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Roadmap Affordability Workgroup

ESD 113/Capital Event Center/Tumwater WA

Agenda April 2, 2013

• Introductions

• Review of information requested from previous meetinga. Aid types/sources over time

b. Unmet need for lower income students over time

c. Ratio of tuition as a percentage of income over time

d. Participation rates of Washington high school students

e. Income by sector for un-served

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Agenda continued

• Summary of approach to affordability section of Roadmap

• Proposed guiding questions and approach to affordabilitya. Should the council propose an estimated appropriate share of student

and state share of cost?

b. Should the workgroup establish some premises upon which to base policy options?

i. Washington is approaching becoming a “high tuition/high aid” state

ii. Washington’s primary focus in financial aid has been to “level the playing field” for low-income students

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Agenda continued

c. Within the above framework, how can the current model of State Need Grant funding and delivery more efficiently address

affordability?

i. Targeting student eligibility – income thresholdii. Targeting student eligibility – incentives for successiii. Tying award amounts to public tuitioniv. Coordination with other aid – “shared responsibility” approach

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Funding sources over 20 years

5

Changes in aid sources and percentages

Year Totals Federal Aid State Aid Institutional Aid Private & Other 1991-92 100% 69% 14% 15% 2%1996-97 100% 66% 17% 15% 2%2001-02 100% 60% 20% 17% 3%2006-07 100% 49% 24% 23% 4%2011-12 100% 62% 18% 18% 2%

Year Totals Federal Aid State Aid Institutional Aid Private & Other 1991-92 $249,120,595 $171,293,687 $35,936,222 $37,239,303 $4,651,383

1996-97 $452,565,544 $298,076,794 $77,704,925 $69,368,928 $7,414,897

2001-02 $578,060,524 $347,007,692 $118,391,796 $97,851,593 $14,809,443

2006-07 $817,385,984 $401,037,409 $196,583,262 $188,209,993 $31,555,320

2011-12 $1,643,517,756 $1,023,265,394 $299,869,859 $288,905,645 $31,476,858

Changes in in Aid Sources Over 20 years-7% 4% 3% no change

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Aid types over 20 years

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Changes in types of aid and percentages

Year Totals Federal Grants State GrantsInstitutional Grants

& ScholarshipsPrivate Grants &

ScholarshipsWork Study Employment Student Loans

1991-92 $ 249,120,595 $ 81,073,990 $ 24,314,026 $ 36,322,260 $ 4,651,383 $ 22,627,883 $ 80,131,053

1996-97 $ 452,565,544 $ 105,129,101 $ 64,466,072 $ 65,123,386 $ 7,414,897 $ 23,985,917 $ 186,446,171

2001-02 $ 578,060,524 $ 157,683,533 $ 104,288,382 $ 85,275,920 $ 14,809,443 28,425,872 $ 187,577,374

2006-07 $ 817,385,984 $ 180,643,522 $ 178,748,158 $ 145,921,129 $ 31,555,320 $ 30,676,578 $ 249,841,277

2011-12 $ 1,643,517,756 $ 434,518,083 $ 287,617,654 $ 258,046,946 $ 31,476,858 $ 25,510,143 $ 606,348,072

Year Totals Federal Grants State GrantsInstitutional Grants

& ScholarshipsPrivate Grants &

ScholarshipsWork Study Employment Student Loans

1991-92 100% 33% 10% 15% 2% 9% 32%

1996-97 100% 23% 14% 14% 2% 5% 41%

2001-02 100% 27% 18% 15% 3% 5% 32%

2006-07 100% 22% 22% 18% 4% 4% 31%

2011-12 100% 26% 18% 16% 2% 2% 37%

Changes in Aid Types Over 20 Years-6% 8% 1% No change -8% 5%

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Unmet needs, excluding student loans, over the last four years

2008-09 2009-10 2010-11 2011-12 $-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000 $

9,39

7

$8,

732

$9,

283

$9,

925

$8,

469

$7,

120

$8,

391

$8,

841

Average Unmet Need for Needy Resident Undergraduate Full-Time, Full-Year

students(Excludes Loans)

Total 0-70 MFITotal 71 MFI and Over

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Unmet need patterns over the last four years

• Are higher for the students in the lowest Median Family Income (MFI) group of 0 -70% MFI:o $9,925 (versus $8,841)in 2011-12 o If students borrowed $5,000 per year, their unmet

need would be lowered to $4,925 in 2011-12

• Unmet need has increased for both groups:o 0-70% MFI unmet need has increased by $528o 71% MFI and over unmet need has increased by

$372

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Unmet needs are increasing for low-income students

Public 4 Year Private 4-Year CTC Private Career Total 0-70 MFI $-

$5,000

$10,000

$15,000

$20,000

$25,000

Average Unmet Need Excluding Loans 0-70 MFINeedy Resident Full-Time, Full-Year Undergraduates

2008-092009-102010-112011-12

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Unmet needs are also increasing for moderate-income students

Public 4 Year Private 4-Year CTC Private Career Total 71 MFI and Over $-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

Average Unmet Need Excluding Loans Over 71 MFINeedy Resident Full-Time, Full-Year Undergraduates

2008-092009-102010-112011-12

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Unmet need data by sector type

MFI Sector Type 2008-09 2009-10 2010-11 2011-120-70 Public 4 Year 8,468$ 7,750$ 8,772$ 9,741$

71 and over Public 4 Year 7,397$ 6,887$ 7,794$ 8,496$ 0-70 Private 4-Year 13,954$ 14,766$ 15,677$ 17,833$

71 and over Private 4-Year 10,331$ 10,253$ 10,781$ 10,982$ 0-70 CTC 6,993$ 7,411$ 7,928$ 8,234$

71 and over CTC 4,859$ 3,152$ 5,658$ 5,888$ 0-70 Private Career 20,402$ 20,069$ 19,418$ 19,091$

71 and over Private Career 14,444$ 14,243$ 16,076$ 15,627$ 0-70 Total 0-70 MFI 9,397$ 8,732$ 9,283$ 9,925$

71 and over Total 71 MFI and Over 8,469$ 7,120$ 8,391$ 8,841$

Average Unmet Need (excluding Loans) for Needy Resident Undergraduate Full-time, Full-Year students

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WA tuition & fees over 19 years

1993-94 1997-98 2002-03 2007-08 2012-13$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Average Tuition & Fees at Public Institutions

Average Tuition & Fees Public Research* Average Tuition & Fees Public Com-prehensive* Average Tuition & Fees Public CTC*

Increase from 1993-94 to 2012-13

1993-94 1997-98 2002-03 2007-08 2012-13 Dollars PercentPublic Research $2,532 $3,256 $4,489 $6,224 $11,526 $8,994 355%Public Comprehensive $1,971 $2,529 $3,407 $4,563 $7,787 $5,816 295%Public CTC $1,126 $1,458 $1,982 $2,676 $4,000 $2,874 255%

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Increases in tuition & fees compared to WA MFI increases over 19 years

MFI= WA Median Family Income for a Family of 4

1993-94 1997-98 2002-03 2007-08 2012-13$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

Average Tuition & Fees by Sector Compared to 100% MFI

WA Family of four - 100% MFI used for developing WSNG eligibility chart** Average Tuition & Fees Public Research* Average Tuition & Fees Public Compre-hensive* Average Tuition & Fees Public CTC*

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Tuition & fees increasing faster than family incomes

Increase from 1993-94 to 2012-13

1993-94 1997-98 2002-03 2007-08 2012-13 Dollars PercentPublic Research $2,532 $3,256 $4,489 $6,224 $11,526 $8,994 355%Public Comprehensive $1,971 $2,529 $3,407 $4,563 $7,787 $5,816 295%

Public CTC $1,126 $1,458 $1,982 $2,676 $4,000 $2,874 255%

Median Family Income $42,000 $51,000 $63,568 $72,103 $81,797 $39,797 95%

Median family incomes have increased by 95% over 19 years while tuition and fees have increased from 255% at CTCs to 355% at Public Research universities.

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Students and families paying larger shares of tuition & fees

Percent of family income required to pay for tuition and fees based on year and sector type over 19 years

Public Research 6% 6% 7% 9% 14%

Public Comprehensive 5% 5% 5% 6% 10%

Public CTC 3% 3% 3% 4% 5%

Median Family Income $42,000 $51,000 $63,568 $72,103 $81,797

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Tuition versus State shares

Fiscal Year & Source of Funds

FY 2000 FY 2008 FY 2013

Tuition State Tuition State Tuition State

All Public Institutions 26% 74% 33% 67% 56% 44%

UW 29% 71% 42% 58% 71% 29% WSU 24% 76% 33% 67% 59% 41% EWU 32% 68% 39% 61% 65% 35% CWU 28% 72% 37% 63% 66% 34% TESC 39% 61% 39% 61% 65% 35% WWU 34% 66% 41% 59% 68% 32% CTC’S 23% 77% 25% 75% 37% 63%

Source: Washington Public Higher Education Financing Key Indicators and Trends Fiscal Years 2000 to 2013 Washington Student Achievement Council

(Illustration 1 – page 5)

Un-served Eligible State Need Grant FTE

• Overall, 31% of eligible FTE are un-served.

• As a result of the distribution process, the portion of students by sector is the same for served and un-served students.

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SectorFTEs (served or unserved)

Served Headcount

Unserved Headcount

Expenditures

Public 4-year 38% 27% 31% 51%

CTCs 54% 64% 63% 37%

Private 4-year 6% 5% 5% 10%

Private Career 2% 4% 1% 2%

Sector % FTE unserved # FTE unserved

Public 4-year 33.2% 9,922

CTCs 29.5% 14,195

Private 4-year 29.0% 1,485

Private Career 17.2% 465

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MFI distribution varies by sector

Private 2 Yr

CTC

Private 4 Yr

Regional

Research

0%10%

20%30%

40%50%

60%70%

80%90%

100%

84%

86%

64%

68%

57%

6%

5%

7%

7%

12%

5%

4%

10%

7%

12%

4%

3%

10%

10%

11%

2%

2%

9%

8%

8%

Portion of Unserved FTEs by MFI 2011-12

0-5051-5556-6061-6566-70

• 87% of all served students are in the lowest income group (0-50 MFI).• Decreasing portions of the eligible MFI groups are served due to prioritization

in awarding.– 72% of the 0-50 MFI eligible students are served, 59% of the 51-55 group, 55% of the 56-60 group, 50% of the 61-

65 group and 43% of the 66-70 group

• Students attending four-year campuses are more likely to be un-served if they are in upper MFI ranges.

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• Summary of approach to affordability section of Roadmap

• Proposed guiding questions and approach to affordabilitya. Should the council propose an estimated appropriate share of student

and state share of cost?

b. Should the workgroup establish some premises upon which to base policy options?

i. Washington is approaching becoming a “high tuition/high aid” state

ii. Washington’s primary focus in financial aid has been to “level the playing field” for low-income students

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c. Within the above framework, how can the current model of State Need Grant funding and delivery more efficiently address

affordability?

i. Targeting student eligibility – income thresholdii. Targeting student eligibility – incentives for successiii. Tying award amounts to public tuitioniv. Coordination with other aid – “shared responsibility” approach

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• Next Steps

a. Next meeting April 16

b. Discussion related to preparation and agenda