Perspectives on College Perspectives on College Access, Savings and DebtAccess, Savings and Debt

Diane Auer JonesDiane Auer Jones

Assistant Secretary for Postsecondary Assistant Secretary for Postsecondary EducationEducation

U.S. Department of EducationU.S. Department of Education

College Attendance RatesCollege Attendance RatesU n d ergrad u ate E n ro llm en t b y A tten d an ce S ta tu s

1986-2016

Sou rce: U .S . D epartm ent o f E du cation

0

2 ,0 0 0 ,0 0 0

4 ,0 0 0 ,0 0 0

6 ,0 0 0 ,0 0 0

8 ,0 0 0 ,0 0 0

1 0 ,0 0 0 ,0 0 0

1 2 ,0 0 0 ,0 0 0

8 5 -8 6

8 8 9 0 9 2 9 4 9 6 9 8 0 0 0 2 0 4 0 6 0 8 1 0 1 2 1 4 1 5 -1 6

Full-time Part-Time

5,618,000

9,009,000

5,094,000

7,169,000

6,259,000

10,333,000

4,271,000

6,348,000

Helping Students MakeHelping Students MakeInformed ChoicesInformed Choices

• FAFSA4Caster• College Navigator

• FIPSE Student Achievement and Institutional Performance Pilot Project•AAC&U, ASCU, & NASULGC

Federal Student AidFederal Student AidTOTAL PELL GRANT EXPENDITURES

$0

$2,000,000,000

$4,000,000,000

$6,000,000,000

$8,000,000,000

$10,000,000,000

$12,000,000,000

$14,000,000,000

$16,000,000,000

1987

-198

8

1988

-198

9

1989

-199

0

1990

-199

1

1991

-992

1992

-199

3

1993

-199

4

1994

-199

5

1995

-199

6

1996

-199

7

1997

-199

8

1998

-199

9

1999

-200

0

2000

-200

1

2001

-200

2

2002

-200

3

2003

-200

4

2004

-200

5

2005

-200

6

2006

-200

7 *

2007

-200

8 *

2008

-200

9 *

* Estimate

Pell Grant Pell Grant Maximum AwardsMaximum Awards

2000-2012

Fiscal Year Award Year Authorized Appropriated

2000 2000-01 $4,800 $3,3002001 2001-02 $5,100 $3,7502002 2002-03 $5,400 $4,0002003 2003-04 $5,800 $4,0502004 2004-05 $5,800 $4,0502005 2005-06 $5,800 $4,0502006 2006-07 $5,800 $4,0502007 2007-08 $5,800 $4,3102008 2008-09 -------- + $4902009 2009-10 -------- + $4902010 2010-11 -------- + $6902011 2011-12 -------- + $6902012 2012-13 -------- +1,090

Academic Competitiveness GrantsAcademic Competitiveness GrantsPell Grant Eligible Enrolled Full-Time & U.S. Citizen

Rigorous Secondary School Program of Study• Recognized State-submitted programs; or• Courses similar to State Scholars Initiative; or • 2 AP Courses with test score of 3 or better; or• 2 IB Courses with test score of 4 or better

Award Size: $750/$1300

2006: $233,038,410 awarded to 299,089 students

http://www.ed.gov/admins/finaid/about/ac-smart/state-programs06.html

http://www.ed.gov/admins/finaid/about/ac-smart/2007/state-programs-07.html

National SMART GrantsNational SMART Grants

Eligibility: Pell Grant Eligible Enrolled Full-Time & U.S. Citizen 3rd and 4th year college students enrolled in and making progress toward a degree in STEM or Critical Needs Foreign Language; GPA 3.0 or better.

Award Size: $40002006 - $195,544,735 awarded to 60,976 students

ChangesAdditional SMART Majors added Enrollment requirements clarified

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Without consolidations With consolidations

Federal Student Loan Volume(FFEL & Direct Loans)

$ millions

Average Federal Student Loan Debt Average Federal Student Loan Debt

Undergraduate students with a 4-Year Degree Undergraduate students with a 4-Year Degree (Percent of students borrowing)(Percent of students borrowing)

$0

$2,000

$4,000$6,000

$8,000

$10,000

$12,000

$14,000$16,000

$18,000

$20,000

1993 1996 2000 2004

66%62%

58%

40%

Average Federal Student Loan Debt Average Federal Student Loan Debt Cumulative Amount of Student Loans by Percentiles for Graduating Seniors

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

1992-93 1995-96 1999-2000 2003-04

10th 50th 75th 90th

Monthly Payment$207

Monthly Payment$411

Ripped from the Headlines…Last YearRipped from the Headlines…Last Year

Lenders Misusing Student DatabaseImproper Searches Raise Privacy Fears

Swimming With Student Loan Sharks

University named in report detailing student loan abuse

Rules proposed to curb loan abuse

Panel Finds Wide Abuse in Student Loan Program

Ripped from the Headlines…This YearRipped from the Headlines…This Year

Loan crisis goes to collegeLoan crisis goes to collegePaying for college could get even tougher this year as smaller Paying for college could get even tougher this year as smaller lenders tighten standards and raise rates. But big banks are lenders tighten standards and raise rates. But big banks are holding the line.holding the line.

Credit Crisis May Make College Loans More CostlyCredit Crisis May Make College Loans More CostlySome Firms Stop Lending to StudentsSome Firms Stop Lending to Students

The coming student loan crunchThe coming student loan crunch

If you're counting on borrowing money for college next If you're counting on borrowing money for college next semester, get your paperwork going now. Lenders are backing semester, get your paperwork going now. Lenders are backing away fast.away fast.

Increased Pell Grants

TEACH Grants*

Loan Forgiveness for Public Service Employees*

PLUS Auction Pilot

College Access Challenge Grants

College Cost Reduction & Access Act

* - Requires negotiated rulemaking

The Ensuring Continued Access to Student Loans The Ensuring Continued Access to Student Loans

Act of 2008Act of 2008 Lender-of-Last Resort Authority:Lender-of-Last Resort Authority:

all FFEL loan types, except Federal Consolidation Loans, must be made all FFEL loan types, except Federal Consolidation Loans, must be made availableavailable

an entire institution can be designated, through June 30, 2009, as eligible for an entire institution can be designated, through June 30, 2009, as eligible for LLR loans for students and parents of dependentLLR loans for students and parents of dependent students attending the students attending the institutioninstitution

Authority to purchase from FFEL lenders Stafford and PLUS loans:Authority to purchase from FFEL lenders Stafford and PLUS loans: Loans must have been first disbursed on or after October 1, 2003, but before Loans must have been first disbursed on or after October 1, 2003, but before

July 1, 2009.July 1, 2009.Annual loan limits for Unsubsidized Stafford Loans in both the:Annual loan limits for Unsubsidized Stafford Loans in both the:• FFEL and Direct Loan programs were increased. FFEL and Direct Loan programs were increased.

For Both the ACG and National SMART Grant programs:For Both the ACG and National SMART Grant programs: Eliminates the restriction to U.S. citizens now allowing eligible non citizens to Eliminates the restriction to U.S. citizens now allowing eligible non citizens to

receive grants.receive grants. Allows awards to students enrolled less than full-time but at least half-time, Allows awards to students enrolled less than full-time but at least half-time,

with proportionally reduced maximum awards the same way as the Pell Grant with proportionally reduced maximum awards the same way as the Pell Grant Program.Program.

Thank you!