Need-Based Financial Aid: A Tool for Supporting Ohio's Education and Workforce Goals

Jan 28, 2013
  • Description

In 2009, Ohio cut in half the General Revenue Fund appropriation for the Ohio College Opportunity Grant (OCOG) need-based financial aid program and ended the program for students in public 2-year institutions. This study examines the impact on Ohio students of these cuts and recommends strategies to strengthen need-based aid programs and policy in Ohio. To show the impact of the OCOG cuts, the research compares a variety of indicators before and after the cuts, including Ohio's need-based aid per student relative to neighboring states, state aid as a percentage of federal Pell grant awards, and average student debt. Each of these indicators worsened significantly in the wake of the cuts. Recommendations include: (1) Increasing total funding for need-based aid; (2) Restoring aid for students at 2-year public institutions; (3) Implementing approaches to financial aid that support low and moderate-income students' enrollment in college and attainment of a certificate or degree.