State Update State Update

April 20, 2011Wilmington, North Carolina

Steven E. Brooks Executive Director

North Carolina State Education Assistance Authority

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3.69 million total accounts since 2000

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2.2 million total applications since 2000

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432 thousand high school transcripts since 2003

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Training and Outreach• Training by SEAA since October 2003

– 646 “new” FAAs in 24 workshops– 115 “intermediate” FAAs in four workshops– 82 FAAs through VA/New GI Bill webinars.– 42 FAAs through three additional webinars, two

“Application” and “Nuts & Bolts”– 379 SECU staff at 13 locations statewide– 43 FAAs at four sites for NC Grants Training

Workshops

These numbers include training done so far in 2010-11

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Training and Outreach (2)

• 581 school counselors received aid training - fall 2010

•  Upcoming Community College Training Workshops• April 20 (at CFCC following NCASFAA) • May 16 (Alamance CC) • May 17 (AB Tech)

• FAFSA DAY – 2011• Over 4,800 students and their family members• Over 1,700 volunteers• No snow• Much appreciation to NCASFAA members for this effort

– it really makes a difference in many lives

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'New' NC FAFSA -filers

Academic Year All Schools CC NCICU UNC

2004-2005 78,605 29,327 12,013 39,791

2005-2006 83,187 5.8% 29,351 0.1% 13,574 13.0% 44,560 12.0%

2006-2007 97,095 16.7% 32,864 12.0% 14,432 6.3% 50,681 13.7%

2007-2008 102,008 5.1% 33,966 3.4% 14,776 2.4% 53,561 5.7%

2008-2009 111,336 9.1% 38,549 13.5% 15,576 5.4% 56,943 6.3%

2009-2010 142,792 28.3% 55,352 43.6% 18,248 17.2% 66,580 16.9%

2010-2011 167,605 17.4% 70,525 27.4% 19,951 9.3% 71,854 7.9%

2011-2012 186,123 30.3% 78,897 42.5% 20,628 13.0% 74,489 11.9%

Year-to-date comparison as of 04/07/20xx (i.e. FAFSAs filed 01/01-4/07)

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'Returning' NC FAFSA -filers

Academic Year All_Schools CC NCICU UNC

2004- 2005 36,682 11,895 9,251 21,821

2005- 2006 36,333 -1.0% 11,415 -4.0% 9,448 2.1% 22,527 3.2%

2006- 2007 36,838 1.4% 11,376 -0.3% 9,505 0.6% 22,929 1.8%

2007- 2008 38,754 5.2% 12,239 7.6% 9,952 4.7% 24,256 5.8%

2008- 2009 43,782 13.0% 15,059 23.0% 11,387 14.4% 26,690 10.0%

2009- 2010 51,584 17.8% 20,415 35.6% 12,832 12.7% 29,597 10.9%

2010- 2011 51,988 0.8% 20,590 0.9% 13,859 8.0% 29,138 -1.6%

2011- 2012 53,492 3.7% 19,110 -6.4% 14,878 15.9% 31,050 4.9%

Year-to-date comparison as of 04/07/20xx (i.e. FAFSAs filed 01/01-4/07 )

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All NC FAFSA -filers

Academic Year All_Schools CC NCICU UNC

2004- 2005 115,287 41,222 21,264 61,612

2005- 2006 119,520 3.7% 40,766 -1.1% 23,022 8.3% 67,087 8.9%

2006- 2007 133,933 12.1% 44,240 8.5% 23,937 4.0% 73,610 9.7%

2007- 2008 140,762 5.1% 46,205 4.4% 24,728 3.3% 77,817 5.7%

2008- 2009 155,118 10.2% 53,608 16.0% 26,963 9.0% 83,633 7.5%

2009- 2010 194,376 25.3% 75,767 41.3% 31,080 15.3% 96,177 15.0%

2010- 2011 219,593 13.0% 91,115 20.3% 33,810 8.8% 100,992 5.0%

2011- 2012 239,615 23.3% 98,007 29.4% 35,506 14.2% 105,539 9.7%

Year-to-date comparison as of 04/07/20xx (i.e. FAFSAs filed 01/01-4/07 )

Year-end percentage increases may well resemble these YTD

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529 Program Update

• $784.7 million in investments– 89,713 accounts held by 54,900 participants– Average account balance - $8,771– Average balance per participant - $14,293

• Account breakdown by investment option– $389.4 million Vanguard Age-Based Funds– $302.5 million Vanguard Individual Funds– $70.3 million State Treasurer’s Dependable Income

Fund– $19.8 million SECU Money Market Fund– $2.6 millionMet Life Protected Stock Fund (closed)

All data as of March 31, 2011

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As of March 31, 2011

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529 Program Update• State Tax Deduction on Contributions

– Senate Bill 247 – Senators Hartsell, Atwater, Rucho– Removes prospective income caps on state tax deduction

– Why it matters: New Accounts Per Month

Prior to any tax deduction 224

With a means test 748

Since no means test 1,327

Money Magazine: NC one of three “top picks” in nationMorningstar: NC Plan rated “Above Average”

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State Grant Update, 2011-2012

• UNC Need Based Grant – Governor proposed even funding with last year– House budget is $127 million, a 21.6% reduction

($35 million less)– Temporary modifications to the formula to

accommodate lower budget• Progressive assessment of adjusted available income

rather than the flat 18% used for past several years• Student self help set at $5,200 rather than $4,500• Minimum award set at $500 (maximum still $3,800)• Tax credit for non-Pell Grant set at $2,500

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State Grant Update (2)• Student Incentive Grant

– LEAP abolished by Congress– NC House budget proposal has zero for NCSIG

• Community College Grant– Payment schedule already distributed– House budget lowers available funds to $16.5 million– Payment schedule based on estimated $17.4 million– Greater likelihood of closing system earlier – please use care in

awards and match with CFNC system

• NCLTG and SCSF– House budget has 10% cut; details not yet clear

• Education Lottery Scholarship– Payment schedule already distributed– No changes anticipated

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Consolidation & Simplification of State Aid Programs

• Joint Select Legislative Committee (JSC)• Work Group• Two issues/recommendations of the work group

were considered by the JSC– Forgivable Loan for Service– College Access and Success Grant

• Purpose today is to give you an update

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Forgivable Education Loan for ServiceNC FELS

Consolidate eight programs into one new program1. Nurse Educators of Tomorrow2. Nurse Scholars Program3. Nurse Education Scholarship Loan Program4. Board of Governors Medical Scholarship Loans5. Board of Governors Dental Scholarship Loans6. Health, Science and Mathematics Student Loan Program7. Prospective Teacher Scholarship Loan Program8. Teacher Assistant Scholarship Program

Full implementation to begin 2012-2013 academic year, with publicity to begin fall 2011 and loan offers to begin spring 2012; awards disbursed Fall 2012 (pending General Assembly Approval - S137 and H120)

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North Carolina College Access and Success Grant

• Work group proposed a consolidated UNC and CC grant payment schedule that– Leverages federal tax credits and Pell Grants– Recognizes sector differences in COA– Results in some changed total amounts of state aid

among UNC campuses, which has raised some concerns• JSC asked work group to “examine how to integrate a

tuition differential into the payment schedule” • Work Group is asking for more time in light of the

budget uncertainties at both federal and state levels• At minimum will need to re-examine the payment

schedule suggested last year in happier budget times

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New Golden LEAF Scholarship Programfor North Carolina Resident Students

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• 215 awards for incoming students in 2011-12• Freshmen and community college transfer students attending

North Carolina public 4-year and private non-profit institutions• Freshmen award of $3,000/year renewable for 3 additional years• Transfer award of $3000/year renewable for up to 2 additional

years, depending on program and credits• Eligibility criteria: financial need, minimum of 2.5 GPA (weighted

high school) and intent to return to rural community after college

• No longer limited by other grant assistance to be received (old 75% rule)•  Former NCICU and UNC Golden LEAF programs being phased out• Current recipients eligible for renewal if they meet the renewal criteria

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Questions?

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