MASFAA Annual Meeting November 7 th, 2012. State Appropriations for Higher Education per $1,000 in...

MASFAA Annual Meeting

November 7th, 2012

State Appropriations for Higher Education per $1,000 in Personal Income, 2011-12

SOURCE: The College Board, Trends in College Pricing 2012, Figure 13B.

Percentage of Total State Support for Higher Education Spent on State Grant Expenditures, 2010-11

SOURCE: The College Board, Trends in Student Aid 2012, Figure 18B.

Annual MassGrant and Gilbert Grant Appropriation; FY09 – FY13

SOURCE: Massachusetts Office of Student Financial Assistance

Average Federal Grant Award to Massachusetts Students; 2007 - 2012

SOURCE: The National Association of Independent Colleges and Universities

The Declining Value of MASSGrant Awards

• The average grant award was worth 40% more in FY08 as compared to FY13• MassGrant has seen an 89% increase in the number of recipients since FY08

SOURCE: Massachusetts Office of Student Financial Assistance

Net Tuition and Fees Have Remained Stable at Private Nonprofit Four-Year Institutions Over the Past 20 Years

SOURCE: The College Board, Trends in College Pricing 2012, Figure 10.

Massachusetts Independent Colleges Continue to Increase Institutional Aid to Massachusetts Residents

• Massachusetts Independent Colleges and Universities have increased their institutional aid by 59% since FY07SOURCE: Massachusetts Office of Student Financial Assistance

Percentage Change in Inflation-Adjusted Mean Family Income by Quintile, 1981–1991, 1991–2001, and 2001–2011

SOURCE: The College Board, Trends in College Pricing 2012, Figure 18A.

Facts About Student Debt

• Despite media hype, only 0.2% of undergraduate students graduate with student loan debt over $100k

• The average Massachusetts student graduates from a private school with $28,047 in debt, below the national average of $29,059

• At Massachusetts private colleges, 40% of students graduate with no debt

• Average debt level has risen only 1.5% per year in the past 5 years

The Truth About Default Rates

• Recent data shows that Massachusetts has one of the lowest default rates in the nation, at a statewide average of 5.5%

• The median default rate at AICUM institutions is 2.7%

• The national default rate stands at 9.1% over two years and 13.4% over three years

Federal Loan Repayment Options

The Federal Government has introduced a number of programs to help students repay their student loans, including:

– Income-Based Repayment Plan;– Public Service Loan Repayment Plan; and– Extended Repayment Plan

Employment and Education

• The most recent Bureau of Labor Statistics unemployment index (Oct 2012) shows that only 3.8% of those with a Bachelor’s degree or higher are unemployed

• Individuals with only a high school diploma are unemployed at a rate of 8.4% and those without a high school diploma face an unemployment rate of 12.2%

Studies Continue to Highlight the Value of a College Degree

• A college graduate has a $1 million lifetime earnings premium vs. a high school graduate (Georgetown University)

• 48% of current job openings in the Metro-Boston area require a Bachelor’s Degree or higher (Brookings Institute)

• A recent college graduate will earn $12k more than a recent high school graduate, up from $4k more in the 1980’s (Hamilton Project)