What does a bill that requires high school students to complete the Free Application for Federal Student Aid (FAFSA) have to do with the state’s tech economy? It’s more straightforward – and a much bigger deal – than you might think.
You see, Indiana students miss out on an estimated $65 million in free money for college simply because many don’t fill out the FAFSA. But what if high schools required every student to complete the financial aid form? That’s being discussed in this year’s General Assembly, and many – including the Indiana Chamber of Commerce – think this could be a significant step in bolstering the number of postsecondary educated Hoosiers and Indiana’s talent pipeline.
Those in the tech sector as well as economic development experts believe Indiana is missing out on opportunities to bring in tech and tech-enabled companies because the state’s talent pool isn’t as strong as some other states.
Notably, Intel in January announced plans to invest $20 billion in a new computer chip facility in Ohio amid a global shortage of microprocessors used in everything from phones and cars to video games. Indiana also was under consideration. While tax and other incentives certainly played a part in Intel’s decision, the available talent pool also was a factor.
“There’s some suggestion that we’re losing out on big company expansions, including the Intel semiconductor plant to Ohio, because they have a bigger pipeline of college educated workers coming out of universities than we do right now,” states Jason Bearce, Indiana Chamber vice president of education and workforce development.
The Intel project is the largest single private-sector investment in Ohio’s history, on par with an agreement in 1977 that brought Honda to central Ohio, where it now employs more than 14,000 people. The Intel jobs are expected to pay an average of $135,000 annually plus benefits, with the project set to add $2.8 billion to the state’s annual gross product, according to Ohio Gov. Mike DeWine.
Indiana’s FAFSA filing measure – Senate Bill 82 this session – has a long (and arguably, troubling) history.
It passed the House in 2019, passed the Senate in 2020 and passed the House and Senate in different forms last year but failed to get across the finish line.
Senate Bill 82 would require high school seniors to complete the FAFSA form unless opted out by a parent, principal or counselor.
Indiana Chamber President Kevin Brinegar has been meeting with lawmakers to stress the merits of the bill and the urgency to get it passed.
“In this day and age, it’s all about talent,” Brinegar emphasizes. “We desperately need to get the FAFSA filings up so that we can get our adult learning population up as well. This is critical because we have the lowest FAFSA filing rate in the Midwest and one of the lowest rates in the country, and that’s contributing to the fact that we’re in the bottom third of states in terms of workers with postsecondary degrees.”
Still, the bill has an uncertain future.
“It’s an open question whether we can have the data and reason to prevail over dug-in representatives that don’t seem to understand the implications of what is a common-sense policy,” Bearce says.
A handful of states, including Louisiana, Texas and Illinois, have already made completing the FAFSA a graduation requirement, and more are considering it. Louisiana, the first state to adopt such a measure, now has the highest rate in the nation of students completing the application — 78%. Previously they were at the bottom of the nation in FAFSA filings.
Indiana ranked in the bottom third of states last year for FAFSA completion, with 55.9% of seniors filing. And the trend is going the wrong direction. Indiana’s FAFSA filings are down 4% this year compared to the same time a year ago.
FAFSA can be used for a wide range of postsecondary education options.
“Filing the FAFSA form makes you not only eligible for financial aid for four-year traditional bachelor’s degrees, it makes you eligible for funding for an associate degree, certificates and a whole gamut of postsecondary credential and degrees,” Bearce explains.
“We’ve had mid-session meetings with lawmakers, trying to persuade them to finally pass SB 82 to ensure students and their families are aware of the financial aid that could be available to them. On the business side, companies need to be confident in the skills of our workforce and Indiana can’t afford to lose out on another Intel.”
