Rescuing the Financially Fragile

What got you here…won’t get you there.

By the end of our minutes together…

Grateful graduates

Attrition:  A.) Positive  B.) Negative  C.) Neutral  The longer s student remains at a given college or university, the higher the cost of losing that student becomes (Wetzel et al 1999)

Definitions…… Financially Fragile Grateful Graduate 65%75%85%.....plus one

What do…  Waynesburg, Drexel, Gettysburg, Mercyhurst, Point Park, Susquehanna, Penn and 13 other PA schools have in common?

Definitions….. Institutional Loan Sound familiar?..... a.) balance forward b.) promissory note c.) A/R’s > 90 days

Still an investment in ones self….

Institutional Loans:  Your “money”…  ProsCons  Endless flexibilityCollege is the lender  Better than market I/RLender assumes risk  Low-cost/No-cost to studentCash flow implications  School determines who  Lender List not required  School sets repay terms  Forgivable balance  Graduation benefit  Financial Literacy benefit

A partnership…..  Good debt…Bad debt  Creativity  Administrative  Compliance  Quality  Default Rate  Cost

What have you accomplished if….  a rescued rising sophomore  She comes back  Rising junior  Rising senior Yes… a.) she persisted b.) she graduated c.) what if you helped her improve 1.) broke the cycle

Your CFO?…

Budget thoughts….  No capital requirements  Budget  a.) set aside 5,000, 10,000, 50,000?  b.) existing unfunded aid grant/scholarship  c.) donor dollars

Not one dimensional…  Enrollment  a.) without giving away more unfunded aid  b.) appeals  c.) summer school  d.) grad school  e.) study abroad  f.) law students studying for bar

Who I am…  Bill Engler  National Education  Cell:   Booth here  Always! Willing to visit

Results…  When rescuing the Financially Fragile, real examples.  1.)  2.)  3.)

Example of a $1,000 I/L with graduation and on-time pay benefits  What can it accomplish?  provides an additional financing option for your students, giving your office financial flexibility to meet your revenue goals while accommodating students’ varied financial needs  Low cost to families: with 25% principal forgiveness opportunities  For example - if a student borrows $1,000, that student will pay back $800 over time (with earned benefits)  Cash flow example:  Student awarded $1,000 in an Institutional Loan  $50 minimum monthly payment required  With earned benefits, student will pay $750 in principal after 16 months of repayment  Student pays ~$800 in principal and interest payments ($50 x 16)  If serviced by an outside partner, less an estimated $60 in servicing fees ($3.75 x 16 payments)  Your school receives $740 ($800 less servicing fees)  What you may have accomplished for an investment of $260:  Student returns to school  Improved your retention rate  Graduated (grateful?)  Improved your graduation rate  Rescued tuition revenue otherwise lost  Less expensive to retain vs. enroll

Retention Calculator – saved revenue