1. Responsible Borrowing Initiatives
Tim Despain
Western Governors University

2. ABOUT WGU Founded in 1997 Mission of WGU WGU Promise
Improve quality and expand access to post-secondary academic opportunity by providing a means for individuals to learn independent of time or place and to earn competency-based degrees and other credentials that are credible to both academic institutions and employers.
WGU Promise
We help our students achieve their dreams for a degree and career success by providing a personal, flexible and affordable education based on real world competencies.

3. Financial Aid Delivery Model
Monthly starts, first day of every month
Average 4,000 new students each month
Academic year is 12 consecutive months
Two six-month payment periods (terms)
Tuition and fees (learning resources) - $3,000 per term
Flat fee: all you can learn for approximately $6,000 per year
No tuition increase since 2008
Accelerate time-to-degree completion
Average undergraduate student graduates in under three years

4. Responsible Borrowing Initiatives
Help students graduate with less debt
Modified Shopping Sheet (July 2013)
Personalized Annual and Aggregate loan limits
Recommend students borrow unmet direct costs
Significant reduction in loan dollars disbursed

5. Responsible Borrowing Initiatives
Shopping Sheet
Modified Shopping Sheet

6. Responsible Borrowing Initiatives
Sections include aid student is eligible to receive and what we recommend for loans

7. Responsible Borrowing Initiatives
Continue Your Financial Aid
Students ed modified shopping sheet
Instructed to take action on portal to complete FA process
Sample

8. Responsible Borrowing Initiatives
Do you want to be awarded Federal Student Loans?
Options given to students are:
YES. TUITION AND FEES ONLY
Awards up to unmet direct costs
YES. CUSTOM LOAN AMOUNT
Student prompted to indicate the amount of loans they wish to receive
NO. DECLINE ALL LOANS
Student will not be awarded any loans
This process is student’s acceptance of FA award
Continue Your Financial Aid Results for 1516*
Accept Recommended Loan Amounts – 58%
Decline All Student Loan Amounts – 11%
Requested Less Than Recommended Loan Amounts – 3%
Requested More Than Recommended Loan Amounts – 29%
*Over 78,000 responses

9. Responsible Borrowing Initiatives
ED Experimental Sites Initiative to limit unsubsidized loans (Jan 2013)
Transfer students w/high OPB
IR research shows students w/high OPB less likely to graduate
Undergrad - $30,000
Max loan annually - $6,500
Grad - $40,000
Max loan annually - $7,500

10. Responsible Borrowing Initiatives
Experimental Sites Initiative Results: Jan 2013 – Jun 2016
Total Student Participation
8,601
Participating Graduate Students
3332
Participating Undergraduate Students
5269
Aggregate Loan Limits Met - Graduate Students 25
Aggregate Loan Limits Met - Undergraduate Students
390
Graduated – Graduate Students
440
Graduated – Undergraduate Students
209
Average OPB – Graduate Students
$61,739
Average OPB – Undergraduate Students
$42,523

11. WGU Student Impact
From July 2013 – June 2016, average borrowing per student went from $7,870 per year to $4,640 per year
Graduating undergraduates (Jul 1 – Jun 30)
Average borrowing per student decreased by 41%
Average borrower indebtedness declining
*FSA data center
YEAR
WGU Average
National Average
FY2013
$21,102
$28,400 – TICAS/POSD
FY2014
$19,917
$28,950 – TICAS/POSD
FY2015
$19,050
$35,000*
FY2016
$16,862
$37,712*

12. WGU Student Impact Cohort Default Rates trending down
Less than half of the national average (11.8%)
*draft rate as of 9/5/16 – official rates not available
Lower than national average of every 4 yrs (+) segment
YEAR
WGU CDR
FY2010
7.7%
FY2011
6.6%
FY2012
5.0%
FY2013
4.9%*

13. National CDR by Institution Type

14. Questions??!