1. 10/15/2001 Mark J. Mitchell Team Leader Information and Research Affordability Challenges in the 21 st Century

2. 10/15/2001 “To give away money is an easy matter, and in any man’s power. The First Financial Aid Administrator? -- Aristotle But to decide to whom to give it, and how large and when, and for what purpose and how, is neither in every man’s power nor an easy matter.”

3. 10/15/2001  Impact on enrollment and retention to keep revenue stream steady  Financial aid represents second-largest budget line at the typical NAIS school  Must actively manage two sensitive family issues: money and children Why Professionalism Matters…

4. 10/15/2001 And yet…  Only 77 schools reported they have a full-time financial aid administrator  Median salary for financial aid administrators ranks 20 th out of 24 positions gathered for NAIS survey  More than 70% have less than 10 years experience (over half have less than 5 years experience) Source: NAIS Statistics Volume II, 2000-2001 http://www.nais.org/serve/admin/research/statsvol1/statlinks.html

5. 10/15/2001 1999 NAIS Public Opinion Poll  Public asked to rate accuracy of descriptors of independent schools and their students  Tested adjectives commonly used to describe schools –“Affordable” and “diverse” were least descriptive  Gauged perceptions of the type of students schools serve –Students seen by many as “rich,” “snobby,” “bright,” “intelligent”

6. 10/15/2001 Rise in Median Tuition at NAIS Day Schools

7. 10/15/2001 Rise in Median Tuition at NAIS Boarding Schools

8. 10/15/2001 Family Income Highlights  Real median income--$50,891--rose by less than 1 percent between 1999 and 2000.  Real median income for married couple families rose just over 1 percent to $59,187.  Single dad families’ median income actually dropped 2.9% between 1999 and 2000 to $37,523  Single mom families’ median income showed greatest gains (5.1%) but still far lower than other family types ($25,787)  The 2000 median family household income: White non-Hispanics--$56,442 Blacks--$34,204 Hispanics--$35,050 Asians and Pacific Islanders--$55,521 (all household types) Sources: US Census Bureau Historical Income Tables--Families http://www.census.gov/hhes/income/histinc/f07.html and Current Population Survey, Annual Demographic Survey March Supplement, www.census.gov.

9. 10/15/2001 Income Distribution by Household Type Source: Current Population Survey: Annual Demographic Survey, March Supplement, U.S. Census Bureau website

10. 10/15/2001 Population Projection Source: American Demographics, Oct. 1996

11. 10/15/2001 1999 Consumer Spending (in % of after tax income) Source: Bureau of Labor Statistics, Consumer Expenditure Survey, 1999 http://www.bls.gov/csx/1999/share/income.pdf

12. 10/15/2001 Affordability Ranges (using SSS 2001-02 methodology) Tuition Full Need Income No Need Income OneTwo $ 5,000 day $65,573 $84,355 $ 7,500 day $75,082 $101,685 $10,000 day Until $ 43,318 $84,355 $118,425 $12,500 day$93,315 $136,556 $15,000 day$101,685 $154,125 $20,000 day $118,425 $190,615 Assumptions: Family of four, two parents, two children, parents age 45, both work, no assets - parent or student, state taxes for Georgia, COLA = 1.000

13. 10/15/2001 Income Distribution (U.S. Families) Under $25K22.6% $25K - $50K28.3% $50K - $75K21.2% $75K - $100K12.7% $100K+ 15.2% Source: Current Population Survey: Annual Demographic Survey, March Supplement, U.S. Census Bureau website

14. 10/15/2001 Shifting Aid Applicant Pool Income Range % of Filers Source: School and Student Service for Financial Aid (SSS) processing system data

15. 10/15/2001 What is “Middle Class”? US Family Income Quintiles (in constant 2000 dollars) Source: U.S. Census Bureau web page, www.census.gov/hhes/income/histinc/fo1.html

16. 10/15/2001 Wealthiest American Families The lower end of the income range for the wealthiest 5% of US families (in constant 2000 dollars) 1980$109,436 1990$131,425 2000$160,250 % chg since ’80 46.4 Source: U.S. Census Bureau web page, www.census.gov/hhes/income/histinc/fo1.html

17. 10/15/2001 Major Challenges to Access and Affordability  Changing perceptions of inaffordability  Addressing concerns about the lack of diversity within independent schools  Addressing “middle class” anxiety while keeping perspective of larger context  Controlling steep rate of tuition increases while decreasing tuition-driven financial aid funding  Dedicating time and resources to strategic institutional research to measure effectiveness  Developing ongoing professionalism and career-oriented positioning of financial aid administrators

18. 10/15/2001 A ssess Your Aid Program  How does my school’s financial aid program support the school’s overall mission?  How does my school reflect opportunity for admitted students regardless of socio-economic status?  In what ways does my school articulate the “how’s” and “why’s” of its investment in financial aid?  Are my school’s financial aid eligibility standards absolute, relative, or a combination of the two?  To what extent should my school “subsidize” certain lifestyle decisions families make?  Does my school’s aid program reflect objectivity and consistency through its policy manual?

19. 10/15/2001 Financial Aid Strategic Planning  What are the trends in my school’s aid programs over the last 5, 10, 20 years? How do they compare to trends in tuition and enrollment? How do they compare nationally, regionally, locally?  How much funding do we need to meet our goals? How does our financial commitment compare to other similarly situated schools? Does this impact/explain enrollment or attrition trends?  In what ways does financial aid eligibility affect families’ decisions to matriculate or re-enroll?  How has our aid applicant/recipient pool changed over the years? How might it change in the future?  How do our funding sources for financial aid compare nationally, regionally, locally?  What is the socio-economic make-up of our student body/aid recipients? What percentage receives aid and what does this represent?

20. 10/15/2001 Average Award Levels

21. 10/15/2001 Percent of Enrolled Students Granted Aid

22. 10/15/2001 Recent Trends in Financial Aid 1995-1999 Source: NAIS Statistics

23. 10/15/2001 Resources for Support, Information  Professional development workshops, conferences  Financial Aid Administration for Schools, 2nd Edition  NAIS statistics  Sample materials shared by schools  Scholarship providers directory  Education Financing Resources List  Fee waiver suppliers  State, regional financial aid groups

24. 10/15/2001 “It is less important to redistribute wealth than it is to redistribute opportunity.” -- Arthur H. Vandenberg In the face of these challenges, always remember The Big Picture: