funding a debt-free college guarantee for low-income students and no-interest loans with income-based repayment for middle-income students. States qualify by meeting five commitments: a college- and career-ready course of study, stabilized higher-education funding with smaller tuition growth, smooth credit transfer, the debt-free and interest-free guarantees, and a consumer ROI index. Students must complete a rigorous high school course of study, work or serve at least 10 hours weekly, pay a fair share, and complete on time.

Design Implications¶

Context¶

Requirements¶

• States must maintain higher education funding at a level equal to or greater than the average level of support over the previous five fiscal years
• States must establish a mandatory college- and career-ready high school course of study equally available to all students
• Institutions must meet minimum access and outcome standards, including a placeholder minimum 20 percent graduation rate

Constraints¶

• The report notes the 20 percent graduation-rate floor poses a particular challenge for community colleges because reported rates exclude transfer-oriented students
• States that opt out leave their students with only Pell Grants and unsubsidized loans

Target Learners¶

• low-income students from families below roughly $50,000 annually
• middle-income students

Target Learning Goals¶

• college access and affordability
• college completion
• reduced student debt

Claims¶

Related Strategies¶

• Ten state policy recommendations for student-centered financial aid systems

Examples¶

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Key Sources¶

• Michael Dannenberg and Mamie Voight. (2013). Doing Away With Debt: Using Existing Resources to Ensure College Affordability for Low and Middle-Income Families. The Education Trust. https://eric.ed.gov/?id=ED543214