LEVERAGING FINANCIAL AID TO INCREASE ENROLLMENT Presented by: Sharon K. Meyer

1. LEVERAGING FINANCIAL AID TO INCREASE ENROLLMENT Presented by: Sharon K. Meyer Vice President for Finance and Administration April 15, 2009

2. Financial Aid Steering Committee • Vice Presidents • Vice Provost • Executive Director of Enrollment Mgmt • CIO and Technical Support Staff • Scannell and Kurz (consultant) • Report issued in January • Ran predictive models – to be discussed • 35 recommendations • Financial Aid Task Force • Financial Aid • Admissions • Development • Student Accounts • Information Technology • Multicultural and Community Relations • Other Campus Stakeholders

3. NEW STUDENT PROFILE • 79.6% of entering Fall 2008 class were freshmen • 20.4% of entering Fall 2008 class were transfer students • 39% of entering freshmen for Fall 2008 have an SAT between 1000 – 1250 FINANCIAL AID STUDENT PROFILE • 67% of ASU students receive “gift aid” (funds that do not have to be repaid) • 75% of these students’ total ASU charges are covered by “gift aid” • Average student debt upon graduation is $11,306 • This is 31% below the “student debt average” in Texas

4. Scannell & Kurz, Inc. Conclusions: • “ …ASU is already close to optimal in its use of financial aid resources…” • “Although increasing institutional aid expenditures could help ASU grow, the resulting net revenues from tuition, fees, and the state allocation would not increase significantly unless the admit pool itself grows.” • “...financial aid strategies recommended are designed to be marketed in a manner that could help ASU build demand.”

5. Scannell & Kurz, Inc. Conclusions: • “…low cost and financial aid guarantees alone will not be enough to draw students from the state’s major population centers.” • “Achieving the significant growth called for in the President’s State of the University address, however, will require much more distinctive and compelling messages, informed by the comprehensive strategic plan currently in process.” RETURN ON INVESTMENT = VALUE

6. Initiatives Implemented by Fall 2009: • Blue and Gold Guarantee* • Encourage those students who might not otherwise apply • Fall 2009 – 140 students/project 30 additional students, Fall 2009 • Fall 2010 – 150 students/project 42 additional students, Fall 2010 * Note: Estimates based on projections from Fall 2007 and Fall 2008 data. • Graduate on Time Incentive • $1,500 financial incentive to encourage students to graduate in four years • Anticipate 225 Fall 2009 entering freshmen will accept and complete this contract • Transfer Incentive Scholarship • Capture some of over 90,000 community college students in ASU region • Spring 2009 – 20 transfer students each received $2,500 scholarships • Fall 2009 – we anticipate attracting an additional 32 transfer students due to this award. • Investigate programs that improve enrollment commitment Earlier financial commitment will diminish “no-shows”

7. Initiatives Implemented by Fall 2010: • All sources of financial aid will be administered by the Financial Aid Office • Departmental input will be accepted through pre-set deadline • Establish a point person for retention • Position has been created/search is underway • Carr scholarship distribution will be revised to focus on highest probability of recruitment (SAT 1000 – 1250) and retention rates

8. Changes in CARR Award Philosophy • Carr application process will be integrated with other scholarship processes. • Possible Scenario • Students who score the following will receive $3,000 per year • ACT = 28 to 36 and high school rank between 1 to 6% • SAT = 1250 to 1600 and high school rank is between 1 to 6% • Students who score the following will receive $2,000 per year • ACT = 21 to 28 and high school rank between 7 to 15% • SAT = 1000 to 1250 and high school rank between 7 to 15% • All programs currently funded by Carr will be consolidated to avoid duplication

9. Implications for “Needy and Worthy” students: • Need will be met through multiple financial aid programs, Carr being one but not the primary program • Priority of allocating awards will generally use the following sequence (within regulatory compliance): • Federal Funds • State Funds • Ram Grants (tuition set-aside funds) • Private Scholarships (donors) • Institutional Funds • Implications for Academic Merit Scholarships: • Communication to students will indicate amount of total award based on “merit,” including athletic and performing arts scholarships • Students receiving “merit” scholarships will be requested to complete FAFSA so that the maximum amount of aid can be made available to them

10. Transfer student scholarships will not be funded through Carr • New transfer scholarship funds will be created with incentive funding and/or other institutional sources after FAFSA completion • Scholarships for the Honors Program funded by Carr will be coordinated with general Carr scholarships • Additional incremental funding for Honors scholarships will come from private funds • Process Improvements: • Improve financial aid notifications to students • Examine deadlines so that award notices reach students faster • Make preliminary awards before Federal verification of FAFSA thereby increasing student commitment • Make Financial Aid Office and Student Accounts procedures more seamless through cross-training and access to information • Safely over award all financial aid funds