States and the federal government have long provided substantial funding for higher education, but changes in recent years have resulted in their contributions being more equal than at any time in at least the previous two decades.
Skin in the Game
The federal government has historically leveraged funds for both states and colleges to expand access and opportunity to higher education. “Where Financial Aid Began: Partnering with Campuses and States” documents a history of these partnerships and the policies that shaped them—from the introduction of the original campus-based programs and state partnerships through their growth or decline over the years. The federal programs covered in this 10-minute film all require a monetary match from states and colleges, thereby expanding the reach of federal financial aid.
Campus-Based Aid Partnerships
Although campus-based programs were always intended to give institutions governance over financial aid, the ways in which funds are distributed to institutions have changed throughout the decades.
1958
The National Defense Education Act created the Federal Perkins loan program, originally known as the National Defense Student Loan (NDSL) program, which provided low-interest loans to low-income students for college. Loans were distributed via institutions rather than made directly to students.
1964
The Economic Opportunity Act created the Federal Work-Study (FWS) program, originally known as the College Work-Study (CWS) program. FWS provided funding for part-time employment either on- or off-campus to help low-income students cover the cost of postsecondary education.
1965
The Higher Education Act of 1965 created the Federal Supplemental Educational Opportunity Grant (FSEOG), originally known as the Educational Opportunity Grant (EOG). These grants went to undergraduate students who demonstrated “exceptional financial need.” The Federal Perkins loan program and FWS were transferred to the HEA.
It’s probably a good idea for institutions to have some—as we say—skin in the game. When an entity has to provide some of its own resources in order to get a larger share of resources, that’s a pretty good way to help ensure that larger resources—in this case, the Federal portion—will be well spent.
Daniel Madzelan
Senior Staff
U.S. Department of Education, 1978-2012
U.S. Department of Education, 1978-2012
Partnerships With States
The Leveraging Educational Assistance Partnership Program (LEAP) was created by Congress in 1972 to incentivize state governments to create need-based state grant programs via a monetary match.
1972
State Student Incentive Grant (SSIG) program (later renamed LEAP) was created to provide financial incentives for states to create or expand need-based grant programs.
1998
The SSIG Program was renamed Leveraging Educational Assistance Program (LEAP) and added a supplemental program, Special Leveraging Educational Assistance Program (SLEAP).
2007
The College Cost Reduction and Access Act created College Access Challenge Grants (CACG) using maintenance of effort to ensure state funding for postsecondary education.
2008
SLEAP was replaced with the Grants for Access and Persistence (GAP) program to help states establish partnerships to provide LEAP grants.
2010
Federal funding for LEAP and GAP ended at the end of Fiscal Year 2010.
There were always debates on the efficacy of LEAP and SSIG. The primary debate was whether it was meant to be a temporary program or not. Then there was another series of debates when community service came in and was very popular in the early ‘90s. That provision was put in on SSIG, again always trying to find a new way to reinvent the program so it would sustain itself.
Sarah Flanagan
Professional Staff
U.S. Senate Health, Education, Labor and Pensions Committee, 1987–93
U.S. Senate Health, Education, Labor and Pensions Committee, 1987–93
Want to Learn More?
View additional federal student aid resources below:
Campus-based programs are unique among need-based federal student aid programs in that federal funds are awarded to institutions of higher education according to formulas that take into account past institutional awards and the aggregate financial need of students attending the institutions.
The above article from Campus Compact provides a brief history of The Economic Opportunity Act of 1964, The Higher Education Act of 1965, The revision in 1972 to the Higher Education Act of 1965, and The Higher Education Amendments of 1992.
This report by the National Association of Student Financial Aid Administrators (NASFAA) examines policies and research involving the Federal Work-Study (FWS) program, which funds part-time employment for students with financial need.
