Federal Financial Aid Is Key to Building Tomorrow’s Workforce

by Gary Toebben

Last week, the Chamber held its 15th annual Cash for College Convention, providing an opportunity for Los Angeles students and their families to explore college opportunities and receive individualized assistance in completing their Federal Student Aid (FAFSA) application. We’re proud to say that through this program, the Chamber and its partners have been able to help students secure an average of $35 million dollars annually in state and federal aid to make their college dream a reality. This work is vital since the number one barrier for many students aspiring to go to college is the cost.   

Access to higher education for L.A.’s youth is increasingly important. Current trends indicate that California will be short 2.4 million certified and degree holding individuals in less than two decades. We’re at a crossroads in preparing our youth for middle-skilled jobs and economic opportunities in the future. 

Anyone who has helped a student fill out the FAFSA form knows that the process is too complicated. That is why the Chamber will be asking Congress to simplify the federal financial aid application process when it reauthorizes the Higher Education Act (HEA). We will recommend that HEA reduce the number of questions and expand use of IRS Data Retrieval to auto-populate tax information on the FAFSA. We will also recommend the continued ability to fill out the application as early as October, using the prior year’s tax information.    

The Chamber will support increased investments in federal Pell Grants to cover more students and a larger share of college costs for our lowest income students. Pell Grant eligibility should be restored for students taking courses year-round to expedite the time it takes to earn a degree. Lastly, we must streamline the student loan repayment process and increase the re-payment options as graduates begin their professional careers.

It is essential for our businesses that we provide the next generation of students with a strong education and a bright future. Investing in and prioritizing our students’ education will create greater individual economic prosperity and more overall growth in the California economy.   

And that's The Business Perspective.