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UHEAA Overview Board Regents and Institutional Board

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UHEAA Overview Board Regents and Institutional Board Powered By Docstoc
					Student Financial Aid
Higher Education Appropriations Subcommittee
January 24, 2008
David A. Feitz Executive Director Board of Regents Building 60 South 400 West Salt Lake City, UT 84101-1284 801.321.7210 dfeitz@utahsbr.edu

UHEAA


UHEAA is the financial aid and college savings organization of the Utah State Board of Regents (SBR).



Governed by a separate board of directors
 19-members  Acting under direction of SBR  Current UHEAA Board leadership
• Chair: David Jordan • Vice Chair: Fred Hunsaker

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208 employees
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UHEAA


UHEAA is Utah’s major financial aid provider.
 Student loans  10 grant and scholarship programs including:
• Utah Centennial Opportunity Program for Education (UCOPE) • New Century Scholarship

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College outreach
 UtahMentor.org  1.5 to 2 million page hits per month

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Utah Educational Savings Plan Trust (UESP) – Utah’s 529 college savings plan
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Fast Facts


UHEAA loan volume in fiscal 2007
 102,700 student loans  $502 million: Consolidation, Stafford and PLUS loans

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UHEAA’s default rate
 4.3%  Below the national rate of 4.6%

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UHEAA’s student loan portfolio
 163,000 borrowers  $1.97 billion

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UESP
 Over 113,000 accounts  $2.5 billion total account balances
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Fast Facts


UHEAA operating budgets
 $210 million  No State appropriations for UHEAA operating expenses

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UHEAA Student Loan Volume
Stafford & PLUS Loans Fiscal Years 2001-2007
(Excludes Consolidation loans)
$400

Loan Volume in Millions

$350 $300 $250 $200 $150 $100 $50 $0 2001 2002 2003 2004 Fiscal Year 2005 2006 2007

$312 $276 $240 $216

$327

$347

$337

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Student Loans Top Seven Schools
Gross Loan Volume (In Millions) Fiscal Year 2007

University of Utah Brigham Young University – Provo Utah Valley State College Utah State University Brigham Young University – Idaho Weber State University Salt Lake Community College

$80.2 $46.0 $34.6 $33.9 $27.9 $22.7 $12.7
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Student Loans Top Seven Lenders
Gross Loan Volume (In Millions) Fiscal Year 2007

Wells Fargo Bank Zions First National Bank America First Credit Union US Bank Mountain America Credit Union Utah Community Credit Union JPMorgan Chase

$105.9 $70.7 $43.1 $23.4 $22.1 $14.4 $14.1
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Average Student Loan Debt Burden
National average debt for graduating seniors: $19,300*

Utah average debt for graduating seniors in 2005:

$11,709**

*National Center for Education Statistics, The Condition of Education 2004, June 2004, http://nces.ed.gov/pubs2004/2004077.pdf **Calculations by the Project on Student Debt, based on data from Thomson Peterson’s Undergraduate Financial Aid and Undergraduate Databases. http://projectonstudentdebt.org/state_by_state-data.php

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UHEAA Borrower Benefits: Interest Rate Discounts


“One of the best discount programs.”
– Wall Street Journal
(June 2, 2004)

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UHEAA Money-Saving Benefits for Borrowers




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UHEAA pays the 1% default fee for all borrowers Zero origination fee on Stafford loans (currently equal to 1.5% of loan amount) 0.50% rate reduction for automatic payments on Stafford and PLUS loans 2% balance reduction after 48 ontime payments on Stafford and PLUS loans.
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UHEAA Savings for Borrowers



UHEAA is a not-for-profit, State agency and shares its revenues with students to reduce borrowing costs. Savings to Borrowers:
 $17.6 million in FY 2007  $110.1 million since FY 1998
Total Savings Using Borrower Benefits
Millions
$25 $20 $14.7 $15 $10 $5 $0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year $2.0 $2.9 $4.7 $9.4 $6.3 $12.3 $18.3 $21.9 $17.6

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How Do Students Pay for College?
Savings

Work

Scholarships

Loans

Pell Grants
Credit Cards

Family Support

UCOP E
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Loans Are the Largest Source of Student Financial Aid
Pell Grant vs Student Loan Volume
2006-07 Award Year

Pell

Loan

Millions

$100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0
UU USU WSU SUU UVSC DSC SLCC Snow CEU BYU Wstmstr

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Example of Financial Need
Utah resident attending two semesters

Cost of Attendance Less Expected Family Contribution Need Less Aid Awarded Pell Grant FSEOG UCOPE Stafford Loan Work Study Remaining Need

$20,000 2,200 17,800 $ 2,480 800 800 3,500 2,200 $ 8,020
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This example is based upon a dependent student from a two-parent household with a family size of six and two in college. Parental income is $60,000 with both parents working and $5,000 in savings. Student income is $3,600 with $1,000 in savings. Components of Cost of Attendance include tuition, fees, books, supplies, transportation, personal expenses, room & board, and may include loan fees, dependent care expenses, and expenses related to a student’s disability.

State Appropriations
Student Financial Aid Programs* Fiscal Years 2004-2008
Millions
$12 $10 $8 $6 $4 $2 $0 '04 '05 '06 '07 '08

*Matching funds, UCOPE, New Century Scholarship, UECLP, UTAP, Minority Scholarship

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UCOPE
Students Awarded
6000

Number of Students

5000 4000 3000 2000 1000 0 2004 2005 Fiscal Year
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5,183 $4.2 mil 2,807 $2.8 mil
$2.8 mil

2,114
$1.9 mil

2,102
$1.9 mil

$4.2 mil

2006

2007

# of Awards
100 120 20 40 60 80 0
Since Inception

High School

New Century Scholarship Earned by High School

* Only High Schools w ith 10 or m ore Aw ards are Listed

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Dixie High (10) Juab High Sch ool (10) Northridge High (10) Hillcre st High (11) Cottonwo od High (12) We st Jordan High (12 ) Am erican Fork High (13) Cle arfield High (13) NUAMES (13) Tintic High (13) Viewmont High School (13) Em ery High Sch ool (14) Fre mont Hig h School (14) Monticello High (15) We ber High (15) Mountain Crest High (16) Ogden High (16) Tooele High (16) Copper Hills Hig h (17) Payson High (18) Canyon View High Sch ool (19) Jordan High (20) Spa nish Fork High (20 ) Wo ods Cross High (20) Home Schooling (21) Timpanogos High (22) Olympus High (24) Cedar City Hig h (25) Carbon High (27) Lone Peak High School (27) Morgan High (28) Bingham High (29) Orem High (29) Provo High (30) Utah Cou nty Academ y of Sciences (30) Taylorsville Hig h (32) Alta Hig h (33) Bon neville High (33) Wa satch High (33 ) Davis High (35) Uin tah High (36 ) North Sum mit High School (37) Sky View High (37) Itineris Early College Hig h School (40) Mountain View High (57) Pleasant Grove High (57 ) Springville High (58) Brig hton Hig h (62) Union High (67) Murray High (70) Rich Hig h School (74) San Juan High (96)

New Century Scholarship
New Awards By Fiscal Year
600 500 500 413

# of New Awards

400

300 188 132 100 13 0 2000 2001 2002 2003 2004 Fiscal Year
* FY 2008 is Estimated

271

200 81 50

154

2005

2006

2007

2008 *

Total New Awards for Program to Date (1/23/2008):

1,719

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Where Students Earn Their Associate Degrees To Qualify for a New Century Scholarship
Since Incecption

Utah State University, 384, 22.3% University of Utah, 21, 1.2% Southern Utah University, 46, 2.7% Snow College, 39, 2.3%

Brigham Young University, 1, 0.1%
College of Eastern Utah

Utah Valley State College, 443, 25.8%

Dixie State College of Utah LDS Business College Salt Lake Community College Snow College Southern Utah University University of Utah

Weber State University, 193, 11.2% Westminster College, 2, 0.1%

Utah State University Brigham Young University Utah Valley State College Weber State University Westminster College

Salt Lake Community College, 386, 22.5%

LDS Business College, College of Eastern Utah, 2, 0.1% 159, 9.2% Dixie State College of Utah, 43, 2.5%
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New Century Scholarship 2008 Disbursements
Where Students Use Their New Cenutry Scholarship
Fiscal Year 2008

WSU, $103,371, 7.5%

WC, $29,334, 2.1% BYU, $302,802, 22.0%
BYU DSC

UVSC, $123,136, 9.0%

DSC, $10,744, 0.8%

SUU UU USU UVSC

SUU, $98,575, 7.2% USU, $327,202, 23.8% UU, $378,964, 27.6%

WSU WC

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Return on Investment
Brianne Moon  Southern Utah University graduate  Pell, Loans, UCOPE  UCOPE leads to internship  Internship leads to job offer  Staying in Utah to teach elementary school
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Achieving Goals
Ky Sealy  New Century Scholarship recipient  BS & MS in Electrical Engineering from Utah State University  First generation college graduate  Arrived at USU ready for the rigors of college  Siblings will receive New 25 Century Scholarships

Education: The Way Out of Poverty
Lanora Nielson  UCOPE recipient  Single mother of four  Honors student at Dixie State College  Goal to be a high school counselor “Without UCOPE I would not have the opportunity of going to college.”
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DOCUMENT INFO
Description: The following presentation is information regarding college loan consolidation and student loans