1. Responsible Borrowing Initiatives (RBI) Bob Collins Vice President, Financial Aid national Summit on Solutions for student debt Boston, MA November 2016
AUTHOR’S NAME HERE

2. Financial Aid Delivery Model
Monthly starts first day of every month
Academic year is 12 consecutive months
Two six-month payment periods (non-standard terms)
Tuition and fees (learning resources) = $3000
Fixed price: all you can learn for $6000/year
No tuition increase since 2008
Accelerate time-to-degree completion
Undergraduate average: 2.5 years to graduate

3. Responsible Borrowing Initiatives ED Experimental sites
Unequal Loan Disbursements
WGU implemented July 2014 – ED sunset June 2016
Borrow only what is needed to pay costs when charges are incurred
Nursing College: Science Fee Teachers College: Demonstration Teaching Fee
Multiple disbursements required if payment period > 4.5 months
WHY? No statutory or regulatory basis – FSA Handbook
Limiting Unsubsidized Direct Loans
WGU implemented January 2013 – ongoing
Restrict borrowing to direct costs only (tuition and fees)

4. Limiting unsubsidized Direct Loans - Selection Criteria
$30,000 Outstanding Principal Balance
(Avg. OPB: $43K)
Limited to $6,500 per Academic Year
Undergrad
Student
$40,000 Outstanding Principal Balance
(Avg. OPB: $62K)
Limited to $7,500 per Academic Year
Graduate Student

5. Responsible Borrowing Initiatives My financial aid plan
Modified CFPB Shopping Sheet (July 2013)
Personalize to student program of study and grade level
Recognize annual/aggregate federal student loan limits
Custom recommendation: student borrows only unmet direct costs

6. WGU Student Impact My Financial Aid Plan
From July 2013 – June 2016, average borrowing per student went from $7,870 per year to $4,640 per year
Average borrowing per student decreased 41%
Next iteration: Loan Scenario Calculator
Full visibility of total student loan debt & estimated monthly payments
Informed decision at time of action (i.e. requesting loan amount)
Encourage interest only in-school payments on unsubsidized loans

7. WGU key metrics Average Borrower Indebtedness (ABI) declining
Undergraduates graduating between July – June (Award Year)
AY2013 = $21, AY2014 = $19, AY2015 = $19,050 AY2016 = $16,862
Loan repayment rate (principal reduction within 3 years)
WGU = 79% versus national average of 68%
Cohort Default Rates (CDR – 3 year) trending down nationwide
WGU rate less than half the national average (11.3%)
FY2011 = 6.6% FY2012 = 5.0% FY2013 = 4.8%
WGU rate lower than national average of every 4yrs(+) segment
Private, For-Profit = 14.0% Public = 7.3% Private, Nonprofit = 6.5%

8. Help students make an informed decision, borrow wisely
WGU Responsible Borrowing Initiatives
WCET Outstanding Work Award 2016