1
7TH ANNUAL NHASFFA CONFERENCE
OCTOBER 23-24, 2013, NORTH CONWAY, NH
RICHARD A. GUSTAFSON, DIRECTOR, NEW HAMPSHIRE
HIGHER EDUCATION COMMISSION
 Good Afternoon and THANK YOU FOR THE
INVITATION TO BE HERE AT THE ANNUAL MEETING
OF THE NEW HAMPSHIRE ASSOCIATION OF
FINANCIAL AID ADMINISTRATORS.
 I NOTE, WITH INTEREST, THAT A NUMBER OF
SESSIONS, BOTH TODAY AND TOMORROW, ADDRESS
TOPICS DESIGNED TO GIVE YOU A BROAD VIEW OF
THE FINANCIAL AID LANDSCAPE AND HOW TO BUILD
SKILLS THAT ENABLE YOU TO GIVE LEADERSHIP TO
INITIATIVES OF INTEREST.
1. ADVOCACY AND YOU
2. HOW AMERICA PAYS FOR COLLEGE
3. HOW TO APPROACH GOVERNMENT OFFICIALS
4. FINANCIAL LEADERSHIP ROLES
2
5. …………….PERHAPS THE MOST
IMPORTANT….LEARNING TO LISTEN!!
 MY INTENT IS TO ADD ANOTHER THREAD IN THIS
FABRIC…..THE STATE OF HIGHER EDUCATION IN NEW
HAMPSHIRE……..WITH THE PURPOSE THAT THIS
OVERVIEW WILL PROVIDE YOU WITH A BROADER
CONTEXT WITHIN WHICH TO VIEW YOUR WORK AS
FINANCIAL AID PROFESSIONALS.
1. STATE LEVEL STRUCTURES AND ORGANIZATIONS
2. COLLEGES AND UNIVERSITIES
3. FINANCIAL AID PROGRAMS
4. TRENDS AND INNOVATIONS
3
I.
STATE LEVEL STRUCTURES AND ORGANIZATIONS
1. THE NEW HAMPSHIRE HIGHER EDUCATION
COMMISSION
 BEGUN IN THE MID-1960s AS PART OF THE FIRST
FEDERAL HIGHER EDUATION ACT
 EVERY STATE HAS ONE, BUT THEY TAKE DIFFERENT
FORMS DEPENDING ON HISTORY, STRUCTURE OF
HIGHER EDUCATION IN THE STATE
 THE PURPOSE OF THE COMMISSION WAS TO
OVERSEA HIGHER EDUCATION AT A TIME OF GREAT
EXPANSION OF FUNDING AND
ENROLLMENTS…….YOUR PARENTS AND
GRANDPARENTS…..A TIME WHEN THE HIGHER
EDUCATION LANDSCAPE WAS MUCH DIFFERENT
THAN IT IS TODAY….MOSTLY PUBLIC AND FEW SMALL
PRIVATES IN NEW HAMPSHIRE.
 OVERSEE FOR THE PURPOSE OF QUALITY CONTROL,
REDUCING DUPLICATION OF EFFORT; ULTIMATELY A
CONSUMER PROTECTION ROLE……PEOPLE RECEIVING
QUALITY AND VALUE FOR WHAT THEY WERE
PURCHASING.
4
II.
THE NEW HAMPSHIRE HIGHER EDUCATION
COMMISSION
1. MEMBERSHIP OF 22: PUBLIC & PRIVATE PRESIDENTS,
CAREER SCHOOL REPRESENTATIVES, LAY PEOPLE
2. DOES NOT OVERSEE CCSNH, USNH OR DARTMOUTH
3. OVERSEES ALL OTHER IN-STATE PRIVATE, NONPROFIT AND FOR-PROFIT INSTITUTIONS OF HIGHER
EDUCATION….DEGREE GRANTING
4. OVERSEES ANY OUT-OF-STATE INSTITUTION OF
HIGHER EDUCATION THAT HAS A PHYSICAL PRESENCE
IN NEW HAMPSHIRE…..COURSES, PROGRAMS,
DEGREES, BRANCH CAMPUSES, INTERNSHIPS, AND
THE LIKE. (MCPHS, SPRINGFIELD, ANTIOCH)
5. DOES NOT OVERSEE 100% ONLINE COURSES AND
PROGRAMS…NOTE THE CONCEPT OF “SARA”, STATE
AUTHORIZATION RECIPROCITY AGREEMENT….ON THE
HORIZON.
6. COMMISSION NORMALLY MEETS THREE TIMES EACH
YEAR TO REVIEW RECOMMENDATIONS FROM
PROGRAM EVALUATIONS OR ADMINISTRATIVE
REVIEWS CONDUCTED BY EVALUATION TEAMS OR BY
THE DIRECTOR OF THE COMMISSION.
5
7. COMMISSION NOW OVERSEES 19 PRIVATE IN-STATE,
3 INTERNATIONAL AND +/- 20 OUT-OF-STATE
INSTITUTIONS THAT OPERATE COURSES, PROGARMS
OR INTERNSHIPS IN NEW HAMPSHIRE.
8. COMMISSION IS A “PROGARM APPROVAL”
ORGANIZATION AND NOT A TRADITIONAL
“ACCREDITATION” ORGANIZATION……..WE LAUNCH
SCHOOLS AND COLLEGES AND URGE THEM ONWARD
TO ACHIEVE NEASC OR OTHER
ACCREDITATION……..WHICH IS WHERE YOU COME
IN….THEY BECOME TITLE IV ELIGIBLE FOR FEDERAL
FINANCIAL AID.
III. THE PROGRAMS OF THE COMMISSION
1. PROGRAM REVIEW AND EVALUATION
2. CLOSED SCHOOL TRANSCRIPTS…..10 SCHOOLS HAVE
CLOSED…(MVC, CASTLE, CHESTER, FRANCONIA,
BELKNAP, CANAAN, NOTRE DAME, MT. ST. MARY,
NATHANIEL HAWTHORNE, MCINTOSCH, (DWC))
6
3. CAREER SCHOOL LICENSURE
POSTSECONDARY…NON-DEGREE GRANTING…..80-90
SCHOOLS, 25,000 OR MORE STUDENTS, $23,000,000
OPERATION……SOME ARE TITLE IV ELIGIBLE
4. VETERANS EDUCATIONAL SERVICES: OVER 200
5. SCHOLARSHIPS FOR ORPHANS OF VETERANS: $2500
PER YEAR PER STUDENT..FULL TIME…PUBLIC…ONLY
$10,000 TOTAL PER YEAR…TUITION WIAVER AND VA
SUPPORT ALSO AVAILABLE.
6. PREVIOUS SCHOLARSHIP PROGRAMS
A. NEW HAMSHIRE INCENTIVE PROGRAM:
$3,500,000 ANNUALLY; NEED BASED
B. TUITION WAIVERS FOR CHILDREN OF FALLEN
POLICE OR FIRE-FIGHTERS: CCSNH AND USNH
ONLY. WILL NOW BE ADMINISTERED BY THEM.
MAY ALSO GET SOME SUPPORT FOR ROOM AND
BOARD.
C. TUITION WAIVERS FOR FOSTER CHILDREN:
TUITION WAIVERS FOR FULL TIME STUDENTS AT
CCSNH AND USNH AND NO MORE THAN 10 EACH
IN EACH SYSTEM.
7
7. COLLEGE ACCESS CHALLENGE GRANT (CAGS):
$1,500,000 PER YEAR FOR FIVE YEARS; NOW IN YEAR
THREE. CHALLENGE OF (MOE), MAINTENANCE OF
EFFORT (center for college planning, nh scholars)
IV. OTHER STATE ASSOCIATIONS
A. NHCUC: PUBLIC AND PRIVATE, LEGISLATIVE
ADVOCACY, COOPERATIVE ADMISSIONS,
COOPERATIVE LIBRARY……VPAAs…….PUBLIC
SAFETY……..COUNCIL OF PRESIDENTS
B. NH CAMPUS COMPACT: SERVICE LEARNING
PROGRAMS AND RECOGNITION
C. NEASC: NEW ENGLAND ASSOCIATION OF
SCHOOLS AND COLLEGES
D.NEBHE: NEW ENGLAND…STEM….. DATA
STUDIES……REGIONAL STUDENT TUITION
PROGRAM…THE TUTION BREAK OR THE APPLE
PROGRAM…FY2013….3144 NH STUDENTS SAVED
$16.1M FOR AN AVERAGE OF $6,750…….9338
FOR NEW ENGLAND AT A SAVINGS OF
$53M……NH REALLY BENEFITS…….AT 1.3M
POPULATION WE ARE ABOUT 9% OF NEW
8
ENGLAND’S 14M…….YET WE SEND 335 OF THE
STUDENTS AND GET 30% OF THE SAVINGS
!!!...........AND SARA.
E. NUMEROUS BOARDS AND
COMMISSIONS…….NURSING……TRADES…..FIRE….
F. BUSINESS AND INDUSTRY ASSOCIATION OF NEW
HAMPSHIRE….BIA
G.LEGISLATURE……HOUSE AND SENATE FINANCE
COMMITTEES
H.GOVERNOR AND COUNCIL……..CONTRACTS AND
APPROVAL OF APPOINTMENTS
9
V. COLLEGES AND UNIVERSITIES:
A. A WEALTH OF EDUCATIONAL OPPORTUNITIES
B. 30 DEGREE GRANTING INSTITUTIONS IN NEW
HAMPSHIRE………….7 CCSNH, 4 USNH, 2 FORPROFIT, 8 TRADITIONAL PRIVATE, 6 SMALL AND
EMERGING PRIVATES, 3 BRANCHES FROM OUT
OF STATE, …………..AND 3 INTERNATIONAL (AUM,
HAU, SJIU) APPROVED BY THE HEC.
C. THESE ARE BUSINESSES…..AFFECTED BY THE EBB
AND FLOW OF THE SUPPLY AND DEMAND AND
ECONOMIC ENVIRONMENT…..AN ENVIRONMENT
THAT YOU KNOW WELL…
D.RECENT ECONOMIC STRESSES HAVE INCLUDED
MAJOR FUNDING REDUCTIONS IN THE SUPPORT
OF HIGHER EDUCATION…………….50% REDUCTION
FOR USNH…………30% FOR
CCSNH……..REORGANIZATION OF THE NHPEC TO
THE HEC WITH THE 50% REDUCTION OF STAFF
AND BUDGET……THE REPEAL OF ALL
SCHOLARSHIP PROGRAMS, EXCEPT THE ORPHANS
OF VETERANS ($4,000,000 PER YEAR)……….THE
REDIRECTION OF THE UNIQUE SCHOLARSHIP
PROGRAM….A LOSS OF $12,000,000 PER YEAR.
10
E. OVER THE YEARS NEW HAMPSHIRE HAS SEEN THE
CLOSURE OF 10 COLLEGES….(CANAAN, BELKNAP,
FRANCONIA, HAWTHORNE, MT. ST. MARY’S,
NOTRE DAME, MERRIMACK VALLEY COLLEGE,
CASTLE COLLEGE, MCINTOSH COLLEGE, CHESTER
COLLEGE)………ALL DUE TO THE BUSINESS
ENVIRONMENT………COLLEGES AND UNIVERSITIES
ARE BUSINESSES……IF YOU DO NOT THINK AND
ACT STRATEGICALLY……..YOU COULD BE GONE!!!
VI. THE UNIQUE SCHOLARSHIP PROGRAM:
A. STARTED IN 1999/2000; NEW HAMPSHIRE’S
“529” PLAN
B. FIDELITY SELECTED AS THE INVESTOR
ASSOCIATION FOR NEW HAMPSHIRE AND ABLE
TO TAKE PARTICIPANTS NATION WIDE.
C. THE 529 COMMISSION, UNFUNDED BY THE
LEGISLATURE. TOOK 15, NOW 10, BASIS POINTS
TO COVER COSTS
D.SET UP TRUST FUND TO RECEIVE REVENUE OVER
EXPENSES (nh students to nh institutions)
11
E. NOW HAVE MORE THAN $12, BILLION UNDER
MANAGEMENT, SO 10 BASIS POINTS AMOUNT TO
$12,000,000 PER YEAR.
F. ANNUAL AND ENDOWMENT COMPONENTS
G.20% GOES TO ANNUAL AND 80% GOES TO
ENDOWMENT OF THE COLLEGES….$13,500,000
ANNUAL AND $47,000,000 TO
ENDOWMENTS…Since inception.
H.FUNDS TO NH STUDENTS GOING TO NH
INSTITUTIONS:
SET ANNUALLY BY THE
COMMISSION….THIS YEAR $700 AND ZERO
EFC….ENDOWMENT MUST BE 4% OF AMOUNT
AND SCHOLARSHIP IS $1000.
I. LEGISLATURE “DIVERTED” FUNDS FOR FY 2012
AND FY2013 AND TOOK ALL FUNDS FROM THE
TURST FUND AND ANNUAL CASH FLOW FOR
..…TOTAL OF ABOUT $35,000,000 AND USED AS
PART OF GENERAL FUNDING FOR CCSNH AND
USNH.
J. RESTORED FOR FY 2014 AND 2015….BY SENATOR
CHUCK MORSE, CHAIR, SENATE FINANCE
COMMITTEE.
12
VII. TRENDS AND INNOVATIONS:
A. DEMOGRAPHICS FOR NEW HAMPSHIRE AND NEW
ENGLAND…….ALONG WITH TREND OF LOWER STATE
APPROPRIATIONS FOR PUBLIC INSTITUTIONS……ARE
NOW CREATING A NEW STRESSFUL PERIOD……
B. FUNDING IN NEW HAMPSHIRE INPROVED
CONSIDERABLE THIS BIENNIUM…….BUT NOT BACK TO
FORMER LEVELS…….CCSNH GOT FULL PLUS $3M IN
THE SECOND YEAR OF THE BIENNIUM……USNH GOT
BACK TO ABOUT 85% OF FORMER LEVELS…….THE HEC
GOT NOTHING RESTORED…….THE UNIQUE
SCHOLARSHIP FUND WAS RESTORED AT $12,000,000
PER YEAR.
C. BUT BECAUSE THE RESTORATION WAS NOT
COMPLETE…..THE CAGS GRANT OF $1,500,000 PER
YEAR WAS LOST….MOE.
D.DEMOGRAPHICS ARE NOT GOOD EITHER: FOR NEW
HAMPSHIRE : K – 12 ENROLLMENT FELL FROM
210,000 TO 188,000 SINCE 2000 AND IT CONTINUES
TO DROP….ALSO FOR ALL OTHER NEW ENGLAND
STATES.
13
E. COLLEGE GOING RATE IS ABOUT 64%...RANKS
19TH….MASS IS FIRST AT 79%......
F. BIRTH RATES ARE DOWN (1 IN 5 END UP THEIR CHILD
BEARING YEARS CHILDLESS…VS 1 IN 10 FOR 1970s)
WE NEED IMMIGRATION!! MORE DOGS THAT
CHILDREN IN BOSTON AND SAN FRANCISCO……LOOK
AT YOUR OWN GROCERY STORE AND COMPARE
SHELF SPACE FOR PETS vs BABIES.
G.COMBINED IMPACT IS FEWER STUDENTS……LESS
FUNDING FOR PUBLIC INSTITUTIONS AND….MORE
FINANCIAL AID…..BUDGET STRESS.
H.FAMILIES ARE DEBT ADVERSE…THEY FEAR THE
$25,000 LOAN DEBT UPON GRADUATION….AND
EXPECT AN IMPROVED CAREER OUTLOOK.
14
I. THIS HAS HAD A MAJOR IMPACT ON THE
ENROLLMENT LEVELS AND ENRIOLLMENT MIX AT THE
COMMUNITY COLLEGES………..THE LARGEST SINGLE
PROGRAM AT EACH OF THE COMMUNITY COLLEGES
IS THE “TRANSFER” OR “ 2 + 2” PROGRAM.
J. GENERALLY THE COLLEGES AND UNIVERSITIES IN
NEW HAMPSHIRE ARE “OK” AND MEETING THEIR
ENROLLMENT
GOALS……………..HOWEVER………………WE ARE NOT
SEEING THE SIGNIFICANT GROWTH OF A FEW YEARS
AGO AND ALL SCHOOLS NEED TO BE “ON THEIR
TOES” AND BE CREATIVE IF THEY EXPECT TO
CONTINUE TO HAVE STEADY ENROLLMENT.
VIII. STRATEGIC THINKING AND STRATEGIC ACTIONS
A. WE ARE IN A DISRUPTIVE PERIOD IN HIGHER
EDUCATION AND INSTITUTIONS NEED TO BE
ATTUNED TO THE COMPETETION…..THINK
NIMBLE…..WE HAVE NOT SEEN THIS LEVEL OF
15
“STRESS” SINCE THE 1980s……..BEFORE MANY OF
YOU WERE IN POSITIONS OF MANAGEMENT
INFLUENCE.
B. FOCUS OF STRATEGY BACK THEN WAS ON
PROGRAMS…….GROW THROUGH PROGRAM
EXPANSION………AT THE EXPENSE OF SINGLE
PURPOSE….OR SINGLE SEX INSTITUTIONS.
C. NOW THE STRATEGY HAS SHIFTED MORE TO
AUDIENCE AND DELIVERY…..ALTHOUGH SOME
SCHOOLS WERE IN THIS MODE FOR A NUMBER
OF YEARS (SNHU)……..AND NOW HAVE
DEVELOPED A SIGNIFICANT STRATEGIC
ADVANTAGE.
D.ESTABLISH CONTINUING EDUCATION CENTERS
E. OFFER PROGRAMS
DAY…NIGHT…WEEKENDS…..FULL-TIME….PARTTIME….ESTABLISH ONLINE AND HYBRID
PROGRAMS
F. MOVE TO REPOSITION INSTITUTION IN THE
MARKETPLACE….UNIVERSITY STATUS, CHANGE
NAMES, COMMUNITY COLLEGES VS.
COMMUNITY-TECHNICAL COLLEGES.
16
G.BROADEN AUDIENCE: TRADITIONAL
STUDENTS…ADULT STUDENTS….MILITARY
PERSONNEL….INTERNATIONAL STUDENTS
H.ONCE YOU HAVE A PROGRAM IS PLACE…IT IS
MUCH EASIER TO MODIFY DELIVERY AND
EXPAND AUDIENCES THAN IT IS TO START A NEW
PROGRAM….AND LESS EXPENSIVE TOO!!!
I. MOOCS
J. CUTS IN TUITION: 33-37% AT CONCORDIA,
ASHLAND U AND CONVERSE U.
K. ACHIEVE REGIONAL ACCREDITATION….BUT
DECLINE TITLE IV FINANCIAL AID BECAUSE IT
COSTS SO MUCH TO ADMINISTER AND
MANAGE…PATTEN U AND NEW CHARTER U IN
BAY AREA…$1300 FOR 18 CREDITS…PAY $350 PER
MONTH.
L. MERGERS: ST. BONAVENTURE AND HILBERT
COLLEGE IN NY.
M. COMPETENCY BASED COURSES AND
DEGREES…….WESTERN GOVERNORS
CONFERENCE…..SNHU….WISCONSIN
N.KAHN ACADEMY
17
O. THE NEXT IS TO DIVERSIFY BY LANGUAGE….IS
ENGLISH THE ONLY LANGUAGE IN WHICH ONE
CAN LEARN…….WHAT ABOUT AN ONLINE MBA
PROGRAM IN SPANISH……CHINESE????
IX. COLLABORATIVE EFFORTS:
 ARTICULATION AGREEMENTS
 TRANSFER.ORG
 LOTS MORE K-12 AND HIGHER EDUCATION
COLLABORATION
 RUNNING START
 LEAD THE WAY
 MATHEMATICS COMMUITYIES
 NEW HAMPSHIRE SCHOLARS 3600
 CENTER FOR COLLEGE PLANNING
 DIVERSITY OUTREACH
X.
BEHAVIORAL AND DEMOGRAPHIC TRENDS
A. FAMILIES ARE SHOPPING FOR VALUE
B. FAMILIES ARE BECOMING DEBT ADVERSE
18
C. A RENEWED INTEREST IN CAREER PREPARATION
AND EMPLOYABILITY
D.FOCUS ON DATA OF STUDENT SUCCESS AND
COMPLETION
E. COLLEGES ARE RECRUITING MORE STRONGLY
BECAUSE OF DROP OFF IN NUMBERS OF HIGH
SCHOOL GRADUATES, ESPECIALLY IN NEW
ENGLAND.
THESE ARE EXCITING TIMES TO BE IN HIGHER
EDUCATION…..AND CREATIVE YET STABLE AND
SUSTAINABLE FINANCIAL AID PROGRAMS WILL PLAY A
MAJOR ROLE IN THE SUCCESS OF ANY INSTITUTION.
IT’S GOING TO TAKE A LOT MORE THAN NEW LOGOS OR
TAG LINES TO NAVIGATE THE WATERS AHEAD…..IT’S
GOING TO TAKE STRATEGIC THINKING AND STRATEGIC
ACTION TO CONTINUE TO REPOSITION…OR
REINVENT…THE INSTITUTION IN THE COMPETETIVE
MARKETPLACE OF THE 21ST CENTURY.
19