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Improving Lives: State and Federal Programs for Low-Income Adults

Guidance on Evaluating Programs for Low-Income Adults

Many programs do a good job of addressing some of the challenges that low-income adults often cite as barriers to their pursuit of postsecondary education. However, a considerable number of programs actually create barriers to postsecondary enrollment for low-income adults through eligibility requirements, enrollment restrictions, or inadequate funding. When reviewing the programs in the database, readers should be aware of the following features that may limit the usefulness of programs for low-income adults: Time Limits. Although most programs cite financial self-sufficiency of low-income adults as a primary goal, some programs (particularly TANF programs) limit the amount of postsecondary education for which participants can receive work credit. Programs that restrict participation in postsecondary education, particularly those that limit participation to 12 months or less, significantly lessen the ability of low-income adults to achieve economic self-sufficiency.

Attendance Restrictions. Another aspect of some programs that presents a barrier to low-income adults’ ability to take advantage of postsecondary education is a requirement of full-time enrollment with no provision for childcare. In 1999, more than half of all low-income families were single-parent households (U.S. Census Bureau, 2000). Juggling parental responsibilities and full-time enrollment with few affordable childcare options is a major barrier to pursuing postsecondary education for single parents, particularly for those who must work.

Age Limits. Some student aid programs effectively limit the age of beneficiaries by requiring that students must have graduated from high school in the year immediately before receiving an award. This is particularly common among state merit-based student aid programs.

Income Restrictions. Tax programs in particular often provide little benefit for low-income individuals. Tax credits typically are not refundable, so the value of any credit is limited by an individual’s tax liability. In other words, low-income individuals may not have enough tax liability to take full advantage of tax credits. This is typical in the case of the Hope Scholarship and Lifelong Learning tax credits. The value of tax deductions or waivers is calculated by using the taxpayer’s marginal tax rate, therefore low-income individuals save less in taxes through these programs than those in higher income tax brackets.