MASFAA Annual Meeting November 7 th, 2012

State Appropriations for Higher Education per $1,000 in Personal Income, SOURCE: The College Board, Trends in College Pricing 2012, Figure 13B.

Percentage of Total State Support for Higher Education Spent on State Grant Expenditures, SOURCE: The College Board, Trends in Student Aid 2012, Figure 18B.

Annual MassGrant and Gilbert Grant Appropriation; FY09 – FY13 SOURCE: Massachusetts Office of Student Financial Assistance

Average Federal Grant Award to Massachusetts Students; SOURCE: The National Association of Independent Colleges and Universities

The Declining Value of MASSGrant Awards The average grant award was worth 40% more in FY08 as compared to FY13 MassGrant has seen an 89% increase in the number of recipients since FY08 SOURCE: Massachusetts Office of Student Financial Assistance

Net Tuition and Fees Have Remained Stable at Private Nonprofit Four-Year Institutions Over the Past 20 Years SOURCE: The College Board, Trends in College Pricing 2012, Figure 10.

Massachusetts Independent Colleges Continue to Increase Institutional Aid to Massachusetts Residents Massachusetts Independent Colleges and Universities have increased their institutional aid by 59% since FY07 SOURCE: Massachusetts Office of Student Financial Assistance

Percentage Change in Inflation-Adjusted Mean Family Income by Quintile, 1981–1991, 1991–2001, and 2001–2011 SOURCE: The College Board, Trends in College Pricing 2012, Figure 18A.

Facts About Student Debt Despite media hype, only 0.2% of undergraduate students graduate with student loan debt over $100k The average Massachusetts student graduates from a private school with $28,047 in debt, below the national average of $29,059 At Massachusetts private colleges, 40% of students graduate with no debt Average debt level has risen only 1.5% per year in the past 5 years

The Truth About Default Rates Recent data shows that Massachusetts has one of the lowest default rates in the nation, at a statewide average of 5.5% The median default rate at AICUM institutions is 2.7% The national default rate stands at 9.1% over two years and 13.4% over three years

Federal Loan Repayment Options The Federal Government has introduced a number of programs to help students repay their student loans, including: – Income-Based Repayment Plan; – Public Service Loan Repayment Plan; and – Extended Repayment Plan

Employment and Education The most recent Bureau of Labor Statistics unemployment index (Oct 2012) shows that only 3.8% of those with a Bachelor’s degree or higher are unemployed Individuals with only a high school diploma are unemployed at a rate of 8.4% and those without a high school diploma face an unemployment rate of 12.2%

Studies Continue to Highlight the Value of a College Degree A college graduate has a $1 million lifetime earnings premium vs. a high school graduate (Georgetown University) 48% of current job openings in the Metro- Boston area require a Bachelor’s Degree or higher (Brookings Institute) A recent college graduate will earn $12k more than a recent high school graduate, up from $4k more in the 1980’s (Hamilton Project)