“yes, you borrowed that much!” graduate school financing trends. tony patterson office of...

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YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA Fall 2006 Conference

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Page 1: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

“YES, YOU BORROWED THAT MUCH!”

Graduate school financing trends.

Tony PattersonOffice of Scholarships and Student Aid

UNC-Chapel Hill

NCASFAA/SCASFAA Fall 2006 Conference

Page 2: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

“YES, YOU BORROWED THAT MUCH!”

Today’s Session

A few facts…who’s going to grad school.

The Institution’s response.

The impact on students.

Page 3: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

A few facts….

2003-2004 over 2.5 million students enrolled in Graduate and Professional

schools.

79% Graduate degree or certificate12% Professional degree

9% non-degree

Page 4: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

A few facts….

In 2003-2004….

39% were enrolled full-time58% were women

32% were part of a racial/ethnic minority32.5 average age

Page 5: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

A few facts….

In 2003-2004….

29% were not working for pay

25% “Students who work”

46% “Primarily employees”

Page 6: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

The Institution’s response

Raise the price and raise it again!

Packaging strategies

How the funds are distributed

Page 7: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

The Institution’s response

Raise the price and raise it again!

1998 Public costs 2003 Public costs

MA/MS $ 3,407 $ 5,863Law $ 8,124 $11,572Medical $10,485 $21,456

Tuition and fees only

Page 8: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

The Institution’s response

Packaging strategies

66% of programs require applications in addition to the FAFSA.

98% of programs used some form of professional judgment.

Page 9: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

The Institution’s response

How funds are distributed

In 2003 65% of students received some form of grant support.

However, loans represented 75% of total aid awarded.

Page 10: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

The impact on students

The obvious….increased cumulative loan debt

Debt dictating career choice?

Debt burden

Page 11: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

The impact on students

The obvious….

1998 Public debt 2003 Public debt

MS $28,809 $34,313Law $45,536 $51,230MBA* $26,884 $25,563

*Not so obvious

Page 12: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

The impact on students

Debt dictating career choice?

The results are mixed.

Page 13: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

The impact on students

Debt burden

“the proportion of post-college pre-tax employment earnings devoted to paying

off student loans.”

Reed, K.E. (2006). Financing graduate and professional education: 2003-2004. NASFAA Monograph(17) 1-28.

Page 14: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

“Yes, you borrowed that much!”

WRAP-UP!&

QUESTIONS

Page 15: “YES, YOU BORROWED THAT MUCH!” Graduate school financing trends. Tony Patterson Office of Scholarships and Student Aid UNC-Chapel Hill NCASFAA/SCASFAA

REFERENCES

Reed, K.E. (2006). Financing graduate and professional education: 2003-2004. NASFAA Monograph(17) 1-28.

1998 NASFAA Financial aid policies and practices at graduate and professional programs.

2003 NASFAA Financial aid policies and practices at graduate and professional programs.