1. State Update Fall 2010 Raleigh, North Carolina Steven E. Brooks Executive Director North Carolina State Education Assistance Authority

2. State Grants and Scholarships Update Record year 2008-09: State grants, scholarships, and scholarship-loans $369 million + 31% Awards made 196,000+21% 2

3. State Grants and Scholarships Update State Budget Issues: Phase outs of three existing programs ­ EARN ends fall 2009 (eligible for loans) ­ FTNC ends spring 2010 (eligible for PTSL) ­ NCSSM ends spring 2010 3

4. State Grants and Scholarships Update Major Aid Program Budgets for 09-10: Community College Grant13.9 million UNC Need Based Grant139.4 million NCLTG55.5 million SCSF44.0 million Education Lottery Scholarship40.0 million * NCSIG5.9 million 4

5. State Grants and Scholarships Update Major Aid Budgets for 10-11 (Continuation Budget): Community College Grant13.9 million UNC Need Based Grant 116.4 million » (-$23 million) NCLTG 55.5 million SCSF 44.0 million Lottery Scholarship40.0 million (receipts) NCSIG5.9 million  Conflicting aid start-up and legislative calendars  Escheat Fund also at issue 5

6. Legislative Study Committee How best to use State funds…availability and sustainability How best to administer State funded student aid Current governance of NCSEAA Feasibility of consolidating scholarship, loan and grant programs for North Carolinians for which FAFSA is required Feasibility of consolidating loans, grants and scholarships for teacher education students Qualifications for each loan, scholarship and grant administered by NCSEAA, purpose for which the aid is awarded; what makes it similar or unique Marketing strategies for grants, loans and scholarships to be more transparent, understandable and accessible 6

7. Outreach and Training Report - New Financial Aid Administrator Training Cumulative through October 2009 – 495 participants (since first training in 2003) 34 newly trained in October 2009 Next “New” FAA Training will be in the spring of 2010 – March – exact dates will be announced soon Thanks to Jane Kanipe and to NCSEAA and NCASFAA professionals for the curriculum and the training Thanks to CFI for providing the welcoming site 7

8. Outreach and Training Report - FAFSA DAY February 2009 –66 sites across the state – 60 counties –Over 750 volunteers –Over 4,500 students and families February 2010 –97 counties across North Carolina –Thanks to State Employees Credit Union - SECU –SEAA will train SECU staff “volunteers” 7 days in Dec./Jan. for “Training the Trainers” SECU staff we train will then train additional SECU staff Expect to have a “FAFSA Day Central” phone bank for questions volunteers cannot answer 8

9. Training and Outreach Report – High School Counselor Workshops NCSEAA/College Board –Annual Financial Aid Training –415 counselors at 4 workshops NCSEAA/CFNC –Annual Financial Aid Training –130 counselors at 2 workshops Davidson College/NCSEAA – “Financial Aid 101” –300 counselors at 5 workshops Thanks to Robbie Schultz and SEAA staff 9

10. 10 CFNC Update

11. CFNC Statistics College going rate compared to other states –In 1999, as CFNC was launched, North Carolina ranked 38 th, at 21.3%, below the national average of 27.7%, in college participation rate of low income students –In 2008, North Carolina ranked 22 nd, at 26.2%, above national average of 25.7%, in college participation rate of low income students –From 1999-2008, college enrollment of low income students in North Carolina increased by 4.9 percentage points, while nationally their enrollment actually decreased by 2.0 percentage points 11

12. CFNC Statistics CFNC free user accounts created: YearAnnualCumulative 06-07 429,7681,663,108 07-08491,1632,154,271 08-09571,2472,725,518 12

13. CFNC Statistics Visitor count and duration of visits on CFNC website: YearUnique DailyAverage Visit VisitorsDuration 06-078,062 11.5 minutes 07-0810, 393 13 minutes 08-09 11,343 12 minutes 13

14. CFNC Statistics Number of college applications filed using CFNC: YearApplications for Admission 06-07249,692 07-08309,482 08-09396,940 14

15. CFNC Statistics Number of high school transcripts sent to colleges: Year Transcripts Submitted 06-0713,932 07-0840,872 08-0960,042 15

16. CFNC Statistics Awareness of the service among parents and students: YearPrompted Awareness Percentages 2001 students: 33% 2002students: 83% 2004 students: 84% parents: 81% 2006students: 93% parents: 88% 16

17. CFNC Statistics Attendance at special events: Year FAFSA Day 06-07 3,076 students, 559 volunteers, 52 sites 07-083,600 students, 650 volunteers, 56 sites 08-094,500 students, 750 volunteers, 65 sites YearCollege Admissions Week 06-07 1,038 applications, 876 students, 15 high schools 07-0821,445 applications, 12,808 students, 109 high schools 08-0937,903 applications, 19,356 students, 293 high schools 17

18. CFNC Statistics Outreach visits to middle and high schools: YearVisits and Presentations 06-072,821 visits/presentations 07-082,764 visits/presentations 08-092,740 visits/presentations Calls and emails to the CFNC Call Center in Raleigh: YearCalls and Emails Received 06-07112,436 calls 07-08135,044 calls; 12,964 emails 08-09156,241 calls; 13,496 emails 18

19. CFNC Statistics Increases in applications/enrollments of needy students: Year NC FAFSAsPell Grant Recipients 06-07224,302139,904 07-08236,492147,629 08-09274,318not yet available 19

20. 20 FAFSAs in North Carolina over time

21. 21 North Carolina FAFSA Filers, 2003-04 through 2009-10

22. 22 North Carolina FAFSA Filers by Sector, 2009-10 Year to Date

23. 529 Savings Program Update Investments exceeded $500 million on October 19 71,222 accounts as of October 26, 2009 ­ 18.1% increase since October 31, 2008 13 investment options available: ­ 3 age-based;10 individual funds ­ 11 Vanguard funds; 2 North Carolina Managers NCM Capital Management NC State Treasurer North Carolina state tax deductible contributions ­ $5,000 on joint return; $2,500 individual ­ No income limit 23

24. 24 20051.6%4.6% 20061.5%5.2% 20072.9%6.7% Year SEAA RateNational Average Cohort Default Rates About 915 additional borrowers per year would default if our rate were only the national average!

25. Impact of Potential Federal Legislation on North Carolina What has the FFEL Program Paid for in North Carolina? –Loans higher level of service/default prevention lower prices for borrowers –Grant Administration – all state grants at SEAA and CFI –Saving Administration – NC 529 Program –Outreach CFNC web and telephone services FAA and Counselor Training Counselor Internships FAFSA Day And more 25

26. An uncertain future: Change is inevitable…except from vending machines Your State agency and non-profit expect to to be here for you and your students Advice: be ready for Direct Lending for next year in case it is forced upon you Request: keep your FFEL powder dry in case you do get a choice ­ can support the State’s services ­ while helping your borrowers 26