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Scholarship News

Colleges Worry About End of Federal Aid-Based Ability Benefit


March 20, 2012
by Alexis Mattera

It may feel like we’ve skipped winter but federal aid is about to be put on ice for college hopefuls lacking high school diplomas or GEDs.

It may feel like we’ve skipped winter but federal aid is about to be put on ice for college hopefuls lacking high school diplomas or GEDs.

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As of July 1st, newly-enrolled students will no longer be allowed to take an "ability to benefit" test or complete a set amount of credits without aid; instead, college students will be required to have high school diplomas or GEDs in order to receive federal financial aid. How will these students – many of whom are older, seeking training to find a new job, immigrants and students in states like California where the basic adult education budget has been cut – pay for school? College administrators anticipate they will turn to private loans...or give up on their degrees entirely.

David Baime, vice president for government relations at the American Association of Community Colleges, says the change “runs counter to the missions of many of our colleges,” as these schools view enrolling students without high school credentials as a key part of providing access to higher education: There are currently about 836,000 students without high school diplomas or GEDs enrolled at two-year public colleges nationwide and according to a limited 2006-2007 Education Department study, students without high school diplomas and GEDs were ultimately more successful in college and had higher GPAs than their classmates with high school diplomas, even if they failed the "ability to benefit" test. If would-be students have to get a GED before going to college and receive zero financial assistance while they prepare, Baime says many will opt out altogether.

What do you think of the new rule regarding federal aid? Do you think a high school diploma or GED is necessary to succeed in college?

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