1. 2013 RMASFAA Annual Conference Joel Laos and Michael Murphy Denver Seminary J Debt Analysis 101

2. Welcome to Location: Littleton, CO Population: 1,000+ students, 109 faculty/staff Type: Private, Graduate only Tuition:$530/credit for 2013-14 Ave 4.7% annual increase Primary Degrees:Master of Divinity (97 credits) Master of Arts (62 credits) Financial Aid: Federal loans, work study, institutional grants/scholarships, veterans benefits 55% participation 11.2% institutional discount rate $39k ave graduating debt per borrower

3. The national rate of tuition inflation is second only to health care • Student loan amounts have increased at 1.5x the rate of the national cost of education, nearing $1 trillion

4. Denver Seminary’s average tuition has increased 47% over the past 10 years, representing an average 4.7% increase per year

5. Our institutional discount rate has remained steady at only 11%

6. Denver Seminary’s graduating debt has risen 64% over the past 10 years

7. Our most-recent default rate is 7.6% below the national average

8. Left unchecked, 10 years from now average graduating debt will increase 80% • Over a 20-year period average graduating debt will have increased 182%

9. Tuition has increased at twice the rate of inflation since 2001 • For every 1% increase in tuition, average graduating debt increases 1.12%

10. In order to stay at the recommended 10% educational debt-to-income ratio, the salary required to service the average graduating debt currently exceeds the average salaries for associate pastors, counselors/chaplains and youth/worship pastors • In 10 years, the required salary for the projected graduating debt will exceed all positions

12. What are we doing about it? • Increasing Financial Literacy • Loan Management page DenverSeminary.edu/FinancialAid

13. What are we doing about it? • Increasing Financial Literacy • Loan Management page DenverSeminary.edu/FinancialAid • Before You Borrow • Anticipate your income • Know your limits

15. What are we doing about it? • Increasing Financial Literacy • Loan Management page DenverSeminary.edu/FinancialAid • Before You Borrow • Anticipate your income • Know your limits • Understand your loan • Integrate your budget • Know What You Owe • Visit and bookmark NSLDS • Revisit and keep track • Anticipate Repayment • Prepare • Transition • Repay

16. What are we doing about it? • Increasing Financial Literacy • Loan Management page • Award Letter: • Customized loan offers • The initial student loan offer is customized to the student’s actual net tuition and fees.

17. Customized Loan Offers

18. Customized Loan Offers

19. What are we doing about it? • Increasing Financial Literacy • Loan Management page • Award Letter: • Customized loan offers • Debt literacy statement

20. Debt Literacy Statement

21. What are we doing about it? • Increasing Financial Literacy • Loan Management page • Award Letter: • Customized loan offers • Debt literacy statement • Additional counseling for high debt levels • Students with aggregate debt of $40k or higher are asked to complete Financial Awareness Counseling through StudentLoans.gov

22. What are we doing about it? • Increasing Financial Literacy • Loan Management page • Award Letter: • Customized loan offers • Debt literacy statement • Additional counseling for high debt levels • Webinars and on-campus seminars

23. The average percentage of the Denver Seminary student body that utilizes student loans has consistently hovered around 45% • Current research: Is the recent decrease reflective of the loss of subsidized loans or of our increased financial literacy efforts? Or perhaps a bit of both?

24. What has worked for you? • What methods are you using to help mitigate student debt? • What methods have not seemed to produce results?

25. Contact Michael Murphy Joel Laos Financial Aid Officer Director of Financial Aid FinancialAid@DenverSeminary.edu 303-762-6888 direct 800-922-3040 ext. 1239 toll free