1Directing the Department of Education to conduct a study on
2"high-income/high-aid" policies and the financial aid given
3to low-income students at all postsecondary institutions in
4this Commonwealth, including a comparison with the financial
5aid policies and mechanisms for low-income students to attend
6postsecondary institutions of the "low-tuition/high-aid"
7states of North Carolina and California.

8WHEREAS, Nationally, more than one-third of public colleges
9and universities and almost two-thirds of private colleges and
10universities acknowledge that they deliberately provide low-
11income students with increasingly lower amounts of financial aid
12that will not meet their financial needs in order to discourage
13low-income student enrollment, commonly known as "high-
14income/high-aid" policies, "financial-aid leveraging" or the
15practice of "gapping"; and

16WHEREAS, Pennsylvania is considered a "high-income/high-aid"
17State, with our colleges and universities, both public and
18private, charging first-time, full-time in-State students with
19family incomes under $30,000 a year some of the highest tuition
20costs in the nation after grants and scholarships; and

1WHEREAS, North Carolina and California are known as "low-
2tuition/high-aid" states whose public colleges and universities
3give low-income students thousands of dollars more per year in
4financial aid than schools within the Pennsylvania State System
5of Higher Education and Pennsylvania State-related universities;
6and

7WHEREAS, In 2011, the United States Department of Education
8determined that, nationwide, six of the twelve most expensive
9public colleges and universities for students with family
10incomes under $30,000 a year are in Pennsylvania; and

11WHEREAS, Pennsylvania contributes to the nationwide trend of
12colleges and universities giving increasingly more merit aid
13than need-based aid; and

14WHEREAS, There are cited cases of Pennsylvania colleges and
15universities giving "merit aid" to students with family incomes
16between $90,000 and $120,000 a year over their lower-income
17peers, even though they may not be as strong academically; and

18WHEREAS, The Pennsylvania Department of Education recognizes
19that students of Pennsylvania colleges and universities graduate
20with the sixth highest debt load in the nation, which inhibits
21these individuals from contributing to the economy of this
22Commonwealth; and

23WHEREAS, The increasingly higher cost of postsecondary
24education has been cited as the reason for decreased enrollment
25and dropouts at Pennsylvania colleges and universities;
26therefore be it

27RESOLVED, That the Senate direct the Department of Education
28to conduct a study on "high-income/high-aid" policies and the
29financial aid given to low-income students at all postsecondary
30institutions in this Commonwealth, including a comparison with

1the financial aid policies and mechanisms for low-income
2students to attend postsecondary institutions of the "low-
3tuition/high-aid" states of North Carolina and California; and
4be it further

5RESOLVED, That the Department of Education report its
6findings, conclusions and recommendations to the Senate no later
7than March 31, 2014.