Student Loan Debt at IUPUI

Student Loan Program Overview Federal Stafford Loans (Direct Loans) –Direct “subsidized” loans (3.4% - 6.8%) –Direct “unsubsidized” loans (6.8%) Other Federal Loans –Federal Perkins Loan (5%) –Graduate PLUS Loans (7.9%) –Health Human Services Loans (various rates) Loans for Disadvantaged Students, Health Professions Student Loans, Nursing Student Loans, and Primary Care Loans Federal Parent PLUS Loans (7.9%) IU Loan Programs ( donor funded, various rates) Private Loans (credit-based – varies) 2

Undergraduate Student Loan Debt Percent students who borrowed* 72% IUPUI 54% IUB 72% IUPUI 55% IUB The average per- undergraduate-borrower cumulative principal borrowed* $27,062 IUPUI $25,522 IUB $29,673 IUPUI $27,752 IUB Figures represent the percentage of the undergraduate class who graduated with a bachelors degree during the referenced year who started as first- time students. The loan debt figure represents borrowing while enrolled at the institution through federal and private programs. Source: The Common Data Set (CDS)

ANNUAL STAFFORD LIMITSDependent StudentIndependent Student Undergraduate Prerequisite$2,625$8,625 1st year undergraduate or Undergraduate Certificate (0 – 25 credit hours earned) $5,500$9,500 2nd year undergraduate (26 – 55 credit hours earned) $6,500$10,500 3rd year + undergraduate (56+ credit hours earned) $7,500$12,500 Graduate Prerequisite, Teacher Certification or License Renewal $5,500$12,500 Graduate / ProfessionalN/A$20,500 Health Professions (Medical & Dental) N/A$40,500

Percent of Degree Recipients with Loans

6 % of Degree Recipients 2 with Aggregate Student Loans Number of Degree Recipients Who Borrowed Yr % Change Baccalaureate1,0351,0561,1061,1721,41136% Master's % Doctoral-Research** % Doctoral-Practice % 1 Only includes degree recipients who borrowed while at IU during their program of study. 2 Represents students who received a degree in the fiscal year, July 1 through June 30. These figures include Purdue degrees awarded at this campus. Associate degree recipients and their loans are excluded from these views. Percentage of Degree Recipients 2 with Loans by Level IUPUI through

Cohort Default Rate (CDR) A “cohort” is a group of Stafford loan borrowers who entered repayment with in a given federal fiscal year. A Cohort Default Rate (CDR) is the percentage of those students in a school’s cohort who defaulted within a specified period of time: –Two-year CDR: By end of the next fiscal year –Three-year CDR: within the next two Fiscal years 10

STUDENT LOAN DEBT CDR 3 Year Rate CampusFY Being Reported 2009 # Entering Repayment # In Default Default Rate IU- BL20095, % * IU - EA % IUPUI % * IU- KO % IU-NW % IU-SB % IU-SE % How IU Campuses Compare Source: US Dept of Education National Student Loan Data Released 3/5/ * 2 year CDR at IUB = 1.8% * 2 year CDR at IUPUI = 3.8%

Graduate and Professional Student Debt Debt also rising Medical figures included here 12

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Debt to Potential Income Advice Limited now Good calculators at Undergraduate calculator… 14

Student Loan Concerns Upcoming July 1, 2012 loss of subsidy for graduate students, higher effective Direct Loan fees, raise in undergraduate Stafford interest rate Number of students that transfer in with money borrowed at other institutions Limited bankruptcy protection for student loan borrowers Evidence that borrowers less likely to donate back to institution 15

Financial Literacy Initiatives Financial aid sessions that include financial literacy information are presented during Orientation for students with a separate session for parents Financial literacy information incorporated into Spring Preview Days for admitted students Dedicated financial literacy website as IUPUI partners with the nonprofit National Endowment for Financial Education (NEFE) to present an online financial literacy site called Cash Course at

Financial Literacy Initiatives Student Financial Services does an hour presentation regarding financial literacy during first-year seminar courses A variety of IUPUI programs provide financial literacy content to “at-risk” students such as first generation college students, underrepresented college students, 21 st Century Scholars, Pell Pledge recipients, etc. Financial literacy addressed by programs such as Upward Bound, Minority Engineering Advancement Program (MEAP), 21st Century Support Programs, Minority Law Days, SAAB/SAAS, etc.

Financial Literacy Initiatives Student Financial Services staff provide information to academic advisors so that they understand current financial aid rules and Satisfactory Academic Progress (SAP) regulations; note the SAP appeal process involves academic advisors working with the students. Financial literacy information for high school students is provided through programming offered during the summer through such programs as Project Stepping Stone and the Olanyian Summer High School Program