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)

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Undergraduate Student Loan Debt

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2009-10 2010-2011Percent students who borrowed* 72% IUPUI

54% IUB72% IUPUI55% IUB

The average per-undergraduate-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

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

Graduate / Professional N/A $20,500Health Professions (Medical & Dental) N/A $40,500

Percent of Degree Recipients with Loans

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% of Degree Recipients2 with Aggregate Student Loans

Number of Degree Recipients Who Borrowed1

2006-07 2007-08 2008-09 2009-10 2010-11 5 Yr % ChangeBaccalaureate 1,035 1,056 1,106 1,172 1,411 36%Master's 662 774 754 786 867 31%Doctoral-Research ** 16 12 18 18 260%Doctoral-Practice 597 600 563 622 611 2%

1 Only includes degree recipients who borrowed while at IU during their program of study.2 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.

Percentage of Degree Recipients2

with Loans by LevelIUPUI

2006-07 through 2010-11

FY06 FY07 FY08 FY09 FY10 FY11$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

Per FTE Amount of Student Financial Assistance, Average Tuition & Fees, and General Academic Appropriations

Gift Aid Loans Avg. Tuition & Fees Appropriations

$0 - 30K

$30,001 - 48K

$48,001 - 75K

$75,001 - 110K

$110K +

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000

$11,360

$9,601

$4,606

$1,546

$1,151

$8,596

$10,355

$15,350

$18,410

$18,805

Average Gift Aid and Net Price by Income level: FT, Resident Beginners - Fall 2010

Avg. Gift Avg. Net Price

Tuition & Fees; $7,885

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

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STUDENT LOAN DEBTCDR 3 Year Rate

Campus FY Being Reported2009

# Entering Repayment

# In 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

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* 2 year CDR at IUB = 1.8% * 2 year CDR at IUPUI = 3.8%

Graduate and Professional Student Debt

• Debt also rising• Medical figures included here

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Debt to Potential Income Advice• Limited now• Good calculators at www.finaid.org• Undergraduate calculator…www.finaid.org/calculators/undergradadvisor.phtml

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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

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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