Division of Financial Aid Division of Financial Aid Update Prepared for PACADA 12/12/12.

Division of Financial Aid

Division of Financial Aid Update

Prepared for PACADA

12/12/12


What’s new in Financial Aid?

• Updated SAP Policy • Plans for Plans documents • New Website for DFA• Push for Financial Literacy and Outreach• Loan Analysis – for Purdue


What’s new from D.C.

• Push to go to a single website as a starting point for all ED functions.

• Transparency?

• Federal Trending


Satisfactory Academic Progress

• Checked after every semester

• Hope is to catch them before they get too much in debt that repayment becomes impossible for them to repay.


Sliding Scale

Credits completed Minimum GPA0-14 1.50

15-29 1.6030-44 1.7045-59 1.8060-74 1.9075-89 2.00

90-104 2.00105+ 2.00

Grad / Prof 2.00


Plans Documents

• DFA is closely monitoring students progress toward their degree.

• Plans documents required for:– students who were less than full time during their

last 2 semesters of enrollment– All Technology Statewide students– Any senior who appear to be graduating within the

next semester (hours >105)


New Web Site

• www.purdue.edu/DFA • Easier to navigate• More content• Help for students, parents, alumni, future

Boilermakers

http://www.purdue.edu/DFA


MyMoney

• Purdue DFA has adopted as part of its mission the importance of teaching the student financial literacy.

• MyMoney Powered by Purdue– www.purdue.edu/mymoney/ – Provides students tools to becoming financially

responsible students and citizens

• Financial literacy presentations

http://www.purdue.edu/mymoney/


Loans at Purdue

• Much media coverage lately of student borrowing and that student loan debt has exceeded credit card debt.– CNN 12/6/12– CNBC 10/18/12

• Nationally, a 3 year default rate of 13.4%• How does Purdue compare to other colleges?


Purdue compared to Indiana Publics


Purdue compared to other schools


Student Loan Debt – Hype vs. Reality

The hype is that student loan debt is crushing all college graduates-- that they have insurmountable debt.

The reality is that 45% of Purdue students graduating with a Bachelor Degree have no student loan debt.

The reality is that of the 55% who borrow the average amount for residents is $24,056 and $36,760 for non residents

The reality is that of those who borrow 75% of Indiana residents borrow $30,694 or less. For non residents 75% borrow less than $45,000.

The reality is that 97.2% of Purdue Students successfully repay their loans.


10% of Salary vs. 10 year payoff

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What’s new from Washington?

• Push for a unified student aid website– www.studentaid.gov– One stop for all Federal aid programs

• Preparation• Aid types / descriptions• FAFSA application• Loan Application / Loan counseling• Repayment information

http://www.studentaid.gov/


Transparency

• Government has implemented a number of steps to allow for the comparison of schools under with a level playing field.

• Desire is to show families up front what they will need to come up with in terms of money out of pocket or through borrowing of loans.


Step One – Net Price Calculator

http://www.purdue.edu/apps/onepurdue/finaid/

Give students in the searching phase an idea of what they would be looking at in terms of cost




Step Two – Shopping Sheet

• Still in the development state. – Banner will develop the formatting from

specifications give to them by ED.

• Implementation with 2013-2014 academic year

• Will present a uniform view of aid so student can compare offers from different institutions.


ED Mantra has become:

Know before you go

Know before you owe.


More Money for Students• Get the Right Aid to the Right Students at the Right Time

– Increase number of areas government is tracking• Increased burden upon financial aid offices• Students can be selected for multiple items or only one.

• Obama Administration has asked for an increase to Pell funding for 2013-2014– Pell is safe for 13-14. 2014-2015 has significant budgetary shortfalls

• Request is that interest rates on subsidized loans be held to 3.4%.

• If Sequestration happens, all bets are off.


Time for Graduates

• ED recognizes that some people are having difficulty paying loans off in 10 years.

• ED has introduce proposals to allow for students to pay off loans based on income and time.– Allows for some loans to be partially forgiven– Should eliminate the possibility of default on

student loans.

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