1. 2013 RMASFAA Annual Conference Joel Laos and Michael Murphy Denver Seminary J

2. Location: Littleton, CO Population: 1,000+ students, 109 faculty/staff Type: Private, Graduate only Tuition: $530/credit for 2013-14 Ave 4.7% annual increase Primary Degrees: Master of Divinity (97 credits) Master of Arts (62 credits) Financial Aid: - Federal loans, work study, institutional grants/scholarships, veterans benefits - 55% participation - 11.2% institutional discount rate - $39k ave graduating debt per borrower Welcome to

3. - The national rate of tuition inflation is second only to health care - Student loan amounts have increased at 1.5x the rate of the national cost of education, nearing $1 trillion

4. - Denver Seminary’s average tuition has increased 47% over the past 10 years, representing an average 4.7% increase per year

5. - Our institutional discount rate has remained steady at only 11%

6. - Denver Seminary’s graduating debt has risen 64% over the past 10 years

7. - Our most-recent default rate is 7.6% below the national average

8. - Left unchecked, 10 years from now average graduating debt will increase 80% - Over a 20-year period average graduating debt will have increased 182%

9. - Tuition has increased at twice the rate of inflation since 2001 - For every 1% increase in tuition, average graduating debt increases 1.12%

10. - In order to stay at the recommended 10% educational debt-to-income ratio, the salary required to service the average graduating debt currently exceeds the average salaries for associate pastors, counselors/chaplains and youth/worship pastors - In 10 years, the required salary for the projected graduating debt will exceed all positions

11. Salary Comparison 2012-132021-22 Senior Pastor$9K($8K) Associate Pastor($7K)($27K) Counselor/Chaplain($15K)($37K) Youth/Worship Pastor($27K)($46K)

12.  Increasing Financial Literacy 1. Loan Management page DenverSeminary.edu/FinancialAid

13.  Increasing Financial Literacy 1. Loan Management page DenverSeminary.edu/FinancialAid  Before You Borrow ▪ Anticipate your income ▪ Know your limits

15.  Increasing Financial Literacy 1. Loan Management page DenverSeminary.edu/FinancialAid  Before You Borrow ▪ Anticipate your income ▪ Know your limits ▪ Understand your loan ▪ Integrate your budget  Know What You Owe ▪ Visit and bookmark NSLDS ▪ Revisit and keep track  Anticipate Repayment ▪ Prepare ▪ Transition ▪ Repay

16.  Increasing Financial Literacy 1. Loan Management page 2. Award Letter: 1.Customized loan offers ▪ The initial student loan offer is customized to the student’s actual net tuition and fees.

19.  Increasing Financial Literacy 1. Loan Management page 2. Award Letter: 1.Customized loan offers 2.Debt literacy statement

21.  Increasing Financial Literacy 1. Loan Management page 2. Award Letter: 1.Customized loan offers 2.Debt literacy statement 3. Additional counseling for high debt levels ▪ Students with aggregate debt of $40k or higher are asked to complete Financial Awareness Counseling through StudentLoans.gov

22.  Increasing Financial Literacy 1. Loan Management page 2. Award Letter: 1.Customized loan offers 2.Debt literacy statement 3. Additional counseling for high debt levels 4. Webinars and on-campus seminars

23. - The average percentage of the Denver Seminary student body that utilizes student loans has consistently hovered around 45% - Current research: Is the recent decrease reflective of the loss of subsidized loans or of our increased financial literacy efforts? Or perhaps a bit of both?

24.  What methods are you using to help mitigate student debt?  What methods have not seemed to produce results?

25. Michael Murphy Joel Laos Financial Aid Officer Director of Financial Aid FinancialAid@DenverSeminary.edu 303-762-6888 direct 800-922-3040 ext. 1239 toll free