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Impact of the Economy on Higher Education and Financial Aid. David Rice St. Louis College of Pharmacy. Top 10 Things Vanishing in America.

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Impact of the Economy on Higher Education and Financial Aid

David Rice

St. Louis College of Pharmacy

Top 10 Things Vanishing in America

  • 10. The Milkman - According to the U.S. Department of Agriculture, in 1950, over half of the milk delivered was to the home in quart bottles, by 1963, it was about a third and by 2001, it represented only 0.4% percent. Nowadays most milk is sold through supermarkets in gallon jugs. The steady decline in home-delivered milk is blamed, of course, on the rise of the supermarket, better home refrigeration and longer-lasting milk. Although some milkmen still make the rounds in pockets of the U.S., they are certainly a dying breed.

Top 10 Things Vanishing in America

  • 9. Hand-Written Letters - In 2006, the Radicati Group estimated that, worldwide, 183 billion e-mails were sent each day. Two million each second. By November of 2007, an estimated 3.3 billion Earthlings owned cell phones, and 80% of the world's population had access to cell phone coverage. In 2004, half-a-trillion text messages were sent, and the number has no doubt increased exponentially since then. So where amongst this gorge of gabble is there room for the elegant, polite hand-written letter?

Top 10 Things Vanishing in America

  • 8. Wild Horses - It is estimated that 100 years ago, as many as two million horses were roaming free within the United States. In 2001, National Geographic News estimated that the wild horse population had decreased to about 50,000 head. Currently, the National Wild Horse and Burro Advisory board states that there are 32,000 free roaming horses in ten Western states, with half of them residing in Nevada. The Bureau of Land Management is seeking to reduce the total number of free range horses to 27,000, possibly by selective euthanasia.

Top 10 Things Vanishing in America

  • 7. Personal Checks - According to an American Bankers Assoc. report, a net 23% of consumers plan to decrease their use of checks over the next two years, while a net 14% plan to increase their use of PIN debit. Bill payment remains the last stronghold of paper-based payments -- for the time being. Checks continue to be the most commonly used bill payment method, with 71% of consumers paying at least one recurring bill per month by writing a check. However, on a bill-by-bill basis, checks account for only 49% of consumers' recurring bill payments (down from 72% in 2001 and 60% in 2003).

Top 10 Things Vanishing in America

  • 6. Drive-in Theaters - During the peak in 1958, there were more than 4,000 drive-in theaters in this country, but in 2007 only 405 drive-ins were still operating. Exactly zero new drive-ins have been built since 2005. Only one reopened in 2005 and five reopened in 2006, so there isn't much of a movement toward reviving the closed ones.

Top 10 Things Vanishing in America

  • 5. Mumps & Measles - Despite what's been in the news lately, the measles and mumps actually, truly are disappearing from the United States. In 1964, 212,000 cases of mumps were reported in the U.S. By 1983, this figure had dropped to 3,000, thanks to a vigorous vaccination program. Prior to the introduction of the measles vaccine, approximately half a million cases of measles were reported in the U.S. annually, resulting in 450 deaths. In 2005, only 66 cases were recorded.

Top 10 Things Vanishing in America

  • 4. Honey Bees - Perhaps nothing on our list of disappearing America is so dire; plummeting so enormously; and so necessary to the survival of our food supply as the honey bee. 'Colony Collapse Disorder,' or CCD, has spread throughout the U.S. and Europe over the past few years, wiping out 50% to 90% of the colonies of many beekeepers -- and along with it, their livelihood.

Top 10 Things Vanishing in America

  • 3. News Magazines and TV News - While the TV evening newscasts haven't gone anywhere over the last several decades, their audiences have. In 1984, in a story about the diminishing returns of the evening news, the New York Times reported that all three network evening-news programs combined had only 40.9 million viewers. Fast forward to 2008, and what they have today is half that.

Top 10 Things Vanishing in America

  • 2. Analog TV - According to the Consumer Electronics Association, 85% of homes in the U.S. get their television programming through cable or satellite providers. For the remaining 15% -- or 13 million individuals -- who are using rabbit ears or a large outdoor antenna to get their local stations, change is in the air. If you are one of these people you'll need to get a new TV or a converter box in order to get the new stations which will only be broadcast in digital.

Top 10 Things Vanishing in America

  • 1. The Family Farm - Since the 1930s, the number of family farms has been declining rapidly. According to the USDA, 5.3 million farms dotted the nation in 1950, but this number had declined to 2.1 million by the 2003 farm census (data from the 2007 census hasn't yet been published). Ninety-one percent of the U.S. farms are small family farms.

Who is in the ROOM

Why this SESSION


St. Louis College of Pharmacy

Why St. Louis College of Pharmacy

  • We do ONE THING – Six Year Professional Program

    • It eliminates the clutter

  • We’ve been SUCCESSFUL

    • Quantity & Quality


      What do STUDENTSNEED

Why St. Louis College of Pharmacy

  • Students NEED

  • A PLAN to complete a DEGREE

  • They need a great VALUE

Why St. Louis College of Pharmacy

  • We KNOW our students – WHY DO THEY COME

  • Direct Entry to a professional program …and

  • We’re close to home…

  • We’re a small school…and

  • We developed a PLAN to pay for a DEGREE

  • We took the FEAR out of Financial Aid with personalized SERVICE

STATE OF THE “UNION” Where are you with your Goals

  • Do you have good Academic & Financial PLANS?

    • Quantity & Quality – how do you shape your class

    • Discount Rate / Budget

    • Endowment

  • WHY do students come to your school?

  • Why do they LEAVE?

  • Do you look good NOW and in the FUTURE?


Why Does College Cost So Much? (Forbes)

"Most of what is written about rising college costs places primary blame on a dysfunctional university system," write David Feldman and Robert Archibald, professors of economics at the College of William and Mary, in Forbes.

"Like many large organizations, American universities could be made more efficient, but our review of the evidence convinces us that the primary forces that are driving up costs are not to be found by scouring the account books of colleges for examples of waste. ... Instead of holding up a magnifying glass to the industry, we take an aerial view. The view from above shows us different things.

Rising college costs are an important byproduct of broad economic forces that have reshaped the entire economy, and in particular of the technological progress that has so dramatically raised living standards over time."

You can read the complete Aug. 12, 2010 Forbes article on-line.


  • Fall of 2008 rose to 41.8 percent, up from 39.1 percent in the previous academic year.

  • The average discount rate jumped rapidly from 1990 to 2002, rising from 27 percent to 39 percent. But rates had been stable since 2002, hovering around 38 percent.

  • On average, 12 percent of grant aid in the fall of 2008 came from endowment money.

  • Endowments worth more than $1-billion paid for 34 percent of grant aid with those endowment assets, compared with 6 percent of grant aid supported by endowment earnings for colleges with endowments valued at $25-million or below.



    FY 2008 Official Cohort Default Rates To Be Released on Sept. 13

    • Department officials have been warning institutions that the combination of the economic downturn and the new three-year rates could increase CDRs to surprising levels.

    • At NASFAA's National Conference, Department officials said that their calculations show the change from a two-year CDR to a three-year CDR will increase cohort default rates anywhere from 30 to 50 percent for most schools.


    New Analysis of Student Loan Repayment Rates (San Francisco Chronicle)

    "A large percentage of borrowers who left college in the past four years made no principal payments on their federally guaranteed student loans in 2009, according to the Department of Education," the San Francisco Chronicle reports.

    This is the first time the department has calculated and published repayment rates for every college and university whose students get federal loans. The data, released Aug. 13, should be a wake-up call to taxpayers, who will be on the hook if these loans are never repaid, and to students who wonder whether they'll earn enough to repay them.

    Repayment rates vary widely from college to college. ... Prospective students who need to borrow for college should take the data into consideration before choosing a school, but it's important to understand them."

    You can read the complete Aug. 25, 2010 San Francisco Chronicle article on-line.


    Effects of Debt Level and Income on Default

    The analysis by Mark Kantrowitz, publisher of and, shows that

    • default rates decrease as income increases

    • with default rates leveling off at less than 2 percent for borrowers with incomes of $60,000 or more.

    • Default rates are more than 25 percent for borrowers with incomes of $15,000 and just under 15 percent for those making $20,000.


    Student-Loan Debt Surpasses Credit Cards (Wall Street Journal)

    "Americans owe some $826.5 billion in revolving credit, according to June 2010 figures from the Federal Reserve. (Most of revolving credit is credit-card debt.)

    Student loans outstanding today-- both federal and private -- total some $829.785 billion,

    • $605.6 billion in federal student loans outstanding

    • $167.8 billion in private student loans outstanding.

    • $300 billion in federal student loan debts have been incurred in the last four years."

      You can read the complete Aug. 9, 2010 Wall Street Journal article on-line.




    St. Louis College of Pharmacy


    TUITION = $12,000


    TUITION = $22,400


    AVERAGE SALARY 2006 2007

    Household$ 50,233

    Women$ 33,437$ 35,102

    Men$ 44,460$ 45,113


    2008-09TUITION % of Household Income

    Public Two-year$ 2,4024.8%

    Public Four-Year$ 6,58513.1%

    Private Four-Year $ 25,14350.1%

    Private Doctoral $ 31,06861.8%


    TUITION % of Household Income

    Public Two-year$ 3,7265.5%

    Public Four-Year$ 10,21515.1%

    Private Four-Year$ 39,00557.8%

    Private Doctoral $ 48,19471.4%

    TUITION PROJECTIONS 20 Years & 30 Years

    TUITION % of IncomeTUITION% of Income

    Public Two-year$ 6,070 6.7%$ 9,887 8.1%

    Public Four-Year$ 16,640 18.3%$27,105 22.2%

    Private Four-Year$ 63,535 70.0%$103,492 84.9%

    Private Doctoral $ 78,502 86.5%$127.872 104.9%

    TUITION PROJECTIONS 40 Years & 50 Years

    TUITION % of IncomeTUITION% of Income

    Public Two-year$ 16,105 9.8%$26,233 11.9%

    Public Four-Year$ 44,151 26.9%$71,917 32.7%

    Private Four-Year $168,578 102%$274,595 124%

    Private Doctoral $208,290 127%$339,282 154%


    2107TUITION % of Household Income

    Public Two-year$ 300,82531.2%

    Public Four-Year$ 824,70185.4%

    Private Four-Year$3,148,892326.2%

    Private Doctoral $3,890,684403.0%



    First scholarship established by Lady Anne Radcliffe Mowlson at Harvard University


    First student loan program at Harvard University


    Authorized creation of US Department of Education

    HISTORY - 1900

    POPULATION Avg SALARYWORK WEEK75 Million$ 12.98 / Week 59 Hours *$48 Million in U.S. Treasury*8,000 Cars*10 Miles of paved roads

    HISTORY - 1910

    POPULATIONUNEMPLOYMENTAnnual SALARY92.4 Million 2,150,000$750

    $1.15 Million National DebtZiegfeld Girls earned $75 per week

    HISTORY - 1920

    POPULATIONUNEMPLOYMENT Annual SALARY106.5 Million 2,132,000 $1236

    Annual Teacher Salary = $970Life Expectancy

    Male = 53.6 Years Female = 54.6 Years

    HISTORY - 1930

    POPULATIONUNEMPLOYMENTAnnual SALARY123.8 Million25% $1368

    • $100 = $1204.42 (2005 dollars)

    • New House=$7,145 ($3,800 by 1939)

    • New Car=$ 640

    • Gallon of Gas=10 cents

    • Life Expectancy=Male = 53.6Female = 54.6

    • Huey Long proposes minimum national income of $2498

    HISTORY - 1940

    POPULATIONUNEMPLOYMENTAnnual SALARY132.1 Million 8,120,000 $1725

    • $100 = $1433.77 (2005 dollars)

    • New House=$3,920

    • New Car=$ 850

    • Gallon of Gas=11 cents

    • Life Expectancy=Male = 60.8Female = 68.2

    • 55% of US homes have indoor plumbing


    HISTORY - 1950

    POPULATIONUNEMPLOYMENTAnnual SALARY151.7 Million 3,288,000 $3,210

    • $100 = $ 835.41 (2005 dollars)

    • New House=$8,450

    • New Car=$1,510

    • Gallon of Gas=18 cents

    • Life Expectancy=Male = 65.6Female = 71.1

    • Labor force male / female 5 / 2

    HISTORY - 1960

    POPULATIONUNEMPLOYMENTAnnual SALARY177.8 Million 3,852,000 $5,315

    • $100 = $ 679.09 (2005 dollars)

    • New House=$12,700

    • New Car=$ 2,600

    • Gallon of Gas=25 cents

    • Life Expectancy=Male = 66.6Female = 73.1

    • Estimated 850,000 “war baby” freshman enter college


    HISTORY - 1960,29307,1638066_1398331,00.html

    HISTORY - 1960,29307,1638066_1398331,00.html,29307,1638066_1398351,00.html

    HISTORY - 1960,29307,1638066_1398331,00.html

    HISTORY - 1960,29307,1638066_1398331,00.html

    HISTORY - 1960,29307,1638066_1398331,00.html

    The Great Society

    The Great Society is a place where every child can find knowledge to enrich his mind and to enlarge his talents.,29307,1638066_1398331,00.html

    The Great Society

    Higher Education Act of 1965, PL89-329

    Authorized most federal student financial aid programs, including the

    • Educational Opportunity Grant Program

    • Guaranteed Student Loan Program

    The Great Society

    HISTORY - 1970

    POPULATIONUNEMPLOYMENTAnnual SALARY204.8 Million 4,088,000 $9,350

    • $100 = $ 517.65 (2005 dollars)

    • New House=$23,400

    • New Car=$ 3,900

    • Gallon of Gas=36 cents

    • Life Expectancy=Male = 67.1Female = 74.8


    HISTORY - 1980

    • POPULATIONUNEMPLOYMENTAnnual SALARY226.5 Million $19,170

    • $100 = $ 243.45 (2005 dollars)

    • New House=$ 68,714

    • New Car=$ 7,210

    • Gallon of Gas=$ 1.19

    • Life Expectancy=Male = 69.9Female = 77.6

    • Forbes list of richest people become more important than 500 largest companies


    HISTORY - 1990

    POPULATIONUNEMPLOYMENTAnnual SALARY281.4 Million 5,800,000 $28,970

    • $100 = $ 153.76 (2005 dollars)

    • New House=$123,000

    • New Car=$ 16,000

    • Gallon of Gas=$ 1.34

    • Life Expectancy=Male = 73.1Female = 79.1

    • World Wide Web is born

    • NATIONAL DEBT = $5.4 TRILLION 1997


    HISTORY - 2000

    POPULATIONAnnual SALARY300 Million $40,343

    • New House=$134,150

    • New Car=$ 24,750

    • Gallon of Gas=$ 1.26

    • NATIONAL DEBT = $10.25 TRILLION2008


    • That’s how we got


    • How do we get THERE…


    • We offer these PROGRAMS because…

    • We recruit these STUDENTS from these AREAS because…

    • These are our ADMISSIONS CRITERIA because…

    • We COST this much because…

    • We DISCOUNT this much because…

    • We HIRE this type of person because…

    • We are SUCCESSFUL because…

    • We are NOT successful because…

    Being REAL

    We are done with GIMMICKS!

    If you build it they will come…

    …and so will the BILL$


    • You need to KNOW what your students need

      • That may vary from program to program

    • You need a PLAN to meet those needs

    • You need to KNOW what it will COST to implement the PLAN

    • You need to KNOW how much it will cost if you DON’T implement the plan



      • Create a centralized CLEARINGHOUSE

    • Simplified needs analysis – ELIMINATE THE FAFSA

      • Download need base information from the IRS


      • Authorize information flow with your PIN (electronic signature)

        • Academic information sent to each school from the clearing house

        • Financial information sent from “IRS”


    • The Higher Education Act was created in 1964 –

      the world has changed

      • 70% of high school students go on to some form of higher education

      • 30% achieve a bachelor’s degree

      • Do you have a plan for the other 40%?


    • The fastest growing part of society is the least educated

    • How much will it cost to educate them?

    • How much will it cost if they remain uneducated?



    David Rice

    St. Louis College of Pharmacy

    (314) 446-8320

    Idealismis fine,

    but as it approaches reality

    the cost becomes PROHIBITIVE.- William F. Buckley Jr.

    Idealismincreases in direct proportion to one’s distance from the problem.- John Galsworthy

    An idealist

    is one who, on noticing that a


    smells better than a cabbage, concludes that it will also make better soup.

    - H. L. Menck

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