State Update Spring 2010 Wrightsville Beach, North Carolina Steven E. Brooks Executive Director North Carolina State Education Assistance Authority

The New CFNC – Rose Mary Stelma 2

State agency responsible for statewide college aid programs – grants scholarships, loans, 529 savings 501(c)(3) nonprofit - administers grants, loans and savings program on behalf of the state State-funded K- 16 partnership (NCDPI, NCCCS, NCICU, UNC) administered by UNC General Administration What Is CFNC?

To increase the college-going rate in North Carolina with particular attention toward “first-generation” college students. GOALGOAL Why CFNC?

1,786,166 Online Admissions Applications Submitted 3,174,879 Student Accounts Created 10,392 Daily Visitors 9 min/ visit 230,585 High School Transcripts Delivered CFNC Statistics As of March 31, 2010

CFNC.org is Changing!

An Emphasis on Who You Are Role-based –Student: Middle School High School College –Adult Learner –Parent –Military –Education Professional –Account Holder

Students

Elementary Students – Paws In Jobland

Elementary Students – Financial Literacy Videos –Goals –Money Grows –Spend or Save

Middle and High School Students Career Exploration Academic Planning: –High School –College –Transfer Navigator –Test Prep Paying for College

Interest Profiler Match interests and careers – and it’s all FREE!

Career Information - North Carolina Specific Education required NC average earnings How the career matches the student’s interests

Career Information – North Carolina Specific More details, including skills you need, average earnings and outlook for North Carolina, and real life activities to help you decide if this is the career for you!

Plan For High School Middle School students can plan for high school

Plan For College High School students can plan for college

Match Career Interests And Academic Majors

Match Academic Majors To Campuses

Explore North Carolina Colleges And Universities Common TABS

Transfer Student Navigator How will my Community College credits transfer to a 4- year institution? –Select CC courses –Select 4 year college/university 16 UNC campuses 23 Independent/private campuses (as of 3/31/10) –Review equivalent courses

On-Line Applications College admission –Electronic High School Transcripts FAFSA link State grants and scholarships

Paying For College Scholarships and grants Financial aid information Frequently asked questions Financial Literacy Tools and calculators

Financial Literacy On-line interactive course Include it as part of your loan counseling

Tools And Calculators – Smart Borrower Calculator Smart Borrower Calculator

Tools And Calculators – Financial Aid Estimator Financial Aid Estimator Detailed information about state and federal grant aid Specific to North Carolina campus Great planning tool for students and parents

Adults Explore educational opportunities Explore careers Resume builder Interview practice

Account Holders NC529 College Savings Plan Loan borrowers CFIPP (Payment Plan)

Education Professionals School Counselors Financial Aid Administrators

The good news is that you’ll feel right at home at CFNC.org –You already use a role-based approach on CFNC.org –Same login requirement to access your school’s information –Access to the same information

Financial Aid Administrators Grant System College Payment Plan Administration Default Prevention Services Forms and publications

CFNC.org Same Great FREE Services Exciting New Look!

Impact of Federal SAFRA Legislation - NC CFI/SEAA NC FFEL Program has paid for –Loans higher level of service/default prevention lower prices for borrowers –Grant Administration – all state grants at SEAA and CFI –Saving Administration – NC 529 Program –Outreach CFNC web and telephone services FAA and Counselor Training Counselor Internships FAFSA Day And more Something’s happening here… what it is ain’t exactly clear 32

SAFRA jeopardizes or ends all these services Immediate Casualties and “Collateral Damage” July 1 - no new FFEL loans Still plan to service existing portfolio for many years Make every effort to offer continuity of service to borrowers Counselor internships Marketing/media for CFNC and 529 Program Intermediate and Longer Term Issues State funding and/or user fees for grant administration, 529 administration, and CFNC College Access Challenge Grant? This is a very difficult time to seek State funding 33

Impact of SAFRA We intend to find every way possible to continue to provide you and your students with the level of service you have come to expect on grants, CFNC, 529, and servicing loans –Hope for Direct Loan servicing and Direct Loan default prevention contracts but have no information on when and whether we will have an opportunity to participate –Hope for College Access Challenge Grant for default prevention and financial literacy activities per the expressed Congressional intent We will need your help as we work through a difficult transition period - there will be some difficult choices based on financial considerations But we expect to emerge strong, able to offer you excellent State services 34

State Grants and Scholarships Reminders Continuation Budget for Student Aid  Conflicting aid start-up and legislative calendars  Escheat Fund at issue  All start up budgets, as always, are subject to legislative changes  Governor’s Budget Proposal 35

Joint Select Committee on State-Funded Student Financial Aid Consolidation of Programs Proposal Erskine Bowles & Scott Ralls at meeting of April Consolidate need based grants –Consolidate UNC Need Based Grant, Community College Grant and Education Lottery Scholarship (public share) –One formula, based on federal EFC –Maintain proportionality of funds – currently $154 million UNC and $33 million Community Colleges –Much modeling to be done, with your help “winners and losers” in the process issue is returning students and legislative intent

Joint Select Committee on State-Funded Student Financial Aid Consolidation of Programs Proposal, continued 2. Consolidate 8 scholarship loans –NESLP, NSP, NET, HSM, PTSL, Teacher Assistant, BoG Dental & BoG Medical –One “forgivable loan for service” program –SEAA will need an advisory group on identifying shortage areas and allocating new funds –SEAA recommends that all current scholarship-loan recipients be grandfathered into new program so long as they maintain continuous enrollment

Joint Select Committee on State-Funded Student Financial Aid Committee is expected to charge SEAA and three sectors (UNC, CC, Independents) to work together to accomplish both consolidations and to report back to them by October –Timetable uncertain for implementation – hope for awards –We will solicit FAA involvement as SEAA moves forward

529 Savings Program Update Investments exceeded $600 million on April investment options available: – 3 Vanguard age-based; 8 Vanguard individual funds – 2 North Carolina Managers –Active Core Equity Fund with NCM Capital Management –Dependable Income Fund with NC State Treasurer –NEW! Federally-Insured Deposit Account (SECU) North Carolina state tax deductible contributions –$5,000 on joint return; $2,500 individual –No income limit 39

Questions 40