Ammons: $24M in student aid unclaimed

At last weeks’ Board of Governors meeting, FAMU President James Ammons brought startling news: Florida’s college students failed to claim $24 million in financial aid that was available to them. About 22,000 undergraduates who are eligible for the money did not apply.

“This is a huge number and when you see the kind of money that is being left on the table during these hard economic times, it’s obvious we have a communication problem,” Ammons said. “The development of a thorough communication strategy to let students know that there is aid out there is one of our main goals.”

Ammons reported the finding on behalf of the BOG’s Presidential Work Group on Financial Aid, which he chaired.

The report also sounded alarms concerning a price-sensitive group that is often overlooked in financial aid policy discussions. Ammons calls them “core” students.

This “core” group is made up of about 37,000 undergraduate students who come from families that make between $40,000 and $80,000, annually. Nearly half of the unmet financial need in the State University System is found within this group. “Core” students are hit especially hard by tuition increases because they not eligible for the Pell grants that go to their low-income peers. Many do not qualify for state merit-based programs such as the Bright Futures Scholarship, either.

Ammons called on state leaders to make more aid available to “core” students and create a communications strategy that encourages more students and families to submit the Free Application for Federal Student Aid early and annually.

Many believe that students and parents fail to complete the FAFSA because it's too long and complex. U.S. President Barack Obama has proposed eliminating the form altogether and, instead, giving parents the option to have their income tax data forwarded to the U.S. Department of Education. He's also pushing increases in Pell grants, federal loans, and a new American Opportunity Tax Credit that will provide $4,000 to college students in exchange for 100 hours of community service.

The availability and rate-of-participation in financial aid programs is of particular concern to FAMU, where most students come from low-income households. Low-income students tend to divide much of their time between studying and working, which means they take longer to graduate.

FAMU’s students generally respond to tuition hikes by enrolling in fewer classes due to their lack of funds. That trend put FAMU’s state enrollment appropriations in danger since the legislature funds students based on credit hours rather than the total headcount.

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