In the world of higher education, two issues have remained at the forefront of public and scholarly debate in recent years: so-called “free college,” and concerns over the cost and value of for-profit colleges and universities (FPCUs). The recent creation of New York state’s Excelsior Scholarship is one example of a program intended to provide free tuition for in-state residents at public colleges. Although the impact Gov. Andrew Cuomo’s new initiative will have on the state’s neediest residents has been hotly debated, little consideration has been given to its potential impact on for-profit institutions in the state. However, my analysis of College Scorecard data suggests that the program in New York may not just draw students from FPCUs to state universities, but may disproportionately affect some of the lowest-performing for-profits.
WHAT IS THE EXCELSIOR SCHOLARSHIP?
The Excelsior Scholarship is a last-dollar award, given after Pell and Tuition Assistance Program (TAP) grants are subtracted from the tuition bill, to cover the remaining tuition costs at SUNY and CUNY campuses. The program received about 75,000 applicants for the fall of 2017.
The plan provides little additional help to the neediest members of society because Pell and TAP already cover all the tuition for virtually all of the lowest-income students; it is primarily middle-income families making between $80,000 and $125,000 that will benefit the most from the free tuition offer. Moreover, the plan does not provide any support for housing or living expenses, which are significantly more than tuition prices at SUNY and CUNY schools and often prohibitively high for low-income students. Finally, the 30 credit hour per year requirement limits part-time students’ ability to access the scholarship, and adds a barrier for those who need to take noncredit remedial coursework. These students are often those in most need of financial assistance.