Student Loan Debt at IUPUI
Student Loan Program Overview
• Federal Stafford Loans (Direct Loans)
– Direct “subsidized” loans (3.4% - 6.8%)
– Direct “unsubsidized” loans (6.8%)
• Other Federal Loans
– Federal Perkins Loan (5%)
– Graduate PLUS Loans (7.9%)
– Health Human Services Loans (various rates)
Loans for Disadvantaged Students, Health Professions Student Loans,
Nursing Student Loans, and Primary Care Loans
• Federal Parent PLUS Loans (7.9%)
• IU Loan Programs (donor funded, various rates)
• Private Loans (credit-based – varies)
2
Undergraduate Student Loan Debt
2009-10
2010-2011
Percent students who
borrowed*
72% IUPUI
54% IUB
72% IUPUI
55% IUB
The average perundergraduate-borrower
cumulative principal
borrowed*
$27,062 IUPUI
$25,522 IUB
$29,673 IUPUI
$27,752 IUB
Figures represent the percentage of the undergraduate class who graduated with a
bachelors degree during the referenced year who started as first- time students. The loan
debt figure represents borrowing while enrolled at the institution through federal and
private programs.
Source: The Common Data Set (CDS)
http://www.iu.edu/~uirr/reports/compliance/common/index.shtml
3
ANNUAL STAFFORD LIMITS
Dependent Student
Independent Student
Undergraduate Prerequisite
$2,625
$8,625
1st year undergraduate or
Undergraduate Certificate
(0 – 25 credit hours earned)
$5,500
$9,500
2nd year undergraduate
(26 – 55 credit hours earned)
$6,500
$10,500
3rd year + undergraduate
(56+ credit hours earned)
$7,500
$12,500
Graduate Prerequisite, Teacher
Certification or License Renewal
$5,500
$12,500
N/A
$20,500
N/A
$40,500
Graduate / Professional
Health Professions
(Medical & Dental)
Percent of Degree Recipients with Loans
Percentage of
Degree Recipients2
with Loans by
Level
IUPUI
2006-07 through
2010-11
% of Degree Recipients2 with Aggregate Student Loans
1
Baccalaureate
Master's
Doctoral-Research
Doctoral-Practice
Number of Degree Recipients Who Borrowed
2006-07
2007-08
2008-09
2009-10
2010-11
1,035
1,056
1,106
1,172
1,411
662
774
754
786
867
**
16
12
18
18
597
600
563
622
611
1
5 Yr % Change
36%
31%
260%
2%
Only includes degree recipients who borrowed while at IU during their program of study.
Represents students who received a degree in the fiscal year, July 1 through June 30. These figures include Purdue
degrees awarded at this campus. Associate degree recipients and their loans are excluded from these views.
2
6
Per FTE Amount of Student Financial Assistance, Average Tuition &
Fees, and General Academic Appropriations
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
FY06
FY07
Gift Aid
FY08
Loans
FY09
Avg. Tuition & Fees
FY10
Appropriations
FY11
Average Gift Aid and Net Price by Income level:
FT, Resident Beginners - Fall 2010
Tuition & Fees; $7,885
$110K + $1,151
$75,001 - 110K
$18,805
$1,546
$48,001 - 75K
$18,410
$4,606
$30,001 - 48K
$15,350
$9,601
$0 - 30K
$10,355
$11,360
$0
$2,000
$4,000
$6,000
$8,596
$8,000
Avg. Gift
$10,000
$12,000
Avg. Net Price
$14,000
$16,000
$18,000
$20,000
Cohort Default Rate (CDR)
• A “cohort” is a group of Stafford loan
borrowers who entered repayment with in a
given federal fiscal year.
• A Cohort Default Rate (CDR) is the percentage
of those students in a school’s cohort who
defaulted within a specified period of time:
– Two-year CDR: By end of the next fiscal year
– Three-year CDR: within the next two Fiscal years
10
STUDENT LOAN DEBT
CDR 3 Year Rate
Campus
FY Being
Reported
2009
# Entering # In
Repayment Default
Default
Rate
IU- BL
2009
5,592
200
3.5% *
IU - EA
2009
631
96
15.2%
IUPUI
2009
6525
392
6.0% *
IU- KO
2009
563
53
9.4%
IU-NW
2009
1221
133
10.8%
IU-SB
2009
1574
147
9.3%
IU-SE
2009
1222
109
8.9%
How IU Campuses Compare
Source: US Dept of
Education National Student
Loan Data Released 3/5/2012
* 2 year CDR at IUB = 1.8%
* 2 year CDR at IUPUI = 3.8%
11
Graduate and Professional Student Debt
• Debt also rising
• Medical figures included here
12
13
Debt to Potential Income Advice
• Limited now
• Good calculators at www.finaid.org
• Undergraduate calculator…
www.finaid.org/calculators/undergradadvisor.phtml
14
Student Loan Concerns
• Upcoming July 1, 2012 loss of subsidy for
graduate students, higher effective Direct Loan
fees, raise in undergraduate Stafford interest rate
• Number of students that transfer in with money
borrowed at other institutions
• Limited bankruptcy protection for student loan
borrowers
• Evidence that borrowers less likely to donate
back to institution
15
Financial Literacy Initiatives
• Financial aid sessions that include financial literacy
information are presented during Orientation for students
with a separate session for parents
• Financial literacy information incorporated into Spring
Preview Days for admitted students
• Dedicated financial literacy website as IUPUI partners with
the nonprofit National Endowment for Financial Education
(NEFE) to present an online financial literacy site called Cash
Course at www.cashcourse.org/iupui
Financial Literacy Initiatives
• Student Financial Services does an hour presentation
regarding financial literacy during first-year seminar courses
• A variety of IUPUI programs provide financial literacy content
to “at-risk” students such as first generation college students,
underrepresented college students, 21st Century Scholars, Pell
Pledge recipients, etc.
• Financial literacy addressed by programs such as Upward
Bound, Minority Engineering Advancement Program (MEAP),
21st Century Support Programs, Minority Law Days,
SAAB/SAAS, etc.
Financial Literacy Initiatives
• Student Financial Services staff provide information to
academic advisors so that they understand current financial
aid rules and Satisfactory Academic Progress (SAP)
regulations; note the SAP appeal process involves academic
advisors working with the students.
• Financial literacy information for high school students is
provided through programming offered during the summer
through such programs as Project Stepping Stone and the
Olanyian Summer High School Program