Annual Update: Spring 2012 Committee on Scholarships, Awards and Student Aid Professor Charles E. Daye, Chair February 10, 2012

Scholarships, Awards, and Student Aid Committee Charge and Composition: The committee is appointed by the Chancellor. It establishes policy for scholarship and student aid funds, monitors the operations of the Office of Scholarships and Student Aid, and advises the Chancellor on matters regarding scholarships and other forms of student aid.

Committee Membership, Name and DepartmentTerm(s) Faculty/Staff/Students Charles Daye, Chair (Law) Todd Austell (Chemistry) Cheryl Jones (Nursing) Donald Hornstein (Law) Jane Danielewicz (English) Judy Adamson (Dramatic Art) Tara Moon (Medicine) Dennis Williams (Pharmacy) George Lensing (English) Fred Clark (Romance Languages) Winston Crisp (Student Affairs)Ex officio Steve Farmer (Admissions)Ex officio Shirley Ort (Student Aid)Ex officio Kiran Bhardwaj (Graduate Student) Chris Scanzoni (Undergraduate) Kira Lumsden (Undergraduate) Travis Crayton (Undergraduate)

The role of the Office of Scholarships and Student Aid (OSSA) is to support the instructional mission of the University by...  Removing financial barriers for students  Recognizing and rewarding academic talent, thereby  Furthering mutual goals of “equity” and “excellence”

During the University provided assistance to 20,362 undergraduate, graduate and professional students... Total: 20,362 Students Receiving Aid

... and disbursed $351.2 million in aid, with the largest share provided by the Federal government... Total: $351.2 (In Millions) State: $20.5 (6%) Federal: $173.3 (49%) Institutional & Private: $157.4 (45%)

Focusing on undergraduates percent received need-based aid in , up from 37 percent in the prior year... Total: 18,579 Undergraduate Students Aided Needy Students 7,900 (43%) Non-Aided Students 6,635 (36%) Aided Non-Needy Students 4,044 (22%)

The proportion of undergraduate students demonstrating need has increased significantly since Year Need-Based Aid Recipients n% ,56334% ,81732% ,62937% ,90043%

The average amount of financial aid disbursed to an undergraduate receiving need-based aid in was quite generous... Loans (24%) Work-Study (2%) Grants & Scholarships (74%)

The share of a student’s need which was met with grants and scholarships has increased despite increases in tuition and other college costs... Trends in Type of Aid Distributed to Undergraduate Students With Need Year Grants & Scholarships LoansWork-Study %35%2% %27%3% %27%3% %24%2%

As a result, student borrowing has been kept at a minimum and cumulative indebtedness among borrowers actually declined last year... Cumulative Student Loan Debt Upon Graduation Among Seniors Who Borrowed Academic Year % Who Borrowed Cumulative Amount Borrowed %$13, %$14, %$16, %$15,472 *Note: Debt includes only loans based on need, rather than discretionary borrowing.

Ten Year Changes in Cost of Attendance for Resident Undergraduates, Compared to Borrowing Patterns Cost of Attendance Increase Tuition & Fees$2,768$6,666$3,898 Room and Board and Other$8,097$13,098$5,001 Total$10,865$19,764$8,899 Resident Students With Need#3,638#6,380 Students who Borrowed 2,602 (72%) 3,391 (53%) Average Loan$4,673$6,861$2,188

Median Parental Income of Dependent Aided Undergraduates, Enrolled undergraduates receiving any aid: 64% Median parental income (all aided dependent students) $70,315  For aided resident students $67,610  For aided non-residents $84,418 Enrolled undergraduates receiving need-based aid: 43% Median parental income (recipients with need) $55,781  For aided resident students$53,178  For aided non-residents$71,700  For Carolina Covenant® Scholars $23,655 (Average family size was 4 throughout; median for N. C. resident is $68,985)

 A slow-growth economy  Persistent unemployment  Rising tuition and other college costs  A likely increase in the number of students with need Carolina will work hard to maintain these favorable aid distribution patterns going forward, given the challenges we face...

Other challenges are present as well...  The State is reducing funding for need-based grants  Changes to the state grant allocation formula could cost our students another $2.5 million in the upcoming year  Federal funding for the Pell Grant program remains uncertain  More students will likely need to borrow, and borrow more, in the coming years  It is important that the University be permitted to dedicate a share of new tuition revenues for need-based aid (currently at 38%)

Still, there is good news! For the 11 th year in a row, Carolina was named by Kiplinger’s as the “best value” in American public higher education

Ten Year Comparison of Scholarship and Financial Aid (Need and Non-Need-Based) Awards: All Students (Undergraduate, Graduate/Professional) Total Aid Awarded (in millions) $128.1 $257.8$351.2 Number of Students11,50116,90320,362 Average Award $11,136 $15,252$17,248 Funds by Source Federal57%53%49% State10 6 Institutional/Private Funds by Type Scholarships/Grants38%47%54% Work-Study111 Loans Source: Office of Scholarships and Student Aid/Office of Institutional Research (February 2012)

Maintaining Carolina’s favorable need-based aid patterns of the past will remain a challenge. But Carolina has met that challenge in the past and is no less committed to funding both access and affordability going forward. Conclusion and Discussion:

UNC STANDARD STUDENT BUDGETS (07/22/10) UNDERGRADUATE STUDENTS IN-STATE On/Off CampusLiving with Parents Tuition/Fees$6,666 ($4,816/$1,850) $6,666 ($4,816/$1,850) Room$5,408$0 Board$3,898$2,598 Books/Supplies$1,028 Travel$750 Health Insurance$724 Misc 1 (Personal)$1,290 Total$19,764$13,056 OUT-OF-STATE Tuition/Fees$25,280 ($23,430/$1,850) $25,280 ($23,430/$1,850) Travel (Home)$1,292 Total$38,920$32,212

UNC STANDARD STUDENT BUDGETS (07/22/10) GRADUATE STUDENTS IN-STATE On/Off CampusLiving with Parents Tuition/Fees$8,202 ($6,363/$1,839) $8,202 ($6,363/$1,839) Room$10,816$0 Board$3,898$2,598 Books/Supplies$1,028 Travel$1,292 Health Insurance$724 Misc 1 (Personal)$2,712 Total$28,672$16,556 OUT-OF-STATE Tuition/Fees$22,932 ($21,093/$1,839) $22,932 ($21,093/$1,839) Other Costs$20,470$8,354 Total$43,402$31,286

Academic Year % Who Borrowed Current Dollar Amount Borrowed Constant Dollar Amount %$13,687$17, %$11,156$14, %$12,314$15, %$13,291$14, %$13,579$16, %$13,801$16, %$14,487$16, %$14,912$16, %$14,936$15, %$14,262$15, %$16,165$16, %$15,472

Adjusted for inflation, the cumulative debt burden among borrowers is $2,525 lower than a decade ago.