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February 9, 2011 New York State Legislative Office Building Albany, New York

Investing In New York’s Future – College Financial Aid A Workshop for Members and Staff of the NYS Legislature. February 9, 2011 New York State Legislative Office Building Albany, New York. Higher Education ROI. NYSFAAA Legislative Training Session February 9, 2011 James W. Gathard.

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February 9, 2011 New York State Legislative Office Building Albany, New York

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  1. Investing In New York’s Future – College Financial Aid A Workshop for Members and Staff of the NYS Legislature February 9, 2011 New York State Legislative Office Building Albany, New York

  2. Higher Education ROI NYSFAAA Legislative Training Session February 9, 2011 James W. Gathard

  3. Higher Education ROI VALUE PROPOSITION Educational capital has a direct impact on the state’s social and economic health.

  4. Higher Education ROI FINANCIAL - VALUE PROPOSITION As educational attainment increases financial dependency on government decreases.

  5. Percentage of Individuals Ages 25 and Older Living in Households that Participated in Various Public Assistance Programs, by Education Level, 2008 Higher Education ROI Sources: The College Board, Education Pays 2010, Figure 1.15; U.S. Census Bureau, 2009; calculations by the authors.

  6. Higher Education ROI Employer-Provided Pension Plan Coverage Among Full-Time Year-Round Workers Ages 25 and Older, by Education Level, 2008 Sources: The College Board, Education Pays 2010, Figure 1.12a; U.S. Census Bureau, 2009; calculations by the authors.

  7. Higher Education ROI Unemployment Rates of Individuals Ages 25 and Older, by Education Level and Race/Ethnicity, 2009 Sources: The College Board, Education Pays 2010, Figure 1.10b; Bureau of Labor Statistics, 2010c.

  8. Higher Education ROI • “If you are a college graduate, unemployment is five percent. If you are a high school graduate, it is 10 percent or more. It is a very big difference.” • Excerpt form Ben Bernanke’s Take on the Economy – CBX News, December 2, 2010.

  9. Higher Education ROI Expected Lifetime Earnings Relative to High School Graduates, by Education Level Sources: The College Board, Education Pays 2010, Figure 1.2; U.S. Census Bureau, 2009; calculations by the authors.

  10. Higher Education ROI • Educational Capital Investment Outcomes

  11. Higher Education ROI Global Performance (OECD*) • USA leads the world in the percentage of its population aged 55 to 64 with college degrees • USA ranks 18th in college graduation rates • USA ranks 21st in high school graduations rates • USA ranks 1st in college dropout rates *Organization of Economic Co-operation and Development 31 democracies and free market countries in NA, Europe and Asia

  12. Postsecondary Enrollment Rates of Recent High School Graduates by Family Income, 1984–2008 Higher Education ROI Sources: The College Board, Education Pays 2010, Figure 2.1; National Center for Education Statistics, 2010.

  13. Annual Percentage Changes in State Appropriations for Higher Education per Full-Time Equivalent (FTE) Student and in Tuition and Fees at Public Four-Year Institutions in Constant 2009 Dollars, 1979-80 to 2009-10 Higher Education ROI SOURCE: The College Board, Trends in College Pricing 2010, Figure 10A.

  14. Mean and Median State Appropriations for Higher Education per $1,000 in Personal Income, 1989-90 to 2009-10 Higher Education ROI SOURCE: The College Board, Trends in College Pricing 2010, Figure 11A.

  15. State Appropriations for Higher Education per $1,000 in Personal Income by State, 2009-10 (including Federal Stimulus Funds) Higher Education ROI SOURCE: The College Board, Trends in College Pricing 2010, Figure 11B.

  16. Higher Education ROI • Shift Happens

  17. Higher Education ROI Gaps in Educational Levels of New York’s Working-Age Population (ages 25 to 64)

  18. Higher Education ROI U.S. educational pipeline by race/ ethnicity

  19. Higher Education ROI

  20. Higher Education ROI

  21. Higher Education ROI The greatest portion of U.S. population growth from ages 0 to 44 is projected to be among minorities. Source: U.S. Census Bureau, 5% Public Microdata Samples (based on 2000 Census).

  22. Higher Education ROI Gaps in Educational Levels of New York’s Working-Age Population (ages 25 to 64)

  23. Higher Education ROI Labor Force Participation Rates Among Individuals Ages 25 and Older, by Gender and Education Level, First Quarter 2010 Sources: The College Board, Education Pays 2010, Figure 1.8b; Bureau of Labor Statistics, 2010e.

  24. Higher Education ROI Source: National Center for Higher Education Management Systems (NCHEMS).

  25. Higher Education ROI Investment Recommendations • Close K-16 gaps • Communicate “value”; early and often • Simplify FA process • Shift loan subsidies

  26. Questions?

  27. Federal Financial Aid NYSFAAA Legislative Training Session February 9, 2011 Dan Sistarenik

  28. How To Apply For Federal Financial Aid

  29. Federal Financial Aid Federal financial aid is awarded in the form of: • Grants • Work programs • Loans In order to qualify for any of these federal programs the student must complete the FAFSA (Free Application for Federal Student Aid) at www.fafsa.ed.gov

  30. Federal Financial Aid Federal financial aid is awarded to students based on the following equation: Cost of attendance - Expected Family Contribution Financial Need

  31. Federal Grants Grants are funds that are awarded and do not have to be repaid. The following educational grants are available from the federal government: • Pell Grant • Federal Supplemental Educational Opportunity Grant • Teacher Education Assistance for College and Higher Education Grant (TEACH Grant)

  32. Federal Grants continued • Iraq and Afghanistan Service Grant For children whose parent or guardian was a member of the U.S. Armed Forces and died as a result of service performed in Iraq or Afghanistan after September 11, 2011 may be able to receive this grant.

  33. Work Programs Federal College Work Study Students who are awarded these funds earn the funds through jobs either on campus or off campus. The award is limited to a specific dollar amount and is based on financial need.

  34. Federal Student Loans • Federal Direct Student Loans – loans where the federal government serve as the only lender. Students must repay these loans. Subsidized - the interest on the loan is subsidized by the federal government while the student is enrolled for at least 6 credits and for 6 months after the student either graduates or drops below 6 credits. 4.5% interest for loans during the 2010 – 2011 year.

  35. Federal loans continued Unsubsidized – the federal government does not pay the interest while the student is enrolled. The student either makes quarterly interest payments or the interest is capitalized. Interest rate is 6.8%.

  36. Federal loans continued • Direct Parent Loans for Undergraduate Students- this is a credit worthy loan from which parents can borrow. The parent, if approved, can borrow the entire cost of attendance minus any financial aid the student receives. The loan is fully unsubsidized, meaning interest is accruing while the student is enrolled. Interest rate of 7.9%.

  37. Federal loans continued • Federal Perkins Loans – these loans are from monies allocated to schools to award to students who have significant financial need. The loans are fully subsidized and when the loans go into repayment (9 months after the student has graduated or dropped below 6 credits), the interest rate is fixed at 5%.

  38. Federal loans continued • Federal Perkins Loans – these loans are from monies allocated to schools to award to students who have significant financial need. The loans are fully subsidized and when the loans go into repayment (9 months after the student has graduated or dropped below 6 credits), the interest rate is fixed at 5%.

  39. New York State Financial Aid Institutional and Private Aid NYSFAAA Legislative Training Session February 9, 2011 Shirley Clark

  40. How To Apply For New York State Financial Aid

  41. New York State (NYS) Aid New York State Aid is available for NYS residents attending NYS Institutions that meet eligibility criteria in the form of: • Grants (TAP) • Scholarships • NYHELPs Loan In order to apply for TAP you must complete a application which can be found as a LINK on the submission page of the Federal FAFSA.

  42. What is TAP? The New York State Tuition Assistance Program (TAP) helps eligible New York residents pay tuition at approved schools in New York State. TAP is the largest entitlement state student grant program in the nation. An annual TAP award can be up to $5,000 depending on when you first receive state aid, and because TAP is a grant, it does not have to be paid back.

  43. TAP Eligibility Criteria • Must be a U.S. citizen or eligible noncitizen & a legal resident of New York State • Have graduated from high school in the United States, earned a GED, or passed a federally approved "Ability to Benefit" test as defined by the Commissioner of the State Education Dept. • Matriculate in an Approved Program of Study at an Approved Postsecondary institution in New York State (This includes declaring a major in required time frame for undeclared acceptance)

  44. TAP Eligibility Criteria • Be enrolled as a full-time student taking 12 or more credits per semester • Meet the NYS Net Taxable Income limitations • Not be in default on a Student Loan • Tuition charged must be at least $200 a year • Remain in Good Academic Standing for State Aid

  45. Factors in Determining TAP Awards • First Year State Aid is Received • Type of Institution and the Tuition Charged • Combined family NYS taxable income and Federal, State or local pension income (for 2010 academic year add private pension and annuity amount excluded in 2009), if applicable. • Financial Status (Dependent or Independent) • Other Family Members Enrolled in College

  46. New York State Scholarships • NYS Higher Education Service Corporation (HESC) administers all the New York State Aid programs including the New York State Scholarships • Applications for NYS Scholarships can be found on HESC s Website under the following link: http://www.hesc.com/content.nsf/SFC/Grants_Scholarships_and_Awards

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