April 2, 2009

Taos, New Mexico

New Mexico Association of Student Financial Aid Administrators

Educating New Mexico’s Educating New Mexico’s Future TodayFuture Today

State Financial Aid Legislative Updates 3% Gratis Scholarship NMAC Budget Changes Lottery Stats Program Stats Stimulus Funds Annual Report

OverviewOverview

New Mexico Higher Education Department Page 2

Financial Aid Division is responsible for administering the day-to-day operations of 20 state financial aid programs and managing the distribution of more than $80 million dollars in state programs for 2009-10.

During the 2007-08 academic year, students received over $72 million in state appropriated financial aid and $345 million in federal aid, less than 1% of the $86 billion distributed nationally.

In 2007-2008, 40% of New Mexico students who received need-based aid are from families with combined incomes of $10,000 or less.

New Mexico Higher Education Department Page 3

Senate Bill 136 VETERANS WAIVER

House Joint Resolution 11 WAR VETERAN COLLEGE SCHOLARSHIP

Senate Bill 593 UNM MEDICAL SCHOOL WAIVER

Senate Bill 28 3% GRATIS SCHOLARSHIP

House Bill 2 BUDGET

NM 2009 Legislative SessionNM 2009 Legislative Session

Bill Number Bill Title

New Mexico Higher Education Department Page 5

SB136 provides veterans, that are not residents of New Mexico, in-state tuition rates on the condition the Veteran uses their federal educational benefits, the Montgomery or 9/11 GI bill, at one of New Mexico’s public post-secondary institutions.

No Appropriation.

HJR11 amends Article 9, Section 14 of the Constitution of New Mexico to permit the establishment of a college scholarship program for New Mexico military war veterans. The scholarship will be for tuition.

Joint Resolutions must be voted on in the next general election before becoming law.

If voters pass this resolution, the scholarship will be available to military war veterans who served beginning August 1, 1990 to present day to those Veterans who have exhausted their GI educational benefits.

No Appropriation.

House Joint Resolution 11: House Joint Resolution 11:

WAR VETERAN COLLEGE SCHOLARSHIPWAR VETERAN COLLEGE SCHOLARSHIP

SB593 creates the Conditional Tuition Waiver for Primary Care Medical Students Act to become effective January 2010.

The Act provides the opportunity each year for 10 students to attend the University of New Mexico's School of Medicine (UNM SOM) and have tuition and fees waived for a period up to five years, and to provide a reasonable living stipend if and when funds may become available,

The condition is for every year of tuition waived they will provide service as a licensed primary care physician in an underserved area of New Mexico as defined by the Rural Primary Care Health Care Act.

Not need-based No Appropriation

SB593: SB593: UNM School of Medicine Tuition UNM School of Medicine Tuition WaiverWaiver

Senate Bill 28: Senate Bill 28: 3% GRATIS 3% GRATIS SCHOLARSHIPSCHOLARSHIPSenator Mary Jane Garcia introduced Senate Bill 28 which proposed to require 100% of 3% Gratis Scholarships to need-based scholarships. After a Senate Education Committee amendment, a two-thirds requirement passed both houses. Governor Richardson signed SB28 into law.

Senate Bill 28 shifts the distribution of the 3% Gratis Scholarship to more need-based financial aid which is a weak area for New Mexico when compared to other state aid priorities.

New Mexico Higher Education Department Page 8

SB28 Implementation ScheduleSB28 Implementation Schedule

Fall 2009 - No change; one-third of scholarships awarded must be need-based

Fall 2010 - One-half must be need-based awards

Fall 2011 - Two-thirds must be need-based awards

Need 3 – 4 Financial Aid Directors to assist in the drafting of the NMAC.

Rules to follow legislation Reporting requirements

Tentative Drafting Timeline –◦ April – July: Draft Rules◦ August: Public Hearing◦ September: NMAC Adopted and Posted

What’s Ahead for 3%?What’s Ahead for 3%? Administrative Code Drafting TeamAdministrative Code Drafting Team

$950 per student 9,100 students served

The 3% Gratis Scholarships come from taxpayer funds

Senate Bill 28 opens college doors for approximately 40% of our total degree-seeking undergraduate population.

With the expected rise in tuition rates and with unemployment rates rising steadily, this legislation provides a financial safety net

3% Gratis Scholarship Benefits to Students

New Mexico Higher Education Department Page 11

50% of all students who enter college do not complete their bachelor degrees – HED is working to ensure state funds are available to the low to moderate income families.

General Fund

Other State Funds

Federal

TOTAL

FY09 24,877.1 46,864.5 .569 $72,311.5

FY10 26,054.8 54,016.0 .550 $80,619.8

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FINANCIAL AID BUDGET

FY09 FY10Increase/

(Decrease)

3% Gratis Scholarships 9,335,000 9,735,000 400,000

College Affordability 2,000,000 2,000,000 --

ETB Pathways 500,000 500,000 --

Graduate 619,200 619,200 --

Legislative Endowment 112,800 112,800 --

NM Scholars 1,000,000 1,000,000 --

NM SSIG 12,052,300 12,052,300 --

Allied LFS 108,000 108,000 --

Nursing LFS 300,000 300,000 --

Teacher LFS 250,400 250,400 --

Student Choice 1,004,700 304,700 (700,000)

Vietnam Vets 113,600 113,600 --

Work Study 5,990,300 5,990,300

New Mexico Higher Education Department Page 13

Budget Snapshot: Relevant to InstitutionsBudget Snapshot: Relevant to Institutions

Nearly 30% of the Legislative Lottery Scholarship recipients

also received a federal Pell grant in 2007-2008.

Since inception, 54,458 students have received $239,662,418 in Legislative Lottery Scholarships.

Historically, Lottery revenues exceeded expenditures and we do not expect this year to be any different. Therefore we do not draw from the Lottery Fund’s healthy balance of $68 million.

New Mexico Higher Education Department Page 14

New Mexico Higher Education Department Page 15

New Mexico Higher Education Department Page 16

“What Does the Increase in Pell Grants and Work Study Mean for New Mexico?”

ProgramTotal ARRA

NM ARRA Portion

# of additional New Mexicans

PELL $15,640 billion $54.7 million 11,500

Work Study

$200 million $1.4 million 632

New Mexico Higher Education Department Page 17

Award Year 2009-2010 – $4,360 (discretionary FY08 base of $4,241 + FY09 discretionary increase of $119) + $500 (stimulus supplemental appropriation) + $490 (CCRAA mandatory add-on) = $5,350 max award

Award Year 2010-2011 – $4,360 (discretionary FY08 base of $4,241 + FY09 discretionary increase of $119 and assuming no discretionary FY10 increase) + $500 (stimulus supplemental appropriation) + $690 (CCRAA mandatory add-on) = $5,550 max award

New Mexico Higher Education Department Page 18

An estimated 632 additional students benefit per school statewide each academic year

Annual award expected to return to $2,250 per student earning $7.50/hr for 300 hours

New Mexico Higher Education Department Page 19

According to the most recent census data, in New Mexico there are 344,050 people living in poverty.

We know that 43,000 students received the Pell grant in 2007-2008 – that is 71% of students who filled out the FAFSA.

The Pell Grant was increased to $5,350 in 2009-10 and to $5,550 in 2010-11.

New Mexico Higher Education Department Page 20

Goals:◦ To better understand the demographic characteristics of students in New

Mexico’s 33 counties, including sample characteristics and outcome variables below.

◦ To better understand the relationship between geographic place of origin (urban vs. rural) and educational success

Research Question:◦ How does geographic location relate to access to higher education?

Outcome variables: ◦ High school graduation ◦ Initial enrollment in a higher education institution◦ Filling out a FAFSA (1st year)◦ Degree attainment (cert-grad degree)◦ A measure of employment outcome

New Mexico Higher Education Department Page 21

HED division reports with supporting statistics Available as PDF on HED website or by stopping by…

New Mexico Higher Education Department Page 22

A taste of what’s in the Annual Report……

50% of students attending two-year institutions and 80% of four-year institutions borrowed an average of $5,000 per year to help with costs of attendance. 42% of first time freshman in New Mexico complete a bachelor’s degree within six years (35% Hispanics, 25% of Native Americans and 47% whites) In 35 states including New Mexico, more than 60% of the population does not have an associate’s degree or higher.

Educating Our Community: Positive ResultsEducating Our Community: Positive Results

The typical college graduate working full-time year-round pays about 134 percent more in federal taxes and almost 80 percent more in total federal, state and local taxes than the typical high school graduate.

College graduates are more likely than others to donate blood. In every age group, adults with higher levels of education are more likely to

vote. Adults with higher levels of education are more likely than others to be open

to differing opinions. Workers with lower education levels earn more if others in the same

metropolitan area are more educated. College graduates are much less likely than individuals with lower levels of

education to be unemployed, rely on public assistance programs, or live in a poverty-level household.

Among all racial/ethnic groups, unemployment rates are much lower for college graduates than for high school graduates.

Source: College Board’s Benefits of Higher Education for Individuals

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Hotline 1-800-279-9777

Or visit online at: http://hed.state.nm.us

2048 Galisteo Street

Santa Fe, NM 87505-2100

How to Contact the

Higher Education Department

Financial Aid Division

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