Presentation on theme: "Presenters: Jo Young Switzer, President Manchester College John Beacon, Vice President Indiana State University Jim Kennedy, Associate Vice President Indiana."— Presentation transcript:
Presenters: Jo Young Switzer, President Manchester College John Beacon, Vice President Indiana State University Jim Kennedy, Associate Vice President Indiana University Thomas Ratliff, Associate Vice President Indiana Wesleyan University Moderator : Mark Franke, Associate Vice Chancellor Indiana University-Purdue University Fort Wayne
Financial Aid Jo Young Switzer, President Manchester College
Indiana Independent Colleges & Universities n=31 Enroll 22 percent of Indiana college students Receive no state funds directly I.C.I. – coordinating organization
What to do? Celebrate student choice Advocate for funds for higher ed Work together!
1636: For the first 226 years of this country’s history, access to college was reserved for the wealthy and privileged 1862 Land Grant Movement opened the door for the first time to the average person 1952 Serviceman’s Readjustment Act 1958 Eisenhower’s National Defense Student Loan (Perkins) 1964 Johnson’s Great Society and Civil Rights Movement (work study and GSL) 1972 Pell Grant—the foundation on which other aid is built
Over the past 20 years, the student share of public universities costs of tuition and fees has roughly doubled In each of the past 10 years, tuition and fees at public universities has increased an average of 5.6% beyond the rate of inflation. The tuition and fees at public four-year institutions in on average is 7.9% higher than in The Chronicle of Higher Education and College Board
over the past five years, as the average tuition and fees at public four-year institutions has increased by approximately 24%, the average direct cost of attendance has declined— after considering grant aid. The total grant aid for a full-time student grew by 22% ($1,100) between and , largely because of the increase in Pell Grants and Veterans’ benefits. Still…In constant 2009 dollars, the average Stafford loan in was $5,670 and in it was $6,550, an annual increase over the past 10 years of $880 The Chronicle of Higher Education and College Board
SOURCE: The College Board, Trends in Student Aid 2010, Figure 2A.
SOURCE: The College Board, Trends in Student Aid 2010, Figure 8A.
SOURCE: The College Board, Trends in Student Aid 2010, Figure 11A.
Although slow and steady growth is predicted, Indiana’s economy is not expected to recover until at least 2014 Indiana per capita income is $33,725 ($5,413 below national average) Poverty rate: 13.1% (nearly 1% higher than the national average) 24.7% of population is less than 18 years old; 38.9% is 50 or older Currently 5.5% are Hispanic (Note: 35% of children under age 5 in the US are Hispanic—fastest growing population and 12 years from our front doors) By 2025, 70% of the US population will be in nine southern states
Need-based institutional aid is slowly being eroded by merit scholarships (stealing from the poor to give to the rich) State appropriations have declined by approximately one-third since 1999, and are not likely to rebound soon—pushed more of the cost onto students. We fill the “unmet need gap” for first-year students with parent and auxiliary loans Faculty frequently advise students to drop classes with little regard for the impact SAP can have on their persistence. Millennial students are comfortable taking web courses, which could impact future course delivery, and ultimately reduce the number of colleges and universities serving traditional age students. We are unprepared to meet the number and the needs of a growing minority population who may be less prepared academically and financially. The retirement of a more active Baby-boomer generation will provide opportunities and challenges (curricula selection and fixed incomes).
Among the 36 industrial nations in the world, we have slipped from 1 st place to 12 th place in the number of citizens who have earned bachelors degrees…behind countries like Japan, Russia and Germany For every 20 children born in the US, 16 graduate from high school, 10 go on to college, and five graduate—that’s 1:4 Our nation’s leadership role end economic security as China becomes a superpower within 10 years, without well educated citizens.
Technology initiatives important for the recruitment and retention of students Technology in the financial aid office Net Price Calculator Scholarship automation Early Warning Systems Customer Relationship Management (CRM) Financial Literacy Financial Aid Systems
Net price Award letter standards Prior-Prior Year Institutional aid
To Be, or Not To Be: Financial Aid Administration Thomas M. Ratliff Associate Vice President for Financial Aid Indiana Wesleyan University
Changing of the Guard Many prominent financial aid professionals are reaching retirement age Institutions offering early out options due to budget challenges Increased regulatory requirements are giving added incentive to leave the field This will cause a substantial loss of experience within the industry Institutions may begin to see challenges in hiring well seasoned financial aid leadership
The Next Generation Young aid administrators entering the field Less face-to-face training being offered nationally Student populations increasing rapidly, may cause institutions to lean more towards specialization of duties for staff If so, less need may be perceived for fully trained, well-rounded financial aid professionals Fewer opportunities for the next generation to become acclimated to the big picture issues
Association Survival Challenges Each of the regional financial aid associations is currently facing an identity crisis State association memberships in our region have fluctuated in recent years, with a downward trend Loss of many associate members and organizations reducing volunteer base to do the work of the associations
Need: Congressional Torchbearers Recent elections and deaths have brought changes to the Congressional players list Key financial aid supporters are missed Such representatives regularly contributed to policies that were favorable to our campuses Without a strong supportive internal voice, financial aid could quickly become a target for national and state budget cuts to overcome deficits
The Rise of Non-term Financial Aid More institutions are realizing that students of all ages want more control in the delivery of their educational experience The growth of online education options stems from this increase in demand Generally, financial aid policies are written for term-based institutions Non-term financial aid processing is a completely different world
The Rise of Non-term Financial Aid Little regulatory guidance, but heavy scrutiny Complex academic calendars, often unique to the individual student Difficult to program tracking and packaging Repetition of work is constant The manual intensity of processing aid for such students will give reason for an increased skilled labor force Yet these factors could be overlooked in the pursuit for higher enrollment numbers
Increased Regulation The regulatory burden and restrictions are likely to increase This complicates the ability of institutions to use the financial aid programs effectively for students ▫See: ACG, SMART, TEACH, Two-Pells-In-An-Award-Year An increasing number of institutions may bolster their endowments and turn away from federal and state funding
Financial Aid Administrators – still? Will we continue to have a voice on financial aid policy? Will the next generation of leaders gain sufficient experience? Will institutions meet the challenge all the complexity aid administration brings?