California Promise AB19

Presented by:

Dolores Smith, Dean of Student ServicesJulie Venable, Dean of Administrative Services/ControllerShanae Williams, Director of Financial Aid & Veterans Services

Board of Trustees MeetingMay 10, 2018

Topics of Discussion

• California College Promise Grant (CCPG) • California College Promise Program (CCPP) • MSJC Loan History• Default Data• Potential District Impact• Other Community College Trends• Alternatives

California College Promise Grant (CCPG)

California College Promise Program (CCPP)

• Can waive fees for one academic year for 1st time, full time students

• $46 Million to California Community Colleges• Funding formula announcement coming soon

• Program requirements:– Establish K-12 Partnerships– Utilize evidence of assessment practices of multiple

measures– Participate in CCC Guided Pathway Grant Program– Participate in the Direct Student Loan Program

Loan History2005-2009

Loan History2005-2009

Past Default Prevention Strategies

● Loan Counseling ○ Entrance Counseling ○ Exit Counseling

● Budget Workshops ○ MSJC requirement for unsubsidized loan

■ Financial literacy activities● Default Prevention Advisory Team

○ Default management policy/procedures○ Calendar of activities

■ letters/postcards■ phone calls

● Exited Student Loan Program 2009-2010

Cohort Default Rate History

*= Projected CDR

Potential District Impact

• An increased loan default rate may affect the District’s

credit rating and may jeopardize federal and state aid

– 2017-2018 Grants as of May 9, 2018Federal Grants: $20,287,348State Grants: $3,021,175

• Student loans may set students up for failure

• Student loan program is labor intensive to administer

Potential District Impact

• Higher Education Reform (Prosper Act)

– One loan program (USUB)

– Higher loan limits

• Up to $24,000 for 2 years

– Fewer loan repayment options will be available

• No more loan forgiveness and forbearance

Other Community College Trends

Alternatives

• Community College Partnerships

• Other Categorical Programs

• Individual Donors

• City Operating Budgets

• K-12 District Budgets

• District/Private Foundations

Thank you!

California PromiseAB19

Board of Trustees MeetingMay 10, 2018