How does Alaska compare with other states?

Unfortunately, Alaska ranks 51st among states (including DC) in college-going rates of low-income youth from FY 1994 to FY2005. (Low income is defined as students who qualify for Pell grants.)

The rate of college attendance among low-income youth ranges from 8.6% (Alaska) to 41.3% (Iowa).  The next-lowest ranking goes to Nevada with 14.9%.

Source:  Mortenson, Thomas G.;Higher education for Students from Low Income, Families 1970 to 2006; Postsecondary Education Opportunity No 183, September 2007

Since FY1980 all states have reduced their investment efforts in public higher education institutions, causing tuition to rise.  The burden has been shifted to the students, who increasingly have to take on loan debt. 
 
The federal average of state grant programs covered 38.6 % of what a Pell grant paid in 05-06.  Alaska ranked 41st, paying 7.7 % of what a Pell grant paid.  Vermont ranked 1st, paying 109% of what a Pell grant paid.

Source:  Mortenson, Thomas G.;College Participation Rates for Students from: Low Income Families by State 1992-93 to 2004-05” Postsecondary Education Opportunity No 176, February 2007

Who gets financial aid at the University of Alaska?

Almost 45% of our African-American students receive aid, while only 29% of Native Alaskans* and 31% of White students do.  41% of students age 24 and under are on some form of aid, while only 25% of those 25 and over; many of whom are non-degree-seeking -- are on financial aid. 
A slightly larger percentage of women are on aid than men.
One out of every three financial aid dollars awarded to undergraduate students goes to a freshman.

UA is experiencing shifting demographics in our student population as a whole, just as the rest of the nation is.  We see more students of color, more who are low-income and more who are the first in their families to attend college.

Price, Derek V.  Need-Based Grant at University of Alaska:  An Independent Analysis, May 2005.

*Financial aid numbers for Native Alaskans do not reflect all Alaska Native Corporation funding. What types of aid do students at UA receive?

Loan                             
68.1%
Grant                             
13.3%
Scholarship                     
13.7%
Waiver                          
2.6%
Work Study                  
2.3%

University of Alaska Statewide Planning; Budget, 2005-2006 data, UA in Review
2007.

UA loan volume is growing at a faster pace than grant volume, meaning more and more students are going farther into debt to pay for their education.

Does the University have other scholarships that are at least partially based on financial need?

                                  
Total
Scholarships        Scholarships with need
component       
            UAA                            180                              3
            UAF                            316                            
63
            UAS                            56                               
8
            SW                              62                                12

UA received 3,116 applications for scholarships for the 0809 aid year.
SW = UA Foundation. 

Why can’t the University internally fund this, like they do the UA Scholars Program?

The UA Scholars Program is funded from the Natural Resources fund.  The program has been very successful, but is itself in need of additional funding.

UA keeps raising its tuition.  Why can’t a portion of those funds be used to help these needy students?

UA has allocated 1% of tuition revenue from each campus for need-based aid at the campus that generated the tuition. This is what is called the UA Grant
Program.  UA allocated almost $835,000 to this program for the 0708 aid year. However, further aid using this mechanism adversely impacts students not receiving aid and the debt load of UA students already using loans to complete their education. Two-thirds of UA graduates have student debt and in any given semester one-third of all students are using a student loan.

Additionally, until the state has an adequately funded program for needs and merits based financial aid, it will continue to be rate poorly in national status reports as university funded aid is not recognized as a state policy commitment.

Students that are Alaska residents already get almost $2,000 per year for the PFD.  Why should they get more from the state?

Existing grant programs, and the PFD, cannot cover the cost of education and living expenses without forcing the student to go deeply into debt. 

Here’s a typical example for a very poor student (ZERO Estimated Family Contribution.)

                        Cost of Attendance:                             $17,000
                        Minus Pell Grant:                                   $4,310*
                        Minus SEOG: $500*
                        Minus AkAdvantage:                              $1000*
                        Minus
UA Grant:                                      $190*
            Uncovered cost of attendance:                         $11,000

*All grant monies that do not have to be repaid

That leaves $11,000 of the year’s expenses not covered by grants.  This student could qualify for up to $3000 in Federal Work Study funds, if available.  Still, that means the student has to borrow $8,000 for their first year of education.  A student in this situation would graduate with $40,000 in student loan debt after 5 years, even while working during college.  Even if this student applied his or her PFD toward the cost of education every year, the debt upon graduation would be over $30,000.

I hear a lot of students don’t even bother to apply for financial aid.

UA has helped deliver College Goal Sunday for the past three years, an event provided at twenty sites across the state and aimed at low-income and first-generation incoming freshmen, to help them fill out the FAFSA. 
 
UA sponsors February FAFSA Frenzy each year since 2005.  Overall FAFSA applications at UA increased 7% from 2005 to 2007, with early application activity increasing 73%. 

If a student wants to attend, why don’t they work or take out loans?

Students who work off-campus take longer to earn their degree and are less likely to graduate at all. 

Employment off campus increases their taxable income, making it harder for them to qualify for aid the next year.

In the last four years, student loan volume has gone up 96.6%, while grant aid has only gone up 48%.  Increased loan volume leads to increased student debt.