Presentation on theme: "Bob Fernandez Director, Willimantic Center QVCC"— Presentation transcript:
1 Bob Fernandez Director, Willimantic Center QVCC Creating a debt-free education: Quinebaug Valley Community College (QVCC)Bob FernandezDirector, Willimantic CenterQVCC
2 Background Student debt has skyrocketed: In 2003 outstanding loan balances ($240 billion)In 2013 outstanding loan balances (1 trillion dollars)If current student loan trends continue:2 trillion dollars by 2025!66% of all college seniors now graduate with an average of $26,600, which represents a 41% increase from 1989.
3 Causes Sharp decline in state funding for higher education. Funding on average, has declined 25% since its peak 2000Increasing tuition costsCosts of educational supplies and booksIn CT the average STEM text book is between $260-$450College fees (ie: Lab and Art fees) on top of already charged college / University feesFor profit large cooperate universities
4 Result Federal Reserve Board’s Survey on Consumer Finances estimate: $53,000 in education debt, leads to a wealth loss of nearly $208,000The $1 trillion in outstanding debt, will lead to a wealth loss of $4 trillion for indebted households (not accounting for the default rate)For minority and low-income borrowers:Those making less than $30,000 in total family income;61% have on average of $30,500 (student loan debt)13% have on average over $30,500 (student loan debt)27% have no debt
5 Sources of funding in CT Federal Pell Grant Program These grants, based upon financial need, are intended to be the "foundation" of a financial aid package, and may be combined with other forms of aid to meet the direct cost of education. Generally, Pell Grants are awarded only to undergraduate students who have not earned a bachelor’s or professional degree.
6 Sources of funding in CT Federal Supplemental Educational Opportunity Grant (SEOG) This program provides grants to eligible students demonstrating financial need. Preference is given to students with exceptional need.Connecticut Aid for Public College Students (CAPS) State of Connecticut grants are awarded to Connecticut resident students who have serious financial need. Grants range up to the direct cost of education (tuition, fees, books) per academic year and are based on satisfactory academic progress, financial need, and the availability of funds.
7 Sources of funding in CT Quinebaug Valley Community College Grant Program This State program allows for the remission of tax-supported tuition, fees, and cost of books for resident students who demonstrate substantial financial need.Tuition set-a-side
8 ChangesConnecticut Aid for Public College Students (CAPS) Now known as the Governors Scholarship:Very restrictive for part time students:Average award now went from standard EFC calculations (ie: 4398) to average of just $ per year.The 4C’s is working on a legislative fix, this upcoming yearRewards traditional students, at the expense of working adults, and part-time studentsFollowing Complete College America, of rewarding completion
9 What QVCC didWe are committed to reducing economic barriers to higher education.Financial assistance is provided primarily through federal grants, state grants, scholarships, and work study.More than 65% of QVCC students receive some aid. Population of students
10 What QVCC didIn 2006 with the assistance of the President, QVCC stopped processing student loansWorked with the foundation to establish:Student Emergency fund (most student loans are used for everyday living expenses or emergencies)Car repairsRentPrimarily used to eliminate a barrier that prevents the student from completing or coming to schoolF/A Officers made the determination
11 What QVCC did Foundation Science Text fund: Actively sought donors to fund every increasing text book (especially in science)Reduced the cost to the student, by not having to allocate the majority of F/A award (in CT max for books and supplies as awarded $600)Not having to pay that backF/A officers made the determination
12 What QVCC did Foundation annual scholarships: Every year the QVCC Foundation offers a large number of scholarships to both incoming and current students. More than $90,000 in scholarship money will be awarded May 1, All students are encouraged to apply.Scholarship applications are screened by an impartial committee from the QVCC Foundation based on the criteria of the scholarship.Well over 30% of the student population, received some sort of assistance
13 Sallie Mae Serviced Federal Results as of 11/14/2013School Code:Quinebaug Valley Community College Sallie Mae Serviced Portfolio SummaryCategoryFFELP PortfolioED Portfolio¹Customers91Loans13Outstanding$26,516$1,781In School25.5%0.0%Grace/Interim19.3%Repayment55.2%100.0%DefermentForbearance10.6%60+ Days Past Due15.6%270+ Days Past DuePortfolio Data as of 9/30/2013Quinebaug Valley Community College Portfolio Default StatisticsSallie Mae Serviced FederalTotal Federal2010 Cohort²In DefaultIn Repay35Default Rate2011 Cohort³24Default Data as of 9/30/2013 ²FSA Fiscal year 2010 official 3-year cohort default rate ³FSA Fiscal year 2011 official 2-year cohort default rate