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Bob Fernandez Director, Willimantic Center QVCC

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1 Bob Fernandez Director, Willimantic Center QVCC
Creating a debt-free education: Quinebaug Valley Community College (QVCC) Bob Fernandez Director, Willimantic Center QVCC

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 2000 Increasing tuition costs Costs of educational supplies and books In CT the average STEM text book is between $260-$450 College fees (ie: Lab and Art fees) on top of already charged college / University fees For 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 $208,000 The $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 Changes Connecticut 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 year Rewards traditional students, at the expense of working adults, and part-time students Following Complete College America, of rewarding completion

9 What QVCC did We 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 did In 2006 with the assistance of the President, QVCC stopped processing student loans Worked with the foundation to establish: Student Emergency fund (most student loans are used for everyday living expenses or emergencies) Car repairs Rent Primarily used to eliminate a barrier that prevents the student from completing or coming to school F/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 back F/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 11/14/2013 School Code: Quinebaug Valley Community College Sallie Mae Serviced Portfolio Summary Category FFELP Portfolio ED Portfolio¹ Customers 9 1 Loans 13 Outstanding $26,516 $1,781 In School 25.5% 0.0% Grace/Interim 19.3% Repayment 55.2% 100.0% Deferment Forbearance 10.6% 60+ Days Past Due 15.6% 270+ Days Past Due Portfolio Data as of 9/30/2013 Quinebaug Valley Community College Portfolio Default Statistics Sallie Mae Serviced Federal Total Federal 2010 Cohort² In Default In Repay 3 5 Default Rate 2011 Cohort³ 2 4 Default 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

14 Contact Information Robert Fernandez (860) Alfred Williams (860)

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