SB 223 – High School Graduation Requirement
Authored by Sen. Jean Leising (R-Oldenburg)

The bill would require Indiana high school seniors to complete the Free Application for Federal Student Aid (FAFSA) unless: 1) the student’s parent signs a waiver that the student understands what the FAFSA is and declines to complete it; or 2) the student’s principal waives the requirement due to extenuating circumstances.

Chamber position: Support

The latest: Heard this week by the Senate Education Committee, with vote scheduled to take place on January 22.

Senate Bill 223 aims to increase student awareness and access to grants and scholarships that can help Hoosiers earn industry-recognized credentials and degrees with reduced or no debt. Completing the FAFSA qualifies students for a variety of need- and merit-based aid programs available from the state and federal government, colleges, community foundations and other sources.

For many students, particularly those from low- and middle-income families, the decision to continue their education beyond high school is often based on whether they think they can afford it. State data show students from these backgrounds are the least likely to file the FAFSA, either due to a lack of understanding on how to navigate the process or misconceptions about their aid eligibility.

During testimony to the Senate Education Committee this week, the bill received strong backing from the Indiana Chamber and other advocates from the business, higher education and nonprofit communities who see the student-friendly legislation as both an equity and economic growth driver. Opposition to the bill came from representatives from K-12 education associations who, despite acknowledging the benefits for students, lamented that it would place too much of an administrative burden on local schools.

The move to require Indiana high school seniors to complete the FAFSA – with flexible opt-out options – is modeled after a policy first adopted by Louisiana and subsequently embraced by a growing number of other states. Since introducing its FAFSA requirement in 2017, Louisiana has become the national leader in FAFSA completion with an annual filing rate above 80% while also seeing a boost in both high school graduation and college-going rates. In contrast, Indiana – despite being one of the most generous need-based financial aid states in the U.S. – currently lags behind its Midwestern peers with a FAFSA filing rate below 60%, ranking 34th among all states.

Indiana Chamber action/commentary: Indiana’s workforce is increasingly dependent on individuals with postsecondary skills and credentials – 99% of jobs created in the U.S. since the last recession have required at least some education and training beyond high school.

At minimum, every Indiana high school graduate today is eligible for a tuition-free certificate in high-wage, high-demand industry sectors through the state’s Next Level Jobs program. This bill ensures that students don’t inadvertently leave opportunity on the table while also growing Indiana’s talent pipeline of higher-skilled workers. As Gov. Holcomb said this week in his State of the State address, increasing education attainment in Indiana is a “game-changer for addressing income inequality, upward mobility and economic growth.”

Resource: Jason Bearce at (317) 264-6880 or email: jbearce@indianachamber.com