impact of the economy on higher education and financial aid david rice st. louis college of pharmacy

Impact of the Economy

on Higher Education and Financial Aid

David RiceSt. Louis College of Pharmacy

Top 10 Things Vanishing in America

• 10. The Milkman - According to the U.S. Department of Agriculture, in 1950, over half of the milk delivered was to the home in quart bottles, by 1963,

it was about a third and by 2001, it represented only 0.4% percent. Nowadays most milk is sold through supermarkets in gallon jugs. The steady decline in home-delivered milk is blamed, of course, on the rise of the supermarket, better home refrigeration and longer-lasting milk. Although some milkmen still make the rounds in pockets of the U.S., they are certainly a dying breed.


• 9. Hand-Written Letters - In 2006, the Radicati Group estimated that, worldwide, 183 billion e-mails were sent each day. Two million each

second. By November of 2007, an estimated 3.3 billion Earthlings owned cell phones, and 80% of the world's population had access to cell phone coverage. In 2004, half-a-trillion text messages were sent, and the number has no doubt increased exponentially since then. So where amongst this gorge of gabble is there room for the elegant, polite hand-written letter?


• 8. Wild Horses - It is estimated that 100 years ago, as many as two million horses were roaming free within the United States. In 2001, National Geographic

News estimated that the wild horse population had decreased to about 50,000 head. Currently, the National Wild Horse and Burro Advisory board states that there are 32,000 free roaming horses in ten Western states, with half of them residing in Nevada. The Bureau of Land Management is seeking to reduce the total number of free range horses to 27,000, possibly by selective euthanasia.


• 7. Personal Checks - According to an American Bankers Assoc. report, a net 23% of consumers plan to decrease their use of checks over the next

two years, while a net 14% plan to increase their use of PIN debit. Bill payment remains the last stronghold of paper-based payments -- for the time being. Checks continue to be the most commonly used bill payment method, with 71% of consumers paying at least one recurring bill per month by writing a check. However, on a bill-by-bill basis, checks account for only 49% of consumers' recurring bill payments (down from 72% in 2001 and 60% in 2003).


• 6. Drive-in Theaters - During the peak in 1958, there were more than 4,000 drive-in theaters in this country, but in 2007 only 405 drive-ins were

still operating. Exactly zero new drive-ins have been built since 2005. Only one reopened in 2005 and five reopened in 2006, so there isn't much of a movement toward reviving the closed ones.


• 5. Mumps & Measles - Despite what's been in the news lately, the measles and mumps actually, truly are disappearing from the United States.

In 1964, 212,000 cases of mumps were reported in the U.S. By 1983, this figure had dropped to 3,000, thanks to a vigorous vaccination program. Prior to the introduction of the measles vaccine, approximately half a million cases of measles were reported in the U.S. annually, resulting in 450 deaths. In 2005, only 66 cases were recorded.


• 4. Honey Bees - Perhaps nothing on our list of disappearing America is so dire; plummeting so enormously; and so necessary to the survival of our food

supply as the honey bee. 'Colony Collapse Disorder,' or CCD, has spread throughout the U.S. and Europe over the past few years, wiping out 50% to 90% of the colonies of many beekeepers -- and along with it, their livelihood.


• 3. News Magazines and TV News - While the TV evening newscasts haven't gone anywhere over the last several

decades, their audiences have. In 1984, in a story about the diminishing returns of the evening news, the New York Times reported that all three network evening-news programs combined had only 40.9 million viewers. Fast forward to 2008, and what they have today is half that.


• 2. Analog TV - According to the Consumer Electronics Association, 85% of homes in the U.S. get their television programming through cable or satellite

providers. For the remaining 15% -- or 13 million individuals -- who are using rabbit ears or a large outdoor antenna to get their local stations, change is in the air. If you are one of these people you'll need to get a new TV or a converter box in order to get the new stations which will only be broadcast in digital.


• 1. The Family Farm - Since the 1930s, the number of family farms has been declining rapidly. According to the USDA, 5.3 million farms dotted the

nation in 1950, but this number had declined to 2.1 million by the 2003 farm census (data from the 2007 census hasn't yet been published). Ninety-one percent of the U.S. farms are small family farms.

Who is in the ROOM

http://www.cnn.com

http://www.time.com/time/photogallery/0,29307,1946595_2010907,00.html

Why this SESSION

WHY

St. Louis College of Pharmacy

Why St. Louis College of Pharmacy

• We do ONE THING – Six Year Professional Program– It eliminates the clutter

• We’ve been SUCCESSFUL– Quantity & Quality

BOTTOM LINE – We SIMPLIFIED the QUESTION:

What do STUDENTS NEED


• Students NEED

• A PLAN to complete a DEGREE

• They need a great VALUE


• We KNOW our students – WHY DO THEY COME

• Direct Entry to a professional program …and

• We’re close to home…

• We’re a small school… and

• We developed a PLAN to pay for a DEGREE

• We took the FEAR out of Financial Aid with personalized SERVICE

STATE OF THE “UNION” Where are you with your Goals

• Do you have good Academic & Financial PLANS?– Quantity & Quality – how do you shape your class– Discount Rate / Budget– Endowment

• WHY do students come to your school?

• Why do they LEAVE?

• Do you look good NOW and in the FUTURE?

HEADLINES - COST

Why Does College Cost So Much? (Forbes)"Most of what is written about rising college costs places primary blame on a dysfunctional university system," write David Feldman and Robert Archibald, professors of economics at the College of William and Mary, in Forbes.

"Like many large organizations, American universities could be made more efficient, but our review of the evidence convinces us that the primary forces that are driving up costs are not to be found by scouring the account books of colleges for examples of waste. ... Instead of holding up a magnifying glass to the industry, we take an aerial view. The view from above shows us different things.

Rising college costs are an important byproduct of broad economic forces that have reshaped the entire economy, and in particular of the technological progress that has so dramatically raised living standards over time."

You can read the complete Aug. 12, 2010 Forbes article on-line. http://www.nasfaa.org/publications/2010/awcollegecost081310.html

http://www.forbes.com/2010/08/01/rising-cost-education-opinions-best-colleges-10-feldman-archibald.html

http://www.nasfaa.org/publications/2010/awcollegecost081310.html

HEADLINES Discount Rates - NACUBO

– Fall of 2008 rose to 41.8 percent, up from 39.1 percent in the previous academic year.

– The average discount rate jumped rapidly from 1990 to 2002, rising from 27 percent to 39 percent. But rates had been stable since 2002, hovering around 38 percent.

– On average, 12 percent of grant aid in the fall of 2008 came from endowment money.

– Endowments worth more than $1-billion paid for 34 percent of grant aid with those endowment assets, compared with 6 percent of grant aid supported by endowment earnings for colleges with endowments valued at $25-million or below.

• http://chronicle.com/article/Tuition-Discount-Rate-Hits/64881/

http://chronicle.com/article/Tuition-Discount-Rate-Hits/64881/

http://chronicle.com/article/Tuition-Discount-Rate-Hits/64881/

HEADLINES - LOANS

FY 2008 Official Cohort Default Rates To Be Released on Sept. 13

– Department officials have been warning institutions that the combination of the economic downturn and the new three-year rates could increase CDRs to surprising levels.

– At NASFAA's National Conference, Department officials said that their calculations show the change from a two-year CDR to a three-year CDR will increase cohort default rates anywhere from 30 to 50 percent for most schools.

http://www.nasfaa.org/publications/2010/rcdrrelease082510.html

http://www.nasfaa.org/publications/2010/rcdr081910.html

http://www.nasfaa.org/publications/2010/rcdrrelease082510.html

HEADLINES - LOANS

New Analysis of Student Loan Repayment Rates (San Francisco Chronicle)"A large percentage of borrowers who left college in the past four years

made no principal payments on their federally guaranteed student loans in 2009, according to the Department of Education," the San Francisco Chronicle reports.

This is the first time the department has calculated and published repayment rates for every college and university whose students get federal loans. The data, released Aug. 13, should be a wake-up call to taxpayers, who will be on the hook if these loans are never repaid, and to students who wonder whether they'll earn enough to repay them.

Repayment rates vary widely from college to college. ... Prospective students who need to borrow for college should take the data into consideration before choosing a school, but it's important to understand them."

You can read the complete Aug. 25, 2010 San Francisco Chronicle article on-line. http://www.nasfaa.org/publications/2010/awrepayment082610.html

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/08/25/BUNQ1F38BJ.DTL

http://www.nasfaa.org/publications/2010/awrepayment082610.html

HEADLINES - LOANS

Effects of Debt Level and Income on Default

The analysis by Mark Kantrowitz, publisher of Fastweb.com and FinAid.org, shows that

• default rates decrease as income increases

• with default rates leveling off at less than 2 percent for borrowers with incomes of $60,000 or more.

• Default rates are more than 25 percent for borrowers with incomes of $15,000 and just under 15 percent for those making $20,000.

http://www.nasfaa.org/publications/2010/rndefault082010.html

http://www.nasfaa.org/publications/2010/rndefault082010.html

HEADLINES - LOANS

Student-Loan Debt Surpasses Credit Cards (Wall Street Journal)

"Americans owe some $826.5 billion in revolving credit, according to June 2010 figures from the Federal Reserve. (Most of revolving credit is credit-card debt.)

Student loans outstanding today -- both federal and private -- total some $829.785

billion,

• $605.6 billion in federal student loans outstanding • $167.8 billion in private student loans outstanding.

• $300 billion in federal student loan debts have been incurred in the last four years."

You can read the complete Aug. 9, 2010 Wall Street Journal article on-line. http://www.nasfaa.org/publications/2010/awdebt081010.html

http://blogs.wsj.com/economics/2010/08/09/student-loan-debt-surpasses-credit-cards/

http://www.nasfaa.org/publications/2010/awdebt081010.html

HEADLINES

CO$$$$$$T

TUITION

St. Louis College of Pharmacy

1998TUITION = $12,000

2010TUITION = $22,400

TUITION PROJECTIONS

AVERAGE SALARY 2006 2007

Household

$ 50,233

Women $ 33,437 $ 35,102

Men $ 44,460$ 45,113

http://en.wikipedia.org/wiki/Household_income_in_the_United_States

TUITION PROJECTIONS

2008-09 TUITION %

of Household

IncomePublic Two-year $ 2,402

4.8%

Public Four-Year $ 6,58513.1%

Private Four-Year $ 25,14350.1%

Private Doctoral $ 31,06861.8%

http://www.collegeboard.com/student/pay/add-it-up/4494.html

TUITION PROJECTIONS 10 Years

TUITION % of Household Income

Public Two-year $ 3,7265.5%


Private Four-Year $ 39,00557.8%

Private Doctoral $ 48,19471.4%


TUITION PROJECTIONS 20 Years & 30 Years

TUITION % of

Income TUITION % of Income

Public Two-year $ 6,070 6.7% $ 9,887 8.1%

Public Four-Year $ 16,640 18.3% $27,105 22.2%

Private Four-Year $ 63,535 70.0% $103,492 84.9%

Private Doctoral $ 78,502 86.5% $127.872 104.9%http://www.collegeboard.com/student/pay/add-it-up/4494.html

TUITION PROJECTIONS 40 Years & 50 Years

TUITION % of

Income TUITION % of Income

Public Two-year $ 16,105 9.8% $26,233 11.9%

Public Four-Year $ 44,151 26.9% $71,917 32.7%

Private Four-Year $168,578 102% $274,595 124%

Private Doctoral $208,290 127% $339,282 154% http://www.collegeboard.com/student/pay/add-it-up/4494.html

TUITION PROJECTIONS 100Years

2107 TUITION % of Household Income

Public Two-year $ 300,82531.2%


Private Four-Year $3,148,892326.2%

Private Doctoral $3,890,684403.0%


HISTORY

1643First scholarship established by Lady Anne Radcliffe Mowlson at Harvard University

1840First student loan program at Harvard University

1867Authorized creation of US Department of Education

HISTORY - 1900

POPULATION Avg SALARYWORK WEEK

75 Million $ 12.98 / Week 59 Hours

* $48 Million in U.S. Treasury

* 8,000 Cars

* 10 Miles of paved roads

HISTORY - 1910

POPULATION UNEMPLOYMENT Annual SALARY

92.4 Million 2,150,000$750

$1.15 Million National Debt

Ziegfeld Girls earned $75 per week

HISTORY - 1920


106.5 Million 2,132,000 $1236

Annual Teacher Salary = $970

Life Expectancy

Male = 53.6 Years Female = 54.6 Years

HISTORY - 1930


123.8 Million 25% $1368

• $100 = $1204.42 (2005 dollars)

• New House = $7,145 ($3,800 by 1939)

• New Car = $ 640

• Gallon of Gas = 10 cents

• Life Expectancy = Male = 53.6 Female = 54.6

• Huey Long proposes minimum national income of $2498

HISTORY - 1940


132.1 Million 8,120,000 $1725

• $100 = $1433.77 (2005 dollars)

• New House = $3,920

• New Car = $ 850



• 55% of US homes have indoor plumbing

• NATIONAL DEBT = $43 BILLION

HISTORY - 1950


151.7 Million 3,288,000 $3,210

• $100 = $ 835.41 (2005 dollars)

• New House = $8,450

• New Car = $1,510


• Life Expectancy = Male = 65.6Female = 71.1

• Labor force male / female 5 / 2

HISTORY - 1960


177.8 Million 3,852,000 $5,315

• $100 = $ 679.09 (2005 dollars)

• New House = $12,700

• New Car = $ 2,600



• Estimated 850,000 “war baby” freshman enter college

• NATIONAL DEBT = $286.3 BILLION

HISTORY - 1960


HISTORY - 1960

http://www.time.com/time/photogallery/0,29307,1638066_1398331,00.htmlhttp://www.time.com/time/photogallery/0,29307,1638066_1398351,00.html

HISTORY - 1960


The Great Society


The Great Society is a place where every child can find knowledge to enrich his mind and to enlarge his talents.

The Great Society

Higher Education Act of 1965, PL89-329

Authorized most federal student financial aid programs, including the

• Educational Opportunity Grant Program

• Guaranteed Student Loan Program

The Great Society

HISTORY - 1970


204.8 Million 4,088,000 $9,350

• $100 = $ 517.65 (2005 dollars)

• New House = $23,400

• New Car = $ 3,900




HISTORY - 1980

• POPULATION UNEMPLOYMENTAnnual SALARY226.5 Million

$19,170

• $100 = $ 243.45 (2005 dollars)

• New House = $ 68,714

• New Car = $ 7,210

• Gallon of Gas = $ 1.19


• Forbes list of richest people become more important than 500 largest companies


HISTORY - 1990


281.4 Million 5,800,000 $28,970

• $100 = $ 153.76 (2005 dollars)

• New House = $123,000

• New Car = $ 16,000



• World Wide Web is born

• NATIONAL DEBT = $5.4 TRILLION 1997

WWW.

http://upload.wikimedia.org/wikipedia/commons/b/b9/WorldWideWebAroundWikipedia.png

HISTORY - 2000

POPULATION Annual SALARY

300 Million $40,343

• New House = $134,150

• New Car = $ 24,750


• NATIONAL DEBT = $10.25 TRILLION 2008

THE FUTURE

• That’s how we got

HERE

• How do we get THERE…http://www.smashingmagazine.com/2008/11/09/60-beautiful-examples-of-night-photography-2

http://thecontaminated.com/earth-at-night-continents/

Being INTENTIONAL

• We offer these PROGRAMS because…• We recruit these STUDENTS from these AREAS because…• These are our ADMISSIONS CRITERIA because…• We COST this much because…• We DISCOUNT this much because…

• We HIRE this type of person because…

• We are SUCCESSFUL because…• We are NOT successful because…

Being REAL

We are done with GIMMICKS!

If you build it they will come…

…and so will the

BILL$

INSTITUTIONALLY

• You need to KNOW what your students need– That may vary from program to program

• You need a PLAN to meet those needs

• You need to KNOW what it will COST to implement the PLAN

• You need to KNOW how much it will cost if you DON’T implement the plan

CORPORATELY

• STANDARDIZED HIGH SCHOOL TRANSCRIPT– Create a centralized CLEARINGHOUSE

• Simplified needs analysis – ELIMINATE THE FAFSA– Download need base information from the IRS

• SINGLE POINT OF APPLICATION– Authorize information flow with your PIN (electronic signature)

• Academic information sent to each school from the clearing house• Financial information sent from “IRS”

FINAL THOUGHTS

• The Higher Education Act was created in 1964 – the world has changed

– 70% of high school students go on to some form of higher education

– 30% achieve a bachelor’s degree

– Do you have a plan for the other 40%?

FINAL CHALLENGE

– The fastest growing part of society is the least educated

– How much will it cost to educate them?

– How much will it cost if they remain uneducated?

WHAT IS YOUR PLAN?

Questions?

David RiceSt. Louis College of Pharmacy

[email protected]

(314) 446-8320

mailto:[email protected]

www.nacacconference.orgSlide 63

Idealism is

fine, but as it approaches

reality the cost becomes

PROHIBITIVE.

- William F. Buckley Jr.

www.nacacconference.orgSlide 64http://www.smashingmagazine.com/2008/11/09/60-beautiful-examples-of-night-photography-2/

Idealism increases in direct proportion to one’s

distance from the problem.

- John Galsworthy

www.nacacconference.orgSlide 65

An idealist is one who, on noticing

that a rose

smells better than a cabbage, concludes that it will also make better soup.

- H. L. Menck

impact of the economy on higher education and financial aid david rice st. louis college of pharmacy

Documents

bill payments

recurring bill

wild horses

bill basis

free roaming horses

united states

mumps measles

use of checks