v: 11/15/16 Need-based Financial Aid In the Montana University System Office of the Commissioner of Higher Education November 2016
Topics Need-based Aid What is it? How is it determined? Sources of Aid MUS and Nat’l Comparisons, Distribution of Need -based Aid Affordability Indicators Average aid, net price, and student debt State Aid Programs: Montana programs Approach in other states 2
NEED-BASED AID What is it? How is it determined? Need- based Aid is simply… financial aid that students receive if they have financial need . Financial need is determined by a formula: Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need Information is collected from students through the Free Application of Federal Student Aid (FAFSA) and calculation are completed by financial aid offices https://studentaid.ed.gov/sa/fafsa/next-steps/how-calculated#need-based Non-need-based aid is financial aid that is not based on EFC. What matters is your COA and how much other assistance you’ve been awarded so far. For instance, if your COA is $16,000 and you’ve been awarded a total of $4,000 in need -based aid and private scholarships, you can get up to $12,000 in non-need-based aid. 3
NEED-BASED AID How is it determined? - = Expected Family Cost of Attendance Financial Need Contribution (EFC) (COA) Students can’t receive Tuition & Fees more need-based aid EFC is calculated according Room & Board than the amount of to a formula established by Books & Supplies their financial need. law. Includes, family's Miscellaneous Expenses taxed and untaxed income, assets, and benefits; family size and the number of family members who will attend college. Example: - = $18,000 $12,000 $6,000 NEED EFC COA 4 The formula used to calculated financial need is COA – EFC = Need.
NEED-BASED AID EFC & Pell Grant Examples EXAMPLE: family of four with one dependent child in college (the following is intended for example purposes only) Adjusted Gross Income EFC PELL $20,000 = $0 = $5,815 $30,000 = $1,088 = $4,765 $50,000 = $4,224 = $1,565 $80,000 = $13,000 = $0 EFC varies based on family income, size and number in college, as well as assets, and other financial indicators. 5
Sources of Aid 6
SOURCES Primary Sources of Need-based Aid Award Amounts Federal Sources 2014-15 2015-16 Pell Grant $55,025,704 $50,790,396 Supplemental Ed Opportunity Grant (SEOG) $1,949,092 $1,801,096 Work-Study $1,890,495 $2,031,888 TOTAL $58,865,291 $54,623,380 State Sources 2014-15 2015-16 MT Higher Education Grants (MHEG) $576,436 $0 MT Tuition Assistance Program (MTAP)/Baker) $1,862,294 $0 Work-Study $863,001 $863,001 Governor’s Scholarship (approx. ½ need-based) $1,439,623 $0 State SEOG match $389,880 $389,880 TOTAL $4,782,861 $1,252,881 The MUS relies predominately on Pell grants to support Need-based Aid . 7
SOURCES Financial Aid Awarded Includes all types of financial aid awarded in the MUS except loans; includes all grants, scholarships, waivers, and work study, 2015-16 Total = $132M $55M 93% Pell $41M 41% non- resident student discounts 20% BOR $32M mandated 1/3 Need-based Aid 20% Athletic $4M Federal Institutional Private/Inst. State Waivers Other 42% 31% 24% 3% 8
SOURCES MUS Financial Aid, Total Dollars Awarded Need-based Aid Non Need-based Aid $160,000,000 Need-based Aid includes State and Federal sources only $ 141M $140,000,000 $ 132M $120,000,000 Increase in Pell Grants $100,000,000 $80,000,000 $56M $60,000,000 $40,000,000 43% $20,000,000 62% $0 Financial aid dollars have grown due to an increase in Pell grants and waivers/discounts . 9
SOURCES U.S., Total Grant Aid by Source, 2015 Dollars Source: Trends in Student Aid 2016, College Board State Private Institutional Federal Grants National trends mirror MUS financial aid trends. 10
SOURCES MUS Need-based Aid, Total Dollars Awarded State & Federal Sources Only, 2002-2016 Federal PELL Federal SEOG Native Am. Waiver State Aid $90,000,000 $77M $80,000,000 $70,000,000 $57M $60,000,000 $50,000,000 67M $40,000,000 $35M 51M $30,000,000 $20,000,000 28M 35M $10,000,000 $0 In the MUS, Pell dollars have dropped in the last five years due to enrollment declines, enrollment mix, and program changes. State aid was also cut. 11
SOURCES State Funded Need-based Grant Aid per Undergraduate FTE source: National Association of State Student Grant and Aid Programs, 2013-14 $1,400 $1,200 $1,000 U.S. Average = $539 per student $800 $600 MT = $90 per student $400 $200 $0 WA TX MN WY MD KY WI WV DE TN SC MA ME MI MO FL AK LA KS MT HI AR MS AZ AL DC UT SD GA NJ NY CA IN PA NC IL VT U.S. OK VA CO OR CT NM IA ND NE RI OH NV ID NH Montana trails most states in the amount of dollars it contributes to need-based aid. 12
SOURCES Need-based Aid per Student Receiving Need-based Aid Need-based Aid includes State and Federal sources only $$ per Student # receiving Need-based Aid $5,000 20000 $4,500 18000 4300 4143 $4,000 16000 $3,500 14000 $3,000 12000 $2,500 10000 # receiving aid $$ per Student $2,000 8000 $1,500 6000 $1,000 4000 $500 2000 $0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 38% 39% 49% % of Undergrads Receiving Need-based Aid Nat’l % Pell = 33% $$ per student remain steady while % and # receiving aid have dropped. 13
Affordability Indicators FTFT Resident Cohorts: first-time, full-time residents students entering the MUS in Fall semesters Financial Aid = all types of financial aid except loans, including all grants, scholarships, waivers, and work study Lower Income Students = Pell grants are used as a proxy measure for low income 14
AFFORDABILITY Financial Aid Received Academic Year Aid Received by First-time, Full-time Resident Students All Campuses 90% 83% Avg Amount Received % Receiving Aid $5,000 80% 73% $4,299 67% 67% 70% $4,000 $3,654 60% 50% $3,000 $2,634 $2,229 40% $2,000 30% 20% $1,000 10% 0% $0 Financial Aid = all types of financial aid except loans, including all grants, scholarships, waivers, and work study; Academic Year Amounts = amount received in Fall and Spring semesters, does not include winter or summer sessions; Average Financial Aid = average amount received by all students , not just those receiving aid; source: MUS Data Warehouse U.S. % receiving Grant Aid= 70% ; Avg Amt. Received = $5,589 (4yr Public Institutions) 83% of Resident, 1 st -time, FT students receive aid at an average amount of $4,300. 15
AFFORDABILITY Percentage of Students Receiving Need-based Aid 1st-time, Full-time, Resident Students, 2015-16 Need-based Non Need-based No Aid 100.0% 15.1% 17.4% 24.3% 90.0% (452) (700) (248) 80.0% 70.0% 23.2% 42.4% 48.9% 60.0% (237) (1706) (1469) 50.0% 76% 85% 83% 40.0% 52.5% (536) 40.2% 30.0% 36.0% (1617) 20.0% (1081) 10.0% 0.0% 2-year College 4-year University MUS Total Need-based Aid = Pell, SEOG, and/or NA Waiver U.S. % receiving Federal Aid = 38% Non Need-based Aid = All forms of financial aid except Loans and Need-based Aid 40% of FTFT residents received need-based aid. 16
AFFORDABILITY Average Aid Received by Need-based Aid Recipients 1st-time, Full-time, Resident Students, 2015-16 Need-based Aid Non Need-based Aid $8,000 $7,166 $6,511 $7,000 $6,000 $5,189 $2,835 $2,226 $5,000 $999 $4,000 $3,000 $4,331 $4,285 $4,190 $2,000 (60%) (66%) (81%) $1,000 $0 2-year College 4-year University MUS Total Need-based Aid = Pell, SEOG, and/or NA Waiver Non Need-based Aid = All forms of financial aid except Loans and Need-based Aid The average FTFT resident need-based aid recipient received a total of $6,500 in aid. 17
AFFORDABILITY Percentage of Students Receiving Pell Grants % First-time, Full-time Resident Students Receiving Pell Grants 70% 64% 65% 60% 54% 55% 52% 2-year 50% 47% 46% 46% 45% Total 42% 43% 40% 40% 4-year 33% 35% 37% 36% Flagships 35% 33% 30% Pell eligibility criteria 28% 25% expanded Average Pell for 20% 1 st -time, FT, Res. 02-03 = $2,696 15-16 = $4,123 Nat’l Avg = $3,724 Max $4,050 $4,050 $5,815 Pell: 18
AFFORDABILITY Tuition & Fees Academic Year Rates for First-time, Full-time Residents 10yr 7,000 %Chg source: OCHE, BOR approved tuition & fees $6,551 Flagships 6,500 23% $6,075 (UM/MSU) 6,000 $5,414 $5,323 5,500 4-year 17% $5,058 Regional 5,000 $4,642 (Tech, MSUB, 4,500 UMW, MSUN) 4,000 $3,352 $3,276 3,500 $3,116 2-year 8% 3,000 Colleges (no CC's) 2,500 2,000 Freezes have slowed the growth of tuition and fees. 19
AFFORDABILITY Average Amount of Financial Aid Received Academic Year Amounts Received by First-time, Full-time Resident Students $5,500 Flagships $5,000 $4,832 4-year $4,500 $4,294 $4,000 2-year $3,500 $3,000 $3,220 $2,426 $2,500 $2,229 $2,000 Financial Aid = all types of financial aid except loans, including all grants, $1,954 scholarships, waivers, and work study $1,500 Academic Year Amounts = amount received in Fall and Spring semesters, does not include winter or summer sessions. $1,000 Average Financial = average amount received by all students, not just $500 Financial aid amounts per student have experienced strong and steady growth. 20
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