Financial Aid office, Kennesaw State University. Photo: Clay Duda/JJIE

Pell Grant Cuts Begin in Summer School

It might make for a more leisurely summer, but Kennesaw State University student Steven Welch didn’t dump college courses to have more free time. He did it because he couldn’t afford the cost. Welch, 24, had to make the move because he no longer qualified for a Pell Grant to cover the cost of summer tuition. Restrictions on the grant program, long used to help low-income and some middle-class students stem the cost of higher education, were enacted by Congress last year -- but students are feeling the impact for the first time this summer as the changes are implemented across the country. Before this summer, students could use more than the allotted $5,550 per year to help cover the cost of tuition and other school related expenses.

college success

Performance-Based Scholarships May Improve Academic Progress of College Students

A new policy brief states that performance-based scholarships – financial aid incentives allotted to students based upon one’s ability to achieve certain academic benchmarks – may serve as a catalyst for both improved grades and greater odds of finishing college, especially for low-income students. The brief, Performance-Based Scholarships: Emerging Findings from a National Demonstration issued by the Manpower Demonstration Research Center (MDRC) was published earlier this month. The policy brief examines the effects of performance-based scholarships on students in select colleges in, among other states, New York, California and Florida, with the authors saying that their findings seem to indicate a slight, yet positive impact on the academic progress of students enrolled in such financial assistance programs.

In 2009, an MDRC report on Louisiana’s Opening Doors program exhibited improved grades, higher credit accumulation levels and greater likelihoods of retention for several college students that were enrolled in the performance-based scholarship program. A year earlier, MDRC began a six-state study, the Performance-Based Scholarship Demonstration, to gauge the overall effectiveness of scholarship programs contingent upon ongoing student academic progress. Although the authors say that the preliminary findings for the six states surveyed for the brief were not as pronounced as the Louisiana data, they still noted that performance-based scholarship programs resulted in several statistically-significant influences for students, including an increase in credits earned and an increase in students’ abilities to meet end-of-term benchmarks during program terms.

MDRC research on the impact of performance-based scholarships will continue until December 2014.

New Online Service Allows College Students to Compare Financial Aid Data Across Country

This week, the Consumer Financial Protection Bureau (CFPB) launched a beta version of the Financial Aid Comparison Shopper, an online service designed to help prospective and current college students make financial plans for their post-secondary schooling. The new service allows users to access financial aid information as it pertains to more than 7,500 colleges and universities across the United States. Using data collected by official government statistical agencies, the Financial Aid Comparison Shopper evaluates a wide range of financial information, from estimated student loan payment totals to college-specific data such as graduation and retention rates, as well as federal student loan default percentages. Additionally, the new service includes a “Military Benefit Calculator” that allows service members and veterans to estimate military tuition assistance and GI Bill aid. Last fall, the CFPB launched the “Know Before You Owe” student loan project, unveiling a Financial Aid Shopping Sheet draft that served as a precursor to the Financial Aid Comparison Shopper service.