New Affordable College Effort to Help Low Income Students Afford First-Year Costs within the University System of New Hampshire

December 15, 2005 –LEE, NH – As a way to reduce direct expenses for college and encourage individuals who might have not considered attending college due to the costs, the University System of New Hampshire (USNH) has launched its Affordable College Effort (ACE). This new program is geared toward any New Hampshire resident attending a USNH institution as a full time freshman within one year of graduating from high school and for which the Expected Family Contribution (EFC) is zero. The program will assist incoming freshmen in the fall of 2006 and their ACE Awards will range from $4,425 to $4,625.

“College affordability is a major concern for those who pay the bills as well as for policy makers who worry that the price tag of an education is a major barrier to higher education,” said Andy Lietz, chair of the University System’s Board of Trustees. “Lowering this barrier is one of the top concerns of our Board and we strongly endorsed this new effort to make college more affordable for our neediest residents. The ACE Awards will serve as their trump card over first-year tuition expenses,” he added.

During their freshmen year, eligible students will incur no loan debt for meeting the direct costs of education, provided that they have met all information submission deadlines. Direct (or billed) costs include tuition and standard fees, as well as standard campus housing and meal plans. ACE Awards will assist eligible freshmen who enroll for classes beginning in fall 2006 at USNH institutions, which include the University of New Hampshire, Plymouth State University, Keene State College, and Granite State College.

Type of Expense

Tuition

Fees

Room & Board

Books

Spending $, laundry, incidentals, etc.

Direct (billed)

Indirect

(out of pocket)

The concept behind the Affordable College Effort was part of the Governor’s proposed budget for FY05-07 and was included in the budget passed by the Legislature in June 2005. It is estimated that the University System will invest about $700,000 for the 2006-07 school year in ACE awards and that these grants will provide benefits to between 150-200 New Hampshire residents attending USNH colleges and universities in fall 2006.

Example: Molly, a high school senior who plans to attend college full time at a USNH institution, lives in New Hampshire and comes from a family of four with an annual income of $23,175. Based on this income level and federal methodology used to determine financial aid eligibility, Molly’s parents’ EFC is zero. Her financial aid package for a USNH institution would include the following:

Aid Program	Range of Aid
Federal Pell Grant	$4,050
NH State Grant	1,000
Federal SEOG*	900 - 2,250
Tuition Grant	1,500 - 2,200
Federal Work Study	1,843 - 2,500
Subtotal of Aid	$9,293 -12,000

New USNH ACE Award	4,425 - 4,625
Total Aid	$13,718 -16,625
Cost to Attend USNH**	$13,718 -16,810

*SEOG – Supplemental Educational Opportunity Grant

** This figure includes current (2005-06) tuition, fees, and standard room & board; prices will increase for 2006-07 and aid packages will be adjusted accordingly

Molly could take out a loan during the first year to pay for indirect (out-of pocket) costs, such as books, clothing, and other needs, but would not need to take out loans for tuition, fees, or standard room and board.

Annually, financial aid staff at USNH institutions will work with students who received an ACE award during their first year to develop grant and loan opportunities for the remaining three years so these students can graduate with as little debt as possible and move into careers that may have not been accessible without a college degree.

“While students who receive this first-year award will have to take out loans to complete their education, their earning potential as a college graduate versus a high school graduate far surpasses the cost of those loans,” said Lietz.

According to the College Board, over a lifetime of work (from age 25 to 65), a college graduate, on average, makes almost a million dollars more than a high school graduate. The mean income of an individual with a high school diploma is $28,816, almost $24,000 less than an individual with a bachelor’s degree and a mean income of $52,462.

Students and parents who are interested in learning more about their eligibility should contact the financial aid offices at USNH institutions. Eligibility for the ACE Award mirrors the financial requirements for receiving the maximum federal Pell Grant. There will not be any partial ACE awards granted for individuals who come from families where the EFC is greater than zero and are still eligible for a partial Pell Grant. Students apply for not only Pell Grants but all federal, state, and institutional financial aid programs (except scholarships) by completing the Free Application for Federal Student Aid (FAFSA) and must submit all information in accordance with stated deadlines. The paper FAFSA is available from high school guidance offices, or the form may be completed online at www.fafsa.ed.gov. The FAFSA must be submitted within the schedule established by the respective institutions, generally March 1st of each year. By filing the FAFSA, students will automatically be considered for an ACE Award. There is no separate application.

For more information, review the answers to ACE Frequently Asked Questions .

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