State Update Fall 2010 Raleigh, North Carolina Steven E. Brooks Executive Director North Carolina State Education Assistance Authority

State Grants and Scholarships Update Record year : State grants, scholarships, and scholarship-loans $369 million + 31% Awards made 196,000+21% 2

State Grants and Scholarships Update State Budget Issues: Phase outs of three existing programs ­ EARN ends fall 2009 (eligible for loans) ­ FTNC ends spring 2010 (eligible for PTSL) ­ NCSSM ends spring

State Grants and Scholarships Update Major Aid Program Budgets for 09-10: Community College Grant13.9 million UNC Need Based Grant139.4 million NCLTG55.5 million SCSF44.0 million Education Lottery Scholarship40.0 million * NCSIG5.9 million 4

State Grants and Scholarships Update Major Aid Budgets for (Continuation Budget): Community College Grant13.9 million UNC Need Based Grant million » (-$23 million) NCLTG 55.5 million SCSF 44.0 million Lottery Scholarship40.0 million (receipts) NCSIG5.9 million  Conflicting aid start-up and legislative calendars  Escheat Fund also at issue 5

Legislative Study Committee How best to use State funds…availability and sustainability How best to administer State funded student aid Current governance of NCSEAA Feasibility of consolidating scholarship, loan and grant programs for North Carolinians for which FAFSA is required Feasibility of consolidating loans, grants and scholarships for teacher education students Qualifications for each loan, scholarship and grant administered by NCSEAA, purpose for which the aid is awarded; what makes it similar or unique Marketing strategies for grants, loans and scholarships to be more transparent, understandable and accessible 6

Outreach and Training Report - New Financial Aid Administrator Training Cumulative through October 2009 – 495 participants (since first training in 2003) 34 newly trained in October 2009 Next “New” FAA Training will be in the spring of 2010 – March – exact dates will be announced soon Thanks to Jane Kanipe and to NCSEAA and NCASFAA professionals for the curriculum and the training Thanks to CFI for providing the welcoming site 7

Outreach and Training Report - FAFSA DAY February 2009 –66 sites across the state – 60 counties –Over 750 volunteers –Over 4,500 students and families February 2010 –97 counties across North Carolina –Thanks to State Employees Credit Union - SECU –SEAA will train SECU staff “volunteers” 7 days in Dec./Jan. for “Training the Trainers” SECU staff we train will then train additional SECU staff Expect to have a “FAFSA Day Central” phone bank for questions volunteers cannot answer 8

Training and Outreach Report – High School Counselor Workshops NCSEAA/College Board –Annual Financial Aid Training –415 counselors at 4 workshops NCSEAA/CFNC –Annual Financial Aid Training –130 counselors at 2 workshops Davidson College/NCSEAA – “Financial Aid 101” –300 counselors at 5 workshops Thanks to Robbie Schultz and SEAA staff 9

10 CFNC Update

CFNC Statistics College going rate compared to other states –In 1999, as CFNC was launched, North Carolina ranked 38 th, at 21.3%, below the national average of 27.7%, in college participation rate of low income students –In 2008, North Carolina ranked 22 nd, at 26.2%, above national average of 25.7%, in college participation rate of low income students –From , college enrollment of low income students in North Carolina increased by 4.9 percentage points, while nationally their enrollment actually decreased by 2.0 percentage points 11

CFNC Statistics CFNC free user accounts created: YearAnnualCumulative ,7681,663, ,1632,154, ,2472,725,518 12

CFNC Statistics Visitor count and duration of visits on CFNC website: YearUnique DailyAverage Visit VisitorsDuration , minutes , minutes , minutes 13

CFNC Statistics Number of college applications filed using CFNC: YearApplications for Admission , , ,940 14

CFNC Statistics Number of high school transcripts sent to colleges: Year Transcripts Submitted , , ,042 15

CFNC Statistics Awareness of the service among parents and students: YearPrompted Awareness Percentages 2001 students: 33% 2002students: 83% 2004 students: 84% parents: 81% 2006students: 93% parents: 88% 16

CFNC Statistics Attendance at special events: Year FAFSA Day ,076 students, 559 volunteers, 52 sites ,600 students, 650 volunteers, 56 sites ,500 students, 750 volunteers, 65 sites YearCollege Admissions Week ,038 applications, 876 students, 15 high schools ,445 applications, 12,808 students, 109 high schools ,903 applications, 19,356 students, 293 high schools 17

CFNC Statistics Outreach visits to middle and high schools: YearVisits and Presentations ,821 visits/presentations ,764 visits/presentations ,740 visits/presentations Calls and s to the CFNC Call Center in Raleigh: YearCalls and s Received ,436 calls ,044 calls; 12,964 s ,241 calls; 13,496 s 18

CFNC Statistics Increases in applications/enrollments of needy students: Year NC FAFSAsPell Grant Recipients ,302139, ,492147, ,318not yet available 19

20 FAFSAs in North Carolina over time

21 North Carolina FAFSA Filers, through

22 North Carolina FAFSA Filers by Sector, Year to Date

529 Savings Program Update Investments exceeded $500 million on October 19 71,222 accounts as of October 26, 2009 ­ 18.1% increase since October 31, investment options available: ­ 3 age-based;10 individual funds ­ 11 Vanguard funds; 2 North Carolina Managers NCM Capital Management NC State Treasurer North Carolina state tax deductible contributions ­ $5,000 on joint return; $2,500 individual ­ No income limit 23

%4.6% %5.2% %6.7% Year SEAA RateNational Average Cohort Default Rates About 915 additional borrowers per year would default if our rate were only the national average!

Impact of Potential Federal Legislation on North Carolina What has the FFEL Program Paid for in North Carolina? –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 25

An uncertain future: Change is inevitable…except from vending machines Your State agency and non-profit expect to to be here for you and your students Advice: be ready for Direct Lending for next year in case it is forced upon you Request: keep your FFEL powder dry in case you do get a choice ­ can support the State’s services ­ while helping your borrowers 26