Financial Aid Provided to UW Students Financial Aid Sharon Wilhelm - PowerPoint PPT Presentation

Financial Aid Provided to UW Students Financial Aid Sharon Wilhelm Interim Associate Vice President for Policy Analysis and Research Business, Finance, and Audit Committee Board of Regents June 8, 2007

Over 105,000 UW System students receive Financial Aid financial aid each year for a total of over $800 million dollars.

Types of Student Financial Aid Grants/Scholarships Fed Work Study Financial Aid $222m $14m Loans $593

Sources of Student Financial Aid Other Institution 10% 5% Financial Aid State Federal 8% 77%

Pell Grants to UW Resident Undergraduates Average Total $ % Resident Year Recipients Pell (Millions) Undergrads Financial Aid 91-92 30,661 $1,538 $47.2 26% 93-94 26,793 $1,403 $37.6 24% 95-96 22,993 $1,414 $32.5 21% 97-98 22,854 $1,547 $35.4 21% 99-00 22,021 $1,778 $39.2 20% 01-02 23,821 $2,208 $52.6 21% 03-04 26,722 $2,413 $64.5 23% 04-05 26,956 $2,425 $65.4 23% 05-06 25,598 $2,434 $62.3 22%

WHEG Awards to UW Resident Undergraduates Average Total $ % Resident Year Recipients WHEG (Millions) Undergrads Financial Aid 91-92 20,475 $632 $12.9 18% 93-94 21,997 $600 $13.2 20% 95-96 20,519 $643 $13.2 19% 97-98 18,979 $843 $16.0 18% 99-00 16,808 $1,021 $17.2 15% 01-02 19,155 $1,018 $19.5 17% 03-04 22,808 $1,244 $28.4 19% 04-05 26,065 $1,284 $33.5 22% 05-06 24,517 $1,682 $41.2 21%

UW-WHEG Formula (Equity level - EFC) * Rationing factor = award Financial Aid • Equity level: resident undergraduate tuition • Expected Family Contribution (EFC): calculated from the Federal needs analysis • Rationing factor: multiplier that is set with goal of providing the largest awards to the neediest students while staying within the appropriation level for the program

Gap Between Average Tuition and WHEG Award $6,000 Financial Aid $4,679 $5,000 Avg. Res. Undergrad Tuition $4,374 $4,000 $3,810 $3,241 $3,000 $2,993 $2,785 $2,784 $2,588 $1,682 $2,468 $2,000 Avg. WHEG $1,284 $1,000 $1,244 $1,131 $1,084 $1,021 $1,018 $932 $843 $0 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06

Gap between Average Cost of Attendance and Need-Based Grants $16,000 Financial Aid $13,642 $14,000 Avg. Res. Undergrad Cost of Attendance $12,616 $12,000 $11,666 $10,791 $10,000 $10,156 $9,427 $9,666 $8,954 $8,000 $8,550 $6,000 Avg. Need-Based Grant Aid $4,151 $4,000 $4,003 $4,117 $3,785 $3,424 $3,566 $2,852 $2,000 $2,493 $2,708 $0 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06

Loans Federal Alternative State/Inst All Loans Year $M $M $M $M 96-97 $284 $2 $1 $287 Financial Aid 97-98 $299 $3 $1 $304 98-99 $304 $5 $2 $310 99-00 $314 $7 $2 $323 00-01 $330 $9 $2 $340 01-02 $356 $13 $2 $371 02-03 $400 $19 $2 $422 03-04 $453 $29 $2 $485 04-05 $493 $42 $2 $537 05-06 $533 $58 $2 $593

Student Indebtedness • Two-thirds of UW resident undergraduates graduate with debt. Financial Aid • The average debt at graduation for those who borrow (bachelors degree) is approx. $20,000. • UW System student loan default rate is one-third the national rate (1.6% vs. 5.1%) .

Regent Tuition Policy Principles • Tuition and financial aid in the UW System should balance educational quality, access, and ability to pay. Financial Aid • Tuition increases should be moderate and predictable, subject to the need to maintain quality. • GPR financial aid and graduate assistant support should “increase at a rate no less than that of tuition ...”

Financial Aid Policy Goals from Charting a New Course • Access: Ensure all qualified Wisconsin high school graduates equal access to attend a UW institution, regardless of income. Financial Aid • Retention: Reduce the financial barriers for low- income UW students so they can remain in school and thus complete their degrees in a timely fashion. • Brain Gain: Use targeted financial aid incentives to encourage UW graduates to work in Wisconsin after graduation, and provide incentives to retrain Wisconsin citizens for key fields.

BOR Goals for 2005-06 • Improve Access to the UW System • Increase Baccalaureate Degrees Financial Aid • Improve the Quality of the Student Experience • Strengthen and Build Relationships with our Stakeholders Source: Minutes of the BOR Meeting, September 9, 2005