Data Tool: Racial Disparities in Financial Aid Completion

College affordability is one of the most significant barriers to a postsecondary degree. Yet, many students of color attend schools with low Free Application for Federal Student Aid (FAFSA)completion rates – one of the key tools to accessing financial aid. Approximately $550 million in federal and state aid goes unused annually by students in California because they are either unaware of the aid, unsure how to apply, or uncomfortable sharing their information. After years of advocacy from students, families, and educators, California’s 2021-2022 state budget includes an investment to ensure every high school senior completes a financial aid application. This investment is a significant win for financial aid access – a win that can only be realized with proper implementation.

This data tool is the first of its kind to share data on financial aid application completion by race and ethnicity. The tool is intended to help local decision-makers understand and address racial disparities in financial aid completion and to equip local education leaders with resources to take action to close racial/ethnic gaps in financial aid application completion. This is a crucial step toward ensuring students and families have access to the state and federal grants they need to pay for college.

Methodology

This data tool combines 2018-19 California Department of Education (CDE) enrollment data for 12th-grade students at each high school with California Student Aid Commission (CSAC) 2018-19 FAFSA completion data by race. Providing demographic information on FAFSA forms is optional for students; therefore, CSAC partnered with CDE to match students’ demographic information as accurately as possible based on a combination of variables such as name, date of birth, and school. For privacy purposes, data is suppressed where the number of FAFSA applications for a racial and ethnic student group at a school were fewer than five (e.g., value displayed is “<5”). In some cases, FAFSA completion numbers exceed those of 12th grade enrollment: Enrollment data is based on Fall Census Day enrollment, whereas FAFSA completion occurs in the spring. As a result, FAFSA completion numbers may be higher than enrollment numbers due to student mobility or later enrollment.

Recommended Actions for Local Education Leaders:

To ensure all high school seniors complete a Free Application for Federal Student Aid (FAFSA) by the 2022-23 academic year, local education leaders should:

  • 1. Create sustainable approaches to monitoring the status of FAFSA completion, especially across race and income.
  • 2. Provide targeted supports for completing and submitting financial aid applications for students and families based on race-specific data available through this tool.
  • 3. Establish partnerships with education technology and community-based organizations – primarily those embedded in Black and Latinx communities – to increase financial aid application completion rates through programming, digital tools, and additional support.
  • 4. Engage authentically and meaningfully with parents and families to build their knowledge about financial aid options in culturally sustaining and convenient ways for the most marginalized families.
  • 5. Support and encourage the design of systems, tools, and events that provide information and advice that is responsive to the needs of diverse students and families.

Learn more by visiting our Financial Aid Toolbox. This online resource contains best practices and bright spots for increasing Free Application for Federal Student Aid (FAFSA) and California Dream Act Application (CADAA) completion rates at the school and district level.

Additional Resources:

Karla Fernandez

Communications Manager

Karla Fernandez (she/her/hers) joins Ed Trust–West as a Communications Manager with over 11 years of experience advancing social impact initiatives.

Karla started her career as a teacher at Chicago Public Schools and UIC College Prep. After teaching, Karla joined United Friends of the Children to support LA County’s youth in foster care as a college counselor. Through Leadership for Educational Equity, Karla also served as a Policy Advisor Fellow for the office of a Los Angeles Unified School Board Member. She solidified her interests in policy analysis and quantitative research during her time with the Price Center for Social Innovation, the Housing Authority of the City of Los Angeles, and the USC Presidential Working Group on Sustainability. Before joining The Education Trust–West, Karla was the Associate Director for the Southeast Los Angeles (SELA) Collaborative, a network of nonprofits advocating for communities in SELA.

Karla holds a Bachelor’s Degree in Anthropology from the University of Chicago, a Master of Public Policy from the USC Price School of Public Policy, and a Graduate Certificate in Policy Advocacy from the USC Annenberg School for Communication and Journalism. Karla is based out of southern California and is passionate about using data analysis, communications, and digital strategies for policy advocacy and social justice efforts.