Annual Update: Spring 2012

Committee on Scholarships, Awards and Student Aid

Professor Charles E. Daye, Chair

February 10, 2012

Scholarships, Awards, and Student Aid Committee

Charge and Composition:

The committee is appointed by the Chancellor. It establishes policy for scholarship and student aid funds, monitors the operations of the Office of Scholarships and Student Aid, and advises the Chancellor on matters regarding scholarships and other forms of student aid.

Committee Membership, 2011-12

Name and Department Term(s)Faculty/Staff/StudentsCharles Daye, Chair (Law) 2003-12Todd Austell (Chemistry) 2010-13Cheryl Jones (Nursing) 2010-13Donald Hornstein (Law) 2008-11Jane Danielewicz (English) 2008-11Judy Adamson (Dramatic Art) 2011-14Tara Moon (Medicine) 2010-13Dennis Williams (Pharmacy) 2010-13George Lensing (English) 2009-12Fred Clark (Romance Languages) 2009-12Winston Crisp (Student Affairs) Ex officioSteve Farmer (Admissions) Ex officioShirley Ort (Student Aid) Ex officioKiran Bhardwaj (Graduate Student) 2011-12Chris Scanzoni (Undergraduate) 2010-12Kira Lumsden (Undergraduate) 2010-12Travis Crayton (Undergraduate) 2010-12

The role of the Office of Scholarships and Student Aid (OSSA) is to support the instructional mission of the University by . . .

Removing financial barriers for students

Recognizing and rewarding academic

talent, thereby

Furthering mutual goals of “equity” and “excellence”

During 2010-11 the University provided assistance to 20,362 undergraduate, graduate and professional students . . .

Total: 20,362 Students Receiving Aid

. . . and disbursed $351.2 million in aid, with the largest share provided by the Federal government . . .

Total: $351.2 (In Millions)

State: $20.5 (6%)

Federal: $173.3 (49%)Institutional &

Private: $157.4 (45%)

Focusing on undergraduates -- 43 percent received need-based aid in 2010-2011, up from 37 percent in the prior year . . .

Total: 18,579 Undergraduate Students

Aided Needy Students 7,900 (43%)

Non-Aided Students 6,635

(36%)

Aided Non-Needy Students 4,044

(22%)

The proportion of undergraduate students demonstrating need has increased significantly since 2009 . . .

Year

Need-Based Aid Recipients

n %

2004-2005 5,563 34%

2008-2009 5,817 32%

2009-2010 6,629 37%

2010-2011 7,900 43%

The average amount of financial aid disbursed to an undergraduate receiving need-based aid in 2010-11 was quite generous . . .

Loans (24%)

Work-Study (2%)

Grants & Scholarships (74%)

The share of a student’s need which was met with grants and scholarships has increased despite increases in tuition and other college costs . . .

Trends in Type of Aid Distributed to Undergraduate Students With Need

YearGrants & Scholars

hipsLoans Work-

Study

2004-2005 63% 35% 2%

2008-2009 70% 27% 3%

2009-2010 70% 27% 3%

2010-2011 74% 24% 2%

As a result, student borrowing has been kept at a minimum and cumulative indebtedness among borrowers actually declined last year . . .

Cumulative Student Loan Debt Upon GraduationAmong Seniors Who Borrowed

Academic Year

% Who Borrowe

d

Cumulative Amount Borrowed

2004-2005

34% $13,801

2008-2009

29% $14,262

2009-2010

31% $16,165

2010-2011

35% $15,472

*Note: Debt includes only loans based on need, rather than discretionary borrowing.

Ten Year Changes in Cost of Attendance for Resident Undergraduates, Compared to

Borrowing PatternsCost of Attendance 2000-2001 2010-2011 Increase

Tuition & Fees $2,768 $6,666 $3,898

Room and Board and Other $8,097 $13,098 $5,001

Total $10,865 $19,764 $8,899

Resident Students With Need #3,638 #6,380

Students who Borrowed 2,602 (72%)

3,391 (53%)

Average Loan $4,673 $6,861 $2,188

Median Parental Income of Dependent Aided Undergraduates,

2010-11 Enrolled undergraduates receiving any aid: 64%

Median parental income (all aided dependent students) $70,315

For aided resident students $67,610 For aided non-residents $84,418

Enrolled undergraduates receiving need-based aid: 43%

Median parental income (recipients with need) $55,781

For aided resident students $53,178For aided non-residents$71,700For Carolina Covenant® Scholars $23,655

(Average family size was 4 throughout; median for N. C.

resident is $68,985)

A slow-growth economy

Persistent unemployment

Rising tuition and other college costs

A likely increase in the number of students with need

Carolina will work hard to maintain these favorable aid distribution patterns going forward, given the challenges we face . . .

Other challenges are present as well. . .

The State is reducing funding for need-based grants

Changes to the state grant allocation formula could cost our students another $2.5 million in the upcoming year

Federal funding for the Pell Grant program remains uncertain

More students will likely need to borrow, and borrow more, in the coming years

It is important that the University be permitted to dedicate a share of new tuition revenues for need-based aid (currently at 38%)

Still, there is good news!

For the 11th year in a row, Carolina wasnamed by Kiplinger’s as the “best value”

inAmerican public higher education

Ten Year Comparison of Scholarship and Financial Aid (Need and Non-Need-Based)

Awards: All Students (Undergraduate,

Graduate/Professional) 2000-2001

2009-2010

2010-2011

Total Aid Awarded (in millions) $128.1 $257.8 $351.2

Number of Students 11,501 16,903 20,362Average Award $11,136 $15,252 $17,248

Funds by SourceFederal 57% 53% 49%State 10 10 6Institutional/Private 33 37 45Funds by TypeScholarships/Grants 38% 47% 54%Work-Study 1 1 1Loans 61 52 45

Source: Office of Scholarships and Student Aid/Office of Institutional Research (February 2012)

Maintaining Carolina’s favorable need-based aid patterns of the past will remain a challenge. But Carolina has met that challenge in the past and is no less committed to funding both access and affordability going forward.

Conclusion and Discussion:

2010-2011 UNC STANDARD STUDENT BUDGETS(07/22/10)

UNDERGRADUATE STUDENTS

IN-STATEOn/Off Campus Living with Parents

Tuition/Fees $6,666 ($4,816/$1,850) $6,666 ($4,816/$1,850)

Room $5,408 $0Board $3,898 $2,598Books/Supplies $1,028 $1,028Travel $750 $750Health Insurance $724 $724Misc 1 (Personal) $1,290 $1,290Total $19,764 $13,056

OUT-OF-STATE

Tuition/Fees $25,280 ($23,430/$1,850) $25,280 ($23,430/$1,850)

Travel (Home) $1,292 $1,292Total $38,920 $32,212

2010-2011 UNC STANDARD STUDENT BUDGETS(07/22/10)

GRADUATE STUDENTS

IN-STATE On/Off Campus Living with Parents

Tuition/Fees $8,202 ($6,363/$1,839) $8,202 ($6,363/$1,839)

Room $10,816 $0Board $3,898 $2,598

Books/Supplies $1,028 $1,028Travel $1,292 $1,292Health Insurance $724 $724Misc 1 (Personal) $2,712 $2,712Total $28,672 $16,556

OUT-OF-STATE

Tuition/Fees $22,932 ($21,093/$1,839) $22,932 ($21,093/$1,839)

Other Costs $20,470 $8,354Total $43,402 $31,286

Academic Year % Who Borrowed

Current Dollar Amount Borrowed

Constant Dollar Amount

1999-2000 24% $13,687 $17,9972000-2001 24% $11,156 $14,2632001-2002 23% $12,314 $15,4982002-2003 31% $13,291 $14,1762003-2004 34% $13,579 $16,2762004-2005 34% $13,801 $16,0002005-2006 32% $14,487 $16,2712006-2007 34% $14,912 $16,2842007-2008 31.5% $14,936 $15,7072008-2009 28.8% $14,262 $15,0522009-2010 30.8% $16,165 $16,7852010-2011 34.7% $15,472 $15,472

Adjusted for inflation, the cumulative debt burden among borrowers is $2,525 lower than a decade ago.