FOR IMMEDIATE RELEASE: October 2, 2009

HECB study: recession spurring continued high demand for financial aid

     OLYMPIA - The recession in Washington has dramatically increased the number of students and families seeking financial aid for higher education, notes a survey conducted recently by the Student Financial Assistance Division of the Higher Education Coordinating Board (HECB).

     The number of students completing the Free Application for Federal Student Aid (FAFSA) has more than doubled at a few institutions and has risen substantially on average. Statewide, applications are up by 23 percent over this time last year.

     To cope with the increased demand, many schools have reduced award amounts in order to serve more students, or have stopped awarding some forms of aid due to limited funding.  However, students should continue to apply for aid.  Funds are always available to students who qualify for the Federal Pell Grant and Federal Subsidized Stafford Loans.

     The HECB surveyed the financial aid directors of the 68 Washington colleges and universities that participate in the State Need Grant program. The survey yielded 46 responses for a return rate of 68 percent. The findings from this survey suggest that the economy has had a direct effect on financial aid programs, institutions, students and their families.

Among the survey’s highlights: 

• Forty-four percent of the institutions responding indicated increases in the number of enrolled students with completed financial aid applications. Some reported increases as high as 100 percent.

• About 87 percent of the schools responding reported they had at least temporarily stopped awarding some types of aid because of lack of funds. Of these, 21 schools reported they had suspended awards from the State Need Grant program, the state’s largest financial aid program.

• Staff at 31 institutions reported increases in the number of students seeking to amend their financial aid applications to reflect their current financial situation. FAFSAs are based on the prior tax year income.

The full report is available at: www.hecb.wa.gov/financialaid/documents/ImpactofEconomy-FAFSAreport.pdf

For more information: Gary Larson

(360) 753-7817 or garyl@hecb.wa.gov

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