Financial Aid Presentation April 29, 2013 Defining Need, Federal - - PowerPoint PPT Presentation

Financial Aid Presentation

April 29, 2013

Office of the Vice President for Budget and Finance 2

Cost of Attendance - Expected Family Contribution = Demonstrated Need

• Cost of Attendance is an estimate of what it will reasonably cost the

student to attend for a given period of time. Guidelines annually set by the CCHE and vary based on whether or not a student lives at home, on campus or off campus.

• Expected Family Contribution is calculated by a federally-approved
• formula. Accounts for income, assets, household size, number in

college and other information.

Defining Need, Federal Methodology

Office of the Vice President for Budget and Finance 3

• Tuition & Fees
• On Campus Room & Board, or Housing and Food, monthly

Allowance

• Books and Supplies Allowance
• Local Transportation Allowance: Parking costs, bus pass etc.
• Personal Expense Allowance: Laundry, clothing, recreation etc.
• Student Health Plan or Medical Insurance Allowance

CCHE Estimated Cost of Attendance Components

Office of the Vice President for Budget and Finance 4

CCHE Estimated Cost of Attendance

UCB UCCS CU Denver Tuition & Fees 9,152 $ 7,894 $ 7,702 $ Room & Board 11,278 $ 7,990 $ 9,890 $ Books & Supplies Allowance 2,000 $ 2,000 $ 2,000 $ Local Transportation Allowance 1,296 $ 1,296 $ 1,296 $ Personal Expense Allowance 1,287 $ 1,287 $ 1,287 $ Medical Expense Allowance 2,232 $ 2,232 $ 2,232 $ Total 27,245 $ 22,699 $ 24,407 $ UCB UCCS CU Denver 25,921 $ 20,065 $ 21,855 $ FY 12 Department of Higher Education Estimated Cost of Attendance- Resident Undergrad Full-Time FY 12 Actual Average Cost of Attendance Estimate

Office of the Vice President for Budget and Finance 5

Each campus develops individual criteria aimed at awarding need-based aid to the students with the greatest need. Some factors taken into consideration include:

• Campus Mission and Goals
• Amount of Federal, State and Institutional Aid Available
• Consistency Across Years
• Loan Debt Levels
• Full Cost of Attendance

Of the students that applied for and were eligible for State and Institutional aid, many did not receive awards because the funds were already exhausted.

• UCB- 51%, UCCS- 46%, CU Denver- 47%

Awarding Financial Aid

Office of the Vice President for Budget and Finance 6

CU Investment in Financial Aid

$16.1 $17.1 $14.1 $13.4 $13.6 $16.9 $19.3 $22.5 $21.9 $20.5 $18.4 $12.1 $13.6 $16.0 $21.0 $35.5 $33.5 $42.5 $48.6 $51.9 $56.9 $68.0 $25.9 $30.7 $28.7 $28.9 $37.0 $40.4 $43.9 $53.4 $55.2 $50.9 $55.0 $13.9 $16.4 $18.9 $19.7 $19.1 $19.8 $21.7 $24.2 $40.3 $44.9 $44.3

$- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Millions

State Aid Institutional Aid- From Tuition Institutional Aid- From Other Sources Federal Pell

Office of the Vice President for Budget and Finance 7

FY 2013-14 aid increases:

• UCB, $2,614,827 (5.2% increase) represents 12.9% of ongoing

expenditure increase

• UCCS, $834,437 (15.4% increase) represents 9.3% of the ongoing

expenditure increase

• Denver Campus, $305,241 (2.4% increase) represents 5.3% of the
• ngoing expenditure increase

Examples of factors considered in determining aid funding increases:

• Campus Strategic Plans and Goals
• Federal, State and Institutional Aid Available
• Impact of tuition and linearity changes

Institutional Need and Merit Increases

Office of the Vice President for Budget and Finance 8

Out-of-Pocket Tuition and Fees

$- $1,551 $4,839 $5,695 $6,032 $- $1,194 $5,429 $6,898 $7,380 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000

Lowest Income ($0-$32,500) Lowest Middle Income ($32,500-$59,999) Upper Middle Income ($60,000-$99,999) Upper Income ($100,000- $140,000) Above Upper Income (+$140,000)

Average Tuition and Fees Paid

FY 09 Average Out-of-Pocket Tuition & Fees FY 12 Average Out-of-Pocket Tuition & Fees

$0 Out-of-Pocket Tuition and Fees

Note: Full-time, dependent students who applied for aid

Change

• $357, -23%

Change $590, 12% Change $1,203, 21% Change $1,348, 22%

Average Published Tuition & Fees Systemwide: FY 2009, $6,745; FY 2012, $8,249 (+22%)

Office of the Vice President for Budget and Finance 9

Debt Load Upon Graduation, 2011

$17,227 $22,283 $24,648 $32,440 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Lowest State (Utah) Colorado National Average Highest State (NH) Dollars

Source: Project on student debt

Office of the Vice President for Budget and Finance 10

Debt Load Upon Graduation

$30,987 $26,948 $26,640 $25,045 $24,485 $24,224 $24,060 $23,902 $23,636 $23,184 $20,948 $20,794 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Mines UCD|AMC Metro Mesa UCB UNC CSU-P CSU Adams UCCS

• Ft. Lewis

Western Resident Undergraduate = $20,940 Resident Undergraduate = $20,927 Resident Undergraduate = $17,441 Note: Resident and Non-Resident Students, only students who took loans Sources: Colorado Department of Higher Education Note: Loan debt for Resident Undergrads only at CU does not include transfers

Office of the Vice President for Budget and Finance 11

Loan Default Rate Comparison

3.8% 10.1% 9.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2005 2006 2007 2008 2009 2010 CU Colorado National

Source: U.S Department of Education, CU is system wide

Office of the Vice President for Budget and Finance 12

UCCS Resident Undergraduate Financial Aid Applicants, 2012

1,666 776 824 511 290 739 369 342 220 206 1,086

• 500

1,000 1,500 2,000 2,500 3,000

($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Did not apply for aid (no income data available)

FY 12 Number of Students who took Loans FY 12 Number of Students who did not take Loans

Note: Does not include Parent or Private Loans 2,405 1,145 1,166 731 496

Office of the Vice President for Budget and Finance 13

UCCS Resident Undergraduate Financial Assistance, 2012

$- $5,000 $10,000 $15,000 $20,000 $25,000 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Institutional Need Based Institutional Merit Based Other Scholarship State Aid Federal Aid Student Loan

$3,973 $4,834 $5,963 $8,454 $10,783

FY 12 Actual Average Cost of Attendance Estimate = $20,065

N=2,405 N=1,145 N=1,166 N=731 N=124 FY 12 Tuition & Fees = $7,894

Office of the Vice President for Budget and Finance 14

UCCS Annual Average Loan Resident Undergraduates, 2012

$7,440 $6,608 $6,172 $5,879 $5,783 $- $5,000 $10,000 $15,000 $20,000 $25,000 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000)

Note: does not include Parent or Private Loans and only includes students that took loans

N= 1,666 N= 776 N=824 N=511 N=290

FY 12 Actual Average Cost of Attendance Estimate = $20,065

Office of the Vice President for Budget and Finance 15

UCCS Average Cost of Attendance Minus Assistance, 2012

152 120 409 526 449 2,253 1,025 757 205 47

• 500

1,000 1,500 2,000 2,500 3,000 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Total number of Students that have remaining unmet need after expected family contribution, aid and student loans Total number of Students whose costs are covered after expected family contribution, aid and student loans

Average Remaining need per student =$9,282 Average Remaining need per student =$8,239 Average Remaining need per student =$4,199

Average Remaining need per student =$1,552

Average Remaining need per student =$358

Note: Does not include Parent or Private Loans

Office of the Vice President for Budget and Finance 16 2,457 1,046 953 457 288 1,068 465 337 177 168 1,154

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Did not apply for aid (no income data available) FY 12 Number of Students who took Loans FY 12 Number of Students who did not take Loans

Note: Does not include Parent or Private Loans

Denver Campus Resident Undergraduate Aid Applicants, 2012

3,525 1,210 634 456 1,511

Office of the Vice President for Budget and Finance 17

Denver Campus Resident Undergraduate Financial Assistance, 2012

$5,605 $4,829 $4,849 $4,643 $4,022 $- $5,000 $10,000 $15,000 $20,000 $25,000 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Institutional Need Based Institutional Merit Based Other Scholarship State Aid Federal Aid Student Loan

FY 12 Actual Average Cost of Attendance Estimate= $21,855 $11,832 $9,143 $6,474 $5,411 $4,645 N=3,525 N=1,511 N=1,210 N=634 N=456 FY 12 Tuition & Fees = $7,702

Office of the Vice President for Budget and Finance 18

Denver Campus Annual Average Loan Resident Undergraduates, 2012

$8,041 $6,976 $6,564 $6,442 $6,368 $- $5,000 $10,000 $15,000 $20,000 $25,000 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) N=2,457 N=1,046 N=953 N=457 N=288

Note: Does not include Parent Loans and only includes students that took loans

FY 12 Actual Average Cost of Attendance Estimate= $21,855

Office of the Vice President for Budget and Finance 19

CU Denver Average Cost of Attendance Minus Assistance, 2012

230 182 379 452 415 3,295 1,329 911 182 41

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Total number of Students that have remaining unmet need after expected family contribution, aid and student loans Total number of Students whose costs are covered after expected family contribution, aid and student loans

Average Remaining need per Student =$9,374 Average Remaining need per Student =$7,858 Average Remaining need per Student =$306 Average Remaining need per Student =$1,378 Average Remaining need per Student =$5,045

Note: Does not include Parent or Private Loans

Office of the Vice President for Budget and Finance 20 2,166 1,235 1,564 1,084 1,185 1,087 543 623 525 866 5,341

• 1,000

2,000 3,000 4,000 5,000 6,000 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Did not apply for aid (no income data available) FY 12 Number of Students who took Loans FY 12 Number of Students who did not take Loans

Note: Does not include Parent or Private Loans

Boulder Resident Undergraduate Financial Aid Applicants, 2012

3,253 1,778 2,187 1,609 2,051

Office of the Vice President for Budget and Finance 21

Average Aid Award for 2012, UCB

Boulder Resident Undergraduate Financial Assistance, 2012

$- $5,000 $10,000 $15,000 $20,000 $25,000 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Institutional Need Based Institutional Merit Based Other Scholarship State Aid Federal Aid Student Loan

$4,512 $5,688 $7,708 $11,793 $15,004 FY 12 Actual Average Cost of Attendance Estimate= $25,921 N=3,253 N=1,778 N=2,187 N=1,609 N=2,051 FY 12 Tuition & Fees = $9,152

Office of the Vice President for Budget and Finance 22 $7,152 $6,115 $5,987 $5,965 $6,213 $- $5,000 $10,000 $15,000 $20,000 $25,000 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000)

N= 2,166 N= 1,235 N=1,564 N=1,084 N=1,185

Note: does not include Parent or Private Loans and only includes students that took loans

FY 12 Actual Average Cost of Attendance Estimate= $25,921

Boulder Annual Average Loan Resident Undergraduates, 2012

Office of the Vice President for Budget and Finance 23

Boulder Average Cost of Attendance Minus Assistance, 2012

219 114 436 885 1,775 3,034 1,664 1,751 724 276

• 500

1,000 1,500 2,000 2,500 3,000 3,500 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Total number of Students that have remaining unmet need after expected family contribution, aid and student loans Total number of Students whose costs are covered after expected family contribution, aid and student loans

Average Remaining need per Student =$9,559 Average Remaining need per Student =$10,175 Average Remaining need per Student =$6,841 Average Remaining need per Student =$2,787 Average Remaining need per Student =$658

Note: Does not include Parent Loans

Office of the Vice President for Budget and Finance 24

Closing the Cost Gap

Ways to Reduce Cost

• Live with Parents
• Live with multiple roommates
• Use alternative transportation
• Cut back on personal expenses
• Remain on parents insurance plan
• College credit earned in high school or competency

testing

Office of the Vice President for Budget and Finance 25

Closing the Cost Gap

Other Options

• Part-time work
• College savings plans
• Parent/Private loans
• Credit cards

Office of the Vice President for Budget and Finance 26

Conclusions

• For many students, actual cost of attendance is lower than estimated

cost of attendance allowed by CCHE

• Out-of-pocket tuition and fee increases mitigated for lower and lower

middle income students.

• Middle income student costs have grown less than tuition and fees.
• Many resident undergraduates did not apply for federal aid in 2012:

UCB 33%, UCCS 15%, Denver 13%

• Of those who applied for aid in FY 2012, about one-third did not take a

loan

• Student loan default rates for CU students lower than the state or

national average