State Update Fall 2010 Raleigh, North Carolina Steven E. Brooks Executive Director North Carolina State Education Assistance Authority.

State Update State Update

Fall 2010Raleigh, North Carolina

Steven E. Brooks Executive Director

North Carolina State Education Assistance Authority

State Grants and Scholarships Update

Record year 2008-09:

• State grants, scholarships, and scholarship-loans $369 million + 31%

• Awards made 196,000 +21%

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State Grants and Scholarships Update

State Budget Issues:

• Phase outs of three existing programs

­ EARN ends fall 2009 (eligible for loans)

­ FTNC ends spring 2010 (eligible for PTSL)

­ NCSSM ends spring 2010

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State Grants and Scholarships Update

Major Aid Program Budgets for 09-10:

• Community College Grant 13.9 million• UNC Need Based Grant 139.4 million• NCLTG 55.5 million• SCSF 44.0 million• Education Lottery Scholarship40.0 million* • NCSIG 5.9 million

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State Grants and Scholarships Update

Major Aid Budgets for 10-11 (Continuation Budget):

• Community College Grant 13.9 million• UNC Need Based Grant 116.4 million

» (-$23 million)

• NCLTG 55.5 million• SCSF 44.0 million• Lottery Scholarship 40.0 million

(receipts)• NCSIG 5.9 million

Conflicting aid start-up and legislative calendars Escheat Fund also at issue

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Legislative Study Committee

• How best to use State funds…availability and sustainability

• How best to administer State funded student aid• Current governance of NCSEAA• Feasibility of consolidating scholarship, loan and grant

programs for North Carolinians for which FAFSA is required• Feasibility of consolidating loans, grants and scholarships

for teacher education students• Qualifications for each loan, scholarship and grant

administered by NCSEAA, purpose for which the aid is awarded; what makes it similar or unique

• Marketing strategies for grants, loans and scholarships to be more transparent, understandable and accessible

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Outreach and Training Report -New Financial Aid Administrator Training

• Cumulative through October 2009  – 495 participants (since first training in 2003)

• 34 newly trained in October 2009

• Next “New” FAA Training will be in the spring of 2010 – March – exact dates will be announced soon 

• Thanks to Jane Kanipe and to NCSEAA and NCASFAA professionals for the curriculum and the training

• Thanks to CFI for providing the welcoming site

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Outreach and Training Report - FAFSA DAY

• February 2009– 66 sites across the state – 60 counties– Over 750 volunteers– Over 4,500 students and families

• February 2010– 97 counties across North Carolina– Thanks to State Employees Credit Union - SECU– SEAA will train SECU staff “volunteers”

• 7 days in Dec./Jan. for “Training the Trainers” • SECU staff we train will then train additional SECU

staff• Expect to have a “FAFSA Day Central” phone bank for

questions volunteers cannot answer8

Training and Outreach Report – High School Counselor Workshops

• NCSEAA/College Board– Annual Financial Aid Training– 415 counselors at 4 workshops

• NCSEAA/CFNC– Annual Financial Aid Training– 130 counselors at 2 workshops

• Davidson College/NCSEAA – “Financial Aid 101”– 300 counselors at 5 workshops

Thanks to Robbie Schultz and SEAA staff

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CFNC Update

CFNC Statistics

• College going rate compared to other states

– In 1999, as CFNC was launched, North Carolina ranked 38th, at 21.3%, below the national average of 27.7%, in college participation rate of low income students

– In 2008, North Carolina ranked 22nd, at 26.2%, above national average of 25.7%, in college participation rate of low income students

– From 1999-2008, college enrollment of low income students in North Carolina increased by 4.9 percentage points, while nationally their enrollment actually decreased by 2.0 percentage points

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CFNC Statistics

CFNC free user accounts created:

Year Annual Cumulative

06-07 429,768 1,663,10807-08 491,163 2,154,27108-09 571,247 2,725,518

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CFNC Statistics

Visitor count and duration of visits on CFNC website:

Year Unique Daily Average Visit Visitors Duration

06-07 8,062 11.5 minutes07-08 10, 393 13 minutes08-09 11,343 12 minutes

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CFNC Statistics

Number of college applications filed using CFNC:

Year Applications for Admission

06-07 249,69207-08 309,48208-09 396,940

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CFNC Statistics

Number of high school transcripts sent to colleges:

Year Transcripts Submitted

06-07 13,93207-08 40,87208-09 60,042

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CFNC Statistics

Awareness of the service among parents and students:

Year Prompted Awareness Percentages2001 students: 33%2002 students: 83%2004 students: 84%

parents: 81%2006 students: 93%

parents: 88%

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CFNC Statistics

Attendance at special events:Year FAFSA Day

06-07 3,076 students, 559 volunteers, 52 sites07-08 3,600 students, 650 volunteers, 56 sites08-09 4,500 students, 750 volunteers, 65 sites

Year College Admissions Week06-07 1,038 applications, 876 students,

15 high schools07-08 21,445 applications, 12,808 students,

109 high schools08-09 37,903 applications, 19,356 students,

293 high schools

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CFNC Statistics

Outreach visits to middle and high schools:

Year Visits and Presentations

06-07 2,821 visits/presentations07-08 2,764 visits/presentations08-09 2,740 visits/presentations

Calls and emails to the CFNC Call Center in Raleigh:

Year Calls and Emails Received06-07 112,436 calls07-08 135,044 calls; 12,964 emails08-09 156,241 calls; 13,496 emails

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CFNC Statistics

Increases in applications/enrollments of needy students:

Year NC FAFSAs Pell Grant Recipients

06-07 224,302 139,90407-08 236,492 147,62908-09 274,318 not yet available

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FAFSAs in North Carolina over time

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North Carolina FAFSA Filers, 2003-04 through 2009-10

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North Carolina FAFSA Filers by Sector, 2009-10 Year to Date

529 Savings Program Update

• Investments exceeded $500 million on October 19

• 71,222 accounts as of October 26, 2009­ 18.1% increase since October 31, 2008

• 13 investment options available: ­ 3 age-based;10 individual funds­ 11 Vanguard funds; 2 North Carolina Managers

• NCM Capital Management • NC State Treasurer

• North Carolina state tax deductible contributions­ $5,000 on joint return; $2,500 individual­ No income limit

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2005 1.6% 4.6%

2006 1.5% 5.2%

2007 2.9% 6.7%

Year SEAA Rate National Average

Cohort Default Rates

About 915 additional borrowers per year would default if our rate were only the national average!

Impact of Potential Federal Legislation on North Carolina

• What has the FFEL Program Paid for in North Carolina?– Loans

• higher level of service/default prevention• lower prices for borrowers

– Grant Administration – all state grants at SEAA and CFI– Saving Administration – NC 529 Program– Outreach

• CFNC web and telephone services• FAA and Counselor Training • Counselor Internships• FAFSA Day• And more

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An uncertain future:Change is inevitable…except from vending machines

• Your State agency and non-profit expect to to be here for you and your students

• Advice: be ready for Direct Lending for next year in case it is forced upon you

• Request: keep your FFEL powder dry in case you do get a choice ­ can support the State’s services ­ while helping your borrowers

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