1. Division of Financial Aid Division of Financial Aid Update Prepared for PACADA 12/12/12

2. Division of Financial Aid What’s new in Financial Aid? Updated SAP Policy Plans for Plans documents New Website for DFA Push for Financial Literacy and Outreach Loan Analysis – for Purdue

3. Division of Financial Aid What’s new from D.C. Push to go to a single website as a starting point for all ED functions. Transparency? Federal Trending

4. Division of Financial Aid Satisfactory Academic Progress Checked after every semester Hope is to catch them before they get too much in debt that repayment becomes impossible for them to repay.

5. Division of Financial Aid Sliding Scale Credits completedMinimum GPA 0-141.50 15-291.60 30-441.70 45-591.80 60-741.90 75-892.00 90-1042.00 105+2.00 Grad / Prof2.00

6. Division of Financial Aid Plans Documents DFA is closely monitoring students progress toward their degree. Plans documents required for: –students who were less than full time during their last 2 semesters of enrollment –All Technology Statewide students –Any senior who appear to be graduating within the next semester (hours >105)

7. Division of Financial Aid New Web Site www.purdue.edu/DFA Easier to navigate More content Help for students, parents, alumni, future Boilermakers

8. Division of Financial Aid MyMoney Purdue DFA has adopted as part of its mission the importance of teaching the student financial literacy. MyMoney Powered by Purdue –www.purdue.edu/mymoney/www.purdue.edu/mymoney/ –Provides students tools to becoming financially responsible students and citizens Financial literacy presentations

9. Division of Financial Aid Loans at Purdue Much media coverage lately of student borrowing and that student loan debt has exceeded credit card debt. –CNN 12/6/12 –CNBC 10/18/12 Nationally, a 3 year default rate of 13.4% How does Purdue compare to other colleges?

10. Division of Financial Aid Purdue compared to Indiana Publics

11. Division of Financial Aid Purdue compared to other schools

12. Division of Financial Aid Student Loan Debt – Hype vs. Reality The hype is that student loan debt is crushing all college graduates-- that they have insurmountable debt. The reality is that 45% of Purdue students graduating with a Bachelor Degree have no student loan debt. The reality is that of the 55% who borrow the average amount for residents is $24,056 and $36,760 for non residents The reality is that of those who borrow 75% of Indiana residents borrow $30,694 or less. For non residents 75% borrow less than $45,000. The reality is that 97.2% of Purdue Students successfully repay their loans.

13. Division of Financial Aid 10% of Salary vs. 10 year payoff

14. Division of Financial Aid What’s new from Washington? Push for a unified student aid website –www.studentaid.govwww.studentaid.gov –One stop for all Federal aid programs Preparation Aid types / descriptions FAFSA application Loan Application / Loan counseling Repayment information

15. Division of Financial Aid Transparency Government has implemented a number of steps to allow for the comparison of schools under with a level playing field. Desire is to show families up front what they will need to come up with in terms of money out of pocket or through borrowing of loans.

16. Division of Financial Aid Step One – Net Price Calculator http://www.purdue.edu/apps/onepurdue/finaid/ Give students in the searching phase an idea of what they would be looking at in terms of cost

17. Division of Financial Aid Step Two – Shopping Sheet Still in the development state. –Banner will develop the formatting from specifications give to them by ED. Implementation with 2013-2014 academic year Will present a uniform view of aid so student can compare offers from different institutions.

18. Division of Financial Aid ED Mantra has become: Know before you go Know before you owe.

19. Division of Financial Aid More Money for Students Get the Right Aid to the Right Students at the Right Time –Increase number of areas government is tracking Increased burden upon financial aid offices Students can be selected for multiple items or only one. Obama Administration has asked for an increase to Pell funding for 2013-2014 –Pell is safe for 13-14. 2014-2015 has significant budgetary shortfalls Request is that interest rates on subsidized loans be held to 3.4%. If Sequestration happens, all bets are off.

20. Division of Financial Aid Time for Graduates ED recognizes that some people are having difficulty paying loans off in 10 years. ED has introduce proposals to allow for students to pay off loans based on income and time. –Allows for some loans to be partially forgiven –Should eliminate the possibility of default on student loans.