USA Funds-Sponsored Study Finds Latinos Receive Less Financial Aid

A new report underwritten by USA Funds^® shows that Latino students receive less financial aid for college than any other racial or ethnic group, despite the critical role that this aid plays in Latino students’ ability to pay for higher education.

“How Latino Students Pay for College” provides previously difficult-to-find information about the types and amounts of financial aid that Latinos receive, and delivers it in an easily accessible format. Excelencia in Education and the Institute for Higher Education Policy prepared the report.

Researchers analyzed the most up-to-date information available about the participation of Latino students in financial-aid programs, from the National Postsecondary Student Aid Study data for the 2003-2004 award year. The following findings are among those detailed in “How Latino Students Pay for College”:

Federal financial aid is critical for Latino students. In 2003-2004 half of Latino undergraduates received federal aid. In contrast, less than one-fourth of Latino undergraduates received either state aid or aid from postsecondary institutions.

• Although Latino students were more likely than the combination of all other racial and ethnic groups to receive federal aid in 2003-2004, Latinos received the lowest average federal-aid awards of any racial or ethnic group.
  
  
• Latino students who attended postsecondary institutions full time were more likely to receive aid and received higher average amounts of aid than Latino students who attended less than full time.
  
  
• Latinos with higher family incomes received higher average financial-aid awards than lower-income Latino students.

The research endeavors to inform national policy debates, such as current deliberations regarding the reauthorization of the federal Higher Education Act. The report also strives to assist policy-makers in formulating state policies and initiatives regarding Latino students, in budget decision making, and in discussions about higher-education access and success for Latino students.

Recommendations
“How Latino Students Pay for College” offers recommendations for action to combat the discrepancy between the importance of aid for Latino students and the amount of assistance received. The report’s recommendations — which focus on action at the federal, state and local levels — include the following:

• Increase the maximum award for Federal Pell Grants to better align with the increased price of college.
  
  
• Develop outreach strategies to target information about financial-aid options to the Latino community.
  
  
• Create an entitlement-based education-loan-forgiveness program for Latino students who study in areas of national need.
  
  
• Establish predictable tuition-and-fee policies for postsecondary institutions.
  
  
• Disaggregate institutional data to look at Latino students.
  
  
• Ensure course availability and strengthen course planning.
  
  
• Encourage mentoring by experienced parents and students.
  
  
• Offer a course about paying for college.

USA Funds’ financial support of the research is consistent with USA Funds’ nonprofit mission in support of higher-education preparation, access and success.

“USA Funds is committed to enhancing college access for all deserving students,” says Henry Fernandez, USA Funds executive director of scholarships, outreach and philanthropy. “The results of this study will lay the groundwork for improving access for this rapidly growing population.”

Download a copy of the report. You will need Adobe Acrobat Reader to view the reports.