ERIC ED469480: Investing in Success: Access to Higher Education. Report to the Governor and 2001 Legislature.

36 Pages·2001·1.6 MB·English

by  ERIC

DOCUMENT RESUME
ED 469 480
HE 035 340
Investing in Success: Access to Higher Education. Report to
TITLE
the Governor and 2001 Legislature.
INSTITUTION
Minnesota Higher Education Services Office, St. Paul..
2001-00-00
PUB DATE
NOTE
35p.
AVAILABLE FROM
For full text: http://www.mheso.state.mn.us/pdf/
GovReport2001.pdf.
PUB TYPE
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Evaluative (142)
EDRS PRICE EDRS Price MF01/PCO2 Plus Postage.
DESCRIPTORS
*Access to Education; Cooperation; *Delivery Systems; *Higher
Education; Program Descriptions; Public Agencies; State Aid;
*Student Financial Aid
IDENTIFIERS
*Minnesota; Student Support Services
ABSTRACT
This report highlights the functions, services, and programs
offered to the state's citizens by the Minnesota Higher Education Services
Office and the state's Higher Education Services Council. The Minnesota
Higher Education Services Office works to provide high quality, statewide
services to the citizens of Minnesota toward achieving student financial
access to postsecondary education and enabling students to choose among
postsecondary educational options. The Office is also concerned with
protecting and informing educational consumers, producing independent
statewide information on postsecondary education, facilitating interaction
among and collaboration with organizations that share responsibility for
education in Minnesota. A nine-member Higher Education Services Council
(eight citizens and one student member), appointed by the Governor, oversees
the work of the Office. Section describes student financial aid services, and
section 2 discusses arrangements for tuition reciprocity. Section 3 discusses
student and parent information provide by the Office. Section 4 describes the
MINITEX Library Information Network, and section 5 discusses the library
planning task force. Section 6 describes the Minnesota Education
Telecommunications Council, and section 7 discusses consumer protection
services provided by the Office. Section 8 deals with the collection and
maintenance of data. Section 9 discusses federal programs and related state
programs.
(Contains 16 figures.)
(SLD)
Reproductions supplied by EDRS are the best that can be made
from the original document.
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Ilk
Access to Higher Education
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The Minnesota
Higher Education
Services Office
Preface
Meeting Minnesota's needs for the 21st Century will
require that the state's citizens have access to and choice
of opportunities for education beyond high school.
The programs, policies, and services of the
Minnesota Higher Education Services Office and
the Minnesota Higher Education Services Council
represent strategic investments that have been
successful in supporting access to post-secondary
educational opportunities and knowledge for the
state's citizens.
While building on an existing, successful founda-
tion, the Office and Council propose to modernize
current policies through innovations that enable
programs to adapt to contemporary student needs.
The recommendations reflect an investment in the
state's human capital by helping residents help
themselves to successfully pursue and complete
post-secondary opportunities that will result in sig-
nificant economic and social returns to individuals
and the state.
This report highlights the functions, services, and
programs offered to the state's citizens by the
Services Office and Services Council.
3
Contents
3
Introduction
Section 1: Student Financial Aid
5
Section 2: Tuition Reciprocity
13
Section 3: Student and Parent Information
16
20
Section 4: MINITEX Library Information Network
23
Section 5: Library Planning Task Force
25
Section 6: Minnesota Education Telecommunications Council
27
Section 7: Consumer Protection
28
Section 8: Collection and Maintenance of Data
30
Section 9: Federal Programs and Related State Program
r
The Minnesota
Higher Education
Services Office
Introduction
The Minnesota Higher Education Services
Resources, Fiscal Year 2000
Figure 1
Office works to provide high quality, statewide
services to the citizens of Minnesota.
Minnesota Higher Education Services Office
As its mission statement states, the Services
$144,624,000
General Fund
Office, through its advocacy and actions, works to:
93,551,000
Loan Funds
achieve student financial access to post-sec-
Miscellaneous Revenue Fund
ondary education;
3,858,000
and Special Revenue Fund
2,399,000
enable students to choose among post-sec-
Ea Federal Funds
ondary educational options;
$244,432,000
Total
protect and inform educational consumers;
produce independent, statewide information
on post-secondary education; and
facilitate interaction among and collaborate
with organizations that share responsibility
for education in Minnesota.
The Services Office operates with a staff of 83
and a total Fiscal Year 2000 budget of $244 mil-
lion of which 59 percent comes from state appro-
priations, 38 percent from loan funds, and the
remaining 3 percent from federal, special rev-
(Figure 1).
enue, and miscellaneous funds
Source: Minnesota Higher Education Services Office
Ninety-eight percent of the $144 million in state
general fund expenditures flows through the
Services Office directly in grants to students
General Fund Expenditures, Fiscal Year 2000
Figure 2
and to institutions (Figure 2).
Minnesota Higher Education Services Office
Functions Range from Student Financial Aid
$136,206,000
Administration to Data Collection
Grants to Students
5,638,000
Grants to Institutions
1,841,000
Salaries
Administration of State's Student Financial Aid Programs
940,000
Other
The Services Office each year awards about
$144,625,000
$109 million in State Grants, $12 million in
Total
State Work Study, and $85 million in supple-
mental loans. Other programs include the Post-
1%
Secondary Child Care Grant Program, the
1%
Summer Scholarships for Academic Enrichment
4%
Program, the Public Safety Officers' Survivors
Benefit Program, and the National Service
Scholars Program.
The Services Office administers the
Minnesota College Savings Plan which is
expected to begin operation in spring 2001.
and Administration of Statewide Interstate
Negotiation
Tuition Reciprocity Programs
Minnesota has reciprocity programs with
Wisconsin, North Dakota, South Dakota, and
Source: Minnesota Higher Education Services Office
AVAILABLE
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ability of degrees and programs throughout the
the Canadian province of Manitoba. Minnesota
state.
also has a limited agreement with one Iowa
The Services Office is responsible for initiat-
institution. The Services Office helps facilitate
ing activities to coordinate statewide policy
administration of the Midwest Student
development regarding the use of information
Exchange Program through which some stu-
technology in post-secondary education.
dents are able to enroll in certain Midwestern
institutions and programs at reduced tuition
Collection and Maintenance of Student Enrollment and
rates.
Financial Aid Data
Publication and Distribution to Students and Parents of
These data, which include both public and pri-
Information about Academic and Financial Preparation,
vate post-secondary education, are used to
Including Financial Aid
inform policymakers and the higher education
community about trends and issues.
The Services Office accomplishes this with pub-
lications, videos, its web page, and outreach to
Statewide Federal Programs
Administration of
communities of color, low income families, and
These include a variety of grants to encourage
families with no previous higher education
community service projects and improve math
experience.
and science teaching.
Approval, Registration, and Licensure of Private Collegiate
Prescribe Policies, Procedures, and Rules Necessary to
and Career Schools
Administer the Programs Under Its Supervision
Most private and out-of-state public institutions
The Council
The Services Office is authorized to prescribe
are required to be registered or licensed by the
rules for the programs under its management.
Services Office. Licensed institutions and insti-
consists of
tutions offering degrees are required to meet
Gtizen Council Oversees Work of Services Office
minimal standards, protect student records, and
eight citizen
provide accurate and useful information to
A nine-member Higher Education Services
members and
prospective and current students.
Council oversees the work of the Office. The
Staffing for Library Planning Task Force
Council, appointed by the Governor, consists of
one student.
eight citizen members and one student. Citizen
This statewide entity is responsible for develop-
members serve for six years and the student
ing a vision of and plans for coordinated use of
two years. No more than five members can be
electronic library and information services,
from the same political party. The Council is
reviewing plans for coordinated use of electronic
responsible for:
library and information services, reviewing
plans for proposed library projects, and develop-
appointing the director of the Services Office;
ing plans for a statewide, automated library
reviewing the performance of the Services
information system.
Office; and
The Services Office also oversees the MINI-
TEX Library Information Network, a publicly
communicating and making recommenda-
supported network of academic, public, state
tions to the Governor and Legislature.
agency, and special libraries working coopera-
The Council receives advice from two advisory
tively to improve library services for their users.
bodies that are authorized in statutethe
Administration of Minnesota Education
Student Advisory Council, which includes a stu-
Telecommunications Council
dent leader from each higher education sector
or system; and the Higher Education Advisory
This statewide body is responsible for the
Council, which includes the leaders of each of
Learning Network of Minnesota. The Network
the systems or sectors.
connects all public campuses electronically via
two-way interactive video, increasing the avail-
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6
The Minnesota
Higher Education
Services Office
Student Financial Aid
Student Financing Process
Financial Aid Helps Students and Families Invest
in Post-Secondary Education
For most Minnesota students and families, com-
pleting the Free Application for Federal Student
Education beyond high school is a sound invest-
Aid (FAFSA) is the start of the post-secondary
ment for most students. Persons with more edu-
education financing process. Students and fami-
cation typically earn more in the workplace.
lies report their income and net worth on the
Further education also helps develop civic, cul-
FAFSA. The federal government assesses the
tural, and social values that contribute to a
student's and the family's income and net worth
higher quality of life for individuals who obtain
and assigns a dollar amount they are expected
the education and for society at large.
to contribute to the student's education.
Education beyond high school is expensive.
The federal government divides student aid
Today in Minnesota, prices range from $200 for
applicants into dependent and independent stu-
a course at community and technical colleges to
dents. Dependent students are under age 24,
well over $20,000 a year at the state's most
not married, not veterans, and do not have chil-
expensive colleges and universities. Paying for
dren. Conversely, independent students are age
the price of attendance takes proportionately
24 or older, married, a veteran, or have depen-
more family resources from low and moderate,
dent children. The federal government further
income families than from higher income
divides independent students into those who are
families.
not married and do not have children, not mar-
Students and families have primary respon-
Students and
ried with children, married without children,
sibility for paying for post-secondary education
and married with children.
in Minnesota. Financial aid programs help fam-
families have
For dependent students, student and par-
ilies draw upon past, current, and future income
ent(s) income and net worth are reported, and
to pay for post-secondary education.
the primary
the federal government determines an expected
Minnesota's Design for Shared Responsibility
contribution from the student and the parent(s).
policy helps to mitigate the disproportionate
responsibility
The sum of the expected student and the expect-
post-secondary education price burden faced by
ed parent contribution for dependent students
low and moderate income families.
in paying.
The Higher Education Services Office is
is known as the Expected Family Contribution.
committed to assuring that Minnesota stu-
For independent students, the income and net
dents and families from all economic back-
worth of the student and the spouse, if any, are
grounds have the opportunity to invest in
considered and the financial expectation is
and obtain a post-secondary education
reported as the Student Contribution. The
that best meets their needs. To that end, the
results of the Federal Need Analysis are report-
ed to the student and the financial aid office at
Office administers the following student and
the school the student expects to attend.
family post-secondary education financing
Expected contributions for some students
programs.
and families cover the entire price of attending.
Minnesota State Grant Program
For other families, financial aid administrators
"package" or "award" financial aid to pay for the
Minnesota Work Study Program
difference between the student and/or parent(s)
Student Educational Loan Fund
expected financial contribution, as calculated by
the federal government, and the price of atten-
Minnesota Post-secondary Education Child
dance. Grants and scholarships do not cover the
Care Grant
difference for most students. In the traditional
Minnesota College Savings Plan
financial aid model, shown in Figure 3, students
are left with what is known as a "self help
expectation" in excess of the federal govern-
ment's expected Student Contribution. Students
I I
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may meet their "self help expectation" from
7
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Responsibility Model
Traditional Student Aid Model
Minnesota's Design for Shared
--------
Figure 4
Figure 3
Assigned Taxpayer Responsibilities
Self-Help
Assigned Family Responsibilities
Federal Pell + Minnesota State Grants
D Assigned Student Responsibilities
Expected Student Contributions
Expected Parental Contributions
514,000
$14,000
13,000
13,000
12,000
12,000
11,000
11,000
1111111111111'171 1
10,000
1111111111
mx)--nrim-H-Hirr
ICI 1
9,000
l III
11111111
I
Hill
8,000
,000
11
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1 F
HI fu{ l}
7'°°°
6,000 ,
6,000
III
'II
illoonnryni
5,000
45:
4,000
'4'1111111
3,000
'0007oLincHai
1111111111
a000-311:11"7.
a
1,000
I
-
0
< 580
$60-65
< $80
526-25
$20-25 560-65 $40-45
> $5
S40-45
>
Parental Adjusted Gross Income (In Thousands)
Parental Adjusted Gross Inane (In Thousands)
Source: Minnesota Higher Education Services Office
Source: Minnesota Higher Education Services Office
students in Minnesota, policy is known as the
employment income and borrowed capital.
Assigned Student Responsibility. The portion of
Financial aid administrators help students
the recognized price assigned to families is
access loan capital and find employment to help
known as the Assigned Family Responsibility.
pay for their "self help expectation": In practice,
A Federal Pell Grant and/or a Minnesota State
the student self help expectations are concen-
Grant fills any remaining recognized price after
trated among students from low and moderate
students and families have been assigned their
income families.
The student's
financial responsibility. This final piece of the
recognized price of attendance is known as
Minnesota Policy Distributes the Price
price is the
Assigned Taxpayer Responsibility.
of Post-Secondary Education
Minnesota's Design for Shared Responsibility
critical
also differs from traditional student aid prac-
Minnesota's Design for Shared Responsibility,
tices by not packaging student aid for the stu-
as shown in Figure 4, avoids an after the fact
variable in
dent's Assigned Student Responsibility. The
student self help expectation by explicitly
policy coordinates Federal Pell Grants and
assigning responsibility for the entire recog-
state policy.
Minnesota State Grants to fill in any remaining
nized price of attendance to students, families,
recognized price after students and families ful-
and, if necessary, taxpayers. Minnesota's policy
fill their responsibilities.
expects of all students what the traditional
The student's price of post-secondary educa-
Student Financial Aid model expects only of stu-
tion is the critical variable in Minnesota's stu-
dents from low and moderate income families.
dent aid policy. The recognized price of
The portion of the recognized price assigned to
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save than to students who do not. For students
attendance for students and families used in
who choose not to work and save, the Federal
Minnesota's Design for Shared Responsibility is
government does not expect them to invest in
set by the Minnesota Legislature. It includes
their education. Minnesota's Design for Shared
tuition and fees and a standard living and mis-
Responsibility expects students to invest in
cellaneous expense allowance. Specifically, rec-
their education regardless of whether they
ognized tuition and fees are defined as the
choose to work and save prior to attending,
lesser of average tuition and required fees paid
work while attending, or work and pay off debt
by undergraduate students registered full-time
after attending. The policy is premised on post-
or tuition maximums set as part of the appro-
secondary education being a smart investment,
priations process. The Minnesota Legislature
regardless of the student's family economic
sets the living and miscellaneous expense
background.
allowance as well.
The Design for Shared Responsibility sets
The Design for Shared Responsibility policy
the Assigned Student Responsibility the same
recognizes the various prices associated with
for all Minnesota undergraduates attending the
student attendance choices. For students regis-
same post-secondary education institution pay-
tered for 15 credits or more, the recognized
Students are
ing the same price.
price of attendance in Fiscal Year 2000 ranged
Price is an important consideration for stu-
from $7,883 to $13,955 in the Minnesota State
expected to
dents in selecting a college. The lower the price,
Grant Program. Students registering for as few
the lower the dollar amount of Assigned Student
as three credits are eligible to be considered for
invest in
Responsibility. Conversely, the higher the price,
State Grant aid.
the higher the dollar amount of Assigned
Assigned Student Responsibilities:
their
Student Responsibility. In Minnesota, students
choosing higher priced institutions are expected
In Minnesota, students are expected to make an
education
to make a greater investment in themselves.
investment in their education regardless of
Figure 5 illustrates increasing Assigned Student
their family economic situation. The Minnesota
regardless of
Responsibility as recognized price increases.
Legislature sets the student investment expec-
How students pay for their Assigned Student
tation, the Assigned Student Responsibility. The
their
Responsibility is an important policy considera-
Assigned Student Responsibility was first set at
tion. Most students are employed while in high
50 percent of the recognized price of attendance
economic
school and while attending college. Students are
in 1983. It remained at 50 percent until the
employed primarily in the private sector.
1998 Minnesota Legislature lowered the
situation.
Additional opportunities for students to work
Assigned Student Responsibility to 47 percent
while attending are provided by the Federal
beginning in Fiscal Year 1999 and to 46 percent
Work Study Program and the Minnesota Work
beginning in Fiscal Year 2001.
Study Program.
The Design for Shared Responsibility student
Analysis by the Services Office has shown
investment expectation is analogous to a pre-
that if a student were to pay for his or her
scription drug co-payment or a house down pay-
Assigned Student Responsibility with current
ment. The policy recognizes that the price of
income from employment, the number of hours
attendance varies among colleges and universi-
required to work per week would range from 15
ties and expects a greater investment from stu-
hours per week at the lowest dollar amount of
dents who choose higher priced options. In
Assigned Student Responsibility to 30 hours per
effect, the policy says to students, "if you think
week at the highest dollar amount of Assigned
a higher priced option is best for you, you ought
Student Responsibility if he or she worked 50
to be willing to pay more for it".
weeks per year at minimum wage. At average
Assigning students a share of the recognized
work study wages, the hours per week required
price of attendance differs from the Federal gov-
at the lowest Assigned Student Responsibility
ernment's student aid practice. Federal govern-
would be 11 and at the highest Assigned
ment practice results in assigning a larger
Student Responsibility would be 24.
Student Contribution to students who work and
9
Assigned Family Responsibilities (Dependent Student)
Assigned Student Responsibilities
Figure 6
Figure 5
$ 13,916 Recognized Price of Private 4-Year College
$ 13,916 Recognized Price of Private 4-Year College
$ 11,816 Recognized Price of University of Minnesota
$ 11,816 Recognized Price of University of Minnesota
O $ 10,371
Recognized Price of State University
$ 10,371
Recognized Price of State University
$ 8,666
$ 8,666 Recognized Price of Public 2-Year College
Recognized Price of Public 2-Year College
O
O $ 7,883 Recognized Price of Private 2-Year College
$ 7,883 Recognized Price of Private 2-Year College
$14,000 $14,000
13,000
13,000
12,000
12,000
11,000
11,000
10,000
10,000
9,000
9,000
8,000
8,000
7,000
7,000
dr
6,000
6,000
5,000
S'
5,000
4,000
4,000
3,000
3,000
2,000
2,000
1,000
1,000
0
0
<$80
< 580
560-65
>55 520-25
540-45
560-65
$40 .45
S20-25
>S5
Family gusted Gross Income (In lbousands)
Family Adjusted Gross Income (In Thousands)
Source: Minnesota Higher Education Services Office
Source: Minnesota Higher Education Services Office
25 percent of the student's wage.
The Higher Education Services Office admin-
While most students work while attending,
isters the Minnesota Work Study Program as a
many students also borrow at some time while
way to assist students in earning income to help
attending. Students may borrow from a variety
pay for their Assigned Student Responsibility.
sources. Most, if not all, banks will loan stu-
Students participating in the Minnesota Work
Most
dents money to cover education expenses. Both
Study program may work on campus, with non-
the federal government and the state of
profit agencies, or for persons over age 65 or
students are
Minnesota provide students with opportunities
with disabilities. They may also work for a for-
to borrow. Minnesota's Student Educational
profit employer employing them as an intern in
employed
Loan Fund (SELF), administered by the Higher
a position directly related to the student's field
Education Services Office, provides an alterna-
of study. Most Minnesota Work Study students
while in high
tive source of loan capital to assist students in
are employed on campus. About three percent of
investing in college now and paying for it later.
Minnesota Work Study students are employed
school and
Were a student to borrow to pay his or her
off campus.
Assigned Student Responsibility, his or her
Student maximum work study earnings are
college.
monthly payments for a subsidized Federal
determined by the campus financial aid office. A
Stafford Loan would range from $46 at the low-
student's earnings depend on the wage rate and
est Assigned Student Responsibility to $81 at
the number of hours worked. Wage rates are set
the highest Assigned Student Responsibility.
by the employer. Student work study wages are
These monthly repayment amounts would
paid from the Work Study Program funds and
increase to $50 and $88 respectively if the stu-
employer funds. The employer must pay at least
I 0
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