October 7, 2016 Lee Andes 804-225-2614 leeandes@schev.edu VASFAA Fall Workshop October 7, 2016 Lee Andes 804-225-2614 leeandes@schev.edu

Budget Reductions Financial Aid Recommendations Cybersecurity Public Service Scholarship New Economy Workforce Credential Grant Student Loan Refinance Joint Subcommittee Legislative Questions

Budget Reductions SCHEV (most state agencies) has been asked to prepare for 5% budget cut for FY17 Higher education otherwise unaffected… so far Impact on FY18 will depend upon further revenue revisions and General Assembly priorities

Financial Aid Recommendations Council will consider raising maximum TAG award to $3,350 or more for FY18

Financial Aid Recommendations Two Year College Transfer Grant is short $900,000 for FY17 and $1.9 million FY18. Council will request funds to cover the shortage.

Financial Aid Recommendations Need-based aid recommendation is still under review. Won’t be a large ask after getting a $24 million increase, budget reductions, and decreasing # of students demonstrating need. Data reflects that the number of students demonstrating financial need is declining, which has resulted in about $30 million less need for FY18 than projected last year.

Financial Aid Recommendations Institutions losing students demonstrating need: CNU -13.8%, LU -6.1%, NSU -10.6%, UVA-Wise -6.2%, VMI -18.7%, VSU -4.5%, and VCCS -5.3% Gaining: GMU +7.8%, JMU +6.6%, ODU +4.2%, UMW +2.7%, VCU +4.2%, Tech +2.6%

Cybersecurity Public Service Scholarship $500,000 appropriation per year Must work for one year at Virginia public agency for each year of award. Students enrolled into an approved degree program leading to career in cybersecurity Full-time, 3.0 GPA Be within two years of graduation $20,000 award split into two $10,000 payments

Cybersecurity Public Service Scholarship Received over 80 applications Will award 25 students, prioritized by degree level and then application date 2016-17 application period is now closed Anticipate a very mixed group of scholarship recipients with awards split half graduate level and half undergraduate Received applications from CWM, GMU, JMU, Longwood, NSU, Radford, VCU, VT, GWU, Hampton, Liberty, Regent, TCC, NVCC, JTCC, and PDCC

Cybersecurity Public Service Scholarship 2016-17 award announcements expected in the next couple of weeks 2017-18 application will open in early summer During 2016-17, we will be working on completing our list of approved cybersecurity programs: http://cyberva.virginia.gov/colleges/

New Economy Workforce Credential Grant Grants for programs leading to a high demand credential Up to 2/3 off tuition charges Community colleges and some higher education centers Eligible programs: http://www.vccs.edu/workforce/workforce-credential-grant/ $4 million appropriated for FY17, reportedly $2 million already obligated

Joint Subcommittee “Joint Subcommittee on the Future Competitiveness of Virginia Higher Education” Scheduled to review financial aid in 2016 First meeting schedule for August 26 but was taken up discussing UVA endowments Next meeting scheduled for October 11

Joint Subcommittee Presentation on the national scene from Nate Johnson: Principal Consultant Postsecondary Analytics, LLC Presentation from Lee Andes explaining the process of producing state financial aid recommendations

Joint Subcommittee Committee will review FY18 allocation of financial aid Expect minor adjustments for FY18. Likely will take a closer look at the funding model sometime in 2017 Funding model options include: limiting review to tuition only (not include non-E&G) Pro-rata distribution of resources to cost to tuition Stepped funding model using varying calculations

Student Loan Refinance Committee of SCHEV, VCSP, and Treasury researching the need and options for addressing student loans. Though there are many examples of high-debt students unable to repay their loans, the larger problem involves low-debt students. An authority that only refinances loans could mean substantial risk for the state.

Legislative Questions Legislators are interested in the following: What are the obstacles or concerns about providing total loans-to-date and projected borrowing on an annual basis? What are the concerns about recommending less borrowing than what the student is eligible to receive?

Legislative Questions In 2016, legislators debated making VGAP support four-year completion Complete 30 hrs/yr v. advance class level Eliminating the “dependent” requirement Larger awards for taking more credits v. advancing in class level