Preliminary Report Opportunity Scholarship and Opportunity...
Transcript of Preliminary Report Opportunity Scholarship and Opportunity...
Preliminary Report: Opportunity Scholarship and Opportunity Expansion Programs September 2019 1
Opportunity Scholarship and Opportunity Expansion Programs
Preliminary Report
Legislative Auditor’s Conclusion: The Washington State Opportunity Scholarship (WSOS) complies with statute to provide scholarships to low- and middle-income students. WSOS can improve legislative reporting by coordinating with state agencies.
September 2019
Casey Radostitz | Jennifer Sulcer | Joshua Karas
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In 2011, the Legislature created the Opportunity Scholarship and Opportunity Expansion Programs. The legislation also directed a JLARC review (ESHB 2088).
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Opportunity Scholarship provides funds to students
• Up to $22,500 over five years
• Scholarships to eligible students (Washington resident, below 125% MFI, pursuing bachelor’s degree, approved major, 2.75 minimum GPA)
• New programs managed by WSOS not included in our review
(Career and Technical Scholarship, advanced health professional degrees, rural jobs program)
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Opportunity Expansion Program provided funds to university programs
• $6 million raised before funding mechanism expired in 2015
• CWU, WWU, UW received funds
• University programs have secured future, ongoing funding
• Too soon to determine student outcomes
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Presentation overview:• Opportunity Scholarship
organization• College costs
• Student outcomes • Legislative reporting
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WSOS complies with statute and provides scholarships to low- and middle-income students pursing bachelor’s degrees in high-demand fields.
Opportunity Scholarship organization
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WSOSstaff works with
partners to administer the
scholarship
WSOS BOARD
• Oversees the Scholarship• Approves eligible majors• Approves selection criteria
WASHINGTON STEM
WSAC COLLEGES & UNIVERSITIES
• Package scholarships with other aid• Verify satisfactory academic
progress
• Program administrator• Distributes scholarships to student’s
school• Manages WSOS accounts
• Reviews applicants financial eligibility and residency
• Verify and distribute state match
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$88 million
$87million
WSOS is funded by private donations and state matching dollars
PRIVATE STATE MATCH RECEIVED
$175million
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WSOS has funded more than 10,000 Opportunity Scholars
$64 MillionSCHOLARSHIP COSTS
21,000 Scholarships between academic years 2012-13 and
2018-19.
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WSOS has funded more than 10,000 Opportunity Scholars
$64 MillionSCHOLARSHIP COSTS
21,000 Scholarships between academic years 2012-13 and
2018-19.
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WSOS has spent $14 million on non-scholarship costs since FY 2013
$14 MillionNON-SCHOLARSHIP COSTS
• Salaries and benefits• Fundraising and lobbying• General operating costs• Providing scholars supports• Program administration fee
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Reported program administration fee is only a portion of total non-scholarship costs
FY 2018$2.95 Million
NON-SCHOLARSHIP COSTS
PA FEE$370,000
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WSOS should include its overall non-scholarship costs, including the total cost to administer the Opportunity Scholarship program, in its annual legislative report.
Legislative Auditor’s Recommendation
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Opportunity Scholars have lower out of pocket costs and borrow less than their peers.
Opportunity Scholars’ college costs
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Other students who met eligibility requirements
Process for analyzing college affordability
Identify a comparison group
Define college affordability
Analysis
Out of pocket costs
Unmet need
Student loans
5 years of data
Not causal
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48.6%State Need Grant
Opportunity Scholars also receive federal and state grants and scholarships
60.9%Federal Pell Grant
11.9%College Bound
Scholarship
Data source: Office of Financial Management’s Education Research and Data Center
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Opportunity Scholars have lower out of pocket costs
Likely more affordable
$11,062
$14,244
OPPORTUNITY SCHOLARS
PEERS
Average annual out of pocket costs
Cost of attendance
Grants and scholarships
Out of pocket costs (net price of college)
Data source: Office of Financial Management’s Education Research and Data Center
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Opportunity Scholars have lower unmet need
Likely more affordable
$4,827
$9,892
OPPORTUNITY SCHOLARS
PEERS
Average annual unmet need
Cost of attendance
Grants and scholarships
Family contribution
Unmet need
Data source: Office of Financial Management’s Education Research and Data Center
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Opportunity Scholars borrow less often
45.1%
63.0%
OPPORTUNITY SCHOLARS
PEERS
Percent taking out student loans
Student borrowing is the percentage of students taking loans each year and the average annual loan amount for those taking student loans.
Data source: Office of Financial Management’s Education Research and Data Center
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Opportunity Scholars borrow less
Likely more affordable
$7,156
$9,125
OPPORTUNITY SCHOLARS
PEERS
Annual amount for those taking loans
Student borrowing is the percentage of students taking loans each year and the average annual loan amount for those taking student loans.
Data source: Office of Financial Management’s Education Research and Data Center
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Opportunity Scholars are more likely to continue their education. Early recipients have graduated in high-demand fields.
Opportunity Scholar outcomes
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Scholars return to school in their second year at higher rates than their peers
96%
This rate is an early indicator of whether a student will graduate.
Of Opportunity Scholars returned to school.
Of their peers returned to school.89%
Data source: Office of Financial Management’s Education Research and Data Center
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84%of WSOS graduates
earned high-demand STEM or health care
degrees
Data source: Office of Financial Management’s Education Research and Data Center
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Opportunity Scholars
83% employed in WA within 1 year of graduation
Of those employed full-time
Earned on average $66,100 and 69% earned at least middle-
income wages
Other students who met eligibility requirements
Peer Group
77% employed in WA within 1 year of graduation
Of those employed full-time
Earned on average $58,200 and56% earned at least middle-
income wages
Initial results suggest graduates are employed in middle-income jobs
Data source: Office of Financial Management’s Education Research and Data Center
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WSOS could improve reporting with financial aid and employment information collected by state agencies.
Legislative reporting
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WSOS collects some information…
Applicants’ demographic information.
Scholars’ major and graduation status.
Survey of graduates’ employment outcomes.
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…and issues annual legislative reports that contain required information…
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…but does not have access to the financial aid or employment information state agencies collect.
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WSOS should develop and implement a plan to coordinate with state agencies such as ERDC, WSAC, and ESD to provide additional information in its annual legislative reports.
Legislative Auditor’s Recommendation
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leg.wa.gov/jlarc/AuditAndStudyReports
Proposed Final Report | December 2019
Full Report
Next Steps
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Contact Us
Casey [email protected]
Valerie [email protected]
Research Analysts
Project Coordinator
Joshua [email protected]
Jennifer [email protected]
Ryan [email protected]
Legislative Auditor
Keenan [email protected]
www.leg.wa.gov/jlarc