1. Colby College Board of Trustees October 2014 Friday, October 24, 2014 Committee of the Whole

2. Investing in Financial Aid for Colby’s Future

3. Comparisons to Peer Institutions I.Total Expenditures on Financial Aid

4. Source: Common Data Sets Total Institutional Expenditures on Scholarships/Grants ($ millions)

5. Source: Common Data Sets Institutional Scholarships/Grants per Enrolled Student, 2013- 14 Selected Liberal Arts Colleges

6. School NameTotal Aid in MillionsDifference ($M) Wellesley51.0(23.7) Wesleyan47.0(19.7) Amherst45.6(18.3) Williams42.9(15.5) Middlebury38.2(10.9) Trinity35.1(7.8) Carleton32.4(5.1) Hamilton30.9(3.5) Pomona30.5(3.1) Bowdoin29.8(2.5) Connecticut29.1(1.8) Bates28.4(1.1) Davidson28.0(0.6) Swarthmore27.8(0.5) Colby27.3--- Haverford22.44.9 Claremont McKenna19.97.4 Source: Common Data Sets Differences in Expenditures on Scholarship/Grant Aid, 2013- 14 Colby vs. Selected Liberal Arts Colleges

7. Comparisons to Peer Institutions II. Percentage of Students Receiving Aid

8. Source: 2013-14 Common Data Set 25 additional students/year moves Colby to 46.7 % Percentage of Students Receiving Financial Aid, 2013-14 Selected Liberal Arts Colleges

9. Comparisons to Peer Institutions III. Colby’s Aid Packages

10. Source: 2013-14 Common Data Set; includes need-based and non need-based institutional funds *no-loan institution Average Grant, 2013-14 Selected Liberal Arts Colleges

11. Source: Net Price Calculator Net Price (Comp. Fee – Grants and Scholarships), 2015-16 $30,000 Family Income, Selected NESCAC Schools No-loan group

12. Source: Net Price Calculator Net Price (Comp. Fee – Grants and Scholarships), 2015-16 $70,000 Family Income, Selected NESCAC Schools

13. Net Price (Comp. Fee – Grants and Scholarships), 2015-16 $120,000 Family Income, Selected NESCAC Schools Source: Net Price Calculator

14. Bottom Lines Colby trails peers on: –Total institutional spending on financial aid –Percentage of students receiving aid Colby’s individual financial aid packages are competitive with peers

15. Investing in Financial Aid in the Context of Colby’s Applicant Pool

16. “Anyone who needs aid who is not a domestic SOC, international, from Maine, an athlete, or an academic 8/9 has virtually no chance of gaining admission to Colby.” Key Observations on Financial Aid: Overseers Visiting Committee Report, June 2014

17. Source: Office of Admissions Other = 8 students 6 of 8 = Academic 8s Profile of Colby Students Receiving Financial Aid, Class of 2018

18. *Some students counted in multiple categories 82 U.S. students with academic ratings of 8 or 9 65 International Students with academic rating of 9 57 Valedictorians 33 Salutatorians 128 students with a perfect score on at least one section of the SAT or ACT 173 students with a perfect score on at least one SAT subject test Who Are the Students Colby Cannot Admit Because of Financial Need? Class of 2017

19. What Would an Investment in Financial Aid Achieve?

20. Scenario A: Based on the Class of 2017 No change for students fulfilling an institutional objective (athletic factor, Maine, SOC, UWC, legacy, etc.). Remove the 20 (25, 30, 35) of the academically weakest, regular decision, full-pay students who do not fulfill one of those institutional goals. Replace these 20 (25, 30, 35) with top aided students from the waitlist, including 5 international students, based on the predicted yield.

21. Source: Office of Admissions In: 5 High Achieving International Students Academic Rating = 9 Scenario A: Apps, Admits, Enrollment, and Yield by Academic Rating

22. Source: Office of Admissions In: 15-30 High Achieving Domestic Students Academic Ratings = 7-8 Scenario A: Apps, Admits, Enrollment, and Yield by Academic Rating

23. Source: Office of Admissions Out: 20-35 Lower Achieving, Full-Pay, Domestic Students Academic Ratings = 3-6 Scenario A: Apps, Admits, Enrollment, and Yield by Academic Rating

24. *includes 5 international students No. of New Aided Students Mean SAT for Students Removed from Class Mean SAT for Students Added to Class Difference in Mean SAT Scores 20*13201490170 25*13301480150 30*13401470130 35*13501460110 Scenario A: Comparison of SAT Scores (M+CR)

25. *includes 5 international students Scenario A: Dean’s Academic Ratings No. of New Aided Students Dean’s Academic for Students Culled from Class Dean’s Academic Rating for Students Added to Class 20* Rated 3=1 Rated 4=3 Rated 5=8 Rated 6=8 Rated 9=5 Rated 8=15 Rated 7=0 25* Rated 3=1 Rated 4=3 Rated 5=8 Rated 6=13 Rated 9=5 Rated 8=15 Rated 7=5 30* Rated 3=1 Rated 4=3 Rated 5=8 Rated 6=18 Rated 9=5 Rated 8=15 Rated 7=10 35* Rated 3=1 Rated 4=3 Rated 5=8 Rated 6=23 Rated 9=5 Rated 8=15 Rated 7=15

26. No. of Aided Students Change in SAT 25 th Percentile Change in Midpoint SAT Change in SAT 75 th Percentile 20*1270 (+0)1344 (+7)1427 (+7) 25*1273 (+3)1345 (+8)1430 (+10) 30*1275 (+5)1345 (+8)1430 (+10) 35*1275 (+5)1345 (+8)1435 (+15) *includes 5 international students Scenario A: Estimated Changes in SAT Scores for the Class as a Whole

27. * *includes 5 international students No. of Aided Students Est. Yield on Admitted, Full-Pay Cohort No. of Admits to Yield 20, 25,30, 35 Est. Yield on Waitlisted, Aided Cohort No. of Admits to Yield 20, 25,30,35 DifferenceGrowth in Applicant Pool Needed to Offset Yield Difference 20*29%6919%841550 25*29%8619%1102496 30*29%10319%13633132 35*29%12019%16242148 Scenario A: Effects on Yield

28. Scenario B: Based on the Class of 2017 Remove the 25 academically weakest from the class, based on dean’s academic ratings Replace these 25 with 25 top aided students from the waitlist, including 5 international students, based on the predicted yield.

29. No. of New Aided Students Mean SAT for Students Culled from Class Mean SAT for Students Added to Class Difference in Median SAT Scores 2011701490320 2511701480310 3011701470300 3511801460280 Scenario B: Comparison of Median SAT Scores

30. No. of Aided Students Change in SAT 25 th Percentile Change in Midpoint SAT Change in SAT 75 th Percentile 201270 (+0)1350 (+10)1430 (+10) 251280 (+10)1360 (+20)1440 (+20) 301290 (+20)1365 (+25)1440 (+20) 351290 (+20)1370 (+30)1450 (+30) Scenario B: Estimated Changes in SAT Scores for the Class as a Whole

31. Budget Implications

32. Cost Assumptions, Beginning with Class of 2019 Average Grant Domestic Average Grant International $37,000$53,000

33. Scenario A: Implementation and Budget Implications All figures in current dollars No. of Aided Students Cost in First Year Cost at 4-year “Phase In” Endowment Needed to Support @ 4- years 20$820 K$3.3 M$66 M 25$1.0 M$4.0 M$80 M 30$1.2 M$4.8 M$96 M 35$1.4 M$5.6 M$112 M Phased in 20, 25, 30, 35 $820 K$4.4 M$88 M Phased in 25, 30, 30, 35 $1.0 M$4.8 M$96 M

34. Why Invest in Need-Based FA? Makes Colby education available to students who can benefit and contribute most, regardless of ability to pay Allows Colby to compete for outstanding students with peers Essential to long-term growth of applicant pool Makes a public statement about Colby’s commitment to affordability in the context of a national debate about the cost of higher education Increases overall academic quality, particularly at key 75 th percentile Ancillary benefits: –Aided international students bring diversity; lower admit rate; reinforce current area of distinction –Top students raise retention and graduation rates –Pell Grant eligible students help with predicted graduation rate