Student Indebtedness
May 10, 2013
Diane Corbett
Director of Financial Aid
UNIVERSITY ATALBANY THE W@RLD WITHIN REACH
State University of New York
y of New York
A National Issue
¢ Student debt topped 1 trillion dollars,
exceeding credit card debt
¢ College affordability and student debt are
national issues
¢ Student loan defaults are on the rise
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
UAlbany Students
Approximately 80% of our undergraduate students apply
for need-based financial aid
Average need of UA aid applicants is $12,374 and has
been increasing
Of the 2012-2013 undergraduate financial aid applicants
(FAFSA filers) 46% had family incomes of less than
$50,000
Approx 25% of aid applicants have a zero Expected
Family Contribution (EFC)
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
Percentage Pell Grant
Recipients*
University at Albany 36%
Stony Brook University 36%
University at Buffalo 31%
Binghamton University 28%
Syracuse University 27%
University of Connecticut 21%
University of Delaware 12%
*www.collegenavigator.gov
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
F ederal/State Funding Tightens
Federal Pell Grant
Year Round Pell eliminated
Number of semesters reduced
ACG/SMART Grant eliminated
Loan Subsidy during Grace Period eliminated
Subsidized Stafford Loans for Graduate Students
eliminated
Graduate TAP eliminated
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
In-State FT Undergraduate Costs
Tuition
Fees
Room and Board
Total Direct Costs
Books
Other Educ Exp
Cost of Attendance
$
$
2011-12
2012-13
5,270
1,902
10,958
18,130
1,200
1,432
20,762
5,570
apes 2)
11,276
18,801
1,200
1,515
21,516
UNIVERSITYATALBANY
State University of New York
THE W@RLD WITHIN REACH
Net Cost/Borrowing
e 15* year student from family of four with $xx,xxx income:
¢ Net price after grants and scholarships =$xx,xxx ($o« NYS
TAP Grant, $xx SUNY Tuition Credit)
¢ Student borrowing=$x,xxx
¢ Cost to family after student loan= $xx, xxx
¢ Over four years if no tuition/fee/roonyboard increase:
¢ Total $xx,xxx payments + $xx,xxx student loans
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
Net Cost/Borrowing
e 15* year student from family of four with $xx,xxx income:
Net price= $xx,xxx ($x,xxx NYS TAP Grant, $xxx SUNY
Tuition Credit, $x,xxx P ell)
Student borrowing =$x,xxx Stafford + $x,xxx Perkins
Federal Work-Study = $x,»
Cost to family after self-help aid =$x, xxx
¢ Over four years if no tuition/fee/roonyboard increase:
¢ Total $xx,xxx payments + $xx,xxx student loans
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
How Do Families Pay Costs?
Federal PLUS (parent loans)
- Interest rate fixed at 7.9%
- Credit-based loan
- Approx $19.5 million in 2012-13
Private Altemative Loans
- Interest rates vary, no cap
- Credit-based loan
- Approx $6.2 million borrowed in 2012-13
Payment Plans - 8 monthly installments
Savings/ 529 Plans
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
Student Debt
Average Indebtedness
¢ National 2011 - $26,600
- Monthly payment of $306.11
¢ UA 2011 - $23,039
- Monthly payment of $265.13
e UA 2012 - $24,126
- Monthly payment of $277.64
*Repayment based on 10 yr. standard repayment at 6.8%
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
Cohort Default Rate (CDR)
¢ National CDR
—- 2YR - FY 2010 is 9.1%
- BYR - FY 2009 is 13.4%
¢ UA CDR
- 2YR - FY 2010 is 5.3%
- 3YR - FY 2009 is 6.1%
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
(A UNIVERSITYATALBANY
State University of New York Historical Official
2 Year Cohort Default Rates
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Cohort Years
UNIVERSITYATALBANY
State University of New York
University-Wide Issue
¢ Funding for institutional grant and need-
based scholarships
¢ Cost containment
¢ Financial literacy
¢ Time to Degree
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
Educate Students
e Early awareness
¢ Outreach efforts -Fin Aid Day, H.S. Fin Aid
Nights, Orientation Sessions, EOP meeting
¢ Sharing messages about responsible borrowing
and making sound financial decisions
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
SUNY Smart Track
Engaging entre University in default
prevention through retention and student
Success
Financial literacy
Default aversion
SUNY Award letter
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
Shopping Sheet
Effort to make financial aid awards and college
cost info more transparent and easier to
understand
Clear distinction between loans and grants
Net Cost =COA minus total grants and
scholarships
Adopted as an award letter for 2013-2014
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
Managing Debt
¢ In School Deferment
- During a period of at least half-time enrollment
¢ Loan Forgiveness
— httpo://studentaid.ed.gov/repay-loans/forgiveness-
cancellation
¢ Repayment Options
— http://studentaid.ed.gov/repay-loans/understand/plans
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
Education as an Investment
¢ Our goal is to provide access and improve
options for students through financial aid policy
¢ Student loans provide a pathway allowing
students to invest in their future
e UAlbany offers a quality education at a great
value
UNIVERSITYATALBANY THE W@RLD WITHIN REACH
State University of New York
