2013 RMASFAA Annual Conference Joel Laos and Michael Murphy Denver Seminary J.
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Transcript of 2013 RMASFAA Annual Conference Joel Laos and Michael Murphy Denver Seminary J.
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
- The national rate of tuition inflation is second only to health care
1 2 3 4 5 6 7 8 9 10 11$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
National Cost of Education vs. Debt (in billions)National Cost of EducationNational Student
Loan Debt
Cost of Education data taken from USA Today, 10/19/11Debt data taken from www.finaid.org
- Student loan amounts have increased at 1.5x the rate of the national cost of education, nearing $1 trillion
- Denver Seminary’s average tuition has increased 47% over the past 10 years, representing an average 4.7% increase per year
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14$250
$300
$350
$400
$450
$500
$550
$359 $375
$390
$415
$440
$460
$480 $480
$505
$525 $530
Denver Seminary's Tuition History
Ave price per credit hour
- Our institutional discount rate has remained steady at only 11%
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
0
100
200
300
400
500
600
700
$359 $375 $390
$415 $440
$460 $480 $480
$505 $525 $530
Average Tuition Discount RateAverage 11%
- Denver Seminary’s graduating debt has risen 64% over the past 10 years
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13$20,000
$22,000
$24,000
$26,000
$28,000
$30,000
$32,000
$34,000
$36,000
$38,000
$40,000
$23,846$24,800
$29,800
$32,200 $32,100
$34,284 $33,868
$35,401
$36,562$37,651
$39,013
Denver Seminary's Graduating Debt Trend
per borrower
- Our most-recent default rate is 7.6% below the national average
0
1
2
3
4
5
6
7
8
9
10
0
3.32.8
1.8
0.40
0.7 0.71.2
1.5
5.4 5.2
4.5
5.14.6
5.2
6.77
8.89.1
Cohort Default Rate HistoryDenver Seminary National Av-
erage
Rate
(%
)
Data taken from http://www2.ed.gov
- Left unchecked, 10 years from now average graduating debt will increase 80%
- Over a 20-year period average graduating debt will have increased 182%
1970-71
1973-74
1976-77
1979-80
1982-83
1985-86
1988-89
1991-92
1994-95
1997-98
2000-01
2003-04
2006-07
2009-10
2012-13
2015-16
2018-19
2021-22$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$42,907
Denver Seminary's Graduating Debt Trend
Estimated Actual Projected
Actual ProjectedEstimated
- Tuition has increased at twice the rate of inflation since 2001
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 210%
20%
40%
60%
80%
100%
Increases Since 2001Inflation Tuition Graduating Debt
5.3% / year
4.7% / year
2.5% / year
Actual Projected
Inflation data taken from the Bureau of Labor Statistics (www.bls.gov)
- For every 1% increase in tuition, average graduating debt increases 1.12%
- 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
2012-132013-14
2014-152015-16
2016-172017-18
2018-192019-20
2020-212021-22
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
Debt-to-Salary ComparisonTotal Graduating Debt (undergrad and grad)
Salary RequiredSenior Pastor
Associate Pastor
Counselor/Chaplain
Youth/Worship Pastor
Salary data taken from the Bureau of Labor Statistics (www.bls.gov)
Debt
Salary
Salary Comparison 2012-13 2021-22
Senior Pastor $9K ($8K)
Associate Pastor ($7K) ($27K)
Counselor/Chaplain ($15K) ($37K)
Youth/Worship Pastor ($27K) ($46K)
2012-132013-14
2014-152015-16
2016-172017-18
2018-192019-20
2020-212021-22
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
Debt-to-Salary ComparisonTotal Graduating Debt (undergrad and grad)
Salary RequiredSenior Pastor
Associate Pastor
Counselor/Chaplain
Youth/Worship Pastor
Salary data taken from the Bureau of Labor Statistics (www.bls.gov)
Debt
Salary
What are we doing about it?
Increasing Financial Literacy1. Loan Management page
DenverSeminary.edu/FinancialAid
What are we doing about it?
Increasing Financial Literacy1. Loan Management page
DenverSeminary.edu/FinancialAid
Before You Borrow▪Anticipate your income▪Know your limits
What are we doing about it?
Increasing Financial Literacy1. 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
What are we doing about it?
Increasing Financial Literacy1. Loan Management page2. Award Letter:
1. Customized loan offers▪ The initial student loan offer is customized to the student’s actual net
tuition and fees.
What are we doing about it?
Increasing Financial Literacy1. Loan Management page2. Award Letter:
1. Customized loan offers2. Debt literacy statement
What are we doing about it?
Increasing Financial Literacy1. Loan Management page2. Award Letter:
1. Customized loan offers2. 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
What are we doing about it?
Increasing Financial Literacy1. Loan Management page2. Award Letter:
1. Customized loan offers2. Debt literacy statement
3. Additional counseling for high debt levels4. Webinars and on-campus seminars
- 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?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percentage of Students Borrowing Stu-dent Loans
National Average (masters degree) Denver Seminary
National average data taken from www.finaid.org
What has worked for you? What methods are you using to help
mitigate student debt?
What methods have not seemed to produce results?
Contact
Michael Murphy Joel LaosFinancial Aid Officer Director of Financial Aid
[email protected] 303-762-6888 direct
800-922-3040 ext. 1239 toll free