2008 cccu financial aid survey cccu financial aid administrators conference january 8-10, 2009 –...

2008 CCCU Financial Aid Survey

CCCU Financial Aid Administrators Conference

January 8-10, 2009 – San Diego, California

Dan Nelson: Vice President of Admissions, Financial Aid and Retention, Bethel University

Jeff Olson: Director of Financial Aid, Bethel University

Presentation Overview

• 1. Financial Aid Office Staff – Internal operations

• 2. Students/Families

• 3. Our Institutions – Financial Health

• 4. Government – Compliance

Part 1. Financial Aid Office Staff(Internal Operations)

• Demographic Data• Technology• Software• Reporting Relationships• Consultants• Endowed Scholarship• Student Employment

2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

67 Participants – Dec ‘08


Profile of Responding Schools (see p. 5)

• 67 Schools in Cohort• CCCU Members

– Yes 92% (62/67)

– No 8% (5/67)

• NASFAA Members– Yes 92% (62/67)

– No 8% (5/67)

• 37 Schools have participated in the 5 most recent CCCU Fin Aid surveys

• 19 Schools have participated in all 10 CCCU Fin Aid surveys!

Thanks for Your Participation!10 year Club

• Anderson University, IN• Bethel University, MN • Bluffton University, OH • Bryan College, TN • Calvin College, MI • Cedarville University, Oh • Colorado Christian University,

CO • George Fox University, OR • Houghton College, NY

• Huntington University, IN • John Brown University, AR • Judson University, IL • Messiah College, PA • Northwestern College, MN • Roberts Wesleyan College, NY • Tabor College, KS • Taylor University, IN • Westmont College, CA • Wheaton College, IL



2008 Profile - Regional Distribution (see p. 5)

Highest Degree Offered (see p. 5)


Financial Aid Software: # Schools, Fall ‘08


Financial Aid Software Top 6 Vendors (77%), Dec ‘08 (see p. 5)


Financial Aid Software Satisfaction – 3 year Comparison (see p. 6)


Switching Software Vendors in next 1-3 Years


Electronic Communications (currently using) see pp. 6-9


Financial Aid Reporting Relationships (see p. 16)

Where do financial aid offices reside in the school’s organizational structure (67 schools reporting)?

• Enrollment Mgmt: 48 (71%) • Business Affairs: 13 (19%) • Academic Affairs: 2 (2%) • Student Affairs: (0) • Advancement: 1 (1%) • Enrollment & Marketing: 1 (1%) • Student Financial Services: 1

(1%) • University Relations: 1 (1%)


Consultant or Leveraging Product (see p. 80)


Endowed Scholarship Processes (see p. 76)


Student Employment Processes Continued (see p. 81)


Student Employment Processes (see p. 81)


Part 2. Students & Families

• Pricing & Budgets

• Aid by Category– Gift aid– Loans– Work

• Scholarships– Targeted– Academic– Athletic

• International Student Aid• Need• Loans (borrowing and

debt)

’08-’09 Dependent Budgets(see pp. 18-19)

• Average dependent student budget is $30,671 (range: $21,000 to $47,786).

• This is an increase of 5.6% from ’07-’08 (same increase as last year).


Tuition & Fee Changes2007-08 to 2008-09 (see p. 19)

• Tuition and Fees at 67 reporting schools increased from an average of $19,851 to $20,916 (5.4%).

• Five institutions reported increases of 9% or greater

• 19 of 67 (28%) institutions reported increases between 5% and 5.99%

• 17 of 67 (25%) institutions reported increases between 6% and 6.99%


’08-’09 Indirect Budget Items(see p. 20)

• Dependent budget estimates for books, supplies, personal and transportation ranged from $2,190 to $6,718.– Average was $3,600– This is 7.5% greater than

’07-’08


’07-’08 Total Financial Aid(see p. 21)

• Students at 67 reporting institutions received nearly $1.69 billion of financial aid in 2007-08.– $909 million in gift aid– $579 million in student loans– $151 million in PLUS loans– $51 million in employment


’07-’08 Average Financial Aid(see pp. 22-25)

Lowest average

Average of 67 schools

Highest average

Gift Aid $3,888 $8,505 $13,404

Loans (w/o PLUS)

$2,509 $5,718 $16,814 (?)

Work $59 $476 $1,686


’07-’08 Institutional Gift Aid Per Enrolled Student (see pp. 26-31)

Lowest average

Average of 66 schools

Highest average

Unrestricted $1,231 $5,106 $8,641

Endowed $0 $304 $1,567

Restricted $0 $128 $1,516

Tuition Remission

$0 $500 $1,057


Targeted Scholarships (see pp. 66-69)

Scholarship OfferSmallest Maximum

Average Maximum

Largest Maximum

2nd in Family 23/66=35% $500 $1,291 $3,078

Legacy 45/67=67% $100 $1,567 $9,440

Athletic 45/67=67% $7,000 $20,348 $34,544

Child of Christian Service Worker

25/67=37% $1,000 $3,037 $13,000

Child of Minister or Missionary

52/67=78% $500 $3,320 $13,100

Denominational Affiliation

27/67=40% $500 $3,340 $18.588


Targeted Scholarships Continued (see pp. 66-69)

Scholarship Offer Minimum Average Maximum

First Generation 6/66=9% $1,000 $4,650 $14,750

Home Schooled 9/66=14% $500 $1,517 $4,000

International Student

51/67=76% $1,000 $9,278 $36,552

Church Match 45/67=67% $500 $836 $2,000

Student of Color 23/66=35% $500 $8,509 $33,118

Hybrid 10/60=17% $1,000 $5,105 $16,000


National Merit Scholarship Program Participants (see p. 70)

• Asbury• Bethel U.• Calvin• Cedarville• Columbia Intl.• Geneva• George Fox• Gordon• Grace (IN)

• ORU• Roberts

Wesleyan• SPU• SE U of FL• Taylor• Union• Westmont• Wheaton


• Greenville• Houghton• Huntington• Indiana

Wesleyan• LeTourneau• Messiah• Nyack• OK Christian

National Merit Scholarship Program Continued (p. 70)

• 25 of 67 responding schools participate (37%)

• Of these 25 schools, 18 offer additional ICGA to Merit Scholars above the normal package (72%)

• Average extra ICGA from these schools to Merit Scholars is $8,261 (range $750 to $21,000)


Academic Scholarship Criteria (see pp.72-73)


Academic Scholarships for Entering New Students - Fall ’08 (see p.74)


Percent Receiving Academic

Scholarship

Maximum Scholarship as a %

of Tuition & Fees

Minimum 19% 4%

1st Quartile 50% 44%

2nd Quartile (Median)

62% 59%

3rd Quartile 75% 97%

4th Quartile (Maximum)

100% 141%

Academic Scholarships for Entering New Students (see p.75)


Academic Scholarships for Entering New Students - Fall ’08 (see p.74)

Minimum Award

Average Award

Maximum Award

Lowest $300 $1,000 $1,000

Median $2,000 $5,185 $12,000

Highest $10,000 $14,389 $32,150


Athletic Divisions (see p. 89)


Athletic Scholarships (see pp.90-91,93)

• School specific data is included on your CD• NAIA-1 Summary by sport information is found on

handout page 90• NAIA-2 Summary by sport information is found on

handout page 91• No schools reported NCAA-1 scholarship data• 2 schools reported NCAA-2 scholarship data (data

sent directly to these 2 schools)• See comments on page 93 regarding impact of

athletic recruitment on non-athletic recruitment


Gift Aid Bias for Student AthletesCCCU – NCAA III Schools


International Student Aid (see p. 79)

• 58 of 67 reporting schools give ICGA to international students (87%)

• 8 schools report over 5% of their enrollment is international students

• Institutional spending for international students ranges from $4,000 to $2.96 million

• Average ICGA ranges from $1,932 to $38,561 (median award equals $9,258)


International Student Aid (see p.79)


’07-’08 Needy/Not Needy(see pp. 50-51)

• 68% percent of students at 54 responding schools were needy (range: 89% to 42%).– Total gift aid to needy

students = $595 million

– Average gift aid per needy student = $10,921


’07-’08 Needy Students(see p. 51)

• The average needy student at responding schools had demonstrated need of $20,651 in 2007-08 (range: $13,163 to $29,754)*

• On average, responding schools meet 53.1% of need with gift aid (range: 34% to 83%)

• 32/51 (63%) of responding schools meet between 44% and 64% of need with gift aid

* Handout has erroneous data from TIU


Loans ’07-’08 (see pp. 41-43)

• 66 survey respondents reported $723 million in total borrowing

• Of this $151 million was PLUS loans– Total PLUS borrowing exceeded $5 million at

7 schools– Average PLUS per enrolled student was

$1,324

• Average amount borrowed per enrolled student was $7,043


Loans as Percent of Tuition & Fee Revenue (see p. 44)

• Recorded loans (including PLUS) exceed 50% of tuition and fee revenue at 15 of 66 reporting schools (23%)

• Loans are less than 30% of tuition and fee revenue at 12 of 66 schools (18%)

• The median percentage is 39.6%


Average Student Loan Debt (see pp. 45-47)

• On average 76% of Spring ’08 graduates at 62 responding schools borrowed student loans (range: 31% to 98%).

• Their average debt was $24,530 (range: $14,153 to $42,375).– 45 of 62 (73%) of responding schools had average

debts ranging from $19,000 to $30,000

• Average debt equaled 131% of 2007-08 tuition and fees at each student’s school (range: 75% to 259%).



Part 3. Our Institutions(Financial Health)

• Enrollment• Tuition & Fee Revenue• Percent IGA funded• Discount Rates• Wealth Index• Awarding Philosophy• Preferential Packaging• Response to Demographics

2007-08 Enrollment (see p. 4)

• Of the 67 respondents:– 51 (76%) report non-traditional undergrads– 59 (88%) report graduate students

• Total F'07 undergraduate enrollment in traditional programs was over 99,000 (for the 67 reporting schools).

• Total year grad and undergrad enrollment was 201,377 (as reported on FISAP)


Tuition and Fee Revenue (see p. 17)

• The 66 responding schools reported ’07-’08 tuition & fee revenue of $2.344 Billion– Extrapolating to the entire CCCU membership, tuition

revenue at CCCU schools exceeds $3 Billion annually• 9.2% of tuition comes from non-traditional

undergrads (8.5% in ’06-’07; 9.2% in ‘05-’06)• 11.2% of tuition is from graduate students

(10.5% in ‘06-07; 9.5% in ’05-’06)• The percent of tuition from traditional

undergrads decreased from 81.3% in ’05-’06; to 81.0% in ’06-’07; to 79.6% in ‘07-’08


Percentage of Institutional Gift Aid (IGA) that is

“funded” (see p. 32)

• The typical (median) school reports that 5.3% of institutional gift aid (not including tuition remission) has a specific funding source (endowed or restricted).– 5 schools report that over 20% of IGA is funded.– 8 schools report between 10-20% of IGA is funded– 16 schools report that less than 3% of IGA is funded


Discount Rate Calculation

• Unfunded– "Unrestricted Institutional gift aid" divided by "tuition

and fee revenue"

• NACUBO– (Unrestricted institutional gift aid + endowed +

restricted) divided by "tuition and fee revenue"

• Neither calculation includes employee tuition remissions


’07-’08 Discount Rates(see p. 48)

• 66 schools reported unfunded discount rates from 9.6% to 55.1% (median 29.3%)– 67% of reporting schools had unfunded

discount rates between 23% and 37%

• The NACUBO discount rate for the same schools ranged from 10.2% to 60.2% (median 32.7%)


Estimated ’08-’09 Discount Rates (see p. 49)

• 65 Schools reported estimated unfunded discount rates from 11.6% to 47.2% (median 31.5%) in ’08-’09.– 67% of reporting schools had unfunded

discount rates between 24.7% and 37.6%

• The NACUBO discount rate ranged from 16.5% to 48.2% (median 34.6%) in ‘08-’09.


Sticker Price vs. Avg. Revenue(see p. 52)

• The median school reported average T&F revenue of 87% of their tuition “sticker price” (this represents the effect of less than full-time and less than full-year students).

• The range was from 59% to 111%

• 5 schools reported more than 100% or higher (possible sign of data error).


Price compared with Family Wealth (see pp. 53-55)

• The "wealth index" is an approximate measurement of expected parent contribution from non-independent student families (whether or not they show need).

• A positive variance means that, compared to the group, families are wealthier than the norm.


Awarding PhilosophyICGA awarding philosophy (see p. 56)


Awarding PhilosophySINK! (p. 57)

• 24 schools (38%) reduce (sink) need-based ICGA when awarding non-need-based ICGA.

• The percentage of “sink” ranges from 50% to 100%

• Many schools award ICGA using a matrix or leveraging formula


Awarding Philosophy:

Endowed Departmental Scholarships (see p. 58)

• 40 schools (61%) award endowed scholarships as “frosting” – no reduction in other ICGA

• 15 schools (23%) partially reduce other ICGA when an endowed scholarship is added

• 12 schools (18%) replace other ICGA with the endowed scholarship (100% sink)


Awarding Philosophy: Continuing Students (see p.59)

• Response to normal increases in need (e.g. tuition went up):– 18 schools (27%)

increase need-based ICGA

– 42 schools (63%) would not change need-based ICGA

• Do you recalculate non-need (merit) ICGA every year?– Yes: 19 schools

(29%)– No: 45 schools

(69%)


Awarding Philosophy: Dramatic Changes in Need (see pp. 60-61)

• Need increases dramatically:– 41 schools (68%)

increase ICGA– 10 schools (17%) do

not adjust ICGA– 3 schools (5%)

respond to appeals– 6 schools (10%) case-

by-case review

• Need decreases dramatically:– 38 schools (66%)

decrease ICGA– 16 schools (28%) do

not adjust ICGA– 4 schools (7%) case-

by-case review


Awarding Philosophy: Merit Aid in Excess of Need (see p. 62)

• Only 8 of 65 schools (12%) reported knowing how much of their merit aid actually met need.

• For these schools, most merit aid actually is within need (64% to 88%)

• Comment: distinguishing merit aid used to meet need is a prerequisite for the Common Data Set.


Preferential Packaging: Non-Academic Factors (p.63)


Preferential PackagingMaximum Institutionally Controlled Gift Aid (see p. 64)


Preferential PackagingImpact of Co-Application (see p. 65)

• Do you sweeten your initial package when prospective freshmen are co-applying to competing schools? 13 (19.4%) Yes 52 (77.6%) No 2 (3.0%) Sometimes

• Of the 13 who answered “yes,” how much? 3 = $1,000 or less 5 = $1,000-2,000 1 = over $2,000 2 = try to match 2 = no answer


Response to Demographic Changes (see p. 86)

• Impact of shifting demographics?– 37% not sure– 27% fluctuating

student pool– 25% declining pool– 10% increasing pool

• Finaid Involved?– 66% yes– 33% no

• Remedies for decline– 64% Expand Marketing– 51% Increase ICGA– 33% New Courses– 30% Limit Price Increase– 27% New Delivery

Systems– 6% Let Enrollment

Shrink



Part 4. Government Programs(Compliance)

• Federal Loan Programs

• Federal Gift Aid• Recent loan

turmoil• Codes of Conduct• “Red Flag” Rules• 09-10 Need

Analysis

http://dc.about.com/od/monuments/ss/MonumentPhotos_4.htm

Federal Loan Programs – 2008 (see pp. 13-15)

Direct Loan (DL) or FFELP? Number PercentRunning

Total

Participating in DL prior to Fall ’07 4 6.1% 6.1%

Switched from FFELP to DL for Fall ’07

1 1.5% 7.6%

Switched from FFELP to DL for Fall ’08

5 7.6% 15.2%

Plan to switch from FFELP to DL for Fall ’09

3 4.5% 19.7%

May switch from FFELP to DL for Fall ‘09

6 9.1% 28.8%

May switch from FFELP to DL for Fall ‘10 or beyond

9 13.6% 42.4%

Will remain in FFELP 38 57.6% 100.0%


’07-’08 Federal Gift Aid(see pp. 33-35)

• Average Pell grant (per enrolled student) ranges from $279 to $1,452.

• SEOG total funding represents anywhere from 5% to 61% of total Pell funding.


Average Federal Grants Per enrolled Student 2007-’08 (see p. 34)

Low Average High

SEOG $53 $145 $311

ACG $10 $46 $91

SMART $0 $18 $92

Pell $279 $791 $1,452


Pell Grant (all undergrads)Pell as % of Total Enrollment (see pp. 36-39)

• More than 35% of undergraduates receive Pell at 7 of 62 schools (11%)

• Less than 20% of undergraduates receive Pell at 17 of 62 schools (27%)

• Average percent receiving Pell = 26.4%• Percent receiving Pell ranges from 13.0 % to

45.6%


Change in # of Pell Grant Recipients (62 schools, see pp. 37-39)


Change in # of Pell Grant Recipients: 06-07 to 08-09

(62 schools, see pp. 37-39)

• 18 schools increased the # of Pell Grant recipients by 10% or more

• 13 schools increased by <10%

• 4 school stayed even

• 14 schools decreased by <10%

• 13 schools decreased by 10% or more


11/26/18 – 1/1/09

Federal TEACH Grant (see p. 83)


Recent Loan Turmoil (see p. 84)


Codes of Conduct (see p. 85)


FTC “Red Flag” Rules (see p. 87)


2009-2010 Need Analysis Changes (see p. 88)


Questions?

• Survey Participants receive a CD containing– Excel spreadsheet

with processed data and reports

– Slide show/handouts– Survey questions– Sample Codes of

Conduct


2008 cccu financial aid survey cccu financial aid administrators conference january 8-10, 2009 –...

Documents

director of financial

financial aid offices

bethel university jeff

bethel university slide

student financial services

recent cccu fin aid

california dan nelson

institutions financial