rescuing the financially fragile. what got you here…won’t get you there

Rescuing the Financially Fragile

What got you here…won’t get you there.

By the end of our 30-40 minutes together…

Grateful graduates

Attrition:

A.) Positive

B.) Negative

C.) Neutral

The longer s student remains at a given college or university, the higher the cost of losing that student becomes (Wetzel et al 1999)

Definitions……

Financially Fragile

Grateful Graduate

65% 75% 85%.....plus one

What do…

Waynesburg, Drexel, Gettysburg, Mercyhurst, Point Park, Susquehanna, Penn and 13 other PA schools have in common?

Definitions…..

Institutional Loan

Sound familiar?.....

a.) balance forward

b.) promissory note

c.) A/R’s > 90 days

Still an investment in ones self….

Institutional Loans:

Your “money”… Pros Cons Endless flexibility College is the lender Better than market I/R Lender assumes risk Low-cost/No-cost to student Cash flow implications School determines who Lender List not required School sets repay terms Forgivable balance

Graduation benefit Financial Literacy benefit

A partnership…..

Good debt…Bad debt

Creativity Administrative Compliance Quality Default Rate Cost

What have you accomplished if….

a rescued rising sophomore She comes back

Rising junior Rising senior

Yes…

a.) she persisted

b.) she graduated

c.) what if you helped her improve

1.) broke the cycle

Your CFO?…

Budget thoughts….

No capital requirements Budget

a.) set aside 5,000, 10,000, 50,000? b.) existing unfunded aid grant/scholarship c.) donor dollars

Not one dimensional…

Enrollment a.) without giving away more unfunded aid b.) appeals c.) summer school d.) grad school e.) study abroad f.) law students studying for bar

Who I am…

Bill Engler National Education Cell: 651-398-2998 Email: bengler@nationaled.net Booth here Always! Willing to visit

Results…

When rescuing the Financially Fragile, real examples.

1.) 2.) 3.)

Example of a $1,000 I/L with graduation and on-time pay benefits

What can it accomplish? provides an additional financing option for your students, giving your office financial

flexibility to meet your revenue goals while accommodating students’ varied financial needs

Low cost to families: with 25% principal forgiveness opportunities For example - if a student borrows $1,000, that student will pay back $800 over time (with earned

benefits)

Cash flow example: Student awarded $1,000 in an Institutional Loan $50 minimum monthly payment required With earned benefits, student will pay $750 in principal after 16 months of repayment Student pays ~$800 in principal and interest payments ($50 x 16) If serviced by an outside partner, less an estimated $60 in servicing fees ($3.75 x 16

payments) Your school receives $740 ($800 less servicing fees)

What you may have accomplished for an investment of $260: Student returns to school Improved your retention rate Graduated (grateful?) Improved your graduation rate Rescued tuition revenue otherwise lost Less expensive to retain vs. enroll

Retention Calculator – saved revenue