Financial Aid for Equitable Outcomes

Assessing the Impact of MACC's Universal Tuition-Free Education Proposal in Massachusetts

Executive Summary

This report examines the Massachusetts Association of Community Colleges (MACC)'s universal tuition-free education proposal's potential impact on community college accessibility and affordability across various socioeconomic and racial demographics, with an emphasis on equity.

The MACC proposal aims to make community college as accessible as high school, promoting a broad political appeal. It proposes a universal last-dollar grant to address the direct costs of education of all students (tuition, fees, books, and supplies) and, in addition, it provides modest stipend for living expenses for low-income students.

Main Takeaways:

• The proposal’s emphasis on direct education costs risks neglecting the significant barriers posed by indirect costs that disproportionately affect lower-income students.

• The living cost stipend provided in the proposal does not sufficiently address the comprehensive financial needs of low-income students, who face notable challenges in completing their college education.

• Analysis indicates a regressive grant allocation pattern that preferentially benefits higher-income and predominantly White students, with students of color receiving significantly less support.

  • For each dollar granted to a student of color, a White student receives $1.50.

  • A similar disparity is observed in the distribution of the highest tuition-free grants, averaging $8,100. Although White students make up only 42% of the community college student population, they receive 70% of these grants.

Recommendations:

• Comprehensive Financial Aid: Develop a financial aid strategy that covers both direct educational expenses and living costs, ensuring students receive full support throughout their academic journey.

• Targeted Support: Enhance the program's equity by supplementing the universal approach with significant stipends allocated on a sliding scale, prioritizing the most economically disadvantaged students to ensure that those in greatest need receive the most support.

• Simplicity of Program: Ensure the design remains straightforward and predictable for students. A recommended approach is to anchor the sliding scale of the stipend aid to Pell Grant eligibility, aiming to double the Pell grant amount for eligible students over time.

• Holistic Strategy Across All Sectors: Extend this financial support across all sectors of public higher education in Massachusetts, allowing students to pursue their educational and professional aspirations without being hindered by financial barriers.

• Enhance Student and Instructional Support: Strive for an equitable higher education system that guarantees all students, regardless of background, have equal opportunities for quality higher education degrees.

Access the full Policy Insight here.