In recent years, non-degree credentials (NDCs) have gained traction as a viable pathway for people seeking to enhance their skills and improve their job prospects in an affordable, flexible, and timely way. However, while these programs are relatively more affordable than degree programs, many students and workers still face financial barriers to cover associated costs—and few have access to financial aid programs that work for them.
National Skills Coalition’s recently published report, State Financial Aid for Non-degree Credentials: Models and Considerations for Policy and Program Design, explores the intricacies of state financial aid programs for NDCs. It examines six existing financial aid programs across five states in addition to sharing progress made by states during NSC’s State Financial Aid for QNDCs technical assistance initiative. The report discusses how states can design financial aid programs that support equitable access and strong outcomes, especially for students who are not eligible for federal aid.
Last week, National Skills Coalition brought together community college, state, and workforce and education leaders from 25 states to share this research, hear from several state leaders highlighted in the report, and participate in peer-to-peer discussions and knowledge sharing as part of NSC’s Expanding College & Career Possibilities (ECCP) initiative. Alongside those highlighted in the report, participants discussed key takeaways and considerations as states design these financial aid programs.
The Role & Opportunity of State Financial Aid Programs
Federal financial aid programs – from Pell Grant funding to other forms of Title IV aid – remain inaccessible to people enrolled in many NDC programs due to program criteria and eligibility requirements. Existing state financial aid programs for NDCs provide examples of how states can structure programs so that they are responsive to students’ needs, meet state goals related to credential attainment, and respond to employer demand for skilled workers. Three state leaders shared more about the investments in their states that are working to meet this need and demand.
- Dr. Collin Callaway, Senior Policy Director, Arkansas Community Colleges, discussed the Arkansas Workforce Challenge Scholarship, which provides up to $800 in financial support for students enrolled in both credit-bearing and noncredit programs in health care, information technology, and manufacturing (or “industry”). She underscored the value of these scholarships, particularly for students who would not otherwise qualify for financial aid and for ensuring Arkansans have credentials aligned with the economic goals of the state. She also emphasized the broad coalition of statewide partnerships including Arkansas Community College (ACC), Arkansas Department of Higher Education (ADHE), ARDATA and the colleges themselves that have been critical in establishing the program.
- Paula Nissen, Director of the Institutional Research Collaborative at North Iowa Area, Iowa Central & Iowa Lakes Community Colleges, discussed the Iowa Gap Tuition Assistance Program, which covers eligible tuition, fees, training, course equipment, assessment and childcare costs after all other aid is applied to noncredit and some short-term credit bearing programs. She highlighted the push to align programs with high-demand jobs, the importance and challenges of data-informed decision making, and recent changes to the program to more readily integrate holistic support services such as childcare and transportation for students.
- Marilyn Pitzulo, Associate Chief of Workforce Strategy & Design at the Indiana Department of Workforce Education, shared insights on the evolution of the Indiana Next Level Jobs Workforce Ready Grant which provides up to $5,000 in scholarship for tuition and fees for noncredit and Title IV-eligible credit training programs. She emphasized the importance of using data to ensure quality, such as by aligning data collection with labor market outcomes, and the importance of alignment with the workforce system, which Indiana accomplishes by utilizing American Job Centers to support grant recipients. She also discussed the benefits of flexible eligibility criteria, and the need for institutional supports such as coaching, and advising to meet student needs.
Policy and System Considerations
The discussion was framed around several key considerations for states aiming to improve their financial aid programs for NDCs.
- Financial aid program choice points. When designing financial aid programs that include non-degree programs, states face several design choices including student eligibility requirements, the funding structure (e.g. first dollar or last dollar funding), program eligibility criteria, data practices, and more. Panelists emphasized the importance of reducing hurdles to accessing funding and providing flexible funding for students. Some states like Iowa allow each college to decide what is good for the local area and determine eligibility criteria on their own. Often, programs are limited to targeted industry sectors. To ensure quality, many states evaluate eligible programs each year to make sure they align with state and regional needs.
- Using data to understand quality and outcomes for students receiving financial aid. Data on noncredit programs has historically been under-collected but is critical for measuring quality and informing program improvements, and for communicating program impact to the community and stakeholders. While many states have robust data analysis abilities, data collection is often the biggest challenge as data infrastructure varies by program and college, and common data points don’t always exist. Many states are investing in data infrastructure for better alignment across state agencies and institutions. Arkansas, for example, brought together a statewide network of stakeholders including ACC, ADHE, ARDATA, and others to establish data definitions and overhaul their data practices to see improved data collection on noncredit programs. Establishing quality criteria for programs and training providers can also help guide data collection and analysis efforts and allow states to make data-driven decisions about their programs.
- Designing for inclusive, equity-minded financial aid programs. Research suggests that noncredit students tend to be older, have lower incomes, are more likely to be students of color, and are more likely to have earned a high school diploma or equivalent as their highest level of educational attainment compared with students enrolled in a for-credit program at community colleges, yet programs and financial aid opportunities are often not designed to meet the needs of these students. Flexible application and eligibility requirements open the door for so many individuals who otherwise wouldn’t be able to access aid. The integration of holistic supports for students in Iowa, which includes childcare and transportation, is also an important step towards promoting equity by beginning to address the fuller needs of students.
As states consider new avenues and investments into the education and training of their residents, policymakers should consider some of the lessons from and choices illustrated by existing state financial aid programs that support students’ pursuit of QNDCs. The examples highlighted here are just a few of the many statewide efforts underway to promote affordable pathways for people to earn these credentials that enable them to advance their education and careers.
State Financial Aid for Non-degree Credentials: Models and Considerations for Policy and Program Design is the second in a series that lays the groundwork for understanding and improving access to high-quality non-degree credentials. Along with The Non-Degree Credential Quality Imperative and Charting a Course to Quality these publications offer a comprehensive plan for states committed to advancing educational opportunities for all.
For more Making College Work updates and information on our Expanding College and Career Possibilities (ECCP) initiative and related efforts, follow our Making College Work Campaign to receive the newsletter and updates. For questions or to learn more, reach out to Lindsey Reichlin Cruse at lindseyrc@nationalskillscoalition.org.
