Student Financial Aid

Higher EducationAppropriations Subcommittee

January 24, 2008

David A. Feitz

Executive Director

Board of Regents Building

60 South 400 West

Salt Lake City, UT 84101-1284

801.321.7210

dfeitz@utahsbr.edu

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UHEAA

UHEAA is the financial aid and college savings organization of the Utah State Board of Regents (SBR).

Governed by a separate board of directors 19-members Acting under direction of SBR Current UHEAA Board leadership

• Chair: David Jordan

• Vice Chair: Fred Hunsaker

208 employees

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UHEAA

UHEAA is Utah’s major financial aid provider. Student loans 10 grant and scholarship programs including:

• Utah Centennial Opportunity Program for Education (UCOPE)

• New Century Scholarship

College outreach UtahMentor.org 1.5 to 2 million page hits per month

Utah Educational Savings Plan Trust (UESP) – Utah’s 529 college savings plan

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Fast Facts

UHEAA loan volume in fiscal 2007 102,700 student loans $502 million: Consolidation, Stafford and PLUS loans

UHEAA’s default rate 4.3% Below the national rate of 4.6%

UHEAA’s student loan portfolio 163,000 borrowers $1.97 billion

UESP Over 113,000 accounts $2.5 billion total account balances

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Fast Facts

UHEAA operating budgets $210 million No State appropriations for UHEAA operating expenses

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UHEAA Student Loan Volume

Stafford & PLUS Loans

Fiscal Years 2001-2007(Excludes Consolidation loans)

$216$240

$276$312

$327$347 $337

$0

$50

$100

$150

$200

$250

$300

$350

$400

2001 2002 2003 2004 2005 2006 2007

Fiscal Year

Lo

an V

olu

me

in M

illio

ns

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Student Loans

Top Seven Schools Gross Loan Volume (In Millions)

Fiscal Year 2007

University of Utah $80.2Brigham Young University – Provo $46.0Utah Valley State College $34.6Utah State University $33.9Brigham Young University – Idaho $27.9Weber State University $22.7Salt Lake Community College $12.7

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Student Loans

Top Seven Lenders Gross Loan Volume (In Millions)

Fiscal Year 2007

Wells Fargo Bank $105.9Zions First National Bank $70.7America First Credit Union $43.1US Bank $23.4Mountain America Credit Union $22.1Utah Community Credit Union $14.4JPMorgan Chase $14.1

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Average Student Loan Debt Burden

National average debt for graduating seniors: $19,300*

Utah average debt for graduating seniors in 2005: $11,709**

*National Center for Education Statistics, The Condition of Education 2004, June 2004, http://nces.ed.gov/pubs2004/2004077.pdf

**Calculations by the Project on Student Debt, based on data from Thomson Peterson’s Undergraduate Financial Aid and Undergraduate Databases. http://projectonstudentdebt.org/state_by_state-data.php

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UHEAA Borrower Benefits: Interest Rate Discounts

“One of the best discount programs.”

– Wall Street Journal(June 2, 2004)

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UHEAA Money-Saving Benefits for Borrowers

UHEAA pays the 1% default fee for all borrowers

Zero origination fee on Stafford loans (currently equal to 1.5% of loan amount)

0.50% rate reduction for automatic payments on Stafford and PLUS loans

2% balance reduction after 48 on-time payments on Stafford and PLUS loans.

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UHEAA Savings for Borrowers

UHEAA is a not-for-profit, State agency and shares its revenues with students to reduce borrowing costs.

Savings to Borrowers: $17.6 million in FY 2007 $110.1 million since FY 1998

Total Savings Using Borrower Benefits

$2.0 $2.9$4.7

$6.3

$9.4

$12.3$14.7

$18.3

$21.9

$17.6

$0

$5

$10

$15

$20

$25

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Mil

lio

ns

Year

13

14

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How Do Students Pay for College?

SavingsWork

UCOPE

LoansScholarships

Family SupportPell

Grants

Credit Cards

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Loans Are the Largest Source of Student Financial Aid

Pell Grant vs Student Loan Volume2006-07 Award Year

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

UU USU WSU SUU UVSC DSC SLCC Snow CEU BYU Wstmstr

Millio

ns

Pell Loan

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Example of Financial NeedUtah resident attending two semesters

Cost of Attendance $20,000Less Expected Family Contribution 2,200

Need 17,800

Less Aid AwardedPell Grant $ 2,480FSEOG 800UCOPE 800Stafford Loan 3,500Work Study 2,200

Remaining Need $ 8,020

This example is based upon a dependent student from a two-parent household with a family size of six and two in college. Parental income is $60,000 with both parents working and $5,000 in savings. Student income is $3,600 with $1,000 in savings. Components of Cost of Attendance include tuition, fees, books, supplies, transportation, personal expenses, room & board, and may include loan fees, dependent care expenses, and expenses related to a student’s disability.

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State Appropriations

Student Financial Aid Programs*

Fiscal Years 2004-2008

*Matching funds, UCOPE, New Century Scholarship, UECLP, UTAP, Minority Scholarship

$0

$2

$4

$6

$8

$10

$12

'04 '05 '06 '07 '08

Mil

lio

ns

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UCOPE

$2.8 mil

$4.2 mil

Students Awarded

2,114

2,807

2,102

5,183

0

1000

2000

3000

4000

5000

6000

2004 2005 2006 2007

Fiscal Year

Nu

mb

er o

f S

tud

ents

$1.9 mil

$2.8 mil

$1.9 mil

$4.2 mil

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New Century Scholarship Earned by High SchoolSince Inception

0

20

40

60

80

100

120

High School* Only High Schools with 10 or more Awards are Listed

# o

f A

wa

rds

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New Century Scholarship

New Awards By Fiscal Year

1350

81

132154

188

271

413

500

0

100

200

300

400

500

600

2000 2001 2002 2003 2004 2005 2006 2007 2008 *

Fiscal Year* FY 2008 is Estimated

Total New Awards for Program to Date (1/23/2008): 1,719

# o

f N

ew

Aw

ard

s

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Where Students Earn Their Associate Degrees To Qualify for

a New Century ScholarshipSince Incecption

Utah Valley State College, 443, 25.8%

Brigham Young University, 1, 0.1%

Utah State University, 384, 22.3%

University of Utah, 21, 1.2%

Southern Utah University, 46, 2.7%

Snow College, 39, 2.3%

Salt Lake Community College, 386, 22.5% Westminster College, 2,

0.1%

College of Eastern Utah, 159, 9.2%

Weber State University, 193, 11.2%

Dixie State College of Utah, 43, 2.5%

LDS Business College, 2, 0.1%

College of Eastern Utah

Dixie State College of Utah

LDS Business College

Salt Lake Community College

Snow College

Southern Utah University

University of Utah

Utah State University

Brigham Young University

Utah Valley State College

Weber State University

Westminster College

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New Century Scholarship 2008 Disbursements

Where Students Use Their New Cenutry ScholarshipFiscal Year 2008

BYU, $302,802, 22.0%

WSU, $103,371, 7.5%

UVSC, $123,136, 9.0%

USU, $327,202, 23.8%

DSC, $10,744, 0.8%

SUU, $98,575, 7.2%

UU, $378,964, 27.6%

WC, $29,334, 2.1%

BYU

DSC

SUU

UU

USU

UVSC

WSU

WC

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Return on Investment

Brianne Moon Southern Utah University

graduate Pell, Loans, UCOPE UCOPE leads to internship Internship leads to job offer Staying in Utah to teach

elementary school

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Achieving Goals

Ky Sealy New Century Scholarship

recipient BS & MS in Electrical

Engineering from Utah State University

First generation college graduate

Arrived at USU ready for the rigors of college

Siblings will receive New Century Scholarships

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Education: The Way Out of Poverty

Lanora Nielson UCOPE recipient Single mother of four Honors student at Dixie

State College Goal to be a high

school counselor

“Without UCOPE I would not have the opportunity of going to college.”