Financial Aid Presentation April 29, 2013
Defining Need, Federal Methodology Cost of Attendance - Expected Family Contribution = Demonstrated Need Cost of Attendance is an estimate of what it will reasonably cost the student to attend for a given period of time. Guidelines annually set by the CCHE and vary based on whether or not a student lives at home, on campus or off campus. Expected Family Contribution is calculated by a federally-approved formula. Accounts for income, assets, household size, number in college and other information. 2
CCHE Estimated Cost of Attendance Components Tuition & Fees On Campus Room & Board, or Housing and Food, monthly Allowance Books and Supplies Allowance Local Transportation Allowance: Parking costs, bus pass etc. Personal Expense Allowance: Laundry, clothing, recreation etc. Student Health Plan or Medical Insurance Allowance 3
CCHE Estimated Cost of Attendance FY 12 Department of Higher Education Estimated Cost of Attendance- Resident Undergrad Full-Time UCB UCCS CU Denver Tuition & Fees $ 9,152 $ 7,894 $ 7,702 Room & Board $ 11,278 $ 7,990 $ 9,890 Books & Supplies Allowance $ 2,000 $ 2,000 $ 2,000 Local Transportation Allowance $ 1,296 $ 1,296 $ 1,296 Personal Expense Allowance $ 1,287 $ 1,287 $ 1,287 Medical Expense Allowance $ 2,232 $ 2,232 $ 2,232 Total $ 27,245 $ 22,699 $ 24,407 FY 12 Actual Cost of Attendance Estimate UCB UCCS CU Denver $ 25,921 $ 20,065 $ 21,855 4
Awarding Financial Aid Each campus develops individual criteria aimed at awarding need-based aid to the students with the greatest need. Some factors taken into consideration include: Campus Mission and Goals Amount of Federal, State and Institutional Aid Available Consistency Across Years Loan Debt Levels Full Cost of Attendance Of the students that applied for and were eligible for State and Institutional aid, many did not receive awards because the funds were already exhausted. UCB- 51%, UCCS- 46%, CU Denver- 47% 5
CU Investment in Financial Aid $200.0 $180.0 $160.0 $140.0 $24.2 $40.3 $44.9 $44.3 Millions $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $- $21.7 $55.0 $19.8 $55.2 $50.9 $19.1 $53.4 $43.9 $16.4 $18.9 $19.7 $37.0 $40.4 $13.9 $68.0 $30.7 $28.9 $48.6 $51.9 $56.9 $28.7 $25.9 $42.5 $35.5 $33.5 $12.1 $13.6 $16.0 $21.0 $16.1 $17.1 $14.1 $13.4 $13.6 $16.9 $19.3 $22.5 $21.9 $20.5 $18.4 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 State Aid Institutional Aid- From Tuition Institutional Aid- From Other Sources Federal Pell 6
Institutional Need and Merit Increases FY 2013-14 aid increases: UCB, $2,614,827 (5.2% increase) represents 12.9% of ongoing expenditure increase UCCS, $834,437 (15.4% increase) represents 9.3% of the ongoing expenditure increase Denver Campus, $305,241 (2.4% increase) represents 5.3% of the ongoing expenditure increase Examples of factors considered in determining aid funding increases: Campus Strategic Plans and Goals Federal, State and Institutional Aid Available Impact of tuition and linearity changes 7
Out-of-Pocket Tuition and Fees Published Tuition & Fees Systemwide: FY 2009, $6,745; FY 2012, $8,249 (+22%) Tuition and Fees Paid $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- $0 Out-of-Pocket Tuition and Fees $- $- Lowest Income ($0-$32,500) Change -$357, -23% $1,551 $1,194 Lowest Middle Income ($32,500-$59,999) Change $590, 12% $4,839 $5,429 Upper Middle Income ($60,000-$99,999) Change $1,203, 21% $5,695 $6,898 Upper Income ($100,000- $140,000) Change $1,348, 22% $6,032 $7,380 Above Upper Income (+$140,000) FY 09 Out-of-Pocket Tuition & Fees FY 12 Out-of-Pocket Tuition & Fees Note: Full-time, dependent students who applied for aid 8
Debt Load Upon Graduation, 2011 $35,000 $32,440 $30,000 $25,000 $22,283 $24,648 Dollars $20,000 $15,000 $17,227 $10,000 $5,000 $0 Lowest State (Utah) Colorado National Highest State (NH) Source: Project on student debt 9
Debt Load Upon Graduation $35,000 $30,000 $25,000 $20,000 $30,987 Resident Undergraduate = $20,940 $26,948 $26,640 $25,045 Resident Undergraduate = $20,927 $24,485 $24,224 $24,060 $23,902 $23,636 Resident Undergraduate = $17,441 $23,184 $20,948 $20,794 $15,000 $10,000 $5,000 $- Mines UCD AMC Metro Mesa UCB UNC CSU-P CSU Adams UCCS Ft. Lewis Western Sources: Colorado Department of Higher Education Note: Loan debt for Resident Undergrads only at CU does not include transfers Note: Resident and Non-Resident Students, only students who took loans 10
Loan Default Rate Comparison 12.0% 10.0% 8.0% 10.1% 9.1% 6.0% 4.0% 3.8% 2.0% 0.0% 2005 2006 2007 2008 2009 2010 CU Colorado National Source: U.S Department of Education, CU is system wide 11
UCCS Resident Undergraduate Financial Aid Applicants, 2012 3,000 2,500 2,405 2,000 739 1,500 1,145 1,166 1,000 500-1,666 369 342 776 824 220 511 206 290 1,086 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Did not apply for aid (no income data available) 731 496 FY 12 Number of Students who took Loans FY 12 Number of Students who did not take Loans Note: Does not include Parent or Private Loans 12
UCCS Resident Undergraduate Financial Assistance, 2012 $25,000 FY 12 Actual Cost of Attendance Estimate = $20,065 $20,000 $15,000 $10,783 $10,000 $8,454 FY 12 Tuition & Fees = $7,894 $5,000 $5,963 $4,834 $3,973 $- ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Institutional Need Based Institutional Merit Based Other Scholarship State Aid Federal Aid Student Loan N=2,405 N=1,145 N=1,166 N=731 N=124 13
UCCS Annual Loan Resident Undergraduates, 2012 $25,000 $20,000 FY 12 Actual Cost of Attendance Estimate = $20,065 $15,000 $10,000 $5,000 $7,440 $6,608 $6,172 $5,879 $5,783 $- ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) N= 1,666 N= 776 N=824 N=511 N=290 Note: does not include Parent or Private Loans and only includes students that took loans 14
UCCS Cost of Attendance Minus Assistance, 2012 3,000 per student =$9,282 per student =$8,239 per student =$4,199 per student =$1,552 per student =$358 2,500 2,000 1,500 2,253 1,000 500 1,025 757 205 47-409 526 449 152 120 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Total number of Students that have remaining unmet need after expected family contribution, aid and student loans Total number of Students whose costs are covered after expected family contribution, aid and student loans Note: Does not include Parent or Private Loans 15
Denver Campus Resident Undergraduate Aid Applicants, 2012 4,000 3,500 3,525 3,000 1,068 2,500 2,000 1,500 1,000 500-2,457 1,511 465 1,210 337 1,046 953 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Did not apply for aid (no income data available) FY 12 Number of Students who took Loans 634 177 457 456 168 288 1,154 FY 12 Number of Students who did not take Loans Note: Does not include Parent or Private Loans 16
Denver Campus Resident Undergraduate Financial Assistance, 2012 $25,000 $20,000 FY 12 Actual Cost of Attendance Estimate= $21,855 $15,000 $11,832 $10,000 $5,605 $9,143 $6,474 FY 12 Tuition & Fees = $7,702 $5,000 $4,829 $4,849 $5,411 $4,643 $4,645 $4,022 $- ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Institutional Need Based Institutional Merit Based Other Scholarship State Aid Federal Aid Student Loan N=3,525 N=1,511 N=1,210 N=634 N=456 17
Denver Campus Annual Loan Resident Undergraduates, 2012 $25,000 FY 12 Actual Cost of Attendance Estimate= $21,855 $20,000 $15,000 $10,000 $8,041 $6,976 $6,564 $6,442 $6,368 $5,000 $- ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) N=2,457 N=1,046 N=953 N=457 N=288 Note: Does not include Parent Loans and only includes students that took loans 18
CU Denver Cost of Attendance Minus Assistance, 2012 4,500 4,000 per Student =$9,374 per Student =$7,858 per Student =$5,045 per Student =$1,378 per Student =$306 3,500 3,000 2,500 2,000 3,295 1,500 1,000 500-1,329 911 182 41 230 182 379 452 415 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Total number of Students that have remaining unmet need after expected family contribution, aid and student loans Total number of Students whose costs are covered after expected family contribution, aid and student loans Note: Does not include Parent or Private Loans 19
Boulder Resident Undergraduate Financial Aid Applicants, 2012 6,000 5,000 4,000 3,253 3,000 2,000 1,000 1,087 2,166 1,778 543 1,235 2,187 623 1,564 2,051 1,609 866 525 1,084 1,185 5,341 - ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Did not apply for aid (no income data available) FY 12 Number of Students who took Loans FY 12 Number of Students who did not take Loans Note: Does not include Parent or Private Loans 20
Boulder Resident Undergraduate Aid Award for Financial 2012, Assistance, UCB 2012 $25,000 FY 12 Actual Cost of Attendance Estimate= $25,921 $20,000 $15,000 $15,004 $11,793 $10,000 $7,708 FY 12 Tuition & Fees = $9,152 $5,000 $5,688 $4,512 $- ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Institutional Need Based Institutional Merit Based Other Scholarship State Aid Federal Aid Student Loan N=3,253 N=1,778 N=2,187 N=1,609 N=2,051 21
Boulder Annual Loan Resident Undergraduates, 2012 $25,000 FY 12 Actual Cost of Attendance Estimate= $25,921 $20,000 $15,000 $10,000 $5,000 $7,152 $6,115 $5,987 $5,965 $6,213 $- ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) N= 2,166 N= 1,235 N=1,564 N=1,084 N=1,185 Note: does not include Parent or Private Loans and only includes students that took loans 22
Boulder Cost of Attendance Minus Assistance, 2012 3,500 per Student =$9,559 per Student =$10,175 per Student =$6,841 per Student =$2,787 per Student =$658 3,000 2,500 2,000 3,034 276 1,500 1,751 724 1,000 1,664 1,775 500-885 436 219 114 ($0-$32,500) ($32,500-$59,999) ($60,000-$99,999) ($100,000-$140,000) (+$140,000) Total number of Students that have remaining unmet need after expected family contribution, aid and student loans Total number of Students whose costs are covered after expected family contribution, aid and student loans Note: Does not include Parent Loans 23
Closing the Cost Gap Ways to Reduce Cost Live with Parents Live with multiple roommates Use alternative transportation Cut back on personal expenses Remain on parents insurance plan College credit earned in high school or competency testing 24
Closing the Cost Gap Other Options Part-time work College savings plans Parent/Private loans Credit cards 25
Conclusions For many students, actual cost of attendance is lower than estimated cost of attendance allowed by CCHE Out-of-pocket tuition and fee increases mitigated for lower and lower middle income students. Middle income student costs have grown less than tuition and fees. Many resident undergraduates did not apply for federal aid in 2012: UCB 33%, UCCS 15%, Denver 13% Of those who applied for aid in FY 2012, about one-third did not take a loan Student loan default rates for CU students lower than the state or national average 26