State Update April 20, 2011 Wilmington, North Carolina Steven E. Brooks Executive Director North Carolina State Education Assistance Authority

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3.69 million total accounts since

2.2 million total applications since

432 thousand high school transcripts since

Training and Outreach Training by SEAA since October 2003 –646 “new” FAAs in 24 workshops –115 “intermediate” FAAs in four workshops –82 FAAs through VA/New GI Bill webinars. –42 FAAs through three additional webinars, two “Application” and “Nuts & Bolts” –379 SECU staff at 13 locations statewide –43 FAAs at four sites for NC Grants Training Workshops These numbers include training done so far in

Training and Outreach (2) 581 school counselors received aid training - fall 2010 Upcoming Community College Training Workshops April 20 (at CFCC following NCASFAA) May 16 (Alamance CC) May 17 (AB Tech) FAFSA DAY – 2011 Over 4,800 students and their family members Over 1,700 volunteers No snow Much appreciation to NCASFAA members for this effort – it really makes a difference in many lives 7

'New' NC FAFSA -filers Academic YearAll SchoolsCCNCICUUNC ,605 29,327 12,013 39, ,1875.8%29,3510.1%13, %44, % , %32, %14,4326.3%50, % ,0085.1%33,9663.4%14,7762.4%53,5615.7% ,3369.1%38, %15,5765.4%56,9436.3% , %55, %18, %66, % , %70, %19,9519.3%71,8547.9% , %78, %20, %74, % Year-to-date comparison as of 04/07/20xx (i.e. FAFSAs filed 01/01-4/07) 8

'Returning' NC FAFSA -filers Academic YearAll_SchoolsCCNCICUUNC ,682 11,895 9,251 21, , %11, %9,4482.1%22,5273.2% ,8381.4%11, %9,5050.6%22,9291.8% ,7545.2%12,2397.6%9,9524.7%24,2565.8% , %15, %11, %26, % , %20, %12, %29, % ,9880.8%20,5900.9%13,8598.0%29, % ,4923.7%19, %14, %31,0504.9% Year-to-date comparison as of 04/07/20xx (i.e. FAFSAs filed 01/01-4/07 ) 9

All NC FAFSA -filers Academic YearAll_SchoolsCCNCICUUNC ,287 41,222 21,264 61, ,5203.7%40, %23,0228.3%67,0878.9% , %44,2408.5%23,9374.0%73,6109.7% ,7625.1%46,2054.4%24,7283.3%77,8175.7% , %53, %26,9639.0%83,6337.5% , %75, %31, %96, % , %91, %33,8108.8%100,9925.0% , %98, %35, %105,5399.7% Year-to-date comparison as of 04/07/20xx (i.e. FAFSAs filed 01/01-4/07 ) Year-end percentage increases may well resemble these YTD 10

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529 Program Update $784.7 million in investments –89,713 accounts held by 54,900 participants –Average account balance - $8,771 –Average balance per participant - $14,293 Account breakdown by investment option –$389.4 million Vanguard Age-Based Funds –$302.5 million Vanguard Individual Funds – $70.3 million State Treasurer’s Dependable Income Fund – $19.8 million SECU Money Market Fund – $2.6 millionMet Life Protected Stock Fund (closed) All data as of March 31,

As of March 31,

529 Program Update State Tax Deduction on Contributions –Senate Bill 247 – Senators Hartsell, Atwater, Rucho –Removes prospective income caps on state tax deduction –Why it matters: New Accounts Per Month Prior to any tax deduction 224 With a means test 748 Since no means test 1,327 Money Magazine: NC one of three “top picks” in nation Morningstar: NC Plan rated “Above Average” 14

State Grant Update, UNC Need Based Grant –Governor proposed even funding with last year –House budget is $127 million, a 21.6% reduction ($35 million less) –Temporary modifications to the formula to accommodate lower budget Progressive assessment of adjusted available income rather than the flat 18% used for past several years Student self help set at $5,200 rather than $4,500 Minimum award set at $500 (maximum still $3,800) Tax credit for non-Pell Grant set at $2,500 15

State Grant Update (2) Student Incentive Grant –LEAP abolished by Congress –NC House budget proposal has zero for NCSIG Community College Grant –Payment schedule already distributed –House budget lowers available funds to $16.5 million –Payment schedule based on estimated $17.4 million –Greater likelihood of closing system earlier – please use care in awards and match with CFNC system NCLTG and SCSF –House budget has 10% cut; details not yet clear Education Lottery Scholarship –Payment schedule already distributed –No changes anticipated 16

Consolidation & Simplification of State Aid Programs Joint Select Legislative Committee (JSC) Work Group Two issues/recommendations of the work group were considered by the JSC –Forgivable Loan for Service –College Access and Success Grant Purpose today is to give you an update 17

Forgivable Education Loan for Service NC FELS Consolidate eight programs into one new program 1.Nurse Educators of Tomorrow 2.Nurse Scholars Program 3.Nurse Education Scholarship Loan Program 4.Board of Governors Medical Scholarship Loans 5.Board of Governors Dental Scholarship Loans 6.Health, Science and Mathematics Student Loan Program 7.Prospective Teacher Scholarship Loan Program 8.Teacher Assistant Scholarship Program Full implementation to begin academic year, with publicity to begin fall 2011 and loan offers to begin spring 2012; awards disbursed Fall 2012 (pending General Assembly Approval - S137 and H120) 18

North Carolina College Access and Success Grant Work group proposed a consolidated UNC and CC grant payment schedule that –Leverages federal tax credits and Pell Grants –Recognizes sector differences in COA –Results in some changed total amounts of state aid among UNC campuses, which has raised some concerns JSC asked work group to “examine how to integrate a tuition differential into the payment schedule” Work Group is asking for more time in light of the budget uncertainties at both federal and state levels At minimum will need to re-examine the payment schedule suggested last year in happier budget times 19

New Golden LEAF Scholarship Program for North Carolina Resident Students 215 awards for incoming students in Freshmen and community college transfer students attending North Carolina public 4-year and private non-profit institutions Freshmen award of $3,000/year renewable for 3 additional years Transfer award of $3000/year renewable for up to 2 additional years, depending on program and credits Eligibility criteria: financial need, minimum of 2.5 GPA (weighted high school) and intent to return to rural community after college No longer limited by other grant assistance to be received (old 75% rule) Former NCICU and UNC Golden LEAF programs being phased out Current recipients eligible for renewal if they meet the renewal criteria 20

Questions? 21