Aid Year 2012-2013 Update
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Aid Year 2012-2013 Update AAN September 20, 2012. National trends in Higher Education. Public flagship campuses are becoming academically more competitive, and there is criticism of this (elitism). R1 publics have placed renewed emphasis on the importance of undergraduate education.

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Aid Year 2012-2013 Update AAN September 20, 2012

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Aid year 2012 2013 update aan september 20 2012

Aid Year 2012-2013 Update

AAN

September 20, 2012


National trends in higher education

National trends in Higher Education

Public flagship campuses are becoming academically more competitive, and there is criticism of this (elitism).

R1 publics have placed renewed emphasis on the importance of undergraduate education.

Public support for higher education has been eroding, fast (MN state support drop from 703 to ~ 525 million)

The cost of a college degree has risen quickly. This has necessitated a commensurate growth in financial aid and private giving.

There is a national-level scrutiny on the need to improve retention/graduation rates.


Aid year 2012 2013 update aan september 20 2012

Tuition Considerations

Why tuition increases?

  • Competition for the very best faculty/staff

  • Cost of technology and infrastructure

  • Modern classrooms (STSS)

  • Decreasing of state support


Aid year 2012 2013 update aan september 20 2012

Financial Aid Considerations

Focus on student success

recruitment

retention

timely graduation

financial literacy

controlling debt

Institutional and policy considerations, to support student success

need-based aid

merit-based aid

middle-income scholarships

linking aid strategies to enrollment management

linking tuition strategies and aid strategies

Financial Aid Principles


5 year trends twin cities undergraduate student aid

5-Year TRENDS: Twin Cities Undergraduate Student Aid


University of minnesota tc undergraduates household income ranges

University of Minnesota TC UndergraduatesHousehold Income Ranges


Trends twin cities undergraduate student aid

TRENDS:Twin Cities Undergraduate Student Aid


Trends twin cities undergraduate student aid1

TRENDS:Twin Cities Undergraduate Student Aid


Trends twin cities undergraduate student aid2

TRENDS:Twin Cities Undergraduate Student Aid


Trends twin cities undergraduate student aid3

TRENDS:Twin Cities Undergraduate Student Aid


Trends twin cities undergraduate student aid4

TRENDS:Twin Cities Undergraduate Student Aid


Trends twin cities undergraduate student aid5

TRENDS:Twin Cities Undergraduate Student Aid


Student employment

Student Employment

  • In 2011-11, undergraduates across all five campuses earned over $30.7 million in University employment.

  • On the Twin Cities campus, over 12,000 undergraduates earned over $24.7 million that year.


Freshman academic scholarships u of m twin cities

Freshman Academic Scholarships U of M-Twin Cities

Principles for Central Freshman Scholarship Awards:

  • Attract high-achieving new freshmen students to the U of M and support their retention and timely graduation.

  • As a land-grant institution, we award the majority of freshman academic scholarships to Minnesota residents.

  • Scholarship awards are leveraged to enhance the diversity of the freshman class, broadly defined to include geographic, ethnic, socioeconomic, special talents, and leadership.

  • Central scholarship funding is leveraged by packaging students with central, college, and privately-funded scholarships.


Tc loans then and now

TC Loans: Then and now

FY 2000 FY 2010

Undergraduate Loan Volume $79,929,744 $177,049,505

Percent of undergraduate students borrowing 43% 54%

Average undergraduate amount borrowed $6,389 $10,004

Student Loan Indebtedness for 2009-10

Baccalaureate Graduates without PLUS

% of Grads Average

Twin Cities66% $27,089

10


Estimated minimum salary required for loan payment

Estimated Minimum Salary Required for Loan Payment

Assumes 10-year repayment cycle, 6.8 % interest rate on loan, and 8% maximum of income for loan repayment.


Undergraduate student aid the current picture

Undergraduate Student Aid:The current picture


2012 2013 cost of attendance twin cities campus minnesota resident undergraduate living on campus

2012-2013 Cost of AttendanceTwin Cities CampusMinnesota Resident Undergraduate Living on Campus

Tuition & Fees: $13,524

Books & Supplies: 1,000

Room & Board: 8,000

Transportation: 194

Personal/Misc: 2,000

Total

Cost of Attendance: $24,872


Typical aid packages at various income levels mn resident undergraduate 2011 12

Typical Aid Packages at Various Income Levels, MN Resident Undergraduate, 2011-12


Aid year 2012 2013 update aan september 20 2012

Mean Cost of Attendance in FY 2011 was $22,666

Fall 2010 TC Full-Time MN Resident Enrollment = 20,180 (69% of FT Undergraduates)


Aid year 2012 2013 update aan september 20 2012

Affordability

  • Strong need-based aid programs (U of M Promise)

  • Financial Literacy Programs

  • Controlling tuition increases

  • Improving graduation rates


Aid year 2012 2013 update aan september 20 2012

Financial Aid Strategies

  • The University’s financial aid strategies will be linked to University and state goals and priorities. These strategies will be evaluated regularly, and adjusted as necessary, to improve effectiveness of spending as it relates to institutional and state goals.

  • Financial aid packages will be tailored to each student’s circumstances and may include a variety of forms of need-based and/or merit-based aid from numerous sources including, but not limited to, University funds, federal and state aid programs, external scholarships and donor-directed funds


Aid year 2012 2013 update aan september 20 2012

Financial Aid Strategies

  • As a public institution, the University supports access for qualified students, and its review of applicants for undergraduate admissions is need-blind. A student’s ability to pay is not a factor in determining admissibility.


Four year graduation rates twin cities campus

Four-Year Graduation Rates, Twin Cities Campus


Seru survey results

SERU Survey Results

How frequently have you engaged in the following behaviors in the past year?

Cut down on personal / recreational spending

4% never

6% rarely

23% occasionally

23% somewhat often

25% often

20% very often


Seru survey results1

SERU Survey Results

How frequently have you engaged in the following behaviors in the past year?

Worried about my personal debt

14% never

14% rarely

16% occasionally

16% somewhat often

18% often

23% very often


Aid year 2012 2013 update aan september 20 2012

Were the benefits you received from attending the University of Minnesota worth the financial costs to you and your family?


The importance of graduating in four years

The importance of graduating in four years


Graduating in more than four years impact on student debt

Graduating in More than Four Years:Impact on Student Debt

For the Twin Cities fall 2002 cohort:

  • 58.3% of the students who graduated in four years borrowed, with an average student loan indebtedness of $21,674.

  • 67.4% of the students who graduated in five years borrowed, with an average student loan indebtedness of $23,220.

  • 70.6% of the students who graduated in six years borrowed, with an average student loan indebtedness of $24,625.


Fiscal literacy

Fiscal Literacy

  • Information on the student One Stop website

  • “Live Like A Student Now So You Don’t Have to Later” messaging

  • Financial Literacy workshop on the student portal in October

  • Welcome Week workshop in fiscal planning

  • All students are given a state-required financial literacy pamphlet at Orientation

  • Mind Your Money Questions


Live like a student now fiscal literacy campaign

“Live Like A Student Now…”Fiscal Literacy Campaign


Final points

Final Points

  • The University’s financial aid strategy (need and merit-based) cannot be separated from tuition discussions.

    • Continue U of M Promise for low-income and middle income

    • Increase private giving for scholarships

    • Target resources to recruit and retain high-ability students

    • Continue emphasis on financial literacy

  • Adequate financial aid is essential to ensure that students who enroll at the University of Minnesota can graduate in four years.

  • Continued student support in all forms is essential (e.g., improved advising)

  • One of the best ways for students to manage the costs of their education is to graduate in four years.


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