Undergraduate Financial Aid: Changes in Funding Trends & Changes in Financial Aid Policies Student Affairs Meeting May 2, 2012 1
Changes in Funding Trends 2
60,000 50,000 40,000 30,000 20,000 10,000 - Changes in Financial Aid Applications and Amounts Number of Financial Aid Applications FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Financial aid applications have increased by 44% since FY 2007 Amount of financial aid awarded has increased by $111 M or 45% since FY 2007. Undergraduates received $196 M or 55% of the total financial aid $400 $350 $300 $250 $200 $150 $100 $50 $0 Amount of Financial Aid Distributed ($ in M) FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 3
Increase in Undergraduate Aid Undergraduate Financial Aid Financial aid to undergraduates increased 63% over the last five years. $250 $200 $150 $120 $133 $149 $187 $196 75% of undergraduates receive some type of aid. $100 $50 $0 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 4
Types of Financial Aid Total Undergraduate Aid--$196 M Four Types of Aid: Grants--$63 M Scholarships--$23 M Loans--$109 M Work-Study--$ 1M Loans 55% Work Study 1% Grants 32% Scholarship 12% 5
$ in M Pell and WSU Grants Pell funding has increased by 129% since 2007 In 2007 there were 7,288 students receiving Pell grants. Today there are 11,068 students, an increase of 3,780 or 52% WSU general fund grants have increased by 57% since FY 2007 $60 $50 $40 $30 $20 $35 $21 $20 $42 $43 $32 $45 $43 $50 $46 $55 $48 $10 $0 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 (proj) Pell WSU 6
Who Receives Pell Aid? Ethnic Composition of All Undergrads vs. Pell Undergrads Total Undergrads Pell Undergrads White 50% Other 11% Hispanic 3% Amer Indian 1% Asian 7% White 38% Other 9% Hispanic 3% Amer Indian 0% Asian 7% Afr Amer 28% Afr Amer 43% 7
Equity Packaging Model In FY 2008, WSU s need-based financial aid packaging required students with expected family contributions (EFC) less than $8000 (family income of approx. $75k), to get loans or alternative financing in order to fully cover tuition and fees With equity packaging model, WSU provides grants to all families with incomes less than $75k so that they will not have to contribute any additional funds beyond their expected family contribution for tuition and fees WSU currently has 7,364 students who receive financial aid through this model 4,281 of these students have an expected family contribution of $0. Financial registration holds for undergraduates have been reduced by 22% since the implementation of this program. 8
TUITION TUITION Equity Packaging Model The equity packaging model for need based aid provides sufficient funding for tuition and fees without loans $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 PRIOR TO EQUITY: DISTRIBUTION OF NEED BASED GRANTS BY EFC LEVEL $0 EXPECTED FAMILY CONTRIBUTION Unmet BOGG SEOG PELL EFC $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 AFTER EQUITY: DISTRIBUTION OF NEED BASED GRANTS BY EFC LEVEL $0 EXPECTED FAMILY CONTRIBUTION UNMET BOGG SEOG PELL EFC EFC RANGE $0 $1000 $2000 $3000 $4000 $5000 $6000 $7000 $8000 $9000 Total # STUDENTS 4281 625 470 392 345 287 345 330 226 63 7,364 9
Debt Burden Wayne State debt levels: WSU average cumulative debt-- $20,250 3 rd lowest in state (UM-D lowest at $19,463; FSU has highest debt levels at $35,468) MSU--$21,128; UM-AA--$27,828 State average is $25,675, with 60% of students graduating with debt (WSU 58% graduate with debt) National average is $25,250---Michigan ranks 11 th nationally in debt levels (N.H. highest; Utah lowest) 10
Federal Changes to Financial Aid Policies 11
Satisfactory Academic Progress What is Satisfactory Academic Progress (SAP)? To qualify for federal need-based financial aid, students must be enrolled in a degree program and make Satisfactory Academic Progress (SAP) toward that degree SAP has three criteria: 1. GPA Requirement: 2.0 for undergraduates (3.0 grads) 2. Completion Rate (Pace): at least 67% of classes attempted must be completed with passing grades 3. Maximum Time Frame: Students must complete a degree or certificate within 150% of the required coursework of their program (e.g. within 180 credit hours attempted for undergraduates in a 120 credit hour degree program) Change for SAP is that it that students are evaluated at the end of every semester instead of once a year 12
What Happens if a Student does not meet SAP? Step 1: Students are placed on Warning status after the first semester SAP standards are not met Step 2: If after the Warning semester the student is still not making SAP the student is denied aid the student may appeal and if approved is placed on Probation and receives aid. The student must include an Academic Action Plan (AAP) with the appeal. Step 3 Students on Probation must meet the requirement of the AAP by the end of the semester. If they do not their aid is denied. They may appeal again, but it is less likely that their appeal will be approved. Approval of academic plan is granted by an academic advisor 13
What was SAP Impact to WSU from Fall Term? Total Fall 2011 undergraduate headcount enrollment: 20,590 Amount receiving Federal Aid: 14,486 Undergrads who were list as "unsatisfactory (students already given one semester warning) for winter term: 2,294 Students who appealed: 756 (551 approved; 160 denied; 45 pending) Students not registered for winter: 1,236 Students registered for winter w/o federal aid: 302 Students enrolled in fall that are now on warning for winter: 1,499 14
Efforts to Help SAP Students Developed SAP communication plans for students, faculty and departments Earlier interaction with advisors Distribution of lists of students on SAP to departments and colleges Student Services Center provided additional resources for students to receive information Tools to assist students: GPA calculator, Pace calculator, academic action plan, plan of work 15
Other Financial Aid Issues Changes in Pell timeframe Pell only available for 12 semester instead of 18 Debt to degree measure $28,000 Taking longer than 6 years to graduate also causes students to reach loan maximums Interest rates increasing from 3.4% to 6.8% No loans for international students 16
Questions / Discussion 17