"There is little disagreement that the more courses students take each semester, the more likely they are to graduate on time, but much debate has centered on how to encourage students in that direction," Inside Higher Ed reports.

"In California, the Legislature's recently passed budget is offering one of the largest incentives seen across the country. Qualified community college students can receive a grant of up to $4,000 a year if they take 15 units or more.

The new program, known as the Student Success Completion Grant, is an expansion of two existing programs, which awarded qualified students $1,000 a year for enrolling in 12 or more credits each semester and $2,000 a year if they took more than 15 credits each semester.

... In recent years, financial incentives that encourage students to attend full-time have become more common as research and analysis of such programs has more often shown positive impacts.

For instance, in Indiana, 38.5 percent of the state's college students graduate from the same institution within four years with a bachelor's degree or two years with an associate degree or certificate -- a 13.9 percentage point increase over the past five years, according to a 2018 Indiana Commission for Higher Education completion report. Indiana has had a 15 to Finish initiative that requires students to take at least 30 credits a year to maintain state aid since 2013.

In Nevada, the state covers a portion of the full cost of attendance, up to $5,500, for low-income students if they enroll in at least 15 credit hours.

Meanwhile, Congress is considering incentivizing faster completion in the PROSPER Act, which would offer students $300 more in federal aid once they cross the 15-credit-hour threshold.

'There is support on both sides of the aisle to get students through as quickly as possible'" said Justin Draeger, president and chief executive officer of the National Association of Student Financial Aid Administrators, adding that the dissension comes from how to do it. For instance, Democrats voted against the $300 incentive while Republicans supported it.

'Using carrots as an incentive instead of sticks is the preferred way of incentivizing, and we're OK and supportive of the PROSPER Act's attempt to get students to complete on time,' Draeger said, adding that they wouldn't support any financial penalty against students who don't take more credits."

NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 8/1/2018