Assistance  was also available to students through two federal higher education tax  credits, the HOPE and Lifetime Learning tax credits. Most of the 2.3 Million Adult Undergraduate Students Who Enrolled Less Than Halftime Needed to Balance School and Other Responsibilities, and Many Were Unable to Complete Their Programs

In 1999-2000, one-third of adult undergraduate students, about 2.3 million,  enrolled less than halftime, and most worked fulltime and needed to  balance the demands of school with other responsibilities. Compared with adult students enrolled halftime or  more, the typical less-than-halftime adult student was older, more likely to  be working and married, and had a higher household income. Most adults who intended to complete a degree or certificate and enrolled  on a less-than-halftime basis during their first year of postsecondary  education left school without completing a degree or certificate. 4.) Most Less-Than- Halftime Adult Students Received Some Assistance with Postsecondary Costs, Typically from Work- Related Sources

In 1999-2000, about 7 in 10 of the nation’s less-than-halftime adult students  received assistance equaling about 44 percent of their school costs,  typically from sources other than federal and state student aid. Sources of Assistance Received by Less-Than- Halftime Adults Varied by Household Income, but Their School Costs and Amount of Assistance Were Similar

Few adults who enrolled less-than-halftime in 1999-2000 had incomes  below 150 percent of the federal poverty guideline, and those who did  received the bulk of assistance with their school costs from student  financial aid—in contrast to the majority of less-than-halftime adult  students who had incomes well above federal poverty guidelines and who  relied chiefly upon work-related sources of assistance to meet school  costs. Another proposed  change would be to allow less-than-halftime students to participate in the  Stafford Loan programs. The total federal budget cost of changing  Pell Grant policy for less-than-halftime students would be approximately  $25 million for the 2003-2004 academic year. Changes to the Stafford Loan Program Will Increase Program Costs and May Result in Disadvantages to Students and Institutions

While current law does not permit less-than-halftime students to  participate in the Stafford loan programs, some have proposed that these  students be allowed to participate. Other contacts and staff acknowledgments are listed in appendix V.

Appendix I: Objectives, Scope, and Methodology

We were asked to determine: (1) the extent to which adults enroll less  than halftime, the characteristics and factors associated with less-than- halftime enrollment, and the rates of completion among these students;  (2) the extent to which adult students enrolled less than halftime receive  federal, state, and other assistance to help them meet the costs of  postsecondary education; and (3) the implications, including the  budgetary impact, of changing the Pell Grant Program to allow room and  board and miscellaneous personal expenses to be considered in the  calculation of grant amounts for less-than-halftime students and changing  the Stafford loan programs to permit participation by less-than-halftime  students. For the purposes of this report, adult students are those who are  24 years or older.
Why GAO Did This Study

Despite the availability of federal, state, and other sources of student aid, concerns have been raised that adult undergraduates--those 24 and older--receive inadequate assistance in meeting the costs of postsecondary education, particularly those adults who take one to five credits per term (or less than halftime). These concerns have been raised because less-than halftime adult students are unable to participate in the largest federal student loan programs, the Stafford Loan programs, and they are eligible to receive only one of the two federal higher education tax credits, the Lifetime Learning tax credit. To better understand the needs of these adult students, GAO was asked to identify (1) the extent to which adults enroll less than halftime, the characteristics and factors associated with less-than- halftime enrollment, and the rates of completion among these students; (2) the extent to which adult students enrolled less than halftime receive federal, state, and other assistance to help them meet the cost of postsecondary education; and (3) the implications, including the budgetary impact, of changing the Pell Grant Program to allow less-than-halftime students to count room and board costs and personal expenses in their application for federal financial aid, and changing the Stafford loan programs to permit participation by less-than-halftime students.

What GAO Found

In the 1999-2000 school year, 2.3 million adults enrolled in undergraduate education on a less-than-halftime basis, many seeking to balance school with other responsibilities. Compared with other adult students, the typical less-than-halftime adult student was more likely to work fulltime, be married, and have a household income over $30,000. Though 3 out of 4 less-than-halftime adult students expect to complete a degree or certificate program when they begin their education, most leave school without completing one. About 70 percent of less-than halftime adult students received some assistance--about 44 percent of their schooling costs--typically from sources other than federal or state student aid. The sources of assistance they received varied by household income: lower-income adult students enrolled less than halftime relied primarily upon student financial aid in meeting school costs, while higher-income households were assisted primarily by work-related sources such as the Lifetime Learning tax credit or employer assistance. We estimate that proposed changes to the Pell Grant programs would cost the federal government a minimum of $25 million for the 2003-2004 school year. Allowing less-than-halftime students to participate in the Stafford Loan programs would cost about $113 million per year. College administrators expressed reservations about expanding Stafford Loan eligibility due to concerns about increasing default rates. In commenting on our draft report, Education noted that they found it to be thorough and useful.