NJASFAA 2018 Financial Aid Symposium OFFICE OF THE SECRETARY OF HIGHER EDUCATION

STATE PLAN FOR HIGHER EDUCATION: OPEN FORUMS Higher Education, Industry, & the Economy - Nov. 13th College Access & Affordability - Nov. 19th Student Success - Nov. 20th In addition to meetings with the NJ Presidents’ Council, campus visits and student roundtables, we hosted three Open Forums in November which were live streamed to the public: Want to share with you some of what we covered in those forums, during which we got great feedback from higher ed administrators, students, faculty and staff. But we also want to hear directly from you all about some of the topics facing our students today.

Payoff of a College Degree in New Jersey has Increased Over the Past Decade You all know this well but I think it bears repeating—college still pays off, financially. Not to mention the other benefits to college graduation. The college wage premium still exists and has actually only increased over time. Message: College still pays off. Between 2007 and 2017, the average wage for a working New Jerseyan who left high school without a diploma went up by 5%. For those with a high school diploma gained 7%. Those with a bachelors degree saw their wages jump by 15%. In 2017, a college graduate with a bachelor’s degree made 86% more (almost double) than a comparable New Jersey worker with only a high school diploma. Source: U.S. Census Bureau, 2005-2007 American Community Survey, 2017 1-year estimates American Community Survey 

Unemployment Rates Vary by Educational Attainment and also Race/Ethnicity Education is still the “GREAT” Equalizer, both when looking at income across different populations and as the chart above shows, when looking at unemployment rates. Essentially, College still PAYS off in the long-run. Source: The College Board, Education Pays 2016, Figure 2.3

Massive Gaps in Who Goes to College and What Colleges They Attend ACCESS CHALLENGE: The gaps in enrollment shown here grow even more stark when we look at college graduation rates. This is our continued challenge in college access. Source: NJ DOE School/District Performance Reports, https://rc.doe.state.nj.us/PerformanceReports.aspx , 2016-17 NJ High School Graduates, Enrollment in Postsecondary Education within 16 months of graduation

Outmigration: Many NJ Students Leave the State for College

65% X 2025 NEW JERSEY’S BIG GOAL IMPROVE COLLEGE COMPLETION INCREASE ADULT ENROLLMENT EQUITABLE ECONOMIC GROWTH Economic Imperative—tied to the talent needs of the state, moving forward. Even in a strong national economy, we must confront inequities. 65% X 2025

Engage adults--particularly those who started and never finished. Improve levels of completion among students already enrolled. Close equity gaps in HS graduation and college enrollment. PATH TO THE GOAL This will guide our solution set. Now lets discuss what this looks like in practice.

Rates trending upward but still not high enough. The gaps in enrollment shown here grow even more stark when we look at college graduation rates. National average for transfer plus graduation in 3 years is 45.3% QUESTION: What is the national average for 2 year rate overall and 3 yr rate? Source: IPEDS Graduation Rate Survey for the 19 County Colleges in the State of New Jersey

1 out of 6 Hispanic and 1 out of 9 Black Students at NJ Community Colleges Graduates in 3 Years Source: IPEDS Graduation Rate Survey

New Jersey has 4th Highest Graduation Rate Among Four-Year Public Colleges New Jersey is in the top ten states for the highest Graduation Rate (150% of time) for Four-Year Institutions in the US. We are well above the US National Graduation Rate and have been over the last 6 years and more. However, We are in the top five states for Public Four-Year Graduation Rates (150% of time). Source: IPEDS Graduation Rate Survey, 2013 Cohort

IPEDS Graduation Rate Survey, Cohort 2010 New Jersey has the 6th highest graduation rate among all Four-Year Institutions among First-Time Pell Recipients IPEDS Graduation Rate Survey, Cohort 2010

Only Half of NJ’s Black Students and 56% of Hispanic Students Graduate with Bachelors in 6 Years There continues to be a pervasive gap in on-time graduation rates at 4-year institutions for Hispanic and African-American/Black students, as well as students who are identified as “other”. Other includes Native American, Native Hawaiian/Pacific Islander, and Unknown race/ethnicity) Students are paying for these outcomes.

State Comparison Like this slide—let’s just indicate that these are for 4 year institutions in the title- done!

By every measure, college is becoming increasingly unaffordable. No one persons fault necessarily. This is something we all need to tackle together.

4th highest net price for low income students when compared to other public 4-year institution averages in all 50 states in the Nation. Well above the national average as well. Source: State Higher Education Executives Officers Association, State Higher Education Finance (SHEF) Fiscal Year 2017 Report, http://sheeo.org/projects/shef-%E2%80%94-state-higher-education-finance, SHEF_State_by_State_Wave_Charts_FY17.xlsx.

Public two-years not quite as high as 4-years in the state, but still one of the top 20 states in the national with a highest net price for low income students. Source: State Higher Education Executives Officers Association, State Higher Education Finance (SHEF) Fiscal Year 2017 Report, http://sheeo.org/projects/shef-%E2%80%94-state-higher-education-finance, SHEF_State_by_State_Wave_Charts_FY17.xlsx.

6th Highest State in Average Loan Debt These state-level figures are based on the 1,020 public and nonprofit four-year colleges that reported the number of graduating students in the Class of 2017 with loans, the percent of graduates with debt, and the average debt of those who borrowed, and reported in the Peterson’s Undergraduate Financial Aid Survey that they awarded bachelor’s degrees for the Class of 2017.72 These colleges represent 50 percent of all public and nonprofit four-year colleges that granted bachelor’s degrees and 78 percent of all bachelor’s degree recipients in these sectors in 2016-17.73 Nonprofit colleges compose 60 percent of the colleges with usable data, similar to the share they make up of public and nonprofit four-year bachelor’s degreegranting colleges combined (66 percent). The college-level debt figures used to calculate state averages are estimates, which, as noted above, are reported voluntarily by college officials and are not audited. For their data to be considered usable for calculating state averages, colleges had to report the number of graduating students in the Class of 2017 with loans, the percent of graduates with debt, and the average debt of those who borrowed, and report in the Peterson’s Undergraduate Financial Aid Survey that they awarded bachelor’s degrees during the 2016-17 year. We did not calculate state averages when the usable cases with student debt data covered less than 30 percent of bachelor’s degree recipients in the Class of 2017. We weight the state averages using the number of borrowers reported in the Peterson’s Undergraduate Financial Aid Survey Source: The Institute For College Access & Success, https://ticas.org/sites/default/files/pub_files/classof2017.pdf

Source: IPEDS FORM #41, 2016-17 STUDENT FINANCIAL AID REPORT

Student Loans in Collection, by County https://apps.urban.org/features/debt-interactive-map/ Source: Debt in America: An Interactive Map, Urban Institute

KEY QUESTION FOR STATE PLAN How can we make an affordable and accessible path to a high quality degree or certificate a reality for all residents of New Jersey? - What are the most useful and effective aspects of these partnerships for your students? How did they develop and what could be improved? What are common concerns regarding college-going that you hear? How can we help clarify or improve quality of information on post-secondary opportunities? What programs or supports do you have in your district to help prepare students for success in college?