California Institute:California Institute:Congressional BriefingCongressional Briefing

on Student Financial Aidon Student Financial AidSeptember 26, 2007September 26, 2007

Anne McKinney, CCCAnne McKinney, CCC

Allison Jones, CSUAllison Jones, CSU

Carolyn Henrich, UCCarolyn Henrich, UC

Sam Kipp, EDFUNDSam Kipp, EDFUND

Congressional BriefingCongressional Briefingon Student Financial Aidon Student Financial Aid

September 26, 2007September 26, 2007

Anne McKinneyAnne McKinney

PresenterPresenter

California Community CollegesCalifornia Community Collegeso MissionMission – To provide upward social and economic mobility – To provide upward social and economic mobility

through a commitment to open access and student success by through a commitment to open access and student success by delivering high quality, affordable and comprehensive higher delivering high quality, affordable and comprehensive higher educationeducation

o Number of colleges Number of colleges – 109– 109o Number of students Number of students – 2.5 million– 2.5 milliono DemographicsDemographics – Through the California Master Plan for Higher – Through the California Master Plan for Higher

Education, the CCC is designated as the State’s “open door“ for Education, the CCC is designated as the State’s “open door“ for citizens of any race, age, gender or income levelcitizens of any race, age, gender or income level

o Governance structure Governance structure – Chancellor’s Office (state agency); 72 – Chancellor’s Office (state agency); 72 local districts and governing boards; 109 collegeslocal districts and governing boards; 109 colleges

o UniqueUnique – California Community Colleges have legislatively – California Community Colleges have legislatively designated designated multiple missionsmultiple missions: associate degrees and : associate degrees and certificates; transfer; basic skills and English language certificates; transfer; basic skills and English language proficiency; economic and workforce development and lifelong proficiency; economic and workforce development and lifelong learninglearning

o DiversityDiversity – African American 8%; Asian 12%; Hispanic 29%; White – African American 8%; Asian 12%; Hispanic 29%; White 35%; Other 16%35%; Other 16%

Federal Aid atFederal Aid atCalifornia Community CollegesCalifornia Community Colleges

Grants to Students:Grants to Students:o Pell Awards Pell Awards – $598 m/256,000 students– $598 m/256,000 studentso Federal Work Study Federal Work Study – $25.4 mil/13,000 students– $25.4 mil/13,000 studentso Federal SEOGFederal SEOG – $29 m/61,000 students – $29 m/61,000 studentso Federal Loans Federal Loans – $128 m/42,000 students– $128 m/42,000 students

Outreach -- Outreach -- Financial Aid staff held over 71,000 Financial Aid staff held over 71,000 financial aid events for their own students, high financial aid events for their own students, high schools, community & faith-based groups/1.3M schools, community & faith-based groups/1.3M persons servedpersons served

Other Aid Resources Utilized at Other Aid Resources Utilized at California Community CollegesCalifornia Community Colleges

State Aid:State Aid:o Cal Grants Cal Grants – $76 m/67,000 students– $76 m/67,000 studentso Institutional Aid Institutional Aid – Board of Governors – Board of Governors

(BOG) Fee Waivers -- $273 m/717,000 (BOG) Fee Waivers -- $273 m/717,000 studentsstudents

o ScholarshipsScholarships – $15 m/15,000 students – $15 m/15,000 studentso Private Loans Private Loans – not tracked– not trackedo Specialized programs Specialized programs –– $12-15m/3,000 $12-15m/3,000

studentsstudents

Academic CompetitivenessAcademic CompetitivenessGrant (ACG) ProgramGrant (ACG) Program

Purpose: Additional resources for needy studentsPurpose: Additional resources for needy students– up to $750 for 1st academic year & up to $1,300 for 2ndup to $750 for 1st academic year & up to $1,300 for 2nd

Eligibility: Student must be:Eligibility: Student must be:– Federal Pell Grant recipient Federal Pell Grant recipient – U.S. citizenU.S. citizen– enrolled full time in a degree programenrolled full time in a degree program– have completed a rigorous secondary school programhave completed a rigorous secondary school program

See: See: http://www.ed.gov/admins/finaid/about/ac-smart/2007/state-programs-http://www.ed.gov/admins/finaid/about/ac-smart/2007/state-programs-07.html07.html

– maintain cumulative GPA of 3.0 or highermaintain cumulative GPA of 3.0 or higher

Restrictions:Restrictions:– ACG + Pell Grant may not exceed cost of attendanceACG + Pell Grant may not exceed cost of attendance– Grants ratably reduced to ensure grants to all eligibleGrants ratably reduced to ensure grants to all eligible– Awards reduced by USDE if funds insufficientAwards reduced by USDE if funds insufficient

California Community College IssuesCalifornia Community College Issues

Issues: ACG Definitions Issues: ACG Definitions Sec 401A states: “….Sec 401A states: “….a a full-time studentfull-time student … … U.S. citizenU.S. citizen….in the case of a ….in the case of a student enrolled or accepted for enrollment in -- (A) student enrolled or accepted for enrollment in -- (A) the first academic the first academic year of a program of undergraduate education at a two- oryear of a program of undergraduate education at a two- or four- year four- year degree- degree- granting institution of higher education…”.granting institution of higher education…”.

Recommendations: Recommendations: Extend ACG participation to eligible students enrolled in “Extend ACG participation to eligible students enrolled in “certificate certificate

programs in which units can be applied as credit towards a degree”. programs in which units can be applied as credit towards a degree”.

Extend participation to include prorated awards for Extend participation to include prorated awards for ““part-time” part-time” eligible eligible students and students and eligible “eligible “non-citizens”.non-citizens”.

Allow participating institutions to define Allow participating institutions to define the student’s award year and the student’s award year and academic year academic year as contained in the Senate Reauthorization proposalas contained in the Senate Reauthorization proposal..

Redefine ACG eligibility period Redefine ACG eligibility period as “up to the first 4 semesters of study as “up to the first 4 semesters of study (or FT equivalence) in an eligible program with degree applicable (or FT equivalence) in an eligible program with degree applicable coursework” and realign ACG payments to be in equal increments for all coursework” and realign ACG payments to be in equal increments for all payment periods.payment periods.

Contact InformationContact Information

Anne McKinneyAnne McKinney

Asst. Vice Chancellor Asst. Vice Chancellor

Federal Government RelationsFederal Government Relations

916-445-1780916-445-1780

AMCKINNEY@CCCCO.EDUAMCKINNEY@CCCCO.EDU

The California State UniversityThe California State University

Allison G. JonesAllison G. JonesAssistant Vice ChancellorAssistant Vice Chancellor

Academic AffairsAcademic AffairsOffice of the ChancellorOffice of the Chancellor

The California State UniversityThe California State University

The California State University:The California State University:Mission and GovernanceMission and Governance

– MissionMissionTo provide high-quality, accessible, affordable, and To provide high-quality, accessible, affordable, and student-focused educationstudent-focused educationPrepare graduates for the workforcePrepare graduates for the workforceSignificant impact on economy of California Significant impact on economy of California

– 23 campuses23 campuses– 450,000 students450,000 students

Largest public university-system in countryLargest public university-system in country

– GovernanceGovernance25-member Board of Trustees, the majority of whom are 25-member Board of Trustees, the majority of whom are appointed by the governor to 8-year termsappointed by the governor to 8-year termsFaculty, alumni, and two student trustees serve 2-year Faculty, alumni, and two student trustees serve 2-year termsterms

The California State UniversityThe California State University – 23 Campuses – – 23 Campuses –

CSU BakersfieldCSU BakersfieldCSU Channel IslandsCSU Channel IslandsCSU ChicoCSU ChicoCSU Dominguez HillsCSU Dominguez HillsCSU East BayCSU East BayCSU FresnoCSU FresnoCSU FullertonCSU FullertonHumboldt StateHumboldt StateCSU Long BeachCSU Long BeachCSU Los AngelesCSU Los AngelesCalifornia Maritime California Maritime AcademyAcademy

CSU Monterey BayCSU Monterey BayCSU NorthridgeCSU NorthridgeCal Poly PomonaCal Poly PomonaCSU SacramentoCSU SacramentoCSU San BernardinoCSU San BernardinoSan Diego StateSan Diego StateSan Francisco StateSan Francisco StateSan Jose StateSan Jose StateCal Poly San Luis ObispoCal Poly San Luis ObispoCSU San MarcosCSU San MarcosSonoma StateSonoma StateCSU StanislausCSU Stanislaus

The California State University - StudentsThe California State University - Students

– A diverse mixA diverse mixAverage undergraduate age is 25Average undergraduate age is 25

44% are independent from parents44% are independent from parents

25% have dependents25% have dependents

80% work and 36% work 30 hours or more80% work and 36% work 30 hours or more

30% are first generation in family to attend 30% are first generation in family to attend collegecollege

40% from households where English in not the 40% from households where English in not the primary language spokenprimary language spoken

54% are students of color54% are students of color

Unique Characteristics of the CSU (Pt. 1)Unique Characteristics of the CSU (Pt. 1)

– AffordabilityAffordabilityAverage annual student fee (“tuition”) = $3199 (2006-07)Average annual student fee (“tuition”) = $3199 (2006-07)

– DiversityDiversityCSU provides more than half of all undergraduate degrees CSU provides more than half of all undergraduate degrees granted to state’s Latino, African American, and Native granted to state’s Latino, African American, and Native American studentsAmerican students12 Hispanic Serving Institutions12 Hispanic Serving Institutions

– Community ServiceCommunity ServiceMore than 185,000 students participate in community More than 185,000 students participate in community service annually, donating nearly 30 million hours, the service annually, donating nearly 30 million hours, the minimum wage equivalent of $200 millionminimum wage equivalent of $200 millionIn 2005-06, more than 25% of CSU’s total Federal Work In 2005-06, more than 25% of CSU’s total Federal Work Study funding was designated for community service Study funding was designated for community service placements, well above the national average of 14% and placements, well above the national average of 14% and more than triple the minimum federal requirementmore than triple the minimum federal requirement

Unique Characteristics of the CSU (Pt. 2)Unique Characteristics of the CSU (Pt. 2)

Workforce PreparationWorkforce Preparation– CSU graduates help drive California’s aerospace, healthcare, CSU graduates help drive California’s aerospace, healthcare,

entertainment, information technology, biomedical, international trade, entertainment, information technology, biomedical, international trade, education, and multimedia industries. education, and multimedia industries.

CSU confers 65 percent of California’s bachelor’s degrees in business, CSU confers 65 percent of California’s bachelor’s degrees in business, 52 percent of its bachelor’s degrees in agricultural business and agricultural 52 percent of its bachelor’s degrees in agricultural business and agricultural engineering, and engineering, and 45 percent of its bachelor’s degrees in computer and electronic engineering. 45 percent of its bachelor’s degrees in computer and electronic engineering.

– The California State University also educates the professionals needed The California State University also educates the professionals needed to keep the state running. to keep the state running.

It provides bachelor’s degrees to teachers and education staff (87 percent), It provides bachelor’s degrees to teachers and education staff (87 percent), criminal justice workers (89 percent),criminal justice workers (89 percent),social workers (87 percent) and social workers (87 percent) and public administrators (82 percent). public administrators (82 percent).

– Altogether, about half the bachelor’s degrees and a third of the Altogether, about half the bachelor’s degrees and a third of the master’s degrees awarded each year in California are from the master’s degrees awarded each year in California are from the California State University.California State University.

All Sources of Aid at CSUAll Sources of Aid at CSU(2005-06)(2005-06)

Total aid (all sources)Total aid (all sources)– 235,757 students (unduplicated) received $1.8 billion ($7,548 average)235,757 students (unduplicated) received $1.8 billion ($7,548 average)

Grants to Students (federal, state, and institutional)Grants to Students (federal, state, and institutional)– 178,272 students received $842 million ($4,723 average)178,272 students received $842 million ($4,723 average)– Of above, Pell Grants received by 116,198 students totaling $317 million Of above, Pell Grants received by 116,198 students totaling $317 million

($2,727 average), which represents 17.8% of total aid($2,727 average), which represents 17.8% of total aid– Grants represent 47.3 percent of total aidGrants represent 47.3 percent of total aid

Work StudyWork Study– 8,100 students received $18.3 million ($2,261 average)8,100 students received $18.3 million ($2,261 average)– Work Study represents 1% of total aidWork Study represents 1% of total aid

Loans to StudentsLoans to Students– 139,362 students received $919 million ($6597 average)139,362 students received $919 million ($6597 average)– Loans represent 51.7% of total aidLoans represent 51.7% of total aid

Federal Aid at CSUFederal Aid at CSU(2005-06)(2005-06)

Grants: Grants: – Pell: 116,198 awards totaling $317 millionPell: 116,198 awards totaling $317 million

17.8% of all aid17.8% of all aid

– SEOG: 20,322; $11.2 million; $550 average; .6% of all aidSEOG: 20,322; $11.2 million; $550 average; .6% of all aid– BIA:117; $345K; $2951 average; .0%BIA:117; $345K; $2951 average; .0%– Other Federal Grants: 1,642; $2.9 million; $1,774 Other Federal Grants: 1,642; $2.9 million; $1,774

average; .2% average; .2%

Federal Work-StudyFederal Work-Study– 8,100; $18.3 million; $2,261 average; 1% of total aid8,100; $18.3 million; $2,261 average; 1% of total aid

Federal LoansFederal Loans– 137,010; $869 million; $6,342 average; 48.4 of all aid137,010; $869 million; $6,342 average; 48.4 of all aid

Hispanic Serving Institutions Hispanic Serving Institutions

Other Aid Resources Utilized at CSU Other Aid Resources Utilized at CSU (2006-07)(2006-07)

State AidState Aid– Cal Grants: 56,879; $166 million; $2909 average; 9.3% of all aidCal Grants: 56,879; $166 million; $2909 average; 9.3% of all aid

Institutional AidInstitutional Aid– State University Grants: 107,433; $228 million; $2,122 average; State University Grants: 107,433; $228 million; $2,122 average;

12.8% of all aid12.8% of all aid– EOP Grants: 20,091; $17.4 million; $866 average; 1% of all aidEOP Grants: 20,091; $17.4 million; $866 average; 1% of all aid

Scholarships: 11,581; $23.5 million; $2,026 average; Scholarships: 11,581; $23.5 million; $2,026 average; 1.3% of all aid1.3% of all aidPrivate Loans: 4,344; $31.9 million; $7,346 average; Private Loans: 4,344; $31.9 million; $7,346 average; 1.8% of all aid1.8% of all aidOther: 37,066; $76.4 million; $2061 average; 4% of all Other: 37,066; $76.4 million; $2061 average; 4% of all aidaid

How Federal Policymaking Affects the CSUHow Federal Policymaking Affects the CSU

Increasing Pell GrantsIncreasing Pell Grants– Academic Competitiveness Grants (ACG)Academic Competitiveness Grants (ACG)– National Science and Mathematics Access National Science and Mathematics Access

to Retain Talent Grants (SMART)to Retain Talent Grants (SMART)

TEACH grants: provide $4000/year in TEACH grants: provide $4000/year in scholarships to encourage outstanding scholarships to encourage outstanding candidates to teach in high need candidates to teach in high need schools and/or high need subject areasschools and/or high need subject areas

CSU Priorities in the 110CSU Priorities in the 110thth Congress Congress

Pell Grants: Pell Grants: – Support overall funding increasesSupport overall funding increases– Support Year-Round provision– 2Support Year-Round provision– 2ndnd Grant for students to pursue year-round Grant for students to pursue year-round

study to shorten time-to degreestudy to shorten time-to degreeEarly Intervention ProgramsEarly Intervention Programs– Expand GEAR UP and TRIO, vital to preparing underrepresented students for Expand GEAR UP and TRIO, vital to preparing underrepresented students for

college and decreasing need for remediationcollege and decreasing need for remediationIn 2005-06, 17 key systemwide and 169 campus outreach programs served 1,462 K-In 2005-06, 17 key systemwide and 169 campus outreach programs served 1,462 K-12 schools, serving 162,240 students12 schools, serving 162,240 studentsKey to student successKey to student success

Hispanic Serving InstitutionsHispanic Serving Institutions– Advocate Title V changes to expand and strengthen Hispanic Serving Advocate Title V changes to expand and strengthen Hispanic Serving

InstitutionsInstitutionsCampus-based Aid ProgramsCampus-based Aid Programs– Support altering current campus-based aid distribution formula to assure Support altering current campus-based aid distribution formula to assure

allocation of funds on a fair-share basis to institutions with growing allocation of funds on a fair-share basis to institutions with growing populations of students with need and to new campuses, which have been populations of students with need and to new campuses, which have been most disadvantaged by current formulamost disadvantaged by current formula

Veterans BenefitsVeterans Benefits– Support legislation that increases and improves benefits to expand higher Support legislation that increases and improves benefits to expand higher

education opportunities for veterans, especially for Reserve and National education opportunities for veterans, especially for Reserve and National Guard in particularGuard in particular

Contact InformationContact Information

Allison JonesAllison Jonesajones@calstate.eduajones@calstate.edu

562.951.4744562.951.4744OROR

CSU Office of Federal RelationsCSU Office of Federal RelationsJim Gelb, George Conant, Lucy Hamilton-DuncanJim Gelb, George Conant, Lucy Hamilton-Duncan

202.434.8060202.434.8060

Student Financial Support at Student Financial Support at the University of Californiathe University of California

California Institute for California Institute for Federal Policy Research Federal Policy Research

September 2007September 2007

OverviewOverview

UC is a comprehensive public research institution and UC is a comprehensive public research institution and California’s Land-Grant UniversityCalifornia’s Land-Grant UniversityThe Regents of UC oversee this “public trust,” which is The Regents of UC oversee this “public trust,” which is autonomous under the California Constitutionautonomous under the California Constitution10 campuses 10 campuses 230,000 students; 180,000 undergraduates230,000 students; 180,000 undergraduatesMore than half of UC students receive grants & More than half of UC students receive grants & scholarshipsscholarshipsMore than two-thirds receive some federal aid (inc. loans)More than two-thirds receive some federal aid (inc. loans)29% of UC undergraduates receive Pell Grants, which is 29% of UC undergraduates receive Pell Grants, which is the highest percentage of any comparable research the highest percentage of any comparable research institution institution

Federal Aid at UCFederal Aid at UC

Pell GrantsPell GrantsAcademic Competitiveness GrantsAcademic Competitiveness GrantsSMART Grants SMART Grants SEOG – Supplemental Educational SEOG – Supplemental Educational Opportunity GrantsOpportunity GrantsPerkins LoansPerkins LoansFederal Work StudyFederal Work StudyFederal Student and Parent LoansFederal Student and Parent Loans

Typical on-campus undergradTypical on-campus undergradcost to attend UCcost to attend UC

$7,446$7,446 fees fees

$ 892 $ 892 health insurance premiums health insurance premiums

$1,475 $1,475 books & supplies books & supplies

$2,412 $2,412 incidental expensesincidental expenses

$11,755$11,755 housing and foodhousing and food

$23,980$23,980 TotalTotal

$9,600 $9,600 $9,600 $9,900

$8,780

$14,080

$1,630

$5,600

$14,380

$9,600

$14,380$12,750

$0

$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

$20K AnnualIncome

$40K AnnualIncome

$60K AnnualIncome

$80K AnnualIncome

IndependentStudent

ParentContribution

Grant Support

Student Loanand WorkExpectation

Net Cost of UC by incomeNet Cost of UC by income

(Living on campus: $23,980)

UC Concerns about the federal UC Concerns about the federal need-analysis formulaneed-analysis formula

The federal need analysis process is The federal need analysis process is inequitable, particularly in areas where inequitable, particularly in areas where housing costs are highhousing costs are high

The formula needs updating to reflect the The formula needs updating to reflect the increasing proportion of income that increasing proportion of income that families devote to housing costsfamilies devote to housing costs

HEA Title IV Need AnalysisHEA Title IV Need Analysis

The need analysis process is outlined The need analysis process is outlined in the Higher Education Act as a means in the Higher Education Act as a means to determine the amount of money a to determine the amount of money a student and the student’s family may student and the student’s family may be reasonably expected to contribute be reasonably expected to contribute toward postsecondary education in a toward postsecondary education in a given academic yeargiven academic year

Expected Family ContributionExpected Family Contribution

Available income of the student and the Available income of the student and the student’s parentsstudent’s parents

Number of dependents in the familyNumber of dependents in the family

Dependents in postsecondary education Dependents in postsecondary education

Net assets of the student and parentsNet assets of the student and parents

Age of the parentsAge of the parents

Additional parental employment Additional parental employment expenses expenses

Income Protection AllowanceIncome Protection Allowance

22% housing22% housing

78% everything else78% everything else

An updated formula would reflect An updated formula would reflect regional sensitivityregional sensitivity

The revised formula would improve the The revised formula would improve the fairness in targeting Pell Grants and fairness in targeting Pell Grants and ACG/SMART Grant dollars ACG/SMART Grant dollars A formula change would also affect A formula change would also affect students’ eligibility for federal loansstudents’ eligibility for federal loans

Sample DataSample Data

The “family” we use to illustrate this The “family” we use to illustrate this case has two parents and two children; case has two parents and two children; one in collegeone in college

Income is $35,000 per yearIncome is $35,000 per year

Local housing costs are based on Local housing costs are based on HUD’s 2007 estimates of “Fair Market HUD’s 2007 estimates of “Fair Market Rent” for two-bedroom rental of Rent” for two-bedroom rental of standard qualitystandard quality

On On averageaverage the current allowance covers the current allowance covers 70% of US housing costs70% of US housing costs

Changes in EFCChanges in EFC

Family Location Expected Family Contribution

Revised EFC (annual)

Brownsville no change

Great Falls no change

Knoxville no change

Wichita no change

Provo no change

Kenosha $2,968 no change

Seattle $2,698

Minneapolis $2,673

Miami $1,761

San Diego $501

Boston $0

Changes in Pell AwardsChanges in Pell Awards

Family Location Expected Pell Award (annual)

Revised Expected Pell Award (annual)

Brownsville no change

Great Falls no change

Knoxville no change

Wichita no change

Provo no change

Kenosha $1,342 no change

Seattle $1,612

Minneapolis $1,637

Miami $2,639

San Diego $3,809

Boston $4,310

Contact InformationContact Information

Carolyn HenrichCarolyn Henrich University of California University of California

Office of Federal Governmental Office of Federal Governmental RelationsRelations

1608 Rhode Island Avenue, N.W.1608 Rhode Island Avenue, N.W.Washington, D.C. 20036Washington, D.C. 20036

202.974.6308, office202.974.6308, officecarolyn.henrich@ucdc.educarolyn.henrich@ucdc.edu

EDFUNDEDFUND

Dr. Samuel M. Kipp IIIDr. Samuel M. Kipp IIIPresidentPresident

Rancho Cordova, CARancho Cordova, CA

EDFUND OverviewEDFUND Overview

EDFUND, a California nonprofit public-benefit EDFUND, a California nonprofit public-benefit corporation, is the nation’s second largest corporation, is the nation’s second largest provider of student loan guarantee services provider of student loan guarantee services under the Federal Family Education Loan (FFEL) under the Federal Family Education Loan (FFEL) ProgramProgram

EDFUND was created in 1997 as an auxiliary of EDFUND was created in 1997 as an auxiliary of the California Student Aid Commission because it the California Student Aid Commission because it was not possible to provide competitive, was not possible to provide competitive, responsive, high-quality student loan services responsive, high-quality student loan services within a state agency structure.within a state agency structure.

Federal Loan Volume in California FY 2005-06Federal Loan Volume in California FY 2005-06

Others$1.5 Billion

27%

EDFUND$2.9 Billion

51%

Direct Loans

$1.3 Billion22%

EDFUND guarantees more than 50% of the FFEL Loan Volume in the state of California

1,600 schools nationwide use EDFUND as their 1,600 schools nationwide use EDFUND as their guarantorguarantorSaved students more than half a billion dollars in Saved students more than half a billion dollars in college costscollege costsProvide more than 600 free training and outreach Provide more than 600 free training and outreach sessions to students and institutions each yearsessions to students and institutions each yearReduced loan default rate from 14.4 to 8.6 percentReduced loan default rate from 14.4 to 8.6 percentEmploy more than 600 resident Californians adding Employ more than 600 resident Californians adding $54 million a year to the state’s economy in salaries $54 million a year to the state’s economy in salaries and benefitsand benefitsCollected nearly $4 billion in unpaid defaulted loansCollected nearly $4 billion in unpaid defaulted loansGenerate millions of dollars of tax revenue for the Generate millions of dollars of tax revenue for the statestate

EDFUND AccomplishmentsEDFUND Accomplishments

Outreach publications and services help students Outreach publications and services help students and families make informed choices about paying and families make informed choices about paying for collegefor collegePartner with students, parents, schools and lenders Partner with students, parents, schools and lenders to ease the application and origination processto ease the application and origination processProvide entrance and exit counseling, enrollment Provide entrance and exit counseling, enrollment status updates and other borrower support services status updates and other borrower support services during in-school and grace periodsduring in-school and grace periodsOffer counseling, financial and debt management, Offer counseling, financial and debt management, delinquency and default prevention assistance delinquency and default prevention assistance during the entire repayment periodduring the entire repayment periodCollection recovery and loan rehabilitationCollection recovery and loan rehabilitation

Helping Student BorrowersHelping Student BorrowersDuring Their Entire Education ExperienceDuring Their Entire Education Experience

Students who withdraw before degree or Students who withdraw before degree or program completion are personally counseled program completion are personally counseled in our Voluntary Flexible Agreement (VFA) in our Voluntary Flexible Agreement (VFA) Early Withdrawal Counseling Program and are:Early Withdrawal Counseling Program and are:– Almost twice as likely to return to school;Almost twice as likely to return to school;– Much less likely to become delinquent at any time Much less likely to become delinquent at any time

during their first year after leaving school;during their first year after leaving school;– Much more likely to return to or remain in a positive Much more likely to return to or remain in a positive

repayment status one year after leaving school; andrepayment status one year after leaving school; and– One-third less likely to default within two years of One-third less likely to default within two years of

leaving schoolleaving school

Innovative EWC Program Innovative EWC Program Helps Highest Risk BorrowersHelps Highest Risk Borrowers

California has the most ethnically and economically California has the most ethnically and economically diverse student population in the country. diverse student population in the country. – The future of the state’s economy depends on making access The future of the state’s economy depends on making access

to postsecondary education a reality for all students.to postsecondary education a reality for all students.

Loans, particularly federal loans, are the single Loans, particularly federal loans, are the single largest source of financial aid for California students.largest source of financial aid for California students.Continued access to loans and timely, high quality, Continued access to loans and timely, high quality, responsive support services are critical to maximizing responsive support services are critical to maximizing California students’ chances for successful California students’ chances for successful educational and repayment experiences.educational and repayment experiences.Guaranty agencies, such as EDFUND, play a critical Guaranty agencies, such as EDFUND, play a critical role by providing innovative programs and support role by providing innovative programs and support services that best meet the distinct needs of all services that best meet the distinct needs of all California students.California students.

Important Loan Issues for Important Loan Issues for California Students and InstitutionsCalifornia Students and Institutions

Contact Info:Contact Info:

Dr. Samuel M. Kipp, IIIDr. Samuel M. Kipp, IIIPresidentPresident

(916) 526-8010(916) 526-8010SKipp@edfund.orgSKipp@edfund.org

Jack GormanJack GormanDirector - Washington, DC OfficeDirector - Washington, DC Office

202.997.9736202.997.9736jgorman@edfund.orgjgorman@edfund.org

California Institute:California Institute:Congressional BriefingCongressional Briefing

on Student Financial Aidon Student Financial AidSeptember 26, 2007September 26, 2007

Anne McKinney, CCCAnne McKinney, CCC

Allison Jones, CSUAllison Jones, CSU

Carolyn Henrich, UCCarolyn Henrich, UC

Sam Kipp, EDFUNDSam Kipp, EDFUND