1 Regents Education Program September 26, 2006 Student Financial Aid

1

Regents Education ProgramSeptember 26, 2006

Student Financial Aid

2

Two Trends

1. Increasing Student Debt

2. Growth of “Merit” Aid vs. Need-Based Aid

“Hybrid” Programs

3

1. Increasing

Student Debt

4

Growth of Stafford, PLUS, and Nonfederal Loan Dollars in Constant (2004) Dollars, 1996-97 to 2004-05

(Source: College Board)

5

Loans, Pell Grants, OTAG,OK Promise-OHLAP

(in $ millions; state institutions)

354

472

70112 130 141 150

19 20 18 19

286

391

177

89

150

100

200

300

400

500

'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05

Loans Pell OTAG OK Promise-OHLAP

6

Total Student Financial AidPublic &

Private/Independent

21%

79%

2004-05 Total = $1.1 Billion

Public$895

million

Private/Ind.$241

million

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Total Student Financial AidPublic &

Private/Independent

54%40%

6%

Total = $1.1 Billion FY2004-05

Grants/Schol.

$453 millionLoans$618

million

Employment$65 million

8

% of Full-time Dependent Undergraduates Receiving Federal

LoansBy Student’s Family Income

48% 47% 48%

31%

47% 48%

13%

32%38%

0%

10%

20%

30%

40%

50%

60%

1993 2000 2004

Low Inc. Middle Inc. High Inc.

Source: U.S.D.E, Nat. Cntr. for Education Statistics; “Condition of Education 2006”

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2. Growth of

“Merit” Aid vs. Need-Based Aid

10 Source: Based on annual survey of National Association of State Student Grant and Aid Programs (NASSGAP).

State Grants to Undergraduate Students

Total Need-Based and Non-Need-Based State Grants in Constant (2004)

Dollars, 1969-70 to 2003-04

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Maximum Federal Pell Grant Award

2,4702,700

3,000 3,1253,300

3,7504,000 4,050 4,050 4,050 4,050

1,587 1,7081,893 1,928 2,054

2,312 2,459 2,497 2,494

$0

$1,000

$2,000

$3,000

$4,000

$5,000

'96-97

'97-98

'98-99

'99-00

'00-01

'01-02

'02-03

'03-04

'04-05

'05-06

'06-07

Average OK Pell Grant Award (est.); Range: $400 - $4,050

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Federal Pell Grant AwardsCompared to State College Costs in OK

(tuition, fees, room & board, books & supplies)

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

'96-97

'97-98

'98-99

'99-00

'00-01

'01-02

'02-03

'03-04

'04-05

'05-06

Tw o-Yr. Coll Reg. Univ. Res. Univ. OK Avg. Pell Max. Pell

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“Hybrid”Programs

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15

OK Promise/OHLAP High School Enrollment

(by High School Graduation Year)

93568180

77577185

5881

1361 14432419

0

2000

4000

6000

8000

10000

2000 2001 2002 2003 2004 2005 2006 2007

$32,000

$50,000

$24,000

10th Grade*

As of 9-21-06

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% of Ok. HS Sophomores Enrolled inOK’s Promise (approximate)

20%18%17%

16%

3%5%

13%

0%

10%

20%

'98-99 '99-00 '00-01 '01-02 '02-03 '03-04 '04-05

$32,000

$50,000

$24,000

As of 11-17-05

17

OK Promise/OHLAP High School “Completers”

(by Grad Year)

5,5985,3545,050

4,216

1,624

885827631636257 370

0

2,000

4,000

6,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

$32,000

$50,000

$24,000

As of 9-21-06

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High School GPA’sfor All Courses

3.49 3.55 3.51 3.48 3.47 3.49 3.49 3.49 3.47 3.46

2.89 2.92 3.00 2.97 2.99 3.00 3.00 3.00 3.00

2.0

2.5

3.0

3.5

4.0

'96 '97 '98 '99 '00 '01 '02 '03 '04 '05

OHLAP OK Seniors

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Gender Participation TrendsOK-Promise High School Grads, 1999-

2005

63% 64% 63% 64% 61% 60% 60%

37% 36% 37% 36% 39% 40% 40%

0%

50%

100%

1999 2000 2001 2002 2003 2004 2005

Female Male

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Geographic Distribution Trends OK-Promise High School Grads, 1999-

2005

69%70%73%75%74%78%80%

54%46%

20% 22% 26% 25% 27% 30% 31%

0%

25%

50%

75%

100%

'99 '00 '01 '02 '03 '04 '05

Rural OHLAP Rural OK Urban OK Urban OHLAP

“Urban” is defined as the 5 most populous counties– Oklahoma, Tulsa, Cleveland, Canadian, and Comanche.

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OK-Promise Enrollment as % of 10th-Grade Enrollment, By

School Size

29%29%

22%18%18%

16%13%14%

9%

31%30%

24%21%21%

16%20%

15%11%

0%

10%

20%

30%

40%

>5

00

4-5

00

3-4

00

2-3

00

1-2

00

75

-10

0

50

-74

25

-49

2-2

4

2004 2005

# of students in 10th-grade class

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Degree Completion RatesClasses of 1996 to 2000

(Degrees earned through 2004-05)

36.0%42.6%

47.2% 50.0% 50.1%39.9%

49.9%

58.2%54.6%

63.6%

0.0%

25.0%

50.0%

75.0%

2000 1999 1998 1997 1996

OHLAP All Students

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OK Promise/OHLAPScholarship Recipient

Projections

619 850 1,245 1,717 2,0042,982

5,888

9,156

12,088

15,000

17,800

0

5,000

10,000

15,000

20,000

97

-98

98

-99

99

-00

00

-01

'01

-02

'02

-03

'03

-04

'04

-05

'05

-06

'06

-07

'07

-08

Actual Projected

Assumes 5% annual increases in OHLAP enrollment and 70% requirement-completion rate.

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OK Promise/OHLAPCost Projections

(In $ millions, by fiscal year, varying tuition rates)

4.610.4

17.826.0

37.0

48.2

58.3

53.146.0

48.243.8

$0

$10

$20

$30

$40

$50

$60

$70

FY

'03

FY

'04

FY

'05

FY

'06

FY

'07

FY

'08

FY

'09

Actual 10% 5% 0%

Assumes 5% annual increase in high school OHLAP enrollment; 70% requirement completion rate.

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OK Promise/OHLAPFunding Sources – FY2007

General Rev28%

Lottery45%

Casino Gaming

13%

Oil Tax Rev14%

Total: $37.1 million

$5.1 m

$10.3 m

$4.9 m

$16.7 m

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New Federal Grantsfor Pell Grant Recipients

(available Fall 2006)

Academic Competitiveness Grants

SMART (Science and Mathematics Access to Retain Talent) Grant

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Academic Competitiveness Grants

$750 for 1st-year; $1,300 for 2nd-year Pell-Grant recipient Enrolled full-time Must have completed a “rigorous

secondary school program of study” 3.0 college GPA for 2nd-year students

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National “SMART” Grants

$4,000 for 3rd & 4th-year students Pell-Grant recipient Full-time enrollment 3.0 college GPA Major in physical sciences, life

sciences, computer science, engineering, math, technology, or critical foreign language

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End

Student Financial Aid