2008 CCCU Financial Aid Survey CCCU Financial Aid Administrators Conference January 8-10, 2009 – San Diego, California Dan Nelson: Vice President of Admissions, Financial Aid and Retention, Bethel University Jeff Olson: Director of Financial Aid, Bethel University

Presentation Overview 1. Financial Aid Office Staff –Internal operations 2. Students/Families 3. Our Institutions –Financial Health 4. Government –Compliance

Part 1. Financial Aid Office Staff (Internal Operations) Demographic Data Technology Software Reporting Relationships Consultants Endowed Scholarship Student Employment

2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, Participants – Dec ‘08

2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009 Profile of Responding Schools (see p. 5) 67 Schools in Cohort CCCU Members –Yes 92% (62/67) –No 8% (5/67) NASFAA Members –Yes 92% (62/67) –No 8% (5/67) 37 Schools have participated in the 5 most recent CCCU Fin Aid surveys 19 Schools have participated in all 10 CCCU Fin Aid surveys!

Thanks for Your Participation! 10 year Club Anderson University, IN Bethel University, MN Bluffton University, OH Bryan College, TN Calvin College, MI Cedarville University, Oh Colorado Christian University, CO George Fox University, OR Houghton College, NY Huntington University, IN John Brown University, AR Judson University, IL Messiah College, PA Northwestern College, MN Roberts Wesleyan College, NY Tabor College, KS Taylor University, IN Westmont College, CA Wheaton College, IL 2007 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 11, 2008

2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, Profile - Regional Distribution (see p. 5)

Highest Degree Offered (see p. 5) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Financial Aid Software: # Schools, Fall ‘ CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Financial Aid Software Top 6 Vendors (77%), Dec ‘08 (see p. 5) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Financial Aid Software Satisfaction – 3 year Comparison (see p. 6) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Switching Software Vendors in next 1-3 Years 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Electronic Communications (currently using) see pp CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Electronic Communications (currently using) see pp CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Financial Aid Reporting Relationships (see p. 16) Where do financial aid offices reside in the school’s organizational structure (67 schools reporting)? Enrollment Mgmt: 48 (71%) Business Affairs: 13 (19%) Academic Affairs: 2 (2%) Student Affairs: (0) Advancement: 1 (1%) Enrollment & Marketing: 1 (1%) Student Financial Services: 1 (1%) University Relations: 1 (1%) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Consultant or Leveraging Product (see p. 80) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Endowed Scholarship Processes (see p. 76) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Student Employment Processes Continued (see p. 81) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Student Employment Processes (see p. 81) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Part 2. Students & Families Pricing & Budgets Aid by Category –Gift aid –Loans –Work Scholarships –Targeted –Academic –Athletic International Student Aid Need Loans (borrowing and debt)

’08-’09 Dependent Budgets (see pp ) Average dependent student budget is $30,671 (range: $21,000 to $47,786). This is an increase of 5.6% from ’07-’08 (same increase as last year) CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Tuition & Fee Changes to (see p. 19) Tuition and Fees at 67 reporting schools increased from an average of $19,851 to $20,916 (5.4%). Five institutions reported increases of 9% or greater 19 of 67 (28%) institutions reported increases between 5% and 5.99% 17 of 67 (25%) institutions reported increases between 6% and 6.99% 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

’08-’09 Indirect Budget Items (see p. 20) Dependent budget estimates for books, supplies, personal and transportation ranged from $2,190 to $6,718. –Average was $3,600 –This is 7.5% greater than ’07-’ CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

’07-’08 Total Financial Aid (see p. 21) Students at 67 reporting institutions received nearly $1.69 billion of financial aid in –$909 million in gift aid –$579 million in student loans –$151 million in PLUS loans –$51 million in employment 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

’07-’08 Average Financial Aid (see pp ) Lowest average Average of 67 schools Highest average Gift Aid$3,888$8,505$13,404 Loans (w/o PLUS) $2,509$5,718$16,814 (?) Work$59$476$1, CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

’07-’08 Institutional Gift Aid Per Enrolled Student (see pp ) Lowest average Average of 66 schools Highest average Unrestricted$1,231$5,106$8,641 Endowed$0$304$1,567 Restricted$0$128$1,516 Tuition Remission $0$500$1, CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Targeted Scholarships (see pp ) ScholarshipOffer Smallest Maximum Average Maximum Largest Maximum 2 nd in Family23/66=35%$500$1,291$3,078 Legacy45/67=67%$100$1,567$9,440 Athletic45/67=67%$7,000$20,348$34,544 Child of Christian Service Worker 25/67=37%$1,000$3,037$13,000 Child of Minister or Missionary 52/67=78%$500$3,320$13,100 Denominational Affiliation 27/67=40%$500$3,340$ CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Targeted Scholarships Continued (see pp ) ScholarshipOfferMinimumAverageMaximum First Generation6/66=9%$1,000$4,650$14,750 Home Schooled9/66=14%$500$1,517$4,000 International Student 51/67=76%$1,000$9,278$36,552 Church Match45/67=67%$500$836$2,000 Student of Color23/66=35%$500$8,509$33,118 Hybrid10/60=17%$1,000$5,105$16, CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

National Merit Scholarship Program Participants (see p. 70) Asbury Bethel U. Calvin Cedarville Columbia Intl. Geneva George Fox Gordon Grace (IN) ORU Roberts Wesleyan SPU SE U of FL Taylor Union Westmont Wheaton 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009 Greenville Houghton Huntington Indiana Wesleyan LeTourneau Messiah Nyack OK Christian

National Merit Scholarship Program Continued (p. 70) 25 of 67 responding schools participate (37%) Of these 25 schools, 18 offer additional ICGA to Merit Scholars above the normal package (72%) Average extra ICGA from these schools to Merit Scholars is $8,261 (range $750 to $21,000) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Academic Scholarship Criteria (see pp.72-73) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Academic Scholarships for Entering New Students - Fall ’08 (see p.74) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009 Percent Receiving Academic Scholarship Maximum Scholarship as a % of Tuition & Fees Minimum19%4% 1 st Quartile50%44% 2 nd Quartile (Median) 62%59% 3 rd Quartile75%97% 4 th Quartile (Maximum) 100%141%

Academic Scholarships for Entering New Students (see p.75) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Academic Scholarships for Entering New Students - Fall ’08 (see p.74) Minimum Award Average Award Maximum Award Lowest$300$1,000 Median$2,000$5,185$12,000 Highest$10,000$14,389$32, CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Athletic Divisions (see p. 89) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Athletic Scholarships (see pp.90-91,93) School specific data is included on your CD NAIA-1 Summary by sport information is found on handout page 90 NAIA-2 Summary by sport information is found on handout page 91 No schools reported NCAA-1 scholarship data 2 schools reported NCAA-2 scholarship data (data sent directly to these 2 schools) See comments on page 93 regarding impact of athletic recruitment on non-athletic recruitment 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Gift Aid Bias for Student Athletes CCCU – NCAA III Schools 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Gift Aid Bias for Student Athletes CCCU – NCAA III Schools 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

International Student Aid (see p. 79) 58 of 67 reporting schools give ICGA to international students (87%) 8 schools report over 5% of their enrollment is international students Institutional spending for international students ranges from $4,000 to $2.96 million Average ICGA ranges from $1,932 to $38,561 (median award equals $9,258) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

International Student Aid (see p.79) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

’07-’08 Needy/Not Needy (see pp ) 68% percent of students at 54 responding schools were needy (range: 89% to 42%). –Total gift aid to needy students = $595 million –Average gift aid per needy student = $10, CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

’07-’08 Needy Students (see p. 51) The average needy student at responding schools had demonstrated need of $20,651 in (range: $13,163 to $29,754)* On average, responding schools meet 53.1% of need with gift aid (range: 34% to 83%) 32/51 (63%) of responding schools meet between 44% and 64% of need with gift aid * Handout has erroneous data from TIU 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Loans ’07-’08 (see pp ) 66 survey respondents reported $723 million in total borrowing Of this $151 million was PLUS loans –Total PLUS borrowing exceeded $5 million at 7 schools –Average PLUS per enrolled student was $1,324 Average amount borrowed per enrolled student was $7, CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Loans as Percent of Tuition & Fee Revenue (see p. 44) Recorded loans (including PLUS) exceed 50% of tuition and fee revenue at 15 of 66 reporting schools (23%) Loans are less than 30% of tuition and fee revenue at 12 of 66 schools (18%) The median percentage is 39.6% 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Average Student Loan Debt (see pp ) On average 76% of Spring ’08 graduates at 62 responding schools borrowed student loans (range: 31% to 98%). Their average debt was $24,530 (range: $14,153 to $42,375). –45 of 62 (73%) of responding schools had average debts ranging from $19,000 to $30,000 Average debt equaled 131% of tuition and fees at each student’s school (range: 75% to 259%) CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

2007 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 11, 2008 Part 3. Our Institutions (Financial Health) Enrollment Tuition & Fee Revenue Percent IGA funded Discount Rates Wealth Index Awarding Philosophy Preferential Packaging Response to Demographics

Enrollment (see p. 4) Of the 67 respondents: –51 (76%) report non-traditional undergrads –59 (88%) report graduate students Total F'07 undergraduate enrollment in traditional programs was over 99,000 (for the 67 reporting schools). Total year grad and undergrad enrollment was 201,377 (as reported on FISAP) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Tuition and Fee Revenue (see p. 17) The 66 responding schools reported ’07-’08 tuition & fee revenue of $2.344 Billion –Extrapolating to the entire CCCU membership, tuition revenue at CCCU schools exceeds $3 Billion annually 9.2% of tuition comes from non-traditional undergrads (8.5% in ’06-’07; 9.2% in ‘05-’06) 11.2% of tuition is from graduate students (10.5% in ‘06-07; 9.5% in ’05-’06) The percent of tuition from traditional undergrads decreased from 81.3% in ’05-’06; to 81.0% in ’06-’07; to 79.6% in ‘07-’ CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Percentage of Institutional Gift Aid (IGA) that is “funded” (see p. 32) The typical (median) school reports that 5.3% of institutional gift aid (not including tuition remission) has a specific funding source (endowed or restricted). –5 schools report that over 20% of IGA is funded. –8 schools report between 10-20% of IGA is funded –16 schools report that less than 3% of IGA is funded 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Discount Rate Calculation Unfunded –"Unrestricted Institutional gift aid" divided by "tuition and fee revenue" NACUBO –(Unrestricted institutional gift aid + endowed + restricted) divided by "tuition and fee revenue" Neither calculation includes employee tuition remissions 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

’07-’08 Discount Rates (see p. 48) 66 schools reported unfunded discount rates from 9.6% to 55.1% (median 29.3%) –67% of reporting schools had unfunded discount rates between 23% and 37% The NACUBO discount rate for the same schools ranged from 10.2% to 60.2% (median 32.7%) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Estimated ’08-’09 Discount Rates (see p. 49) 65 Schools reported estimated unfunded discount rates from 11.6% to 47.2% (median 31.5%) in ’08-’09. –67% of reporting schools had unfunded discount rates between 24.7% and 37.6% The NACUBO discount rate ranged from 16.5% to 48.2% (median 34.6%) in ‘08-’ CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Sticker Price vs. Avg. Revenue (see p. 52) The median school reported average T&F revenue of 87% of their tuition “sticker price” (this represents the effect of less than full-time and less than full-year students). The range was from 59% to 111% 5 schools reported more than 100% or higher (possible sign of data error) CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Price compared with Family Wealth (see pp ) The "wealth index" is an approximate measurement of expected parent contribution from non-independent student families (whether or not they show need). A positive variance means that, compared to the group, families are wealthier than the norm CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Awarding Philosophy ICGA awarding philosophy (see p. 56) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Awarding Philosophy SINK! (p. 57) 24 schools (38%) reduce (sink) need-based ICGA when awarding non-need- based ICGA. The percentage of “sink” ranges from 50% to 100% Many schools award ICGA using a matrix or leveraging formula 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Awarding Philosophy: Endowed Departmental Scholarships (see p. 58) 40 schools (61%) award endowed scholarships as “frosting” – no reduction in other ICGA 15 schools (23%) partially reduce other ICGA when an endowed scholarship is added 12 schools (18%) replace other ICGA with the endowed scholarship (100% sink) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Awarding Philosophy: Continuing Students (see p.59) Response to normal increases in need (e.g. tuition went up): –18 schools (27%) increase need- based ICGA –42 schools (63%) would not change need-based ICGA Do you recalculate non-need (merit) ICGA every year? –Yes: 19 schools (29%) –No: 45 schools (69%) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Awarding Philosophy: Dramatic Changes in Need (see pp ) Need increases dramatically: –41 schools (68%) increase ICGA –10 schools (17%) do not adjust ICGA –3 schools (5%) respond to appeals –6 schools (10%) case- by-case review Need decreases dramatically: –38 schools (66%) decrease ICGA –16 schools (28%) do not adjust ICGA –4 schools (7%) case- by-case review 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Awarding Philosophy: Merit Aid in Excess of Need (see p. 62) Only 8 of 65 schools (12%) reported knowing how much of their merit aid actually met need. For these schools, most merit aid actually is within need (64% to 88%) Comment: distinguishing merit aid used to meet need is a prerequisite for the Common Data Set CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Preferential Packaging: Non-Academic Factors (p.63) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Preferential Packaging Maximum Institutionally Controlled Gift Aid (see p. 64) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Preferential Packaging Impact of Co-Application (see p. 65) Do you sweeten your initial package when prospective freshmen are co-applying to competing schools?  13 (19.4%) Yes  52 (77.6%) No  2 (3.0%) Sometimes Of the 13 who answered “yes,” how much?  3 = $1,000 or less  5 = $1,000-2,000  1 = over $2,000  2 = try to match  2 = no answer 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Response to Demographic Changes (see p. 86) Impact of shifting demographics? –37% not sure –27% fluctuating student pool –25% declining pool –10% increasing pool Finaid Involved? –66% yes –33% no Remedies for decline –64% Expand Marketing –51% Increase ICGA –33% New Courses –30% Limit Price Increase –27% New Delivery Systems –6% Let Enrollment Shrink 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

2007 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 11, 2008 Part 4. Government Programs (Compliance) Federal Loan Programs Federal Gift Aid Recent loan turmoil Codes of Conduct “Red Flag” Rules Need Analysis

Federal Loan Programs – 2008 (see pp ) Direct Loan (DL) or FFELP?NumberPercent Running Total Participating in DL prior to Fall ’0746.1% Switched from FFELP to DL for Fall ’ %7.6% Switched from FFELP to DL for Fall ’ %15.2% Plan to switch from FFELP to DL for Fall ’ %19.7% May switch from FFELP to DL for Fall ‘ %28.8% May switch from FFELP to DL for Fall ‘10 or beyond 913.6%42.4% Will remain in FFELP3857.6%100.0% 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

’07-’08 Federal Gift Aid (see pp ) Average Pell grant (per enrolled student) ranges from $279 to $1,452. SEOG total funding represents anywhere from 5% to 61% of total Pell funding CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Average Federal Grants Per enrolled Student 2007-’08 (see p. 34) LowAverageHigh SEOG$53$145$311 ACG$10$46$91 SMART$0$18$92 Pell$279$791$1, CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Pell Grant (all undergrads) Pell as % of Total Enrollment (see pp ) More than 35% of undergraduates receive Pell at 7 of 62 schools (11%) Less than 20% of undergraduates receive Pell at 17 of 62 schools (27%) Average percent receiving Pell = 26.4% Percent receiving Pell ranges from 13.0 % to 45.6% 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Change in # of Pell Grant Recipients (62 schools, see pp ) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Change in # of Pell Grant Recipients: to (62 schools, see pp ) 18 schools increased the # of Pell Grant recipients by 10% or more 13 schools increased by <10% 4 school stayed even 14 schools decreased by <10% 13 schools decreased by 10% or more 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, /26/18 – 1/1/09

Federal TEACH Grant (see p. 83) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Recent Loan Turmoil (see p. 84) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Codes of Conduct (see p. 85) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

FTC “Red Flag” Rules (see p. 87) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Need Analysis Changes (see p. 88) 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009

Questions? Survey Participants receive a CD containing –Excel spreadsheet with processed data and reports –Slide show/handouts –Survey questions –Sample Codes of Conduct 2008 CCCU Financial Aid Survey – Dan Nelson, Jeff Olson – Jan. 9, 2009