Category: state higher ed policy

  • Improving State Longitudinal Data Systems

    Improving State Longitudinal Data Systems

    Title: Powering Potential: Using Data to Support Postsecondary Access, Completion, and Return on Investment
    Source: The Data Quality Campaign

    To make decisions about when and where to pursue their next educational credential, students and their families need to be able to understand the full picture of pursuing further education. They need access to real-time program information, which includes data on enrollment and completion, program performance, financial aid availability, employment, and return on investment.

    A new publication from the Data Quality Campaign highlights the current landscape and challenges of state data systems for postsecondary education and offers recommendations to align state and institutional data systems.

    Key findings include:

    How the existing postsecondary and workforce data landscape varies

    According to the report, nearly all states have agencies that oversee postsecondary institutions and collect some student or programmatic data within postsecondary student unit record systems (PSURSs). However, the authors note that agency-specific data are often disconnected from other sectors’ data. As a result, student information cannot connect with postgraduation outcomes, as is possible with statewide longitudinal data systems.

    Education and workforce data systems differ greatly across states. Sixty-eight percent of PSURSs connect to workforce data, but only 11 percent identify the industry and general occupation that individuals are employed in.

    States collect a variety of postsecondary data from institutions through a variety of methods, but the report emphasizes that states identify many common uses of the data, such as in supporting workforce alignment.

    Data challenges that states are facing

    The report observes that federal funding for states to develop data systems has been increasingly siloed, with different grant programs focusing on the development of data systems that each have a narrow focus (e.g., workforce and K–12 data).

    Education and workforce data systems identify students using different methods, making connecting individuals’ data and tracking their pathways difficult. However, the authors note that some states are making changes to improve matching accuracy.

    Recommendations for states to proactively use data in cooperation with postsecondary institutions

    The report recommends that states ensure data are used in collaboration with postsecondary institutions to inform policy and practice. This includes creating guided pathways and aligning institutions’ educational offerings with their states’ workforce needs. By evaluating trends in postsecondary completion, employment outcomes, and employment needs, policymakers can refine programs that guide students into pathways with high completion and high-paying careers.

    Institutions collect a variety of information about students, including enrollment demographics and course grades. According to the report, given many institutions’ limitations to do robust analysis, this information should be integrated with statewide data systems.

    States can use data to make the admissions and financial aid application processes easier for students and to streamline the process of enrolling in high-demand educational offerings. States and institutions can also leverage their shared data to identify students at higher risk of not completing their postsecondary program and tailor financial support, emergency aid, and academic supports to provide on-time interventions to these students.

    To read the full report from the Data Quality Campaign, click here.

    —Austin Freeman

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  • Pell Grant Dollars Are Left Unclaimed: What That Means for Students and States

    Pell Grant Dollars Are Left Unclaimed: What That Means for Students and States

    Title: Pell Dollars Left on the Table

    Authors: Louisa Woodhouse and Bill DeBaun

    Source: National College Attainment Network

    Pell Grants have long supported low-income students as they pursue higher education, increasing the financial capabilities and academic opportunities afforded to students. However, receiving federal financial aid through Pell Grants is dependent on filing the Free Application for Federal Student Aid (FAFSA), which can serve as a barrier to students.

    The National College Attainment Network (NCAN) has published a report on the unclaimed Pell Grants left on the table by high school graduates. Approximately 830,000 Pell Grant-eligible students did not complete FAFSA in the 2024 cycle, resulting in nearly $4.4 billion in unclaimed Pell Grant awards. These unclaimed funds are valuable to both students and states, with the ability to further the educational pursuits of low-income students and strengthen state economies.

    NCAN has run reports detailing the value of unclaimed Pell Grants over the past four years. Typically, nearly 60 percent of high school graduates complete the FAFSA by June 30, with completion rates trailing off markedly as students begin their summer.

    However, due to the technical challenges and delayed launch of FAFSA that occurred in the 2024 cycle, by the end of June, only 50 percent of high school graduates had completed the form. By August 30, 57 percent of students had filed the FAFSA, decreasing the amount of financial aid left on the table. The implications are clear: hindrance to the financial aid application process, whether that be through technical difficulties, decreased assistance, or short staffing, can result in many students losing access to Pell Grant funds.

    The impact of lower FAFSA completion rates, and therefore more unclaimed Pell Grants, is not felt exclusively by students but by states as well. In 2024, students in California and Texas each left nearly $550 million in Pell Grant awards unclaimed. While these states lose the most when FAFSA completion rates are low, they also stand to gain the most if completion rates increase.

    Analysis from NCAN finds that if FAFSA completion rates had increased by an additional 10 percentage points this year, California would have seen a $145 million increase in Pell Grant awards while Texas would have received an additional $130 million. The additional federal aid could translate into more students attending postsecondary institutions, filling workforce gaps and strengthening the states’ economies.

    In establishing the significance of increasing FAFSA filing rates for low-income students, NCAN offers commentary on how states can better support students, especially in the wake of potential policy changes directed at higher education. States can fund FAFSA completion efforts, providing additional in-school and online resources for students to access when filing. Additionally, FAFSA data sharing among states may enable high school counselors and local college access partners to better target students that could benefit from additional assistance.

    To read more about unclaimed Pell Grants and the role states can play on bolstering FAFSA completion rates, click here.

    —Julia Napier

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  • Strengthening America’s Regional Public Universities

    Strengthening America’s Regional Public Universities

    Title: Regional Public Universities: Expanding Higher Education’s ROI for Student and Communities

    Authors: Cecilia M. Orphan and Mac Wetherbee

    Source: Third Way

    A new Third Way report urges tailored federal and state support for regional public universities (RPUs)—rural and urban alike—that educate the majority of four-year public college students and drive local workforce development.

    RPUs are “regionally-focused colleges and universities that education 70 percent of all students (nearly seven million annually) attending four-year public institutions in the United States each year,” according to the report. They offer accessible education to individuals throughout their adulthood while also training students to enter economically important jobs in a particular region.

    While there are different types of RPUs (e.g., regionally-focused HBCUs, master’s degree-granting RPUs, urban-serving MSIs, and Puerto Rican Hispanic-serving RPUs), about 49 percent of RPUs are considered rural-serving.

    Yet RPUs face low funding under broad policies and programs that also fund non-RPUs. As such, report authors Orphan and Wetherbee suggest the following policy recommendations:

    Develop a federal Region-Serving Institution designation. Creating an RPU designation that is akin to what already exists for MSIs could create a new wealth of opportunities for the institutions. Subsequent funding and opportunities could potentially serve students in more effective ways.

    Build funding partnerships between state and federal government. States can reassess their funding and find ways to invest in RPUs, and the federal government should encourage states to invest more in these institutions. Doing so can foster better statewide economic outcomes, as well as improved success metrics for students.

    Revise federal programs with RPUs in mind. Institutions are often required to provide matching funds to access certain Department of Agriculture and Department of Labor grants, an obstacle for many RPUs. The government should consider waiving these requirements for RPUs, as well as encouraging federal agencies to offer more programming supporting applied research at RPUs.

    Differentiate policies based on type of institution. Given the diversity of RPUs, multiple types can exist in the same district. Thus, policymakers should consider adapting policies to target the different types of RPUs and their needs.

    To see the full report, click here.

    —Kara Seidel

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  • Case Study: Florida Policy Opening Enrollment for At-Risk Students

    Case Study: Florida Policy Opening Enrollment for At-Risk Students

    Title: The Role of State Policy in Supporting Students Experiencing Homelessness and Former Foster Youth in Higher Education

    Authors: Carrie E. Henderson and Katie Grissom

    Source: The Urban Institute

    Paying for a college degree is already a difficult, complex process for many students involving a variety of sources of financial aid and payment. For students with a history of foster care or housing instability, this task becomes even more challenging given the lack of financial and social support they experience growing up.

    To properly support these students, policymakers and higher education administrators need to create educational environments that go beyond teaching and learning to prioritize access to essential resources and socioeconomic conditions that can provide stability in students’ lives. State policy can provide critical opportunities to open pathways for students and address the personal, emotional, and logistical challenges that students face. A new report from the Urban Institute explores how the Florida state legislature took steps to enhance access to postsecondary education for homeless students and former foster youth and how it affected higher education attainment.

    Key findings include:

    New state policies expanded tuition and fee exemptions: In 2022, the Florida legislature created policies that expanded the eligibility for tuition and fee exemptions to match the federal definition of homeless children and youth and include students who had been involved in shelter, dependency, or termination of parental rights proceedings.

    Increase in tuition and fee exemptions rose since implementation: The data Florida collected showed an upward trend in the use of the homelessness fee exemption in both the Florida College System (FCS) and the State University System (SUS) between 2021-22 and 2023-24. In the FCS in 2023-24, the number of exemptions increased by 103 percent since 2021-22, from 689 to 1,396. SUS institutions experienced more incremental growth, as homelessness exemptions increased from 344 in 2021-22 to 432 in 2023–24, a 26 percent increase.

    Tuition and fee exemptions can reduce the financial burden of postsecondary education, making it more affordable and attainable for students from disadvantaged backgrounds. However, policymakers considering exemptions and subsidies should include dedicated funding to help institutions of higher education implement these services effectively. Without additional funding, colleges and universities lack the supplemental resources to implement policies feasibly. Furthermore, policymakers should listen to and work with administrators to fund holistic wraparound services that impact students’ ability to enroll, persist, and succeed in higher education.

    To read the full report from the Urban Institute, click here.

    —Austin Freeman

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  • Recommendations for States to Address Postsecondary Affordability

    Recommendations for States to Address Postsecondary Affordability

    Authors: Lauren Asher, Nate Johnson, Marissa Molina, and Kristin D. Hultquist

    Source: HCM Strategists

    An October 2024 report, Beyond Sticker Prices: How States Can Make Postsecondary Education More Affordable, reviews data to evaluate affordability of postsecondary education across nine states, including Alabama, California, Indiana, Louisiana, Ohio, Oklahoma, Texas, Virginia, and Washington.

    The authors emphasize the importance of considering net price, or the full cost of attendance less total aid. Depending on the state, low-income students pay 16-27 percent of their total family income to attend community college.

    At public four-year colleges with high net prices, students with family income of $30,000-48,000 py more than half of their income (51-53 percent) for school in two of the nine states. Four-year colleges with low net prices show cost variability based on whether a student is the lowest income, earning $0-30,000, or has $30,000-48,000 in income. Students in the former group pay 21-27 percent of their family income toward education, while students in the latter group pay 40-41 percent of their income.

    The brief recommends that policymakers take the following issues into account:

    • The way states fund public institutions is critical for low-income students. Consider increasing funding for community colleges as well as evaluating how student income factors into allocation of state funds.
    • Tuition policy is integral to making decisions about postsecondary education. Public perception of college affordability is influenced by tuition costs. States have the power to set limits on how much institutions can raise or change costs, but states also must be careful not to limit institutions from charging what they require to adequately support students’ needs.
    • Transparency and consistency among financial aid programs increase their reach. States should consider making financial aid programs more readily understandable. State financial aid policies should also increase flexibility to adjust for transferring, length of time to graduate, and financial aid from other sources.
    • How states support basic needs affects students’ ability to afford attending college. Policies at the state level can offer students more options for paying for food, housing, caregiving, and more.

    To read the full report, click here.

    —Kara Seidel

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  • State Funding for Short-Term Credentials Ramps Up

    State Funding for Short-Term Credentials Ramps Up

    Title: A 2024 Update of State Investments in Short-Term Credential Pathways

    Author: Stephanie M. Murphy

    Source: HCM Strategists

    The higher education landscape continues to evolve rapidly as more and more students prioritize short-term credentials, also known as micro-credentials and non-degree credentials. There is increased demand for these valuable credentials, which can improve individuals’ career prospects and meet the changing needs of the modern economy and job market.

    Despite a massive proliferation in funding for short-term credentials, there has been a lack of systematic cataloging or analysis of state investments in short-term credentials. HCM Strategists, through funding from the Lumina Foundation, conducted an in-depth examination of all 50 states to establish the first comprehensive classification system of state funding for short-term credential programs. The October 2024 report is an update of HCM Strategists’ 2023 typology and policy landscape analysis of short-term credentials.

    Key findings are summarized below:

    Total state investments in short-term credentials exceed $5.6 billion across 69 initiatives in 31 states.

    • This represents an increase from 2023, when there were 59 state-led programs with nearly $4 billion in funding.
    • Across programs, a majority of state funding for short-term credentials has gone toward students, for financial aid, and institutions, for capacity building and student supports and aid).

    Since 2023, 10 new short-term credential initiatives have launched in eight states, increasing total investments by roughly $1.8 billion.

    • As an example, Alabama established its Short-Term Credential Scholarship Program during the 2025 fiscal year with a $1 million appropriation. This initiative reimburses Alabama residents for up to $4,500 in for expenses such as tuition, fees, and materials as they seek short-term credentials aligned with workforce demands.
    • In Colorado, HB24-1340, signed into law in May 2024, created a tax credit for low- and middle-income residents enrolled at public colleges and universities. This initiative provides full reimbursement of tuition and fees for eligible recent high school graduates, improving access to short-term credentials.
    • West Virginia’s Credential WV micro-credential initiative was created in October 2024 to help workers and students gain targeted credentials to meet new labor market demands in the state. This program will roll out over three years, with institutions identifying resources to create workforce-aligned micro-credentials and standardizing the process for awarding credit for prior learning.

    Short-term and non-degree credentials are becoming an increasingly central piece of the education landscape in the United States. And while 31 states have invested more than $5.6 billion across 69 initiatives to make workforce training more accessible, research remains limited on the outcomes and long-term labor market value of these credentials. The large financial investments that states and institutions of higher education are making into short-term credential pathways reflect the growing recognition of the value of immediate upskilling in today’s labor market.

    To read the full report from HCM Strategists, click here.

    —Austin Freeman

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