Tag: Dollars

  • Billions of Aid Dollars Go to High-Income Students

    Billions of Aid Dollars Go to High-Income Students

    A new report from the Century Foundation found that state and institutional grant aid too often flows to higher-income students who don’t need it, while low-income students continue to struggle with unmet need.

    The analysis, released Thursday, shows that more than half of students from the top income quartile, 56 percent, receive grants that surpass their financial need, compared to a mere 0.2 percent of students from the bottom income quartile. That means that top income quartile students were 280 times more likely to receive grants that exceeded their level of need than their lowest income peers. The share of white students that receive grants beyond their needs (19 percent) far exceeds the share of Black of Hispanic students who receive such grants (5 percent).

    Part of the issue is that the share of state grants that are merit-based jumped 17 percentage points between 1982 and now, according to the report. Over all, about 10 percent of grant aid—at least $10 billion annually in state and institutional aid—exceeds students’ financial need.

    The analysis also found that state grants disproportionately go to students at highly selective public colleges versus students at open-admission public four-year institutions—$3,693 and $842 on average, respectively. And at four-year public colleges over all, students with an Expected Family Contribution of zero were less likely than students with higher EFCs to receive aid from their institution.

    “What people think about as a pillar of the financial aid system in higher education has become a windfall for wealthy students that leaves working families paying the bill for tuition increases,” Peter Granville, the report’s author and a fellow at the Century Foundation, said in a news release.

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  • Investing in Prison Education Saves Taxpayer Dollars

    Investing in Prison Education Saves Taxpayer Dollars

    Title: Policymakers Role in Expanding Prison Education Access

    Authors: Jennifer Thomsen and Shytance Wren

    Source: Education Commission of the States

    A June 2025 report from the Education Commission of the States outlined ways in which state policy actors can expand access to prison education and therefore reduce likelihood for recidivism and incarceration costs.

    Policymakers’ Role in Expanding Prison Education Access summarized findings from an 18-month long community of practice which included stakeholders representing state education policy leaders, leaders from corrections departments, higher education prison program directors, policy leaders, and researchers. The community of practice highlighted key barriers faced by incarcerated learners and produced policy suggestions to remediate these barriers to education.

    Among the report’s key findings:

    • Prison education is a cost-saving measure. Every one dollar spent on prison education saves four to five dollars in incarceration costs.
    • Inefficient governance in prison education programs creates a lack of access for incarcerated learners and a lack of data for policymakers to improve programs. A key consideration in addressing this issue is to review what level of governance the best policies would come from (i.e.: from the governor by executive order).
    • Access to financial aid is often limited for incarcerated individuals. One way to mitigate this barrier is to review existing state financial aid programs that prohibit incarcerated individuals from receiving aid.
    • Inconsistency in access to student support prevents continued learning. A consideration for state leaders to address this inconsistency is to strengthen partnerships with community colleges and job training programs to ensure adequate reentry guidance for incarcerated learners.

    The report concludes that expanding access to prison education is most efficient when state policymakers address governance, financial aid access, and student supports for incarcerated learners.

    Read the full report here.

    —Harper Davis


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  • A smarter way to manage public dollars

    A smarter way to manage public dollars

    Key points:

    For public school districts across Florida and much of the country, employee benefits–particularly health insurance–are among the largest and fastest-growing budget line items. But too often, decision-makers in these districts manage benefits with incomplete information, little visibility into vendor practices, and limited tools for addressing escalating costs.

    Part of the problem is the complexity of the healthcare delivery system itself. The supply chain encompasses numerous moving parts, making cost drivers challenging to identify. While not intentional, school districts need to both educate and empower their agents and their team of specialists to peel back the layers that create added costs. Districts must also be willing to look inward.

    One of the real secrets to cost containment is transparency. A committed school district that wants to take control of its program must first understand its strengths and weaknesses, then fill gaps with specialists who can uncover hidden costs–an ongoing, vigilant effort that reveals the actual sources of waste and inefficiency. These efforts include transparent procurement and optimizing deal tension, as well as pharmacy contract negotiation, claims repricing, claims redirection, and more. Only then can districts make informed, strategic decisions that control costs and improve outcomes.

    The cost of opaque processes

    The result is a system that too often lacks meaningful transparency. School boards are presented with insurance renewals but not the data behind cost increases, insights into why claims costs are as they are, or guidance on how to contain them. Carriers field calls from district employees, but little to no reporting is returned to help the district understand what’s driving service demand. Without actionable data and intelligence, many districts default to passive renewals, accepting annual rate hikes without a clear strategy to contain costs or improve the employee experience.

    Building a foundation for smart decision‑making

    It doesn’t have to be this way. True transparency–in procurement, data, and intelligence–is not just a matter of regulatory compliance; it’s the foundation for smarter decision-making, better benefits engagement, and long-term cost control. When school districts gain access to previously unavailable data and unfiltered insights into how their benefits programs are performing, they can better serve their educators and protect their budgets.

    One example is call utilization data. Many school boards have no visibility into how often–and why–their employees contact their insurance carriers. Without this insight, they may not realize, for instance, that a large number of calls could pertain to prescription benefit confusion–something they could address through targeted employee education or plan redesign. Transparency in that data enables the district to act rather than react. It transforms benefits management from a cycle of guesswork into a proactive strategy, where decisions are driven by real needs rather than assumptions.

    Beyond call utilization, pharmacy and provider network fees can quietly escalate into six- or seven-figure losses if not monitored. Pharmacy contracts in particular demand negotiation by seasoned experts who understand the contractual nuances and levers that drive real savings. Ideally, a benefits partner will have a pharmacy benefits consultant or Doctor of Pharmacy on staff to review contracts and formularies line by line. Likewise, provider network claims and therapies must be benchmarked against competitive pricing. Transparency in these areas unleashes competition, and competition drives costs down.

    Operationalizing and incentivizing transparency leads to cost containment

    When a school district commits to operationalizing and incentivizing transparency, it can start to regain control of its costs. This process begins with examining the bigger picture of why and how the health-delivery supply chain can be leveraged or disintermediated to produce better outcomes. District leaders realize they have the power to effect change. Superintendents, HR, and finance departments can work in unison to embed transparency by empowering and incentivizing their benefits consultants to focus on solutions that reduce the district’s costs. This includes aligning agent compensation models with the district’s cost-containment roadmap.

    Equally important is how this transparency gets operationalized. Most small- to mid-sized school districts don’t have the staff or resources to analyze claims trends, facilitate wellness programs, or manage a complex benefits ecosystem. That’s why some are turning to outside partners to act as an extension of their internal team–not just as benefits brokers but as collaborative advisors who help design, implement, and maintain smarter benefits strategies. The difference is night and day: Instead of a transactional approach focused solely on renewals, these partners bring a year-round, data-driven mindset to benefits administration.

    Reclaiming control through radical transparency

    Ultimately, it’s about control. For too long, many public entities have ceded control of their benefits strategy to intermediaries operating behind closed doors. Radical transparency flips the script. It empowers school districts to take ownership of their benefits programs to lower costs and improve outcomes for the people they serve.

    That change doesn’t happen overnight. It starts with asking better questions:

    • Do we receive actionable data on employee engagement and utilization, and are we using it to drive measurable change?
    • Is our procurement process fully competitive and transparent, or are outdated practices perpetuating the status quo?
    • Do we have the tools and thought leadership from our broker to act on these insights?
    • Is our broker delivering transparent, cost-containment strategies, and are those solutions proven to reduce expense?
    • Are we empowered by a partnership structured around ROI?
    • Are we incentivizing our broker and vendor partners to prioritize ROI, transparency and ongoing savings?
    • Is our internal team contributing to transparency, data analysis and ROI? If not, what organizational changes are needed?

    The answers may be uncomfortable, but they’re necessary for reclaiming control. And in today’s fiscal climate, where every dollar matters and expectations for good governance are higher than ever, doing what’s always been done is no longer good enough.

    Transparency is more than a buzzword. It’s a path to fiscal responsibility, employee trust, and strategic clarity. And for public school districts facing mounting healthcare costs, it may be the smartest investment they can make.

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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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  • Programs like tutoring in jeopardy after Linda McMahon terminates COVID aid spending extensions

    Programs like tutoring in jeopardy after Linda McMahon terminates COVID aid spending extensions

    This story was originally published by Chalkbeat. Sign up for their newsletters at ckbe.at/newsletters.

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  • Black Colleges Ponder Their Future As Trump Makes Cuts to Education Dollars – The 74

    Black Colleges Ponder Their Future As Trump Makes Cuts to Education Dollars – The 74


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    The nation’s historically Black colleges and universities, known as HBCUs, are wondering how to survive in an uncertain and contentious educational climate as the Trump administration downsizes the scope and purpose of the U.S. Department of Education — while cutting away at federal funding for higher education.

    In January, President Donald Trump signed an executive order pausing federal grants and loans, alarming HBCUs, where most students rely on Pell Grants or federal aid. The order was later rescinded, but ongoing cuts leave key support systems in political limbo, said Denise Smith, deputy director of higher education policy and a senior fellow at The Century Foundation, a left-leaning think tank.

    Leaders worry about Trump’s rollback of the Justice40 Initiative, a climate change program that relied on HBCUs to tackle environmental justice issues, she said. And there’s uncertainty around programs such as federal work-study and TRIO, which provides college access services to disadvantaged students.

    “People are being mum because we’re starting to see a chilling effect,” Smith said. “There’s real fear that resources could be lost at any moment — even the ones schools already know they need to survive.”

    Most students at HBCUs rely on Pell Grants or other federal aid, and a fifth of Black college graduates matriculate from HBCUs. Other minority-serving institutions, known as MSIs, that focus on Hispanic and American Indian populations also heavily depend on federal aid.

    “It’s still unclear what these cuts will mean for HBCUs and MSIs, even though they’re supposedly protected,” Smith said.

    States may be unlikely to make up any potential federal funding cuts to their public HBCUs. And the schools already have been underfunded by states compared with predominantly white schools.

    Congress created public, land-grant universities under the Morrill Act of 1862 to serve the country’s agricultural and industrial industries, providing 10 million acres taken from tribes and offering it for public universities such as Auburn and the University of Georgia. But Black students were excluded.

    The 1890 Morrill Act required states to either integrate or establish separate land-grant institutions for Black students — leading to the creation of many HBCUs. These schools have since faced chronic underfunding compared with their majority-white counterparts.

    ‘None of them are equitable’

    In 2020, the average endowment of white land-grant universities was $1.9 billion, compared with just $34 million for HBCUs, according to Forbes.

    There are other HBCUs that don’t stem from the 1890 law, including well-known private schools such as Fisk University, Howard University, Morehouse College and Spelman College. But more than three-fourths of HBCU students attend public universities, meaning state lawmakers play a significant role in their funding and oversight.

    Marybeth Gasman, an endowed chair in education and a distinguished professor at Rutgers University, isn’t impressed by what states have done for HBCUs and other minority-serving institutions so far. She said she isn’t sure there is a state model that can bridge the massive funding inequities for these institutions, even in states better known for their support.

    “I don’t think North Carolina or Maryland have done a particularly good job at the state level. Nor have any of the other states. Students at HBCUs are funded at roughly 50-60% of what students at [predominately white institutions] are funded. That’s not right,” said Gasman.

    “Most of the bipartisan support has come from the U.S. Congress and is the result of important work by HBCUs and affiliated organizations. I don’t know of a state model that works well, as none of them are equitable.”

    Under federal law, states that accept federal land-grant funding are required to match every dollar with state funds.

    But in 2023, the Biden administration sent letters to 16 governors warning them that their public Black land-grant institutions had been underfunded by more than $12 billion over three decades.

    Tennessee State University alone had a $2.1 billion gap with the University of Tennessee, Knoxville.

    At a February meeting hosted by the Tennessee Black Caucus of State Legislators, Tennessee State interim President Dwayne Tucker said the school is focused on asking lawmakers this year for money to keep the school running.

    Otherwise, Tucker said at the time, the institution could run out of cash around April or May.

    “That’s real money. That’s the money we should work on,” Tucker said, according to a video of the forum.

    In some states, lawsuits to recoup long-standing underfunding have been one course of action.

    In Maryland, a landmark $577 million legal settlement was reached in 2021 to address decades of underfunding at four public HBCUs.

    In Georgia, three HBCU students sued the state in 2023 for underfunding of three HBCUs.

    In Tennessee, a recent state report found Tennessee State University has been shortchanged roughly $150 million to $544 million over the past 100 years.

    But Tucker said he thinks filing a lawsuit doesn’t make much sense for Tennessee State.

    “There’s no account payable set up with the state of Tennessee to pay us $2.1 billion,” Tucker said at the February forum. “And if we want to make a conclusion about whether [that money] is real or not … you’re going to have to sue the state of Tennessee, and I don’t think that makes a whole lot of sense.”

    Economic anchors

    There are 102 HBCUs across 19 states, Washington, D.C., and the U.S. Virgin Islands, though a large number of HBCUs are concentrated in the South.

    Alabama has the most, with 14, and Pennsylvania has the farthest north HBCU.

    Beyond education, HBCUs contribute roughly $15 billion annually to their local economies, generate more than 134,000 jobs and create $46.8 billion in career earnings, proving themselves to be economic anchors in under-resourced regions.

    Homecoming events at HBCUs significantly bolster local economies, local studies show. North Carolina Central University’s homecoming contributes approximately $2.5 million to Durham’s economy annually.

    Similarly, Hampton University’s 2024 homecoming was projected to inject around $3 million into the City of Hampton and the coastal Virginia region, spurred by increased visitor spending and retail sales. In Tallahassee, Florida A&M University’s 2024 homecoming week in October generated about $5.1 million from Sunday to Thursday.

    Their significance is especially pronounced in Southern states — such as North Carolina, where HBCUs account for just 16% of four-year schools but serve 45% of the state’s Black undergraduate population.

    Smith has been encouraged by what she’s seen in states such as Maryland, North Carolina and Tennessee, which have a combined 20 HBCUs among them. Lawmakers have taken piecemeal steps to expand support for HBCUs through policy and funding, she noted.

    Tennessee became the first state in 2018 to appoint a full-time statewide higher education official dedicated to HBCU success for institutions such as Fisk and Tennessee State. Meanwhile, North Carolina launched a bipartisan, bicameral HBCU Caucus in 2023 to advocate for its 10 HBCUs, known as the NC10, and spotlight their $1.7 billion annual economic impact.

    “We created a bipartisan HBCU caucus because we needed people in both parties to understand these institutions’ importance. If you represent a district with an HBCU, you should be connected to it,” said North Carolina Democratic Sen. Gladys Robinson, an alum of private HBCU Bennett College and state HBCU North Carolina A&T State University.

    “It took constant education — getting folks to come and see, talk about what was going on,” she recalled. “It’s like beating the drum constantly until you finally hear the beat.”

    For Robinson, advocacy for HBCUs can be a tough task, especially when fellow lawmakers aren’t aware of the stories of these institutions. North Carolina A&T was among the 1890 land-grant universities historically undermatched in federal agricultural and extension funding.

    The NC Promise Tuition Plan, launched in 2018, reduced in-state tuition to $500 per semester and out-of-state tuition to $2,500 per semester at a handful of schools that now include HBCUs Elizabeth City State University and Fayetteville State University; Western Carolina University, a Hispanic-serving institution; and UNC at Pembroke, founded in 1887 to serve American Indians.

    Through conversations on the floor of the General Assembly, and with lawmakers on both sides of the aisle, Robinson advocated to ensure Elizabeth City State — a struggling HBCU — was included, which helped revive enrollment and public investment.

    “I’m hopeful because we’ve been here before,” Robinson said in an interview.

    “These institutions were built out of churches and land by people who had nothing, just so we could be educated,” Robinson said. “We have people in powerful positions across the country. We have to use our strength and our voices. Alumni must step up.

    “It’s tough, but not undoable.”

    Meanwhile, other states are working to recognize certain colleges that offer significant support to Black college students. California last year passed a law creating a Black-serving Institution designation, the first such title in the country. Schools must have programs focused on Black achievement, retention and graduation rates, along with a five-year plan to improve them. Sacramento State is among the first receiving the designation.

    And this session, California state Assemblymember Mike Gipson, a Democrat, introduced legislation that proposes a $75 million grant program to support Black and underserved students over five years through the Designation of California Black-Serving Institutions Grant Program. The bill was most recently referred to the Assembly’s appropriations committee.

    Stateline is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Stateline maintains editorial independence. Contact Editor Scott S. Greenberger for questions: [email protected].


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