# Presentation: 487150

## Slide 1

## Compare and Contrast:

**The Experimental Sites Initiative Data Difference**

- Compare and Contrast: The Experimental Sites  Data Difference

## Introduction

- Jacqulyn S. Bannister
- U.S. Department of Education
- Hoke J. Wilson, Ph.D.
- ORC Macro

- Compare and Contrast: The Experimental Sites  Data Difference

## Session Objectives

- Understand the purpose of the Experimental Sites Initiative
- Share participants’ perspective and results for the 2001—02 reporting cycle
- Share analytic results of comparisons between experimental sites participants and non-participants
- Questions/comments?

- Compare and Contrast: The Experimental Sites  Data Difference

## What the Initiative Is!

- An opportunity to test new and innovative ways of administering Title IV aid
- An opportunity to provide better services to students and improve stewardship of federal funds
- An opportunity to provide the Department with data to support broader policy initiatives

- Compare and Contrast: The Experimental Sites  Data Difference

## Purpose

- Relief
- Flexibility
- Data based information for the Department

- Compare and Contrast: The Experimental Sites  Data Difference

## Who Are the Participants?

- 102 public institutions
- 18 private institutions
- 19 community colleges
- Consortia

- Compare and Contrast: The Experimental Sites  Data Difference

## Current Experiments

- Waiver of entrance loan counseling
- Waiver of exit loan counseling
- Inclusion of loan fees in the calculation of cost of attendance
- Credit of Title IV funds to otherwise non-allowable institutional charges
- Credit of Title IV funds to prior term charges

- Compare and Contrast: The Experimental Sites  Data Difference

## Current Experiments

- Relaxation of the requirement for multiple disbursement of single-term loans
- Suspension of the thirty-day delay of disbursements for first-time, first-year borrowers
- Overaward tolerance and the disbursement of loan funds

- Compare and Contrast: The Experimental Sites  Data Difference

## Current Experiments

- Loan Proration practices for graduating borrowers
- The award of Title IV aid to students not passing an “Ability to Benefit” test, but successfully completing at least six hours of coursework

- Compare and Contrast: The Experimental Sites  Data Difference

## Reporting Requirements

- Annual report
- Report templates

- Compare and Contrast: The Experimental Sites  Data Difference

## What Does the Data Tell Us?

- About what participating institutions say about the initiative
- About how participating institutions compare with those who do not participate

- Compare and Contrast: The Experimental Sites  Data Difference

## Stakeholders

- Flexibilities from requirements in the experiment can impact ...
- Postsecondary students
- The institutions they attend
- The federal government

- Compare and Contrast: The Experimental Sites  Data Difference

## Students As Stakeholders

- Flexibilities from requirements in the experiment can impact ...
- Student indebtedness
- Academic progress

- Compare and Contrast: The Experimental Sites  Data Difference

## Institutions as Stakeholders

- Flexibilities from requirements in the experiment can impact ...
- The expense and workload associated with providing access to student aid
- The quality of customer service

- Compare and Contrast: The Experimental Sites  Data Difference

## The Federal Government as a Stakeholder

- Flexibilities from requirements in the experiment can impact ...
- The expense associated with providing student aid
- The volume of aid available to students
- Public confidence in the integrity of the programs

- Compare and Contrast: The Experimental Sites  Data Difference

## Outcomes As Reported by Participating Institutions

- Annual reports
- Provide quantitative data on student participation, impact on academic progress and default potential
- Provide (limited) quantitative data for the expense and workload associated with providing student aid
- Provide anecdotal/qualitative data

- Compare and Contrast: The Experimental Sites  Data Difference

## Comparing Outcomes With Other Institutions

- NSLDS, PEPS, IPEDS and the College Board’s Common Data Set (CDS)
- From the NSLDS, an Experimental Default Measure (EDM) and an Experimental Graduation Rate (EGR)
- From PEPS, IPEDS and the CDS, institutional characteristics

- Compare and Contrast: The Experimental Sites  Data Difference

## Why Compare?

- To assess the impact of the Initiative
- FY2000 default rate: 	5.4% (PEPS)
- X-Sites default rate:	1.7% (self-reported)
- To explain “counter-intuitive” results
- Institutions meeting rigorous exit counseling requirements: 8.1% EDM
- Institutions exercising flexibility in exit counseling: 2.8% EDM??

- Compare and Contrast: The Experimental Sites  Data Difference

## How Similar? – Type of Institution

| Type | CDS | Final Analytic Data Set | Participating X-Sites |
| --- | --- | --- | --- |
| Less than 4 Years | 1,786 | 1,001 | 20 |
| Four Years or more | 1,912 | 1,519 | 100 |

- Compare and Contrast: The Experimental Sites  Data Difference

## How Similar? – Control of Institution

| Control | CDS | Final Analytic Data Set | Participating X-Sites |
| --- | --- | --- | --- |
| Public | 1,630 | 1,375 | 102 |
| Private | 1,368 | 1,145 | 18 |
| Proprietary | 700 | 0 | 0 |

- Compare and Contrast: The Experimental Sites  Data Difference

## How Similar? – Geographic Region

| Control | CDS | Final Analytic Data Set | Participating X-Sites |
| --- | --- | --- | --- |
| New England | 231 | 201 | 4 |
| Mid-Atlantic | 676 | 427 | 11 |
| Southern | 800 | 535 | 12 |
| Midwest | 980 | 692 | 45 |
| Southwest | 303 | 226 | 5 |
| Western | 668 | 439 | 43 |
| Foreign | 36 | 0 | 0 |

- Compare and Contrast: The Experimental Sites  Data Difference

## How Similar? – Average Enrollment

- Common Data Set: 		 3,184
- Final Analytic Data Set:		 3,980
- Participating X-Sites:		13,152

- Compare and Contrast: The Experimental Sites  Data Difference

## The Experiments

- Annual reports: What participating institutions say about the experiments
- Comparative analyses:  How the characteristics of institutions influence outcomes

- Compare and Contrast: The Experimental Sites  Data Difference

## Loan Proration for Graduating Borrowers

- Annual Reports
- Loan proration has no affect on student graduation timelines
- It may negatively impact student indebtedness
- Institutions average savings of 1.4 workhours and $18 per borrower (14 and 13 institutions reporting, respectively)

- Compare and Contrast: The Experimental Sites  Data Difference

## Loan Proration for Graduating Borrowers

- Comparative Analysis
- EGR       for all borrowers at Experimental Sites
- EGR unchanged for part-time borrowers at Experimental Sites
- Model for part-time borrowers is not strong.

- Compare and Contrast: The Experimental Sites  Data Difference

## Overaward Tolerance

- Annual Reports
- Students experience a diminished level of frustration
- Institutions may save in excess of $5,700 per year (SUNY, Brockport)
- Overawards of $300 or less are rare – only 2% of borrowers at participating institutions received overawards

- Compare and Contrast: The Experimental Sites  Data Difference

## Overaward Tolerance

- Comparative Analysis
-  EDM       for borrowers at Experimental Sites
- Analysis of rankings for the FY2000 CDR and the EDM indicate that default rates were lower – and remain low – at institutions participating in the experiment

- Compare and Contrast: The Experimental Sites  Data Difference

## Loan Fees in the Cost of Attendance

- Annual Reports
- May reduce student indebtedness
- Due to the high cost of education, inclusion has a minimal influence on loan funds eligibility
- Institutions save four-tenths of a workhour and $75 per borrower (8 institutions reporting)

- Compare and Contrast: The Experimental Sites  Data Difference

## Loan Fees in the Cost of Attendance

- Comparative Analysis
- EDM unchanged for borrowers at Experimental Sites
- EGR unchanged for borrowers at Experimental Sites
- Analysis of rankings for the FY2000 CDR and the EDM indicate that default rates were lower – and remain low – at institutions participating in the experiment

- Compare and Contrast: The Experimental Sites  Data Difference

## Credit of Title IV Aid to Otherwise Non-allowable Institutional Charges

- Annual Reports
- Students do not differentiate between charges
- Less than 0.4% decline crediting
- Credit represented only 4% of all Title IV aid
- Institutions save time and money

- Compare and Contrast: The Experimental Sites  Data Difference

## Credit of Title IV Aid to Otherwise Non-allowable Institutional Charges

- Comparative Analysis
- EDM      for borrowers at Experimental Sites
- EGR      for borrowers at Experimental Sites (??)
- Analysis of rankings for the FY2000 CDR and the EDM indicate that default rates were lower – and remain low – at participating institutions

- Compare and Contrast: The Experimental Sites  Data Difference

## Credit of Title IV Aid to Prior Term Charges

- Annual Reports
- Removes an obstacle in the path of academic progress
- No students declined
- Leads to superior customer service
- Saves institutions time and money

- Compare and Contrast: The Experimental Sites  Data Difference

## Credit of Title IV Aid to Prior Term Charges

- Comparative Analysis
- EDM unchanged for borrowers at Experimental Sites
- EGR     for borrowers at Experimental Sites
- Analysis of rankings for the FY2000 CDR and the EDM indicate that default rates were not different in the past, but are now lower at participating institutions

- Compare and Contrast: The Experimental Sites  Data Difference

## Multiple Disbursement of Single-Term Loans

- Annual Reports
- Allows students to avoid emergency loans and other stopgaps
- Only 1.3% of students with single-term loans withdrew before midterm
- Institutions averaged yearly savings of $13,649 (14 reporting)
- Average reduction in workhours per borrower of 48 minutes

- Compare and Contrast: The Experimental Sites  Data Difference

## Multiple Disbursement of Single-Term Loans

- Comparative Analysis
- EDM       for borrowers at Experimental Sites
- EGR       for subset of single-term borrowers at Experimental Sites in the spring of 2002 (but model is not strong)
- Analysis of rankings for the FY2000 CDR and EDM indicate that default rates were lower – and remain low – at participating institutions

- Compare and Contrast: The Experimental Sites  Data Difference

## Exemption From the 30-day Delay of Awards to First-year, First-time Borrowers

- Annual reports
- Reduces hardships associated with high startup costs for students
- Only 0.6 percent of borrowers withdrew within 30-days
- Institutions averaged yearly savings of $11,334 (12 reporting)
- Average reduction in workhours per borrower of more than an hour (11 reporting)

- Compare and Contrast: The Experimental Sites  Data Difference

## Exemption From the 30-day Delay of Awards to First-year, First-time Borrowers

- Comparative Analysis
- EDM     for borrowers at Experimental Sites
- Freshman withdrawal rate     for students at institutions NOT participating in the experiment
- Analysis of rankings for the FY2000 CDR and EDM indicate that default rates were lower – and remain low - at participating institutions

- Compare and Contrast: The Experimental Sites  Data Difference

## Waiver of Entrance Loan Counseling Requirements

- Annual Reports
- Greater flexibility allows institutions to tailor counseling and redirect resources to high risk students
- Average saving of $29 per borrower (10 institutions reporting)
- Average reduction of 1.3 workhours per borrower (12 institutions reporting)

- Compare and Contrast: The Experimental Sites  Data Difference

## Waiver of Entrance Loan Counseling Requirements

- Comparative Analysis
- EDM     for borrowers at Experimental Sites
- Freshman withdrawal rate     for students at institutions NOT participating in the experiment
- Analysis of rankings for the FY2000 CDR and the EDM indicate that default rates were lower – and remain low at participating institutions

- Compare and Contrast: The Experimental Sites  Data Difference

## Waiver of Exit Loan Counseling Requirements

- Annual Reports
- Alternatives include web-based, in-person, and telephone counseling sessions
- 10% of borrowers continue to receive in-person counseling
- Removes an impediment to graduation
- Institutions averaged annual savings of almost $8,000 (9 institutions reporting)
- Average reduction of 1.3 workhours per borrower (10 institutions reporting)

- Compare and Contrast: The Experimental Sites  Data Difference

## Waiver of Exit Loan Counseling Requirements

- Comparative Analysis
- EGR     for students in estimated final term in spring 2002 at institutions participating in this experiment
- EDM     for students at institutions participating in this experiment

- Compare and Contrast: The Experimental Sites  Data Difference

## The Award of Title IV Aid to Students Not Passing an ATB Exam, but Successfully Completing Six Credit Hours

- A Self-Contained Experiment Within a Consortium of California Community Colleges
- Provides an incentive for students to continue their education
- Students not passing ATB, but successfully completing at least six hours, are usually non-native English speakers

- Compare and Contrast: The Experimental Sites  Data Difference

## The Award of Title IV Aid to Students Not Passing an ATB Exam, but Successfully Completing Six Credit Hours

| Students | # in Group | Avg. Units Attempted | Avg. Units Completed | Avg. GPA |
| --- | --- | --- | --- | --- |
| Enrolled in degree or certificate applicable classes | 280,061 | 13.0 | 11.1 | 2.6 |
| FA recipients with HS diploma* | 6,345 | 19.9 | 17.4 | 2.6 |
| All taking ATB | 1,507 | 14.1 | 11.7 | 2.4 |
| All failing ATB | 317 | 12.6 | 8.7 | 2.2 |
| All passing ATB | 523 | 15.3 | 13.0 | 2.5 |
| Experiment Eligible | 65 | 19.1 | 15.8 | 2.6 |

- Compare and Contrast: The Experimental Sites  Data Difference

## Questions?  Comments?

- Compare and Contrast: The Experimental Sites  Data Difference

## We Want to Hear from You!

- Jacqulyn Bannister,
- FSA, US Department of Education
- Phone:
- (202) 377-4376
- Email:
- Jackie.Bannister@ed.gov

- Hoke Wilson
- ORC Macro, Inc.
- Phone:
- (301) 772-0265
- Email:
- Hoke.J.Wilson@orcmacro.com

- Compare and Contrast: The Experimental Sites  Data Difference

## Slide 47