Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
David A. Feitz, Executive Director UHEAA  60 South 400 West  Salt Lake City, UT 84101  (801) 321-7210  dfeitz@utahsbr....
Utah Higher Education Assistance Authority
Established in 1977, UHEAA is the student loan and financial aid
organization o...
Financial aid program administration and
scholarship support
Administrative Support
• Success Stipend – state grant progra...
UHEAA Board of Directors
• 13-member UHEAA Board
• Four Regents
Marlin Jensen
Bob Marquardt
Harris Simmons
Mark Stoddard (...
$208.2 million in borrower benefits
• Public service mission: UHEAA’s revenues benefit students
July 30, 2015 – David A. F...
UHEAA’s low cohort default rates
July 30, 2015 – David A. Feitz Board of Regents 6
5.2
6.7 7.0
13.4
14.7
13.7
2.8
2.1 1.9
...
How do students pay for college?
July 30, 2015 – David A. Feitz Board of Regents 7
Savings
Work
Success
Stipend
Loans
Scho...
Best advice for paying for college
1. Save for college
2. Grants & scholarships
3. Work Study
4. Federal loans
5. Suppleme...
Pell Grants: largest grant program for students
Named after the late Senator from
Rhode Island, Claiborne Pell
Funds do ...
Pell Grant volume for Utah schools
Board of Regents 10
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
$-
$50
$100
$...
Pell Grant volume in Utah
July 30, 2015 – David A. Feitz Board of Regents 11
41,177
recipients
in 2000
114,259
recipients
...
Top ten highest Pell volume schools in Utah for
the 2013-14 award year
Board of Regents 12
Source: U.S. Department of Educ...
Utah Pell Grant volume by school type
July 30, 2015 – David A. Feitz Board of Regents 13
Public
Colleges &
Universities
(U...
2013-2014: Percent of students receiving Pell Grant
School
Percent
Receiving
Grants
Dixie State University 56%
Utah Valley...
How much tuition will the maximum Pell Grant of
$5,775 cover in 2015-16?
School
Percent of tuition &
fees paid by Pell
Uni...
Congressional proposals: Mixed message
More Pell
 Restoring the year-round Pell Grant
 One six-year grant that students ...
Two concerns of financial aid directors
1. Increasing number of students using
Pell Grants for remedial course work
• Up t...
Student loans: The largest source of student
financial aid
Pell Grant and Federal Student Loan use in Utah for the
2013-14...
Top ten highest loan volume schools in Utah for
2013-14 award year
School Amount
1 WESTERN GOVERNORS UNIVERSITY $ 203.5 M
...
Student loans: The largest source of student
financial aid
• One in five American households has education debt
July 30, 2...
Student loans: Largest source of household debt
July 30, 2015 – David A. Feitz Board of Regents 21
2004 2005 2006 2007 200...
Average student loan debt burden
July 30, 2015 – David A. Feitz Board of Regents 22
National average debt for
graduating s...
Payment on average Utah student loan debt
• $22,418 balance
• 4.29% interest rate
• 10-year repayment period
Monthly payme...
• What new car could you buy for $22,418?
• Importance of teaching
financial literacy
• The value of a car depreciates
• E...
Reality of borrowing patterns
July 30, 2015 – David A. Feitz Board of Regents 25
Only 4.2% of
borrowers
have balances
grea...
Who defaults? Students who don’t complete
July 30, 2015 – David A. Feitz Board of Regents 26
Source: National Center of Ed...
Student loans – National political debate
1. Proposal for “free,” no-debt
education
2. Proposal that colleges and
universi...
One day at the gas station . . .
July 30, 2015 – David A. Feitz Board of Regents 28
David A. Feitz, Executive Director UHEAA  60 South 400 West  Salt Lake City, UT 84101  (801) 321-7210  dfeitz@utahsbr....
Upcoming SlideShare
Loading in …5
×

Student Loans and the Impact of Pell Grants

1,357 views

Published on

Student Loans and the Impact of Pell Grants, given by Dave Feitz, Executive Director of the Utah Higher Education Assistance Authority, at the joint meeting of the Board of Regents and Institutional Boards of Trustees 07-30-2015 at Southern Utah University

Published in: Education
  • There are over 16,000 woodworking plans that comes with step-by-step instructions and detailed photos, Click here to take a look ➤➤ http://tinyurl.com/y3hc8gpw
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

Student Loans and the Impact of Pell Grants

  1. 1. David A. Feitz, Executive Director UHEAA  60 South 400 West  Salt Lake City, UT 84101  (801) 321-7210  dfeitz@utahsbr.edu STUDENT DEBT & IMPACT OF PELL GRANTS DAVID A.FEITZ EXECUTIVEDIRECTOR OF UHEAA, AND ASSOCIATECOMMISSIONER FOR STUDENT FINANCIAL AID Joint Working Meeting State Board of Regents & Institutional Boards of Trustees July 30, 2015
  2. 2. Utah Higher Education Assistance Authority Established in 1977, UHEAA is the student loan and financial aid organization of the Utah State Board of Regents. UHEAA employment • 253 employees Student loan servicing portfolio • $4.9 billion for 348,000 student borrowers Outreach and community service • 11,000 students, parents, and counselors attended UHEAA’s free “How to Pay for College” workshops in last 12 months. UHEAA Grants for needy students (from UHEAA revenues) • $11.4 million • 12,550 students July 30, 2015 – David A. Feitz Board of Regents 2
  3. 3. Financial aid program administration and scholarship support Administrative Support • Success Stipend – state grant program • Matching fund administration • Veterans Tuition Gap Program • Minority Scholarship • Utah Engineering and Computer Science Scholarship Program Financial support • Regents’ Scholarship • New Century Scholarship July 30, 2015 – David A. Feitz Board of Regents 3
  4. 4. UHEAA Board of Directors • 13-member UHEAA Board • Four Regents Marlin Jensen Bob Marquardt Harris Simmons Mark Stoddard (Chair) July 30, 2015 – David A. Feitz Board of Regents 4 • No state appropriations for UHEAA operating expenses
  5. 5. $208.2 million in borrower benefits • Public service mission: UHEAA’s revenues benefit students July 30, 2015 – David A. Feitz Board of Regents 5 $2.0 $2.9 $4.7 $6.3 $9.4 $12.3 $14.7 $18.3 $21.9 $17.6 $16.1$15.8 $13.0 $11.5$11.0$10.7$10.3 $9.5 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total Savings Using Borrower Benefits
  6. 6. UHEAA’s low cohort default rates July 30, 2015 – David A. Feitz Board of Regents 6 5.2 6.7 7.0 13.4 14.7 13.7 2.8 2.1 1.9 4.8 4.4 4.7 2008 2009 2010 2011 2013 2014 Reporting Year National Average UHEAA FFELP Portfolio FormulaChange: 2-yearto3-yearreportingperiod
  7. 7. How do students pay for college? July 30, 2015 – David A. Feitz Board of Regents 7 Savings Work Success Stipend Loans Scholarships Family Support Pell Grants
  8. 8. Best advice for paying for college 1. Save for college 2. Grants & scholarships 3. Work Study 4. Federal loans 5. Supplemental loans July 30, 2015 – David A. Feitz Board of Regents 8
  9. 9. Pell Grants: largest grant program for students Named after the late Senator from Rhode Island, Claiborne Pell Funds do not have to be repaid Undergraduate only 12 semesters of full-time enrollment Maximum award in 2015-16: $5,775 Apply by completing the Free Application for Federal Student Aid (FASFA) Board of RegentsJuly 30, 2015 – David A. Feitz 9
  10. 10. Pell Grant volume for Utah schools Board of Regents 10 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 NumberofRecipients Millions Award Year Volume Recipients July 30, 2015 – David A. Feitz Source: U.S. Department of Education $408 million to 114,000 students
  11. 11. Pell Grant volume in Utah July 30, 2015 – David A. Feitz Board of Regents 11 41,177 recipients in 2000 114,259 recipients in 2014 Number of Utah students receiving Pell increased nearly 3 times from 2000 to 2014
  12. 12. Top ten highest Pell volume schools in Utah for the 2013-14 award year Board of Regents 12 Source: U.S. Department of Education Title IV program volume reports as of 1-10-15 School Recipients Disbursements 1 Western Governors University 18,483 $ 66.0 M 2 Utah Valley University 13,463 $ 47.7 M 3 Brigham Young University 11,217 $ 46.2 M 4 Salt Lake Community College 13,236 $ 39.3 M 5 Utah State University 10,030 $ 37.1 M 6 University of Utah 8,368 $ 31.5 M 7 Stevens Henager College 8,330 $ 30.9 M 8 Weber State University 8,334 $ 28.8 M 9 Dixie State University 4,530 $ 16.7 M 10 Southern Utah University 3,062 $ 12.2 M July 30, 2015 – David A. Feitz
  13. 13. Utah Pell Grant volume by school type July 30, 2015 – David A. Feitz Board of Regents 13 Public Colleges & Universities (USHE) $218.9 M 54% Public UCAT $4.8 M 1% Private Nonprofit $118 M 29% Proprietary For-Profit $66.4 M 16% 2013-14 Award Year Ending June 30, 2014
  14. 14. 2013-2014: Percent of students receiving Pell Grant School Percent Receiving Grants Dixie State University 56% Utah Valley University 44% LDS Business College 42% Southern Utah University 41% Utah State University 40% Salt Lake Community College 38% Brigham Young University 37% Snow College 33% Weber State University 33% University of Utah 29% Westminster College 27% Board of Regents 14 Calculations made using data from the U.S. Department of Education, Title IV Program Volume Reports as of January 10, 2015 and headcount data as reported in the USHE 2014 Data Book, or by individual schools at http://yfacts.byu.edu/Article?id=104, and https://www.westminstercollege.edu/pdf/institutional_research/Enrollment%20and%20Persistence.pdf July 30, 2015 – David A. Feitz
  15. 15. How much tuition will the maximum Pell Grant of $5,775 cover in 2015-16? School Percent of tuition & fees paid by Pell University of Utah 70% Utah State University 87% Utah Valley University 107% Dixie State University 125% Weber State University 108% Southern Utah University 92% Salt Lake Community College 162% Snow College 166% Brigham Young University 112% Westminster College 18% LDS Business College 183% Board of Regents 15July 30, 2015 – David A. Feitz Percentages are based on full-time enrollment, or 15 credit hours each semester for two semesters, for resident students as applicable, according to each school’s website as of July 21, 2015.
  16. 16. Congressional proposals: Mixed message More Pell  Restoring the year-round Pell Grant  One six-year grant that students can draw from at any time until the money is spent Less Pell  House 2016 budget proposal to freeze Pell funding for 10 years Everyone agrees  Simplify FAFSA from over 100 questions to as few as two  Eliminate FAFSA and use tax data July 30, 2015 – David A. Feitz Board of Regents 16 Year 1 Year 2 Year 3 . . .
  17. 17. Two concerns of financial aid directors 1. Increasing number of students using Pell Grants for remedial course work • Up to 30 hours of remedial study is eligible for Pell. 2. Students who have made multiple major changes • Exhausted Pell eligibility and haven’t yet earned a degree Pell grant lifetime eligibility is limited to 12 full-time semesters. July 30, 2015 – David A. Feitz Board of Regents 17
  18. 18. Student loans: The largest source of student financial aid Pell Grant and Federal Student Loan use in Utah for the 2013-14 award year: $1.23 Billion July 30, 2015 – David A. Feitz Board of Regents 18 $820 Million 67% $408 Million 33% Loans Pell Grants
  19. 19. Top ten highest loan volume schools in Utah for 2013-14 award year School Amount 1 WESTERN GOVERNORS UNIVERSITY $ 203.5 M 2 UNIVERSITY OF UTAH $ 136.2 M 3 STEVENS HENAGER COLLEGE $ 77.9 M 4 UTAH VALLEY UNIVERSITY $ 67.7 M 5 UTAH STATE UNIVERSITY $ 60.0 M 6 BRIGHAM YOUNG UNIVERSITY $ 52.1 M 7 WEBER STATE UNIVERSITY $ 46.6 M 8 SALT LAKE COMMUNITY COLLEGE $ 30.5 M 9 DIXIE STATE UNIVERSITY $ 22.8 M 10 WESTMINSTER COLLEGE $ 20.8 M July 30, 2015 – David A. Feitz Board of Regents 19 Source: U.S. Department of Education Title IV program volume reports as of 1-10-15
  20. 20. Student loans: The largest source of student financial aid • One in five American households has education debt July 30, 2015 – David A. Feitz Board of Regents 20 Source: http://www.pewresearch.org/fact-tank/2013/07/01/2428455/
  21. 21. Student loans: Largest source of household debt July 30, 2015 – David A. Feitz Board of Regents 21 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
  22. 22. Average student loan debt burden July 30, 2015 – David A. Feitz Board of Regents 22 National average debt for graduating seniors: $28,400 Utah average debt for graduating seniors: $22,418 - 21% less than national average 52% of Utah college graduates had student loans: 17% less than national average Calculations by the Project on Student Debt, based on data from Thomson Peterson’s Undergraduate Financial Aid and Undergraduate Databases. http:http://ticas.org/posd/map-state-data-2014
  23. 23. Payment on average Utah student loan debt • $22,418 balance • 4.29% interest rate • 10-year repayment period Monthly payment = $230.07 July 30, 2015 – David A. Feitz Board of Regents 23
  24. 24. • What new car could you buy for $22,418? • Importance of teaching financial literacy • The value of a car depreciates • Education Pays: The value of a college degree appreciates • Approximately $1 million more lifetime earnings with a 4-year degree over a high school diploma* • Borrow wisely: consistent with earnings potential July 30, 2015 – David A. Feitz Board of Regents 24 Perspective: The price of a new car Ford Fusion *Source: Current Population Survey, U.S. Bureau of Labor Statistics, U.S. Department of Labor
  25. 25. Reality of borrowing patterns July 30, 2015 – David A. Feitz Board of Regents 25 Only 4.2% of borrowers have balances greater than $100,000 Press stories of extremely high debt levels are the exception. Source: FRBNY Consumer Credit Panel / Equifax 38.8% 28.5% 18.5% 10.1% 2.4% 1.0% 0.8% $1-$10,000 $10,000-$25,000 $25,000-$50,000 $50,000-$100,000 $100,000-$150,000 $150,000-$200,000 $200,000+
  26. 26. Who defaults? Students who don’t complete July 30, 2015 – David A. Feitz Board of Regents 26 Source: National Center of Education Statistics Beginning Postsecondary Students Survey 2004/09 Educational attainment of students who default, as of 2009. Only 1.1% of students who earned a bachelor’s degree defaulted 1.1% 2.4% 24.7% 8.9%62.9% Bachelor's Degree Associate's Degree Certificate Still Enrolled Did Not Complete
  27. 27. Student loans – National political debate 1. Proposal for “free,” no-debt education 2. Proposal that colleges and universities have “skin in the game” a. Pay for a percentage of defaults b. Allow institutions to limit borrowing for some students July 30, 2015 – David A. Feitz Board of Regents 27
  28. 28. One day at the gas station . . . July 30, 2015 – David A. Feitz Board of Regents 28
  29. 29. David A. Feitz, Executive Director UHEAA  60 South 400 West  Salt Lake City, UT 84101  (801) 321-7210  dfeitz@utahsbr.edu STUDENT DEBT & IMPACT OF PELL GRANTS DAVID A.FEITZ EXECUTIVEDIRECTOR OF UHEAA, AND ASSOCIATECOMMISSIONER FOR STUDENT FINANCIAL AID Joint Working Meeting State Board of Regents & Institutional Boards of Trustees July 30, 2015

×