Perspectives on College Access, Savings and Debt Diane Auer Jones

1. Perspectives on College Access, Savings and Debt Diane Auer Jones Assistant Secretary for Postsecondary Education U.S. Department of Education

2. College Attendance Rates

3. Helping Students MakeInformed Choices • FAFSA4Caster • College Navigator • FIPSE Student Achievement and Institutional Performance Pilot Project • AAC&U, ASCU, & NASULGC

4. Federal Student Aid * Estimate

5. Pell Grant Maximum Awards 2000-2012 Fiscal YearAward YearAuthorizedAppropriated 2000 2000-01 $4,800 $3,300 2001 2001-02 $5,100 $3,750 2002 2002-03 $5,400 $4,000 2003 2003-04 $5,800 $4,050 2004 2004-05 $5,800 $4,050 2005 2005-06 $5,800 $4,050 2006 2006-07 $5,800 $4,050 2007 2007-08 $5,800 $4,310 2008 2008-09 -------- + $490 2009 2009-10 -------- + $490 2010 2010-11 -------- + $690 2011 2011-12 -------- + $690 2012 2012-13 -------- +1,090

6. Academic Competitiveness Grants • Pell Grant Eligible Enrolled Full-Time & U.S. Citizen • Rigorous Secondary School Program of Study • Recognized State-submitted programs; or • Courses similar to State Scholars Initiative; or • 2 AP Courses with test score of 3 or better; or • 2 IB Courses with test score of 4 or better • Award Size: $750/$1300 • 2006: • $233,038,410 awarded to 299,089 students http://www.ed.gov/admins/finaid/about/ac-smart/state-programs06.html • http://www.ed.gov/admins/finaid/about/ac-smart/2007/state-programs-07.html

7. National SMART Grants Eligibility: Pell Grant Eligible Enrolled Full-Time & U.S. Citizen 3rd and 4th year college students enrolled in and making progress toward a degree in STEM or Critical Needs Foreign Language; GPA 3.0 or better. Award Size: $4000 2006 - $195,544,735 awarded to 60,976 students Changes Additional SMART Majors added Enrollment requirements clarified

8. Federal Student Loan Volume (FFEL & Direct Loans) $ millions

9. Average Federal Student Loan Debt Undergraduate students with a 4-Year Degree (Percent of students borrowing) 66% 62% 58% 40%

10. Average Federal Student Loan Debt Monthly Payment $411 Monthly Payment $207

11. Ripped from the Headlines…Last Year Lenders Misusing Student Database Improper Searches Raise Privacy Fears Swimming With Student Loan Sharks University named in report detailing student loan abuse Panel Finds Wide Abuse in Student Loan Program Rules proposed to curb loan abuse

12. Loan crisis goes to college Paying for college could get even tougher this year as smaller lenders tighten standards and raise rates. But big banks are holding the line. Credit Crisis May Make College Loans More Costly Some Firms Stop Lending to Students The coming student loan crunch If you're counting on borrowing money for college next semester, get your paperwork going now. Lenders are backing away fast. Ripped from the Headlines…This Year

13. College Cost Reduction & Access Act Increased Pell Grants TEACH Grants* Loan Forgiveness for Public Service Employees* PLUS Auction Pilot College Access Challenge Grants * - Requires negotiated rulemaking

14. Lender-of-Last Resort Authority: all FFEL loan types, except Federal Consolidation Loans, must be made available an entire institution can be designated, through June 30, 2009, as eligible for LLR loans for students and parents of dependent students attending the institution Authority to purchase from FFEL lenders Stafford and PLUS loans: Loans must have been first disbursed on or after October 1, 2003, but before July 1, 2009. Annual loan limits for Unsubsidized Stafford Loans in both the: FFEL and Direct Loan programs were increased. For Both the ACG and National SMART Grant programs: Eliminates the restriction to U.S. citizens now allowing eligible non citizens to receive grants. Allows awards to students enrolled less than full-time but at least half-time, with proportionally reduced maximum awards the same way as the Pell Grant Program. The Ensuring Continued Access to Student Loans Act of 2008

15. Thank you!