paying for college - utah · pdf file$142.2 m $421.4 m increase from 196% 2008 to 2013 ......

Utah Higher Education Assistance AuthorityDavid A. Feitz, Executive Director60 South 400 WestSalt Lake City, UT [email protected]

PAYING FOR COLLEGE

March 20, 2014

Utah Higher EducationAssistance Authority

• Student loan andfinancial aid organizationof the Utah State Boardof Regents

• Established by statestatute in 1977

Utah FoundationAnnual MeetingMarch 20, 2014

2

Utah Higher EducationAssistance Authority

• Major provider of highereducation financing andservices for Utah Student loans Grants Loan servicing

• Leading role in how-to-pay-for college communityoutreach services


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UHEAA: Success Story for State of Utah

• UHEAA’s 37-yearhistory

• $6.6 billion instudent loans to 1.8million students


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UHEAA’s low student loan default rates


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4.6 5.26.7 7.0

8.8 9.110.0

4.32.8 2.1 1.9 2.3 2.2 2.6

0

2

4

6

8

10

12

2007 2008 2009 2010 2011 2012 2013

Perc

ent

UHEAA’s Low Default RatesNational Average UHEAA

How do students pay for college?


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Savings

Work

SuccessStipend

Loans

ScholarshipsFamily

Support

PellGrants

How the typical family pays for college


7

5%

9%

11%

18%

27%

30%

Relatives & Friends

Parent Borrowing

Student Income & Savings

Student Borrowing

Parent Income & Savings

Grants & Scholarships

Source: SLM Corp. Ipsos, How America Pays for College, 2013

UHEAA Community Outreach Services toSchools and Students


8

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How to Pay for CollegeFree, statewide workshops

Last 24 months of activity:• 275 “Prepare for college” events• Over 26,000 in attendance

students parents guidance counselors

UHEAA’s consistent message to families –

1. Save for college2. Apply for:

• Grants• Scholarships• Work Study

3. Consider loans last


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Pell Grants – Largest Federal student aidgrant program

• Utah students – significant users of Pell Grant• Pell Grants based on financial need for

undergraduate study• Maximum award: $5,730• 12 semesters• Total Utah Pell for 2012-13:

119,800 students$421 million

• Up to 30 credit hours forremedial coursework


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Pell Grant recipients in Utah


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-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Award Years 2000-2013

57,400

119,800

Increase from2008 – 2013

109%

Source: US Department of Education

Pell Grant dollars in Utah


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$-

$50

$100

$150

$200

$250

$300

$350

$400

$450

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Mill

ions

Award Years 2000-2012

$142.2 M

$421.4 M

196%Increase from2008 to 2013


Highest Pell volume schools in Utah


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2012-2013 Pell Grant Volume at Utah Schools

School Recipients Disbursements

UTAH VALLEY UNIVERSITY 14,900 $52.4 M

BRIGHAM YOUNG UNIVERSITY 12,300 $49.8 M

SALT LAKE COMMUNITY COLLEGE 14,200 $41.5 M

UTAH STATE UNIVERSITY 10,200 $37.6 M

UNIVERSITY OF UTAH 8,900 $32.8 M

WEBER STATE UNIVERSITY 9,100 $30.9 M


Pell & Loan use in Utah: Twice as muchloan volume compared to Pell


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$920 M(186,700)

$421 M(119,800)

Loans Pell Grants

2012-13 Volume

Federal student loan volume in Utah


15

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Mill

ions

Award Years 2000 to 2013$919.6 M

Increase from2008 to 2013

111%


$436.7 M

Student loan volume at Utah schools

School Dollar Amount

UNIVERSITY OF UTAH $ 135.4 M

UTAH VALLEY UNIVERSITY $ 83.1 M

UTAH STATE UNIVERSITY $ 59.9 M

STEVENS HENAGER COLLEGE $ 59.2 M

BRIGHAM YOUNG UNIVERSITY $ 56.0 M


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2012-13 Award Year

Student loan and Pell Grant dollarvolume at Utah schools


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20%39% 39% 32%

47% 55% 36%

80% 61%

61%68%

53%45% 64%

$-

$20

$40

$60

$80

$100

$120

$140

$160

$180

U of U UVU USU StevensHenager

BYU SLCC WSU

Mill

ions

Pell & Loan Dollar Volume 2012-13

LoansPell Grant

Student debt surpasses all other non-mortgage debt


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Post-recession reality: Decreased parentalsupport for paying college expenses

• Student loan debt is the only kindof household debt that continuedto rise during the recession.

• Parents’ average out-of-pocketspending for college expenses hasdecreased by 35% since 2010.

$8,752 to $5,727


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Source: SLM Corp. Ipsos, How America Pays for College, 2013

50% of Utah graduates have loans

Utah average student loan debt of college seniorsranks 44th in nation at $21,520.

National average is $29,400.


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Source: Project on Student Debt, Class of 2012

Example monthly payment amount

• $21,520 balance• 6% interest rate• 10-year repayment period

Monthly payment = $239

Annual income of $36,000 neededto service this debt level.


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Reality of borrowing patterns

Press stories of extremely high debt levels are the exception.


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39.9%

29.8%

17.7%

9.0%

2.2% 0.9% 0.6%$1-$10,000

$10,000-$25,000

$25,000-$50,000

$50,000-$100,000

$100,000-$150,000

$150,000-$200,000

$200,000+

Source: FRBNY Consumer Credit Panel / Equifax

40% ofborrowers havebalances lessthan $10,000

3.7% ofborrowers havebalances greaterthan $100,000

Utah National Avg.

Need-based, state grant aid

Utah ranks 48th in stateneed-based grant dollarsper undergraduate FTE.¹

“Low-income and minoritystudents who receive grantsgenerally are more likely to persistthan those who receive loans.”²


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¹Source: National Association of State Student Grant and AidPrograms 43rd Annual Survey Report

²Source: Educational Policy Institute, StudentRetention.org

$16.03

$481.63

Additional state investment needed forUtah to move up in ranking from #48

3 Spots to #45 5 Spots to #43 To Midpoint #26

$2.4 million $9.7 million $43.9 million


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Annual State Grant Dollars Needed

One day at the gas station


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Utah Higher Education Assistance AuthorityDavid A. Feitz, Executive Director60 South 400 WestSalt Lake City, UT [email protected]

PAYING FOR COLLEGE

March 20, 2014

paying for college - utah · pdf file$142.2 m $421.4 m increase from 196% 2008 to 2013 ......

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