DataPoints: Leaving money on the table
Nearly one in five (17%) students enrolled in public community colleges did not apply for any federal student aid and would likely have been eligible for a Pell Grant, according to an analysis of data from the 2019-20 National Postsecondary Student Aid Study.
During the 2019-20 academic year, 61% of public community college students applied for federal aid, and 36% received a Pell Grant, according to the analysis by the American Association of Community Colleges.
While there are some instances where students would not be eligible for federal financial aid, such as international/foreign students or students with a prior baccalaureate, most of the non-applicants are eligible to apply and many would likely be eligible for Pell grants. Even after excluding students with a prior bachelor’s degree and foreign students, only 64.5% of public community college students applied for federal aid.
The data in Figure 1 reflect the distribution of students by aid application status and Pell Grant status. Pell Grant status of FAFSA (Free Application for Federal Student Aid) filers was based on actual award of a Pell Grant, while Pell Grant status for students who did not complete a FAFSA was based on an estimated Expected Family Contribution (EFC) for students. Foreign students, students with a prior bachelor’s degree and students who attended more than one institution in the 2019-20 academic year were excluded.
Nearly 10% of community college students who applied for federal aid were eligible for a Pell Grant but did not receive one. Of those who did not apply for federal aid, another 11% would likely have been eligible for a maximum Pell Grant award and another 7% would be eligible for some level of a Pell Grant. Altogether, more than a quarter of community college students did not receive a Pell grant who likely could have.
Figure 2 shows the percentage of all students who applied for financial aid by student characteristics, as well as students who are likely eligible for Pell grants. As noted above, 64.5% of all students applied for federal aid by completing the FAFSA. Of those who are eligible, or likely eligible, 73.8% applied for federal aid, meaning more than a quarter of likely Pell Grant-eligible students did not apply.
A look at demographics
Black students, Native American students and Hispanic students were more likely to have applied for financial aid than White students or Asian and Pacific Islander students. Traditional-age students (21 years old or younger) were most likely to have applied for federal aid, while students age 40 or older were least likely.
Females were more likely to have applied for aid than their male counterparts. Dependent students were more likely to apply for federal aid, while married students without dependents were least likely to apply.
Students with current or prior military service were less likely to have applied for federal aid than students with no military experience. Further analysis reveals that roughly 40% of students with some form of military experience received federal veterans’ education benefits, which can be received without applying for federal financial aid through the FAFSA.
Figure 3 shows students’ current employment and educational patterns relative to application for federal financial aid. Not surprisingly, full-time students were more likely to apply for aid than part-time students, and students who were not in a degree program were significantly less likely to have applied for aid than students in an associate degree program.
Students whose educational expectations were for an associate or bachelor’s degree were also much more likely to have applied for federal student aid. Students with full-time employment were less likely to have applied for aid than unemployed students or students with part-time employment.
All DataPoints
DataPoints: College Price
DataPoints: College Readiness
DataPoints: Completion
DataPoints: Enrollment
DataPoints: Financial Aid
DataPoints: Finance
DataPoints: Leadership
DataPoints: Outcomes
DataPoints: STEM
DataPoints: Transfer
DataPoints: Workforce