University of Missouri Board of Curators Meeting

1. University of MissouriBoard of Curators Meeting Financial Aid Report December 8-9, 2011 k

2. FY07-FY11 Small Increases in State Aid Compared to Significant Increases in Federal and Institutional Aid l

3. FY07-FY11 Aid to Undergraduates Increased Significantly More than Aid to Graduates m

4. FY07-FY11 Student Loans Continue to Comprise over 50% of All Financial Aid to Undergraduates n

5. Example of How Financial Need Is Determined and Aid is Distributed o

6. How do the campuses approach need-based aid? • All campuses use the federal definition of need, cost of education minus expected family contribution, to determine students that qualify for need-based aid. • All students must complete a Free Application for Federal Student Aid (FAFSA) form in order to determine need. • Neediest students receive greater amounts of gift aid and a combination of need based and non-need based employment opportunities. • Students with low need or no need at all are usually only offered loans. p

7. How do the campuses approach merit-based aid? • All campuses award merit-based scholarships to new students, freshmen and transfers, based on high school class rank and ACT or SAT scores or cumulative grade point average. • Other merit scholarships are available through academic departments or based on other endowment criteria. q

8. FY07-FY11 The Number and Percent of Aid Recipients with Financial Need has Increased 5 Yr % Change: 18.9% -2.2% 6.8% r

9. Average Grant Aid has Decreased While the Budgeted Cost of Attendance Continues to Increase t

10. FY07-FY11 The Unmet Need of the Neediest Students Has Increased Significantly u

11. FY07-FY12 Need and Merit Based State Financial Aid Awardshave Decreased Significantly w

12. FY09 to FY12 Total State & Federal Aid to High Ability Pell-Eligible Students Has Decreased x

13. UMKC Advantage Grant Helps the Neediest Students • The UMKC Advantage Grant, implemented for Fall 2011, will assist Pell eligible freshman and transfer students who are Missouri residents meet the cost of tuition • All other gift aid (Pell, SEOG, Access MO, Bright Flight, institutional and other aid) are awarded first • UMKC Advantage Grant fills the gap between all other gift aid and total tuition • An outcome of the UMKC A2S initiative to assist low-income students • Must complete FAFSA by March 1 and maintain fulltime enrollment • In Fall 2011, 71 students (62 freshman and 9 transfers) received the UMKC Advantage Grant for a total of $97,683 in aid ee

14. In FY2010 the Average Undergraduate Debt Burden Upon Graduation was Below the National Average for Three Campuses aa

15. Federal Financial Aid Update • The US Department of Education has announced a new income based student loan repayment plan. The plan is touted as a “pay as you earn” plan, where payments are based upon 10% of discretionary income with a maximum payment term of 20 years. • On August 2, 2011, President Obama signed into law the Budget Control Act of 2011 which ended subsidies on Stafford Loans for graduate and professional students starting July 1, 2012. Hardest hit will be the students in dental, medicine, law and doctoral programs. Students graduating from these programs will face a larger debt upon repayment. bb

16. Financial aid for part-time students vs full-time students • Students must be enrolled at least half-time (six credit hours) to be eligible for most federal aid. • There is only one small state program (Marguerite Ross Barnett) that awards aid to part-time students. • Little or no institutional aid is awarded to part-time students. • Missouri S&T makes an exception if the student is enrolled less than full-time during their last semester. dd

17. Summary • Enrollments at the University of Missouri continue to increase and financial aid trends indicate that students with financial need continue to receive access to the University. • Lower income undergraduates continue to • receive the largest grant aid awards, and • yet continue to take out the largest loans, and • have the largest amount of unmet financial need. • The state funded grant aid in 2013 is projected to further decrease because of the lack of backfill from MOHELA. ee

18. Summary (Continued) • The University has not been able to and is not planning to offset fully the estimated reduction in the state-funded aid; however, future tuition increases will set aside a portion of the revenue increase for need-based aid. • Many students are already borrowing at their maximum eligibility while others look for alternative sources of funding, e.g., parent loans (PLUS) or private loans or other sources of funding such as work study. ff

19. Net Price Calculator • The Higher Education Opportunity Act of 2008 (HEOA) requires all participants in Title IV federal student aid post a net price calculator. • Institutions input price of attendance and median grant and scholarships awarded. • Students are asked a series of questions to establish dependency status, estimated cost of attendance, and expected family contribution. • All four campuses have complied with HEOA requirements and have posted a net price calculator. • UMKC’s calculator is presented as an example. ff

20. Net Price Calculator for UMKC

21. Net Price Calculator MKC

22. Net Price Calculator for UMKC

23. Net Price Calculator for UMKC

24. Net Price Calculator for UMKC