1 / 24

Mark J. Mitchell Team Leader Information and Research

Affordability Challenges in the 21 st Century. Mark J. Mitchell Team Leader Information and Research. The First Financial Aid Administrator?. “To give away money is an easy matter, and in any man’s power. .

gregoryberry
Télécharger la présentation

Mark J. Mitchell Team Leader Information and Research

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Affordability Challenges in the 21st Century Mark J. MitchellTeam LeaderInformation and Research

  2. The First Financial Aid Administrator? “To give away money is an easy matter, and in any man’s power. But to decide to whom to give it, and how large and when, and for what purpose and how, is neither in every man’s power nor an easy matter.” -- Aristotle

  3. Why Professionalism Matters… • Impact on enrollment and retention to keep revenue stream steady • Financial aid represents second-largest budget line at the typical NAIS school • Must actively manage two sensitive family issues: money and children

  4. And yet… • Only 77 schools reported they have a full-time financial aid administrator • Median salary for financial aid administrators ranks 20th out of 24 positions gathered for NAIS survey • More than 70% have less than 10 years experience (over half have less than 5 years experience) Source: NAIS Statistics Volume II, 2000-2001 http://www.nais.org/serve/admin/research/statsvol1/statlinks.html

  5. 1999 NAIS Public Opinion Poll • Public asked to rate accuracy of descriptors of independent schools and their students • Tested adjectives commonly used to describe schools • “Affordable” and “diverse” were least descriptive • Gauged perceptions of the type of students schools serve • Students seen by many as “rich,” “snobby,” “bright,” “intelligent”

  6. Rise in Median Tuition at NAIS Day Schools

  7. Rise in Median Tuition at NAIS Boarding Schools

  8. Family Income Highlights • Real median income--$50,891--rose by less than 1 percent between 1999 and 2000. • Real median income for married couple families rose just over 1 percent to $59,187. • Single dad families’ median income actually dropped 2.9% between 1999 and 2000 to $37,523 • Single mom families’ median income showed greatest gains (5.1%) but still far lower than other family types ($25,787) • The 2000 median family household income: White non-Hispanics--$56,442 Blacks--$34,204 Hispanics--$35,050 Asians and Pacific Islanders--$55,521 (all household types) Sources: US Census Bureau Historical Income Tables--Families http://www.census.gov/hhes/income/histinc/f07.html and Current Population Survey, Annual Demographic Survey March Supplement, www.census.gov.

  9. Income Distributionby Household Type Source: Current Population Survey: Annual Demographic Survey, March Supplement, U.S. Census Bureau website

  10. Population Projection Source: American Demographics, Oct. 1996

  11. 1999 Consumer Spending(in % of after tax income) Source: Bureau of Labor Statistics, Consumer Expenditure Survey, 1999 http://www.bls.gov/csx/1999/share/income.pdf

  12. Affordability Ranges(using SSS 2001-02 methodology) Tuition Full Need Income No Need Income One Two $ 5,000 day $65,573 $84,355 $ 7,500 day $75,082 $101,685 $10,000 day Until $ 43,318 $84,355 $118,425 $12,500 day $93,315 $136,556 $15,000 day $101,685 $154,125 $20,000 day $118,425 $190,615 Assumptions:Family of four, two parents, two children, parents age 45, both work, no assets - parent or student, state taxes for Georgia, COLA = 1.000

  13. Income Distribution(U.S. Families) • Under $25K 22.6% • $25K - $50K 28.3% • $50K - $75K 21.2% • $75K - $100K 12.7% • $100K+ 15.2% Source: Current Population Survey: Annual Demographic Survey, March Supplement, U.S. Census Bureau website

  14. Shifting Aid Applicant Pool % of Filers Income Range Source: School and Student Service for Financial Aid (SSS) processing system data

  15. What is “Middle Class”? US Family Income Quintiles (in constant 2000 dollars) Source: U.S. Census Bureau web page, www.census.gov/hhes/income/histinc/fo1.html

  16. Wealthiest American Families • The lower end of the income range for the wealthiest 5% of US families • (in constant 2000 dollars) • 1980 $109,436 • 1990 $131,425 • 2000 $160,250 • % chg since ’80 46.4 Source: U.S. Census Bureau web page, www.census.gov/hhes/income/histinc/fo1.html

  17. Major Challenges to Access and Affordability • Changing perceptions of inaffordability • Addressing concerns about the lack of diversity within independent schools • Addressing “middle class” anxiety while keeping perspective of larger context • Controlling steep rate of tuition increases while decreasing tuition-driven financial aid funding • Dedicating time and resources to strategic institutional research to measure effectiveness • Developing ongoing professionalism and career-oriented positioning of financial aid administrators

  18. Assess Your Aid Program • How does my school’s financial aid program support the school’s overall mission? • How does my school reflect opportunity for admitted students regardless of socio-economic status? • In what ways does my school articulate the “how’s” and “why’s” of its investment in financial aid? • Are my school’s financial aid eligibility standards absolute, relative, or a combination of the two? • To what extent should my school “subsidize” certain lifestyle decisions families make? • Does my school’s aid program reflect objectivity and consistency through its policy manual?

  19. Financial Aid Strategic Planning • What are the trends in my school’s aid programs over the last 5, 10, 20 years? How do they compare to trends in tuition and enrollment? How do they compare nationally, regionally, locally? • How much funding do we need to meet our goals? How does our financial commitment compare to other similarly situated schools? Does this impact/explain enrollment or attrition trends? • In what ways does financial aid eligibility affect families’ decisions to matriculate or re-enroll? • How has our aid applicant/recipient pool changed over the years? How might it change in the future? • How do our funding sources for financial aid compare nationally, regionally, locally? • What is the socio-economic make-up of our student body/aid recipients? What percentage receives aid and what does this represent?

  20. Average Award Levels

  21. Percent of Enrolled Students Granted Aid

  22. Recent Trends in Financial Aid1995-1999 Source: NAIS Statistics

  23. Professional development workshops, conferences Financial Aid Administration for Schools, 2nd Edition NAIS statistics Sample materials shared by schools Scholarship providers directory Education Financing Resources List Fee waiver suppliers State, regional financial aid groups Resources for Support, Information

  24. In the face of these challenges, always remember The Big Picture: “It is less important to redistribute wealth than it is to redistribute opportunity.” -- Arthur H. Vandenberg

More Related