Subcommittee on 21st Century Competitiveness

Hearing on
"Paying for College: Innovative Private-Sector Proposals to Complement Record Federal Investment in Student Aid"

May 23, 2006

Introduction

Chairman Keller, Ranking Member Kildee, and members of the subcommittee, thank you for inviting me to discuss the California State University (CSU) programs that support access to California’s neediest students and the importance of federal student financial aid to help achieve that goal. The CSU commends the Committee for its attention to the important task of ensuring that every student that chooses to do so can pursue a postsecondary education.

Today, I would like to share with you several key outreach programs that the CSU has developed and implemented, as well as federal and state programs in which the CSU is a key partner: the Early Assessment Program (EAP), Steps to College poster, Super Sunday, foster youth programs, California Veterans Education Opportunity Partnerships, Math, Engineering, and Science Advancement (MESA), TRIO, and GEAR UP. Each of these programs support student academic preparation and access. I will conclude with a few remarks about federal and state student financial aid. But first, a few words about the CSU and its students.

The California State University – Background

Few, if any, university systems can match the scope of the CSU system. The CSU is the largest four-year university system in the country, with 23 campuses, approximately 405,000 students and 44,000 faculty and staff. The CSU’s mission is to provide high-quality, affordable education to meet the ever-changing needs of the people of California. Since the system’s creation in 1961, it has awarded about 2 million degrees. We currently award approximately 84,000 degrees each year.

The CSU plays a critical role in preparing outstanding candidates for the job market. Our graduates help drive California’s aerospace, healthcare, entertainment, information technology, biomedical, international trade, education, and multimedia industries. The CSU confers 65 percent of California’s bachelor’s degrees in business, 52 percent of its bachelor’s degrees in agricultural business and agricultural engineering, and 45 percent of its bachelor’s degrees in computer and electronic engineering. The CSU also educates the

professionals needed to keep the state running. It provides bachelor’s degrees to teachers and education staff (87 percent), criminal justice workers (89 percent), social workers (87

percent) and public administrators (82 percent). Altogether, about half the bachelor’s degrees and a third of the master’s degrees awarded each year in California are from the CSU.

One key feature of the CSU is its affordability. For 2005/06, the CSU’s systemwide fee for full-time undergraduate students is $2,520. With individual campus fees added in, the CSU’s total fees average $3,164, which is the lowest among any of the CSU’s comparison public institutions nationwide. We try to keep our costs down – and in fact Governor Schwarzenegger has proposed buying out a fee increase scheduled for this year – yet many of our students continue to have great financial need. Approximately half of our students receive financial aid.

The California State University – Its Students

CSU students are not necessarily the traditional 18- to 22-year-olds. A recent survey of CSU students revealed the following about students enrolled at the CSU:

- The average undergraduate age is 24,

- About 85 percent are commuters,

- 44 percent are independent from their parents,

- Nearly two in five have dependents,

- Four out of five have jobs, and 36 percent work full time,

- About one in five is in the first generation in their family to attend college,

- 40 percent come from households where English is not the main language spoken, and

- 54 percent of CSU students are students of color.

The CSU prides itself on its ability to provide college access to students across California’s increasingly diverse population. The CSU provides more than half of all undergraduate degrees granted to the state’s Latino, African American and Native American students.

Additionally, CSU students are closely connected and committed to the communities in which they live. More than 185,000 CSU students participate in community service annually, donating nearly 30 million hours, the minimum wage equivalent of $200 million.

Public/Private Partnerships

Public-private partnerships are vital for higher education. In today’s economy, higher education is more important than ever. According to the Census Bureau, a college graduate’s lifetime earnings ($2.1 million) are almost double that of a high school graduate. But a higher degree is more than just a ticket to a better job. It can improve the economic situation of both individuals and their communities. That’s why it is in everyone’s interest – communities, businesses, and educators – to help students succeed in school and pursue the highest degree they can. In fact, we cannot state this fact strongly enough: The future success of our country’s economy is inextricably linked with the educational attainment of our students.

Given this conviction, the CSU recently sought to measure its impact, economic and otherwise, on California’s businesses and communities. A comprehensive study of the CSU and its campuses found that CSU-related expenditures create $13.6 billion in economic activity, support 207,000 jobs and generate $760 million in state taxes in a year. The report also found that the state of California reaps a four-fold benefit from every dollar it invests in the CSU. This study further cemented our belief that the CSU’s work is tightly bound to that of our local communities and economy. Essentially, we see ourselves as building bridges – building continuity across the spectrum from education, to the economy and workforce, to the community.

K-12 Partnerships

A good place to start this discussion is at the very beginning of the education-workforce continuum, in the public schools. Given that the public schools are the source of nearly all CSU students, the CSU spends a great deal of time building bridges with our state’s K-12 partners. Specifically, we have been reaching out to middle and high schools to try to help more students prepare for and get ready to succeed in college.

When we say that 54 percent of the CSU’s students are students of color, it may sound like a large number, but that’s not necessarily the case when you look at the students who are in the pipeline. Right now, approximately two-thirds of our state’s K-12 students are students of color. CSU believes the future of higher education in this country depends on its ability to reach those students of color and students from traditionally underrepresented groups whom we have not yet reached.

Early Assessment Program

One of the most important tools the CSU has developed to reach high school students is the Early Assessment Program, known in California as simply the "EAP." CSU created this early assessment of college readiness program in collaboration with the California Department of Education and the State Board of Education. It provides 11th grade students a ‘snapshot’ of their mathematics and English/language arts proficiency. The test incorporates the CSU’s placement standards into the California Standards Tests for English and math.

The EAP identifies students - before their senior year - who need to do additional work in English and/or mathematics prior to entering the CSU. The EAP informs students, families, and high schools of a student’s readiness for college-level work in these subjects. Most importantly, it provides an opportunity for the high school to work with the students while they are enrolled in 12^th grade to help them to master the requisite English and math skills expected of a graduating high school senior. Attached to this testimony is a copy of CSU’s PowerPoint that provides more detail about the three key components of the EAP: (1) early assessment in 11^th grade in English and mathematics, (2) supplemental high school preparation in 12^th grade, and (3) teacher professional development designed to equip high school English and mathematics teachers with the tools necessary to ensure student mastery of the content standards. Although the EAP is voluntary, over 186,000 students took the EAP test last year.

"Steps to College" Poster

Another important outreach effort is our "Steps to College" poster. For the next wave of California’s students, many of whom are the first in their families to go to college, planning information is critical. The CSU created this popular poster, which describes for middle and high school students (grades 6 –12) and their families the steps they need to take to prepare and apply for college and financial aid. The poster, which has served as a model for similar publications at universities from Nevada to Pennsylvania, won a silver medal in the CASE Circle of Excellence International competition.

For the last six years, we have distributed copies of the poster in English and Spanish to middle and high schools throughout California. Last year, we partnered with Boeing to create additional English/Spanish versions of the poster and expand the distribution to local libraries and youth organizations. We also partnered with three Asian newspapers to print and distribute copies of the poster in Chinese, Korean, and Vietnamese.

Community Partnerships

Over the past year, CSU has held town hall meetings with African-American, Hispanic, and Vietnamese communities to discuss how collectively we can better reach out to and serve students in those communities. We are continuing to meet with working groups from these and other traditionally underrepresented communities to help them to maximize their chances for success in higher education by providing information on how to prepare academically and financially for college. We are sharing with these communities the value of a CSU education as the bridge to economic opportunity and professional success. In addition to providing information to students and their families, the CSU is providing an opportunity to inform leaders and members of these communities about CSU’s role and impact on educating African American, Hispanic, and Vietnamese students. These activities are building long-term partnerships with African American, Hispanic, and Vietnamese community leaders who work with and influence the youth in their respective communities.

Super Sunday

For example, CSU is working with churches in the Los Angeles Basin that serve large African-American congregations in an effort to increase the pool of African-American students, particularly male, to be eligible to attend a four-year university. Earlier this year, we held "Super Sunday" at West Angeles Cathedral and other churches in the Los Angeles area to provide information for students and their families about college. We went to eight churches and reached over 20,000 people. We handed out the "Steps to College" poster to about 10,000 parents, grandparents and students. Our follow-up has created a contact person at every church who is dedicated to college knowledge and college preparation. Previously only one church had a contact person for higher education. In the near future, we will be holding similar events in the Oakland area.

We have also partnered with the Tomas Rivera Policy Institute and Sallie Mae on a large grant to support "Kids to College," aimed at helping sixth graders in underserved communities learn what it takes to get to college.

Foster Youth

In 1996, the California Legislature called upon the CSU and the California Community Colleges (CCC) to expand access and retention programs to include outreach services to emancipated foster youth in order to encourage their enrollment in a CSU or a CCC.  The CSU and the California Community Colleges were asked to review housing issues and to provide technical assistance to assist those prospective foster youth students in completing admission applications and financial aid applications for students who voluntarily disclosed their status as emancipated former foster youth.

The Independent Living Program (ILP), administered by the California Department of Social Services (CDSS) through the local county social services departments and through the CCC, enables eligible foster youth to achieve self sufficiency prior to leaving the foster care support system by providing independent living skills assessments and providing services based on them.  The ILP coordinators work with local area CSU campuses and county foster youth programs to provide outreach and student services. At the request of Chancellor Charles B. Reed, CSU campuses developed programs that addressed the special needs of foster youth enrolling on their campuses, including special attention to counseling foster youth about housing opportunities available on campus and in the local community during the summer preceding enrollment, Thanksgiving vacation, winter recess, and spring break.

CSU Fullerton’s Guardian Scholars Program is a representative example of activities in which many CSU campuses are engaged. The program is committed to supporting ambitious, college-bound students exiting the foster care system. CSU Fullerton provides a comprehensive program that contributes to the quality and depth of the student's university experience. It serves as a resource for young adults by assisting in their development and equipping them with the educational and interpersonal skills necessary to become self-supporting, community leaders, role models, and competent professionals in their selected fields.

Difficult situations and backgrounds have left some foster care youth with significant hardships in their lives. Many of these young people have overcome these challenges. Their academic performance in high school has qualified them to meet CSU Fullerton admission standards. As wards of the court, these foster care youth become emancipated at age 18 and are forced to make a difficult transition to adulthood often without traditional family support. By awarding a five-year scholarship, the Guardian Scholars program provides the opportunity to change individual lives and make dreams come true.

Each fall semester CSU Fullerton endeavors to admit ten new students into the Guardian Scholars program with an ultimate goal of reaching fifty scholars in the program at one time. In addition to all annual fees, academic tuition, textbooks and supplies, the program provides support to emancipated foster youth such as an orientation to university life, year-round, on-campus housing, on-campus student employment opportunities, one-to-one counseling, peer and faculty mentoring, financial aid application assistance, assistance with off-campus employment in career fields, and post-graduation career planning and assistance.

The Guardian Scholars program is a working partnership between the private sector and public agencies designed to achieve significant synergies which allow us to support our students effectively and cost-efficiently. CSU Fullerton, the Orangewood Children’s Foundation, public agencies, and private citizens create a powerful team dedicated to assisting deserving foster youth to achieve their dreams of a college education, realize true independence and reach their full potential. We urge Congress to encourage these types of programs on a national level.

California Veterans Education Opportunities Partnership

The CSU has pledged to work with Governor Schwarzenegger and California’s military base commanders to reach out to military men and women who are on active duty and who are exiting the service to facilitate their transition to college. Last month, the Governor announced the formation of the Veterans Education Opportunities Partnership, which will create a model for veterans’ education by developing an academic outreach, admission, and enrollment plan that targets and assists the approximately 60,000 California veterans exiting military service each year. The partnership consists of senior administration officials, military leaders, and leaders of the CSU, UC, and the CCC system. The partnership will seek to work cooperatively to provide education opportunities to veterans who are California residents or who are stationed in California at the time of their exit from the military.

The total active U.S. Military force includes 1.42 million men and women of whom 160,000 (11.2 percent) come from California. Approximately 175,000 active duty men and women are stationed in California. An additional 25,000 serve in the Reserves. The Montgomery GI Bill education benefit is the number one reason American men and women enter the U.S. military. Therefore, each member of the military pool of over 200,000 men and women serving in California is a potential candidate for admission to one of California’s 109 California Community Colleges, 23 CSU campuses, and 10 UC campuses.

Approximately 60,000 of a pool of over 200,000 men and women exit military service annually. According to the U.S. Department of Defense, the average age of exiting Veterans is 25.3 years. Eighty-four percent are male, and sixteen percent are female. Ninety-six percent of exiting Veterans are enrolled in the Montgomery GI Bill, but only fifty percent are using their Montgomery GI Bill benefits. The CCC, the CSU, and the UC represent education opportunities for exiting Veterans, both for California residents and for service members stationed in California.

A Memorandum of Understanding implementing the California Veterans Education Opportunities Partnership will be signed by the Governor Arnold Schwarzenegger, Chancellor Charles B. Reed for CSU, President Robert C. Dynes for UC, and Chancellor Mark Drummond for the California Community Colleges. The MOU will implement California’s vision to be the leader in becoming "Veteran friendly" for college and university education. California will become the model state for Veteran education and will ensure Veterans who are California residents or who are stationed in California at the time of their exit from the military access to California colleges and universities.

MESA (Math, Engineering, and Science Achievement)

Since 1970, MESA’s academic development programs have supported educationally disadvantaged students to encourage them to excel in math and science studies and to graduate with degrees in engineering, science, and technology. MESA tries to reach economically and educationally disadvantaged students. This program involves the CSU, University of California (UC), California Community Colleges, Independent Colleges, and industry partners. It is funded by the California legislature, corporate contributions, and grants.

The MESA Schools Program serves middle and senior high school students throughout California to introduce them to math and science. MESA supports their mastery of these content areas in an effort to encourage them to enroll in college in math-based majors. This program partners with teachers, administrators, school district officials, and industry representative to provide an academic enrichment model. The MESA Community College Program supports community college students so they will transfer to four-year universities as majors in math, engineer, science, and technology. The MESA Engineering Program centers provide support to educationally disadvantaged students at four-year colleges to attain engineering or computer science baccalaureate degrees.

Seventy-seven percent of MESA students successfully complete Algebra I before the 10^th grade. More encouraging, fifty-four percent complete the CSU and UC college preparatory high school course pattern consisting of fifteen courses. Of MESA high school graduates, fifty-seven percent enrolled in college as math, science, or engineering majors.

Nine of nineteen MESA pre-college sites and eight of ten MESA engineering programs are located on CSU campuses. Fifty-seven percent of MESA’s pre-college students were served by centers located on CSU campuses, and for the past five years, over twenty-five percent of MESA high school graduates have enrolled at a CSU campus. Nearly fifty percent of MESA community college students transferred to CSU campuses.

TRIO and GEAR UP

- California State University Chancellor Charles B. Reed

Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) was authorized in the Higher Education Amendments of 1998 to provide low-income middle school students the skills, encouragement, and academic preparation needed to enter and succeed in high school and postsecondary education through partnerships between schools, universities, the private sector, and community organizations. GEAR UP provides six-year grants to states and partnerships to strengthen academic programs and student services at participating high-poverty middle and high schools. Grantees serve an entire cohort of students beginning no later than the seventh grade and follow the cohort through high school. GEAR UP funds are also used to provide college scholarships to low-income students.

Eleven CSU campuses have been designated as the fiscal agent for GEAR UP Partnership Grants totaling over $112 million since the inception of the program in 1999. These partnerships include at least one low-income middle school and at least two other partners. CSU campuses are also participants in other partnership grants for which a local school district is the fiscal agent. For example, four CSU campuses are participating in five 2005 partnerships: CSU Long Beach is a participant in a partnership grant awarded to the Bellflower Unified School District; CSU Northridge, with two partnership grants awarded to the Los Angeles Unified School District (LAUSD); CSU Dominguez Hills, with LAUSD; and San Diego State University with Sweetwater Unified School District.

An example of a successful GEAR UP program at CSU East Bay is Successful Options for Academic Readiness (SOAR). The campus received a $2.808 million federal GEAR UP Partnership Grant to promote access to and success in higher education for low-income students enrolled in 7^th grade in 14 of Oakland's middle schools. SOAR consists of fours strands that will affect the needs of the middle school students: an academic strand, a parent strand, a partnership strand, and a systemic change strand. In addition to the partnership grants received by CSU campuses, California was awarded a second State GEAR UP Grant for a total of $21 million over six years, having just completed administering its first six-year grant totaling $30 million that was awarded in 1999. A total of 196,000 low-income students in 187 middle schools in 80 school districts have been served by California GEAR Up. The number of schools represents 15.6 percent of all middle schools in California. The number of students represents 31 percent of all students who attend a low-income middle school in California. California receives the largest amount of GEAR UP resources of any state.

An important outcome of GEAR UP is the documented increases in student academic preparation. California GEAR UP middle schools have offered more college preparation classes, and the number of students taking college preparatory courses has grown.

- Participating GEAR UP middle schools have increased the number of college preparatory sections in English/Language Arts by 54 percent; Mathematics, by 46 percent; Science, by 24 percent; and Social Sciences, by 92 percent;

- 20 percent more students are enrolling in Algebra in middle schools;

- 64 percent of the students are enrolled in advanced mathematics courses in high

school; and

- 48 percent of the students are taking Honors level courses in English in high school.

GEAR UP is distinct from other federal and state initiatives. This program employs partnerships committed to serving and accelerating the academic achievement of cohorts of students through their high school graduation. GEAR UP partnerships supplement rather than supplant existing reform efforts, offer services that promote academic preparation and the understanding of necessary costs to attend college, provide professional development, and continuously build capacity so that projects can be sustained beyond the term of the grants.

The CSU notes that the Higher Education Act (HEA) reauthorization legislation, which originated in this subcommittee and recently passed the House, maintains TRIO and GEAR UP as separate programs, and CSU thanks you for that. The CSU joins the higher education community in support of both the TRIO and GEAR UP programs and proposes that these important programs be expanded to serve an increased number of disadvantaged and low-income students. The TRIO and GEAR UP programs are vital to preparing underrepresented students for college, encouraging persistence and ultimately graduation. Skills gained through the TRIO and GEAR UP programs reduce the need for remediation, saving students and institutions time and money. While these programs complement each other, each has a unique purpose and method, and each serves a unique cohort of students. Accordingly, the CSU supports keeping these two programs distinctly separate and complementary.

In the spirit of today’s topic to encourage more public-private partnerships to complement federal investment in student aid, the CSU proposes three modifications to the TRIO and GEAR UP programs. First, the TRIO program should be expanded to include community-based organizations with experience in serving disadvantaged youth. Second, incentives should be created within both programs to encourage middle schools and high schools to form partnerships with colleges to develop college preparatory programs for disadvantaged students. Third, incentives within these programs should be created to encourage and prepare underrepresented students to pursue coursework and careers in fields such as science, technology, engineering, and mathematics (the "STEM" fields).

Federal Financial Aid

Pell Grant Program – The Pell Grant program continues to represent the foundation of federal student financial aid programs. As the most need-focused federal student aid program, a strong Pell Grant program is essential to closing the gap in college enrollment and completion that exists between low-income students and their more affluent peers. A continued commitment to the Pell Grant program, and to increases in the maximum Pell Grant award, are essential to ensuring access for disadvantaged students. Across the CSU System, 116,000 students receive $318 million in Pell Grant awards. The average CSU Pell Grant recipient receives $2,724 per year from the Pell Grant program, and Pell Grants account for 19 percent of the funds awarded to CSU students. On behalf of CSU students across California, I would like to thank the members of the Committee for that support. I also note that HR 609, the College Access and Opportunity Act, increased the authorized maximum Pell Grant award. I would urge members of the subcommittee to work with the Appropriations Committee to increase the funded maximum award.

In addition, there continues to be a need for a year-round Pell Grant. Year-round study enables students to complete their academic degree in less time than might otherwise be required. This reduces the amount of time that a student spends in school, saves the student money (and reduces borrowing), and permits more efficient use of campus facilities and resources at a time when those resources are being stretched due to increasing enrollments and tight state budgets. Increasing enrollment demand will be a national trend for the foreseeable future, and we fully expect a number of institutions to utilize a year-round calendar as a resource management strategy. Such a move may also increase student persistence and graduation from college.

The CSU strongly endorses the subcommittee’s efforts to provide additional Pell Grant funds to students for year-round study. On behalf of the CSU, I also want to thank you for including specific provisions which will allow students at the CSU and at other institutions serving large numbers of non-traditional students to participate. Finally, I would also note that probably the most beneficial year-round Pell grant provision, both for students and for institutions, would be to permit utilization of Pell Grants for students who enroll for summer study in order to complete their remaining degree requirements, even if they do not need to enroll full-time, rather than having them enroll for an entire term in the subsequent academic year. Such a provision should be open to students at any Title IV eligible institution.

Campus–Based Programs – The Campus–Based programs (Perkins Loans, Federal Work-Study, and Supplemental Educational Opportunity Grants (SEOG)) are vital to the CSU’s efforts to attract, retain, and graduate disadvantaged students. Unique to these programs is the flexibility they provide to financial aid administrators to package aid awards to best meet the needs of their students. In addition, these programs require an institutional match, which leverages the federal investment to provide even more aid to more students. The CSU knows that these programs work, and joins the higher education community in urging increased funding for them. In addition, we thank you for continuing the Perkins Loan program, and again ask members of the subcommittee to work with the Appropriations Committee to fund the Perkins Loan capital contribution.

California Financial Aid

California is unique in that its Governor and Legislature enacted a state grant entitlement program in 2000. This historic financial aid program opened university doors for thousands more students. By taking this bold step, California announced to all financially needy students that if they earn the grades and are eligible for college, they are assured a state grant to help pay the entire cost of CSU fees as well as fees at the UC and grants to offset part of the tuition at other eligible California colleges.

Because of fiscal constraints in 2000, however, some provisions were included in the authorizing language restricting entitlement grants to students under the age of 24. Because of this restriction, the state also implemented a Competitive Cal Grant program with a limited number of grants. Recently, legislation was introduced in the California Legislature to expand further the eligibility for Cal Grant Entitlement awards by increasing the eligibility for the entitlement grant from 24 to 27 and by doubling the number of competitive grants.

Summary

All of these partnerships, and many, many others at our campuses, do more than simply enrich our existing programs. They serve as launching pads from which we are able to create new initiatives and ideas, and they allow us to identify and meet the ever-changing needs of our state’s vital industries. The end result is better preparation of students who are ready to enter the working world, filled with current and relevant knowledge that will allow them to "hit the ground running" in their chosen fields. It is these graduates who will form the basis for our future workforce, and our nation’s future economic success.

Thank you again for taking the time to hear about the CSU system and its public/private partnerships. Thank you also for your support for the federal student financial aid programs that are so important to CSU students. I will be glad to answer any questions you might have, and look forward to working with you in the future.