REGENTS REPORT

South Dakota Higher Education May 24, 1996 Good Investment. Great Future. Number 44

Paying the Bills

The Impact of Federal Financial Aid in South Dakota

For many South Dakotans, financing a college education means drawing on a number of public and private resources. Federal financial aid, in the form of grants, loans, and work-study, forms a significant part of the total financial aid picture for students at South Dakota's public universities. It has also been the subject of a great deal of congressional discussion and debate surrounding the federal budget. How prominent a role does federal financial aid play for students in the state's university system? How does South Dakota compare with surrounding states in key measures of federal financial aid?

Federal Financial Aid for Students--What Is Its Impact in South Dakota?

In Fiscal Year 1995, Title IV federal financial aid (grants, loans, and work-study) composed 84.9% of the total financial aid awarded in the state university system. (NOTE: Does not include federal scholarships.)

*Includes federal scholarships, state programs, agency funds, institutional/non-institutional scholarships, and non-work study employment

SOURCE: Board of Regents FY96 Fact Book

	In 1993-94, 51.3% of South Dakota applicants for Title IV federal grants, loans, and work-study filed as 
	independents--that is, they were 24 years or older, a military veteran, an orphan/ward of the court, had  
	legal dependents, were not claimed as a dependent by their parents, or were determined to be independent
	by special circumstances. This places South Dakota fourth in an eight-state region.

SOURCE: Postsecondary Education Opportunity, December 1995.

	In 1993-94, 27.7% of South Dakota's dependent applicants for Title IV federal grants, loans, and 
	work-study reported family incomes of $20,000 or below, which ranks second in an eight-state region.

SOURCE: Postsecondary Education Opportunity, December 1995.

CONCLUSION--The preceding information drives home the point that federal financial aid figures prominently in the college financing decisions of South Dakotans, especially non-traditional and low-income students. In addition, the data suggest that changes in these programs will have a definite impact on South Dakota students and their higher education decision-making.

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