Docstoc

Afford Taskforce Recommendations _v2_

Document Sample
Afford Taskforce Recommendations _v2_ Powered By Docstoc
					Affordability Taskforce
 Recommendations &
   Summary Report




 Presentation to the Montana Board of Regents
                  May 24, 2012
   Data Points


Recommendations


 System Initiative


MUS Strategic Plan
                     2
                                                                                         Data Point #1

         State Funded Need-based Aid per Undergraduate FTE,
                              2009-10
                  source: National Association of State Student Grant and Aid Programs
$1,200


$1,000


 $800
                        Nation
 $600


 $400
                                                                           Montana
 $200


   $0




                                                                                                     3
                                                                                                                     Data Point #2


                                                     Student Loan Debt
                             Average Loan Amount for First-time, Full-time Resident Students
                                                         (not including parent loans)
        $8,000                                                                                                                  70%
                                                Avg Loan Debt                     % Borrowing                       61%
        $7,000                                                                                                                  60%

        $6,000        58%
                                                                          55%                                                   50%
        $5,000                                                                                                      5,502
                                                                                                                                40%
        $4,000
                                                                          3,692                                                 30%
        $3,000        3,290
                                                                                                                                20%
        $2,000

        $1,000                                                                                                                  10%


              $0                                                                                                                0%



Academic Year Amounts = amount received in Fall and Spring semesters, does not include winter or summer sessions.   source: MUS Data Warehouse
Average Loan = average amount received by students receiving Loans                                                                         4
                                                                                                Data Point #2 (cont.)


                   Average Loan Amounts for MUS Degree/Certificate Recipients
                   (average loan amounts of students who borrowed; no parent PLUS loans included;
                  borrowing activity 8 years prior to graduation; includes federal and non-federal loans)
    30,000
                                            2008-09         2009-10             2010-11
    25,000                                                                                           $23,894

                                                                                               $22,780
    20,000
                                                                      $18,075        $21,125

                                                                $17,375
    15,000
                                      $12,515         $16,166

                                $12,039
    10,000
                      $11,627


      5,000             % Borrowing
                                                                                      63%      63%       63%
                        60%     65%       63%         71%       69%       73%

            0
                         Certificates of                    Associate                     Baccalaureate
                        Applied Science                     Degrees                         Degrees
source: MUS Data Warehouse                                                                                          5
                                                                                   Data Point #2 (cont.)

                               MUS Student Loans - Total Amount Borrowed
                                                Loan Amounts by Type
                                                                                           Ten Year
                                   Subsidized     Unsubsidized     Other   Total            Change
$250,000,000
                                                                                            Total
                                                             $221M                      +$123M (126%)

$200,000,000


$150,000,000                                                                                  SUB
                                                                                          +$37M (69%)


$100,000,000                                                                               UNSUB
                                                                                         +$60M (188%)

                                                                                            Other
 $50,000,000                                                                              63%
                                                                                         +$27M (217%)
                                         63%                     73%                     (PLUS, private)

               $0



  source: MUS Data Warehouse                                                                               6
                                                                                                       Data Point #3


                  Average Loan Amounts of Bachelor's Degree Recipients
                                                    MT vs. Nation, Public Institutions
                                         (average loan amounts of students who borrowed)
25,000
                                                           Nation           Montana          $23,894
24,000


23,000                                                                        $22,780
                                                                   $22,000
22,000
                                   $21,125
21,000


20,000
                  $19,800

19,000


18,000

                                                                               63%            63%
17,000
                                     63%                            56%                  ?   borrow
                                                                              borrow
16,000
                  55%               borrow                         borrow
                 borrow
15,000

                          2008-09                                         2009-10        2010-11
source: MUS Data Warehouse, College Board, "Trends in Student Aid 2010"

                                                                                                                   7
                                                                                           Data Point #4

         Average Loan Amounts for MUS Bachelor's Degree Recipients, 2010-11
            (average loan amounts of students who borrowed; no parent PLUS loans included;
                  borrowing activity 2002 - 2010; includes federal and non-federal loans)

                                            by Pell Status
30,000
                                                                                  $26,315
25,000        $23,894

                                                $19,814
20,000


15,000
               % Borrowing                                                            91%
                                                                                   1,906 / 2,105
                  63%
10,000         3,037 / 4,829                       42%
                                                1,131 / 2,724


 5,000


    0
               Total                           Non-Pell                             Pell
                                                                                                       8
                                                                                     Data Point #4 (cont.)

         Average Loan Amounts for MUS Associate's Degree Recipients, 2010-11
             (average loan amounts of students who borrowed; no parent PLUS loans included;
                   borrowing activity 2002 - 2010; includes federal and non-federal loans)


25,000
                                              by Age Range


                                                              $20,340                  $20,309
20,000
           $18,075

15,000                              $13,664


           % Borrowing
                                                                81%                       78%
10,000        73%                                                                        360 / 459
                                       64%                     233 / 289
            895 / 1,223               302 / 475


 5,000



    0
            Total                   18 - 24                   25 - 29                     30+
                                                           Age Ranges                                    9
                                                                               Data Point #5

                   Retention & Graduation Rates
           Full and Part-time Students Entering 4-year Campuses,
                      averages for 2002 – 2009 cohorts
                               source: Access to Success
                     Pell Recipients            Non-Pell Recipients
80%

70%                 74%
60%
        67%

50%

40%                                                                   46%

30%
                                                           33%
20%

10%

0%
      Retention Rates (1-yr)                           Graduate Rates (6-yr)
                                                                                          10
                                                                                       Data Point #6

                             MUS Cohort Default Rates, 2008 – 2010
                                                   (2 year Rates)
          16

          14

          12

          10
Percent




           8

           6

           4

           2

           0
                                                        UM-
                 MSU   UM       MT                                   MSU-
                                      MSUN MSUB         HLN                MCC   UMW   DCC   FVCC
                 Boz   Msla    Tech                                 GF COT
                                                        COT
          2008   1.1   1.3     2.5     2.6   1.6        1.3          4.1   3.7    1    5.3   3.5
          2009   1.7   2.9     4.6     5.8   3.1        6.6          7.1   2.6   2.6   10    6.5
          2010   4.1   6.3     8.1     8.2   8.4        8.7          8.7   9.2   9.3   9.3   14.7
                                                                                                    11
                                                                                              Data Point #7


                                        Cohort Default Rates, 2010
                              2-year default rate; includes borrowers who entered repayment
                                              10-1-09 and defaulted by 9-30-11
                     16

                     14

                     12
Default Percentage




                     10

                      8
                                                                                          14.1%
                      6

                      4
                                                             7.1%
                      2        3.7%

                      0
                          GSL default rate           MUS default rate            Non GSL default rate
                                                                                                         12
           Data Points (summary)
1. State funded need-based aid in Montana is low
2. Student loan debt and the percentage of students borrowing
   continues to escalate
3. Loan amounts and % borrowing are higher than national average
4. Low and moderate income students incur higher levels of debt, as
   well as non-traditional students at 2-year campuses
5. Retention and graduation rates are lower for low income students
6. Recent increases in default rates are reflective of students’
   struggles to manage debt
7. Borrowers receiving default prevention services from MUS are
   less likely to default
                                                                      13
              Recommendations
1. Increase tuition assistance for low and moderate income
   students.


2. Provide a system-wide, coordinated and collaborative financial
   literacy effort aimed at students most likely to generate high
   levels of debt.


3. Increase centralized default prevention efforts.



                                                                    14
                System Initiative
           Student Financial Aid & Services
Description:

Increase tuition assistance for Montana residents in order to
improve affordability and increase retention and completion
rates of lower and moderate income students, as well as provide
coordinated services that promote financial literacy and
increase default prevention.




                                                                  15
                 System Initiative
           Student Financial Aid & Services
Details:

Tuition Assistance
      Increase funding for MTAP (MT Tuition Assistance Program – Baker
       Grants), the MUS’s largest state funded need-based aid program
       (allows campus flexibility to provide aid to middle income students)

      MTAP appropriations total $1.9M/year and have not seen an
       increase in over 10 years

      Funding Request = $500,000 per year



                                                                              16
                  System Initiative
             Student Financial Aid & Services
Details:

Financial Literacy
      Develop a coordinated and collaborative approach to financial literacy
       that enhances and connects existing campus and system efforts
      Assign Student Financial Services the responsibility for coordinating
       efforts system-wide
      Improve financial literacy material and on-line information, as well as
       broaden scope to include K-12
      Continue to utilize Affordability Taskforce as system advisory council
       for financial literacy efforts


                                                                                 17
                   System Initiative
              Student Financial Aid & Services
Details:

Financial Literacy – (Funding Request)
      Develop and implement financial literacy “best practices” through a
       competitive allocation of funds to the campuses; funded programs will
       focus on at least one of these elements:
       • Development of a “training the trainer” program
       • Utilization of student interns or work study students as mentors
       • Development and monitoring of early indicators of students with retention/completion
         and financial issues
       • Targeted literacy efforts for at risk students
       = $200,000 per year
      Central support and coordination positions; literacy materials/programs
       = $150,000 per year
                                                                                           18
                  System Initiative
            Student Financial Aid & Services
Details:

Default Prevention
      Increase centralized default prevention efforts for students receiving
       direct federal loans (students under FFELP program are currently
       served by GSL)

      Develop a plan for eventual phase out of default prevention services
       for students receiving FFELP loans and work to ensure sustainable
       services for direct loan students

      Funding Request = $400,000 per year
       (6 support positions, tracking system, research & analysis)

                                                                                19
                    System Initiative
              Student Financial Aid & Services
Proposed Biennal Budget

Tuition Assistance                        $1,000,000

Financial Literacy                          $700,000
   Campus Support                                $400,000
   Central Coordination                          $300,000


Default Prevention                          $800,000

TOTAL                                     $2,500,000
                                                            20
               MUS Strategic Plan

Goal #1 - Access & Affordability
Objective 1.2.1: Reduce the unmet student need for financial aid
(increase need-based aid)
http://www.mus.edu/data/StratPlan/5_Goal_1_Financial_Aid_2012.pdf

Objective 1.3.1: Decrease average loan amounts and the percentage
of students borrowing
http://www.mus.edu/data/StratPlan/6_Goal_1_Affordability_2012_NEW.pdf




                                                                        21

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:3
posted:8/26/2012
language:English
pages:21