The Education Department’s Advisory Committee on Federal Financial Aid has released a study encouraging colleges, students and the government to do more to help community college students access need-based financial aid. Without such an effort, the report indicates that fewer students (particularly low- and moderate-income students) at 2-year institutions will be able to transfer to 4-year institutions.
The report finds several reasons why community colleges are not applying for aid they are eligible for. Among them (based on a survey of students who had transferred to 4-year institutions):
• They thought they were not eligible for financial aid (39 percent).
• They had sufficient funds to pay for college expenses (35 percent).
• They found the financial aid application form too complex (6 percent).
The report notes that to avoid debt, “a large share of community college students work an excessive number of hours, which reduces financial aid eligibility, lowers academic performance, and undermines persistence.”
The study recommends that “steps must be taken by the U.S. Department of Education, states, and community colleges, including:
• Communicate increased federal aid eligibility widely and effectively.
• Make applying for financial aid easy and a priority.
• Encourage students to moderate the number of hours worked.
• Improve the implementation of the auto-zero EFC.
The report is available at Advisory Committee on Student Financial Aid CRS
