June 2007 Presentation on Financial Aid, University of Wisconsin by presmaster

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									                     Financial Aid
                Provided to UW Students
Financial Aid




                          Sharon Wilhelm
                     Interim Associate Vice President
                     for Policy Analysis and Research

                Business, Finance, and Audit Committee
                           Board of Regents
                              June 8, 2007
                Over 105,000 UW System students receive
Financial Aid




                financial aid each year for a total of over
                $800 million dollars.
                     Types of Student Financial Aid


                Fed Work Study             Grants/Scholarships
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                $14m                       $222m




                                                     Loans
                                                     $593
                     Sources of Student Financial Aid

                Institution               Other
                5%                        10%
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                              State
                                                  Federal
                              8%
                                                  77%
                                 Pell Grants
                        to UW Resident Undergraduates

                                       Average    Total $     % Resident
                Year      Recipients     Pell    (Millions)   Undergrads
Financial Aid




                91-92      30,661      $1,538      $47.2         26%
                93-94      26,793      $1,403      $37.6         24%
                95-96      22,993      $1,414      $32.5         21%
                97-98      22,854      $1,547      $35.4         21%
                99-00      22,021      $1,778      $39.2         20%
                01-02      23,821      $2,208      $52.6         21%
                03-04      26,722      $2,413      $64.5         23%
                04-05      26,956      $2,425      $65.4         23%
                05-06      25,598      $2,434      $62.3         22%
                               WHEG Awards
                        to UW Resident Undergraduates

                                       Average    Total $     % Resident
                Year      Recipients   WHEG      (Millions)   Undergrads
Financial Aid




                91-92      20,475        $632      $12.9         18%
                93-94      21,997        $600      $13.2         20%
                95-96      20,519        $643      $13.2         19%
                97-98      18,979        $843      $16.0         18%
                99-00      16,808      $1,021      $17.2         15%
                01-02      19,155      $1,018      $19.5         17%
                03-04      22,808      $1,244      $28.4         19%
                04-05      26,065      $1,284      $33.5         22%
                05-06      24,517      $1,682      $41.2         21%
                            UW-WHEG Formula

                (Equity level - EFC) * Rationing factor = award
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                • Equity level: resident undergraduate tuition

                • Expected Family Contribution (EFC): calculated
                  from the Federal needs analysis

                • Rationing factor: multiplier that is set with goal of
                  providing the largest awards to the neediest students
                  while staying within the appropriation level for the
                  program
                                        Gap Between
                                     Average Tuition and
                                       WHEG Award
                $6,000
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                $5,000                                                                                  $4,679

                                   Avg. Re s. Unde rgrad Tuition                                     $4,374
                $4,000
                                                                                            $3,810
                $3,000                                                            $3,241

                                                           $2,785    $2,993
                                     $2,588     $2,784                                                   $1,682
                $2,000    $2,468
                                                                    Avg. WHEG
                $1,000                                                                               $1,284
                                                $1,021     $1,131    $1,018     $1,084     $1,244
                           $843      $932
                   $0
                         97-98     98-99      99-00      00-01   01-02        02-03   03-04     04-05    05-06
                                  Gap between
                          Average Cost of Attendance and
                               Need-Based Grants
                $16,000
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                                                                                                       $13,642
                $14,000
                               Avg. Re s. Unde rgrad Cost of Atte ndance
                                                                                                     $12,616
                $12,000
                                                                                         $11,666
                $10,000                                                        $10,791
                                                                   $10,156
                                                   $9,427 $9,666
                 $8,000                   $8,954
                             $8,550
                 $6,000
                               Avg. Ne ed-Based Grant Aid                                                   $4,151
                 $4,000
                                                                             $3,785   $4,003       $4,117
                                                   $2,852 $3,424 $3,566
                 $2,000
                             $2,493     $2,708
                    $0
                           97-98      98-99   99-00    00-01   01-02       02-03   03-04     04-05          05-06
                                    Loans

                        Federal   Alternative   State/Inst   All Loans
                Year
                          $M          $M           $M            $M
                96-97    $284         $2           $1          $287
Financial Aid




                97-98    $299         $3           $1          $304
                98-99    $304         $5           $2          $310
                99-00    $314         $7           $2          $323
                00-01    $330         $9           $2          $340
                01-02    $356        $13           $2          $371
                02-03    $400        $19           $2          $422
                03-04    $453        $29           $2          $485
                04-05    $493        $42           $2          $537
                05-06    $533        $58           $2          $593
                           Student Indebtedness

                • Two-thirds of UW resident undergraduates
                  graduate with debt.
Financial Aid




                • The average debt at graduation for those who
                  borrow (bachelors degree) is approx. $20,000.

                • UW System student loan default rate is one-third
                  the national rate (1.6% vs. 5.1%) .
                    Regent Tuition Policy Principles

                •   Tuition and financial aid in the UW System
                    should balance educational quality, access, and
                    ability to pay.
Financial Aid




                •   Tuition increases should be moderate and
                    predictable, subject to the need to maintain
                    quality.

                •   GPR financial aid and graduate assistant support
                    should “increase at a rate no less than that of
                    tuition ...”
                     Financial Aid Policy Goals from
                         Charting a New Course
                •   Access: Ensure all qualified Wisconsin high
                    school graduates equal access to attend a UW
                    institution, regardless of income.
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                •   Retention: Reduce the financial barriers for low-
                    income UW students so they can remain in school
                    and thus complete their degrees in a timely
                    fashion.
                •   Brain Gain: Use targeted financial aid incentives
                    to encourage UW graduates to work in Wisconsin
                    after graduation, and provide incentives to retrain
                    Wisconsin citizens for key fields.
                            BOR Goals for 2005-06

                • Improve Access to the UW System
                • Increase Baccalaureate Degrees
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                • Improve the Quality of the Student
                  Experience
                • Strengthen and Build Relationships with
                  our Stakeholders

                  Source: Minutes of the BOR Meeting, September 9, 2005

								
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