1. October 7, 2016 Lee Andes 804-225-2614 leeandes@schev.edu
VASFAA Fall Workshop
October 7, 2016
Lee Andes

2. Budget Reductions
Financial Aid Recommendations
Cybersecurity Public Service Scholarship
New Economy Workforce Credential Grant
Student Loan Refinance
Joint Subcommittee
Legislative Questions

3. Budget Reductions
SCHEV (most state agencies) has been asked to prepare for 5% budget cut for FY17
Higher education otherwise unaffected… so far
Impact on FY18 will depend upon further revenue revisions and General Assembly priorities

4. Financial Aid Recommendations
Council will consider raising maximum TAG award to $3,350 or more for FY18

5. Financial Aid Recommendations
Two Year College Transfer Grant is short $900,000 for FY17 and $1.9 million FY18. Council will request funds to cover the shortage.

6. Financial Aid Recommendations
Need-based aid recommendation is still under review. Won’t be a large ask after getting a $24 million increase, budget reductions, and decreasing # of students demonstrating need.
Data reflects that the number of students demonstrating financial need is declining, which has resulted in about $30 million less need for FY18 than projected last year.

7. Financial Aid Recommendations
Institutions losing students demonstrating need: CNU -13.8%, LU -6.1%, NSU -10.6%, UVA-Wise -6.2%, VMI -18.7%, VSU -4.5%, and VCCS -5.3%
Gaining: GMU +7.8%, JMU +6.6%, ODU +4.2%, UMW +2.7%, VCU +4.2%, Tech +2.6%

8. Cybersecurity Public Service Scholarship
$500,000 appropriation per year
Must work for one year at Virginia public agency for each year of award.
Students enrolled into an approved degree program leading to career in cybersecurity
Full-time, 3.0 GPA
Be within two years of graduation
$20,000 award split into two $10,000 payments

9. Cybersecurity Public Service Scholarship
Received over 80 applications
Will award 25 students, prioritized by degree level and then application date
application period is now closed
Anticipate a very mixed group of scholarship recipients with awards split half graduate level and half undergraduate
Received applications from CWM, GMU, JMU, Longwood, NSU, Radford, VCU, VT, GWU, Hampton, Liberty, Regent, TCC, NVCC, JTCC, and PDCC

10. Cybersecurity Public Service Scholarship
award announcements expected in the next couple of weeks
application will open in early summer
During , we will be working on completing our list of approved cybersecurity programs:

11. New Economy Workforce Credential Grant
Grants for programs leading to a high demand credential
Up to 2/3 off tuition charges
Community colleges and some higher education centers
Eligible programs:
$4 million appropriated for FY17, reportedly $2 million already obligated

12. Joint Subcommittee
“Joint Subcommittee on the Future Competitiveness of Virginia Higher Education”
Scheduled to review financial aid in 2016
First meeting schedule for August 26 but was taken up discussing UVA endowments
Next meeting scheduled for October 11

13. Joint Subcommittee
Presentation on the national scene from Nate Johnson: Principal Consultant Postsecondary Analytics, LLC
Presentation from Lee Andes explaining the process of producing state financial aid recommendations

14. Joint Subcommittee
Committee will review FY18 allocation of financial aid
Expect minor adjustments for FY18. Likely will take a closer look at the funding model sometime in 2017
Funding model options include:
limiting review to tuition only (not include non-E&G)
Pro-rata distribution of resources to cost to tuition
Stepped funding model using varying calculations

15. Student Loan Refinance
Committee of SCHEV, VCSP, and Treasury researching the need and options for addressing student loans.
Though there are many examples of high-debt students unable to repay their loans, the larger problem involves low-debt students.
An authority that only refinances loans could mean substantial risk for the state.

16. Legislative Questions
Legislators are interested in the following:
What are the obstacles or concerns about providing total loans-to-date and projected borrowing on an annual basis?
What are the concerns about recommending less borrowing than what the student is eligible to receive?

17. Legislative Questions
In 2016, legislators debated making VGAP support four-year completion
Complete 30 hrs/yr v. advance class level
Eliminating the “dependent” requirement
Larger awards for taking more credits v. advancing in class level