Responsible Borrowing Initiatives Tim Despain Western Governors University

ABOUT WGU Founded in 1997 Mission of WGU WGU Promise Improve quality and expand access to post-secondary academic opportunity by providing a means for individuals to learn independent of time or place and to earn competency-based degrees and other credentials that are credible to both academic institutions and employers. WGU Promise We help our students achieve their dreams for a degree and career success by providing a personal, flexible and affordable education based on real world competencies.

Financial Aid Delivery Model Monthly starts, first day of every month Average 4,000 new students each month Academic year is 12 consecutive months Two six-month payment periods (terms) Tuition and fees (learning resources) - $3,000 per term Flat fee: all you can learn for approximately $6,000 per year No tuition increase since 2008 Accelerate time-to-degree completion Average undergraduate student graduates in under three years

Responsible Borrowing Initiatives Help students graduate with less debt Modified Shopping Sheet (July 2013) Personalized Annual and Aggregate loan limits Recommend students borrow unmet direct costs Significant reduction in loan dollars disbursed

Responsible Borrowing Initiatives Shopping Sheet Modified Shopping Sheet

Responsible Borrowing Initiatives Sections include aid student is eligible to receive and what we recommend for loans

Responsible Borrowing Initiatives Continue Your Financial Aid Students emailed modified shopping sheet Instructed to take action on portal to complete FA process Sample Email:

Responsible Borrowing Initiatives Do you want to be awarded Federal Student Loans? Options given to students are: YES. TUITION AND FEES ONLY Awards up to unmet direct costs YES. CUSTOM LOAN AMOUNT Student prompted to indicate the amount of loans they wish to receive NO. DECLINE ALL LOANS Student will not be awarded any loans This process is student’s acceptance of FA award Continue Your Financial Aid Results for 1516* Accept Recommended Loan Amounts – 58% Decline All Student Loan Amounts – 11% Requested Less Than Recommended Loan Amounts – 3% Requested More Than Recommended Loan Amounts – 29% *Over 78,000 responses

Responsible Borrowing Initiatives ED Experimental Sites Initiative to limit unsubsidized loans (Jan 2013) Transfer students w/high OPB IR research shows students w/high OPB less likely to graduate Undergrad - $30,000 Max loan annually - $6,500 Grad - $40,000 Max loan annually - $7,500

Responsible Borrowing Initiatives Experimental Sites Initiative Results: Jan 2013 – Jun 2016 Total Student Participation 8,601 Participating Graduate Students 3332 Participating Undergraduate Students 5269 Aggregate Loan Limits Met - Graduate Students 25 Aggregate Loan Limits Met - Undergraduate Students 390 Graduated – Graduate Students 440 Graduated – Undergraduate Students 209 Average OPB – Graduate Students $61,739 Average OPB – Undergraduate Students $42,523

WGU Student Impact From July 2013 – June 2016, average borrowing per student went from $7,870 per year to $4,640 per year Graduating undergraduates (Jul 1 – Jun 30) Average borrowing per student decreased by 41% Average borrower indebtedness declining *FSA data center YEAR WGU Average National Average FY2013 $21,102 $28,400 – TICAS/POSD FY2014 $19,917 $28,950 – TICAS/POSD FY2015 $19,050 $35,000* FY2016 $16,862 $37,712*

WGU Student Impact Cohort Default Rates trending down Less than half of the national average (11.8%) *draft rate as of 9/5/16 – official rates not available Lower than national average of every 4 yrs (+) segment YEAR WGU CDR FY2010 7.7% FY2011 6.6% FY2012 5.0% FY2013 4.9%*

National CDR by Institution Type

Questions??!