Inland Empire Fact Sheet SIMPLIFYING FEDERAL STUDENT AID: Grants, Loans, & Repayment Plans

November 2016

Join the conversation at #KeepCollegeAff ordable INTRODUCTION The need for a college education has never been greater. Degrees at all levels, from vocational certificates to Master’s degrees, allow individuals to enjoy greater economic and social success. In fact, individuals with a bachelor’s degree will earn over $1.3 million more over their lifetimes than someone with only a high school diploma. For first-generation, low income and minority students, access to college opportunity yields a pathway to increased economic stability and prosperity for future generations. The jobs of the future require college credentials. By 2020, 65% of all jobs across the United States will require some type of college credential. The same holds true for the State of California: 68% of all jobs by 2020 will require future workers to have college credentials.

Educational credentials needed For jobs of the future 12% 11% Master's Degree or Higher 24% 23% Bachelor's Degree Some College, Associate's, 32% 33% or Vocational Credential High School Diploma or Less 33% 34% College Credential Required California U.S.

Unless immediate action is taken, and current trends persist, California will be short 2.4 million college educated workers to meet workforce demands. To succeed in this new economy, California must ensure that more of its residents are on track to enter college and graduate with a degree or credential.

Keeping college affordable is key to meeting California’s economic demands and ensuring opportunity to a better future for the state’s residents. Congress can play a key role in helping more students and their families make a college education a reality by acting to simplify, expand, and streamline federal student aid.

Each year far too many students leave federal financial aid money on the table. In California, more than $250 million dollars in Pell Grants were left on the table in 2014-2015 because one-third of California’s more than 400,000 high school graduates did not complete the Free Application for Federal Student Aid (FAFSA). Among those graduates are some of our most vulnerable students, including low income, first-generation, African American and Latino students. Among California’s high schools where more than 75% of students are eligible for the Free and Reduced Meal Program, 24% of eligible students did not complete the FAFSA. This is a significant burden on low-income students and their families. Households with an annual income of $30,000 and below will have to spend a greater share of their discretionary income to attend one of California’s public colleges than would a student whose family earns $150,000 or more. There are many consequences to eligible students not completing the FAFSA. When eligible students do not have access to Cal Grant and Pell Grant dollars, many students forego college all together or families opt to take out private loans to fund a college education and student debt balloons. Student loan borrowing is rising significantly in California where the average debt for California’s students is $21,382. The impact of this growing debt is felt in California’s economy as graduates with unmanageable debt are more likely to postpone home and auto purchases, are unable to contribute to personal retirement accounts and other investments, and many students default on their student loans negatively impacting their financial futures. 2 Join the conversation at #KeepCollegeAffordable

*Icons made by Freepik from www.flaticon.com SOLUTIONS Simplifying the Free Application for Federal Student Aid The FAFSA is the fi rst step a student takes to secure college aid. In addition to grant programs — California’s Cal Grants and the federal Pell Grants – federal aid also includes subsidized student loans and federal work study. Federal aid makes it possible for students – who may not otherwise attend college due to cost — to afford and stay in college. In fact, students who receive grant aid are more likely to enroll and complete a postsecondary degree. Unfortunately, when students work to complete the FAFSA, they fi nd a long and complex form, requiring students to answer 100+ questions that may not be relevant to their family’s economic situation. Congress must act to simplify the FAFSA by utilizing better-matched questions and making it easier for students to retrieve tax information which will allow ”Filling out the FAFSA for the ﬁ rst students to submit their applications on time to make time, was like swinging at a ball better informed choices about where to go to college. with my eyes closed.“ Expanding Federal Student Aid The Pell Grant has opened doors for millions of Maximum Pell Award as Share of California’s low-income students to go to college. Yet, Total Cost of College Attendance the purchasing power of the Pell Grant has declined signifi cantly in light of rising college costs. In 1979- 1979-80 2013-14 80, for example, a Pell Grant covered 77% of the cost 2-year public college 99% 52% to attend a public university, and 99% of the costs of 4-year public college/university 77% 31% attending a two-year public college. In 2013-14 the max Pell Grant of $5,645 only covered one-third of the 4-year private college/university 36% 14% average cost of going to college. Students, already facing sticker shock over the price of college may choose not to go to college upon realizing their grants will not adequately cover the price of attendance. Therefore, the maximum Pell Grant award should be increased to cover a greater share of college costs. Additionally, Pell Grant eligibility should be restored for students taking courses year-round so they can fi nish college sooner and surplus funds should stay within the program.

Streamline Federal Student Aid Students are currently presented with a confusing array of loan and repayment program options. Streamlining fi nancial aid options, and making those options much easier to understand (subsidized vs. unsubsidized, federal/ state vs. private loans) will improve access and success and minimize potential risks for students. Consolidating the four income based repayment plans and increasing awareness about repayment eligibility will ensure students can afford to pay back their loans by capping monthly payments and prevent students from going into default. Without these improvements, the process of applying for aid, maintaining aid, and repaying federal loans will continue to be confusing for far too many students. Consequently, these challenges deter students from applying, leaving many of them unable to take advantage of all the aid they qualify for and take advantage of programs available to them as they begin to repay loans. 3 Join the conversation at #KeepCollegeAff ordable

*Icons made by Freepik from www.fl aticon.com THE CHALLENGE Inland Empire1 Grade 12 Enrollment by Race: 2014-15 Financial Aid Applications 1.5% Two or More Completed: Inland Empire Schools 2015

22.6% Cal Grant White Completion 65% 60.7% Hispanic or 8.5% African American Latino FAFSA 61% Completion 5.7%

Asian/ 0 50 100 Paciﬁc Islander/ 0.5% American Indian Filipino or Alaska Native

The importance of a college degree has never been greater, but rising tuition costs make college out of reach for many of California’s students. Federal and state-based financial aid can help, but as the data show, large numbers of students are losing out on their eligibility to access grant funds for lack of completing the FAFSA. Only 65% of high school seniors completed the Cal Grant application and 61% completed the FAFSA. More than 20,000 high school seniors did not apply for aid — that is simply not good enough. The challenge is significantly greater in schools with a high proportion of enrolled students from low-income families. The lack of FAFSA and Cal Grant completion means that Inland Empire students with the greatest need are leaving needed money unclaimed that can defray the costs of college attendance. As can be seen in the charts above, students attending schools where more than 50% of students are eligible for the Free and Reduced Meal Program (FRPM) have much lower FAFSA completion rates than their peers at more affluent schools. It is especially alarming that slightly more than half (59%) of high school seniors attending schools with a 76-100% low income student population are completing the FAFSA and only 65% of students are completing the CalGrant application. These completion rates trail their most affluent peers at schools with less than 25% low income student population by seven and five percentage points, respectively.

“The application needs to be more flexible and adjust to the needs of the students. They need to create a situation where students are not excluded from the application process because they don’t check a box. Life is not a cookie cutter situation.”

1 Inland Empire Counties include: Riverside and San Bernardino 4 Join the conversation at #KeepCollegeAffordable 2015 Cal Grant and FAFSA Completion By Inland Empire Schools with 100 ■ Cal Grant ■ FAFSA Low-income Students

75 70% 66% 65% 64% 64% 64% 61% 50 59%

25 FSA/Cal Grant Completion % FA 0 0% – 25%26% – 50%51% –75%76% – 100% Percentage of students who are low-income

This lack of completion has implications for free federal and state dollars that have been the cornerstone of reforms intended to increase access to higher education. Estimates done by the Campaign for College Opportunity suggest that more than $41 million dollars are left on the table by Inland Empire students — who would otherwise be eligible for Pell Grants — because they do not complete the FAFSA.

Money left on the table by Inland EMpire low-income students Percentage of students who are Pell Eligible Total Pell Total Pell Money Left on low-income in a given high school. Students Possible Possibly Received the Table 0-25% 1,182 $4,410,042 $3,050,971 $1,359,071 26%-50% 4,754 $17,737,174 $11,868,039 $5,869,135 51%-75% 12,924 $48,219,444 $32,221,212 $15,998,232 76%-100% 14,899 $55,588,169 $37,770,419 $17,817,750 TOTALS 33,759 $125,954,829 $84,910,642 $41,044,187

Notes: Pell Eligible Students = G12 % Low-income graduates. Total Pell Possible = Pell Eligible Students*CA state Pell Grant average ($3,731). Total Pell Possibly Received = (FAFSA Completion*% Low-income students)*Pell Grant average. Money Left on the Table = Total Pell Received-Total Pell Possible.

If the Inland Empire is to succeed in producing the credentialed workers needed for the new economy of the future, Congress must act to ensure the increased simplifi cation of the FAFSA, expanded access to fi nancial aid, and the consolidation of loan and income based repayment programs. Simplifying, expanding, and streamlining fi nancial aid processes and programs will ensure students and their families have the necessary information to apply for federal fi nancial aid and to make certain college is affordable. Doing so will ensure college access and completion for California students who need it most. Our future is now — the Inland Empire and its students cannot afford to wait.

5 Join the conversation at #KeepCollegeAff ordable

*Icons made by Freepik from www.fl aticon.com Federal Money Left on the Table by California Regions

Number of HS Number of Pell Grant Dollars Region Graduates Not Pell-Eligible Grads Not Left on the Table Completing FAFSA Completing FAFSA Bay Area 21,783 9,032 $33,699,109 Central Coast 7,452 4,108 $15,326,150 Central Sierra 519 231 $861,762 Imperial 538 445 $1,659,965 Inland Empire 15,695 11,001 $41,044,187 Los Angeles 24,513 16,748 $62,485,690 North San Joaquin Valley 6,124 4,293 $16,018,917 Northern California 1,032 568 $2,118,872 Orange 12,322 5,710 $21,304,848 Sacramento -Tahoe 9,042 4,601 $17,165,519 San Diego 9,992 5,118 $19,094,971 South San Joaquin Valley 8,214 5,844 $21,803,818 TOTAL 117,226 67,699 $252,583,807

Notes: Number of high school graduates not completing FAFSA = number of high school graduates-number of completed FAFSA applications. Number of Pell-eligible high school graduates not completing FAFSA = percentage of Pell-eligible applicants*number of high school graduates not completing FAFSA. Pell Grant money left on table = number of Pell-eligible high school graduates not completing FAFSA*average Pell Grant award.

6 INLAND EMPIRE SCHOOLS

Number of HS Number of Pell- Graduates Not Eligible Grads Completing Not Completing Pell Grant Left County School District School FAFSA FAFSA on the Table Riverside Alvord Unified La Sierra High 158 155 $576,663 Riverside Alvord Unified Norte Vista High 165 165 $614,219 Riverside Banning Unified Banning High 85 78 $292,629 Beaumont Beaumont Senior Riverside Unified High 162 102 $381,498 Coachella Coachella Valley Riverside Valley Unified High 175 170 $635,342 Coachella Desert Mirage Riverside Valley Unified High 120 118 $440,885 Coachella West Shores Riverside Valley Unified High 5 5 $18,339 Corona-Norco Riverside Unified Centennial High 210 128 $476,534 Corona-Norco Riverside Unified Corona High 228 145 $541,464 Corona-Norco Eleanor Riverside Unified Roosevelt High 240 134 $501,538 Corona-Norco Riverside Unified Norco High 191 95 $352,769 Corona-Norco Riverside Unified Santiago High 215 71 $266,402 Desert Sands Riverside Unified Indio High 140 134 $499,206 Desert Sands Riverside Unified La Quinta High 231 151 $562,139 Desert Sands Palm Desert Riverside Unified High 161 84 $313,112 Desert Sands Shadow Hills Riverside Unified High 103 84 $312,372 Riverside Hemet Unified Hamilton High 38 33 $122,037 Riverside Hemet Unified Hemet High 173 121 $449,708 Riverside Hemet Unified Tahquitz High 90 78 $290,160 West Valley Riverside Hemet Unified High 119 101 $375,242 Jurupa Valley Riverside Jurupa Unified High 91 78 $291,018 Riverside Jurupa Unified Patriot High 142 110 $409,392 Riverside Jurupa Unified Rubidoux High 139 129 $483,047 Lake Elsinore Riverside Unified Elsinore High 200 121 $451,947 Lake Elsinore Riverside Unified Lakeside High 166 133 $496,377 Lake Elsinore Temescal Riverside Unified Canyon High 171 95 $354,600 Moreno Valley Canyon Springs Riverside Unified High 168 136 $506,177 Riverside Moreno Valley Moreno Valley 157 149 $557,423

7 Unified High Moreno Valley Valley View Riverside Unified High 143 119 $443,720 Moreno Valley Vista del Lago Riverside Unified High 126 113 $421,831 Murrieta Valley Murrieta Mesa Riverside Unified High 121 51 $190,427 Murrieta Valley Murrieta Valley Riverside Unified High 181 51 $190,348 Murrieta Valley Vista Murrieta Riverside Unified High 230 83 $307,953 Nuview Bridge Early College Riverside Nuview Union High 22 16 $57,831 Palm Springs Cathedral City Riverside Unified High 165 149 $554,179 Palm Springs Desert Hot Riverside Unified Springs High 120 114 $425,473 Palm Springs Palm Springs Riverside Unified High 142 108 $404,202 Palo Verde Riverside Unified Palo Verde High 59 39 $143,883 Perris Union California Riverside High Military Institute 17 16 $60,407 Perris Union Riverside High Heritage High 149 112 $419,218 Perris Union Paloma Valley Riverside High High 191 119 $445,388 Perris Union Riverside High Perris High 150 147 $548,910 Riverside Riverside Unified Arlington High 142 117 $434,930 Riverside John W. North Riverside Unified High 110 90 $334,279 Riverside Martin Luther Riverside Unified King Jr. High 271 125 $465,926 Riverside Riverside Unified Polytechnic High 161 97 $360,213 Riverside Riverside Unified Ramona High 11 4 $15,234 San Jacinto Riverside Unified San Jacinto High 111 97 $363,748 Temecula Riverside Valley Unified Chaparral High 197 67 $248,359 Temecula Riverside Valley Unified Great Oak High 285 60 $222,439 Temecula Temecula Valley Riverside Valley Unified High 217 63 $234,792 Val Verde Riverside Unified Citrus Hill High 167 155 $579,374 Val Verde Rancho Verde Riverside Unified High 210 182 $677,487 Apple Valley Apple Valley San Bernardino Unified High 246 161 $600,597 San Bernardino Apple Valley Granite Hills 135 89 $330,210

8 Unified High San Bernardino Barstow Unified Barstow High 143 107 $399,217 Bear Valley San Bernardino Unified Big Bear High 78 52 $195,078 Chaffey Joint San Bernardino Union High Alta Loma High 200 113 $421,603 Chaffey Joint San Bernardino Union High Chaffey High 211 195 $728,783 Chaffey Joint San Bernardino Union High Colony High 144 112 $418,967 Chaffey Joint San Bernardino Union High Etiwanda High 224 115 $429,844 Chaffey Joint San Bernardino Union High Los Osos High 231 85 $315,315 Chaffey Joint San Bernardino Union High Montclair High 187 176 $654,959 Chaffey Joint San Bernardino Union High Ontario High 172 159 $592,368 Rancho Chaffey Joint Cucamonga San Bernardino Union High High 228 109 $406,273 Chino Valley San Bernardino Unified Chino High 197 133 $497,211 Chino Valley San Bernardino Unified Chino Hills High 272 97 $360,945 Chino Valley Don Antonio San Bernardino Unified Lugo High 147 111 $413,452 Chino Valley Ruben S. Ayala San Bernardino Unified High 182 53 $196,732 Colton Joint Bloomington San Bernardino Unified High 162 152 $568,868 Colton Joint San Bernardino Unified Colton High 141 134 $498,703 Fontana A. B. San Bernardino Fontana Unified Miller High 158 147 $547,054 San Bernardino Fontana Unified Fontana High 167 159 $592,989 Henry J. Kaiser San Bernardino Fontana Unified High 183 169 $630,151 Jurupa Hills San Bernardino Fontana Unified High 130 118 $440,936 San Bernardino Fontana Unified Summit High 189 154 $576,391 Encore Jr./Sr. High School for Hesperia the Performing San Bernardino Unified and Visual Arts 35 23 $87,520 Hesperia San Bernardino Unified Hesperia High 138 123 $457,419 Hesperia San Bernardino Unified Oak Hills High 171 130 $483,705 Hesperia San Bernardino Unified Sultana High 127 100 $372,608 Summit Leadership Hesperia Academy-High San Bernardino Unified Desert 21 19 $69,397

9 Lucerne Valley Lucerne Valley San Bernardino Unified High 21 18 $66,163 Morongo Twentynine San Bernardino Unified Palms High 64 36 $135,808 Morongo Yucca Valley San Bernardino Unified High 111 70 $259,822 San Bernardino Needles Unified Needles High 30 18 $66,682 Redlands Citrus Valley San Bernardino Unified High 167 93 $347,710 Redlands San Bernardino Unified Grove 10 4 $15,646 Redlands Redlands East San Bernardino Unified Valley High 219 124 $464,255 Redlands Redlands Senior San Bernardino Unified High 150 85 $317,430 Eisenhower San Bernardino Rialto Unified Senior High 151 144 $537,613 San Bernardino Rialto Unified Rialto High 130 123 $458,743 Wilmer Amina San Bernardino Rialto Unified Carter High 128 111 $414,021 Rim of the Rim of the World Senior San Bernardino World Unified High 112 66 $247,312 San Bernardino Arroyo Valley San Bernardino City Unified High 194 192 $717,293 San Bernardino San Bernardino City Unified Cajon High 161 137 $511,020 San Bernardino San Bernardino City Unified Pacific High 95 92 $342,862 San Bernardino San Bernardino San Bernardino City Unified High 119 117 $436,177 San Bernardino San Gorgonio San Bernardino City Unified High 173 162 $605,390 Silver Valley Silver Valley San Bernardino Unified High 41 23 $87,412 Snowline Joint San Bernardino Unified Serrano High 138 80 $297,001 Trona Joint San Bernardino Unified Trona High 1 1 $3,420 San Bernardino Upland Unified Upland High 266 155 $577,289 Victor Valley Excelsior San Bernardino Union High Charter 147 96 $357,513 Options for Youth- Victor Valley Victorville San Bernardino Union High Charter 93 73 $272,738 Victor Valley San Bernardino Union High Silverado High 107 95 $354,248 Victor Valley University San Bernardino Union High Preparatory 24 19 $69,046 Victor Valley Victor Valley San Bernardino Union High High 81 73 $272,254 Yucaipa- Calimesa Joint San Bernardino Unified Yucaipa High 202 107 $399,237

TOTAL 15,695 11,001 $41,044,187