These reports examine student success and financial aid by using a novel metric, the net cost ratio. The net cost ratio is the proportion of a student’s cost of attendance (COA) after “gift aid” (i.e., grants and scholarships that do not need to be repaid) has been applied. For example, a student’s COA was $26,900 and they received $8,000 in grants and scholarships. Their net cost is $18,900 ($26,900 – $8,000), resulting in a net cost ratio of .70 ($18,900 ÷ $26,900). This 0.70 (or 70%) of cost falls to the student and their family, to be paid via savings, loans, or other means. Generally, these ratios increase as the financial need of the group decreases.

The 2019 report examines student success outcomes (e.g., persistence, GPA, credit completion) for the FA16 and FA17 first-time, full-time (FTFT) Colorado resident cohorts by the level of financial aid awarded. Results from the 2019 report revealed the level of financial aid to be positively associated with persistence and were used to guide financial aid packaging levels by increasing efforts to assist limited income students. Results from the 2021 study revisit 2019 results and look beyond second fall persistence to identify optimal net cost ratios based on students’ financial need and class level. These ratios can be used to strategically determine ideal financial aid amounts in service of achieving the University’s student success goals. 

Overall, 2021 results suggest low income students with a net cost ratio of 0.3 or lower in their first year and a 0.6 or lower in subsequent years tend to persist at rates at or higher than the overall university rate. For limited and lower-middle income students, net cost ratios of 0.6 or lower in the first year and 0.8 in subsequent years are associated with persistence rates at or above the university average.