David A. Feitz presented on student debt and the impact of Pell Grants to the Utah State Board of Regents and Institutional Boards of Trustees on July 30, 2015. He discussed that Pell Grants are the largest source of grant aid for students but only cover a portion of tuition. Student loans have become the largest source of student aid in Utah, totaling $820 million in 2013-2014. While average student debt in Utah is lower than the national average, debt can still be a significant burden and students are most at risk of default if they do not complete their degree.

1. David A. Feitz, Executive Director UHEAA  60 South 400 West  Salt Lake City, UT 84101  (801) 321-7210  dfeitz@utahsbr.edu
STUDENT DEBT & IMPACT OF PELL GRANTS
DAVID A.FEITZ
EXECUTIVEDIRECTOR OF UHEAA, AND
ASSOCIATECOMMISSIONER FOR STUDENT FINANCIAL AID
Joint Working Meeting
State Board of Regents & Institutional Boards of Trustees
July 30, 2015

2. Utah Higher Education Assistance Authority
Established in 1977, UHEAA is the student loan and financial aid
organization of the Utah State Board of Regents.
UHEAA employment
• 253 employees
Student loan servicing portfolio
• $4.9 billion for 348,000 student borrowers
Outreach and community service
• 11,000 students, parents, and counselors attended UHEAA’s free
“How to Pay for College” workshops in last 12 months.
UHEAA Grants for needy students (from UHEAA revenues)
• $11.4 million
• 12,550 students
July 30, 2015 – David A. Feitz Board of Regents 2

3. Financial aid program administration and
scholarship support
Administrative Support
• Success Stipend – state grant program
• Matching fund administration
• Veterans Tuition Gap Program
• Minority Scholarship
• Utah Engineering and Computer Science
Scholarship Program
Financial support
• Regents’ Scholarship
• New Century Scholarship
July 30, 2015 – David A. Feitz Board of Regents 3

4. UHEAA Board of Directors
• 13-member UHEAA Board
• Four Regents
Marlin Jensen
Bob Marquardt
Harris Simmons
Mark Stoddard (Chair)
July 30, 2015 – David A. Feitz Board of Regents 4
• No state appropriations for UHEAA operating expenses

5. $208.2 million in borrower benefits
• Public service mission: UHEAA’s revenues benefit students
July 30, 2015 – David A. Feitz Board of Regents 5
$2.0
$2.9
$4.7
$6.3
$9.4
$12.3
$14.7
$18.3
$21.9
$17.6
$16.1$15.8
$13.0
$11.5$11.0$10.7$10.3
$9.5
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total Savings Using Borrower Benefits

6. UHEAA’s low cohort default rates
July 30, 2015 – David A. Feitz Board of Regents 6
5.2
6.7 7.0
13.4
14.7
13.7
2.8
2.1 1.9
4.8
4.4 4.7
2008 2009 2010 2011 2013 2014
Reporting Year
National Average UHEAA FFELP Portfolio
FormulaChange:
2-yearto3-yearreportingperiod

7. How do students pay for college?
July 30, 2015 – David A. Feitz Board of Regents 7
Savings
Work
Success
Stipend
Loans
Scholarships
Family
Support
Pell
Grants

8. Best advice for paying for college
1. Save for college
2. Grants & scholarships
3. Work Study
4. Federal loans
5. Supplemental loans
July 30, 2015 – David A. Feitz Board of Regents 8

9. Pell Grants: largest grant program for students
Named after the late Senator from
Rhode Island, Claiborne Pell
Funds do not have to be repaid
Undergraduate only
12 semesters of full-time enrollment
Maximum award in 2015-16: $5,775
Apply by completing the Free Application for Federal
Student Aid (FASFA)
Board of RegentsJuly 30, 2015 – David A. Feitz 9

10. Pell Grant volume for Utah schools
Board of Regents 10
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
NumberofRecipients
Millions
Award Year
Volume Recipients
July 30, 2015 – David A. Feitz
Source: U.S. Department of Education
$408 million to
114,000 students

11. Pell Grant volume in Utah
July 30, 2015 – David A. Feitz Board of Regents 11
41,177
recipients
in 2000
114,259
recipients
in 2014
Number of Utah students receiving
Pell increased nearly 3 times
from 2000 to 2014

12. Top ten highest Pell volume schools in Utah for
the 2013-14 award year
Board of Regents 12
Source: U.S. Department of Education Title IV program volume reports as of 1-10-15
School Recipients Disbursements
1 Western Governors University 18,483 $ 66.0 M
2 Utah Valley University 13,463 $ 47.7 M
3 Brigham Young University 11,217 $ 46.2 M
4 Salt Lake Community College 13,236 $ 39.3 M
5 Utah State University 10,030 $ 37.1 M
6 University of Utah 8,368 $ 31.5 M
7 Stevens Henager College 8,330 $ 30.9 M
8 Weber State University 8,334 $ 28.8 M
9 Dixie State University 4,530 $ 16.7 M
10 Southern Utah University 3,062 $ 12.2 M
July 30, 2015 – David A. Feitz

13. Utah Pell Grant volume by school type
July 30, 2015 – David A. Feitz Board of Regents 13
Public
Colleges &
Universities
(USHE)
$218.9 M
54%
Public
UCAT
$4.8 M
1%
Private
Nonprofit
$118 M
29%
Proprietary
For-Profit
$66.4 M
16%
2013-14 Award Year Ending June 30, 2014

14. 2013-2014: Percent of students receiving Pell Grant
School
Percent
Receiving
Grants
Dixie State University 56%
Utah Valley University 44%
LDS Business College 42%
Southern Utah University 41%
Utah State University 40%
Salt Lake Community College 38%
Brigham Young University 37%
Snow College 33%
Weber State University 33%
University of Utah 29%
Westminster College 27%
Board of Regents 14
Calculations made using data from the U.S. Department of Education, Title IV Program Volume Reports as of January 10, 2015 and
headcount data as reported in the USHE 2014 Data Book, or by individual schools at http://yfacts.byu.edu/Article?id=104, and
https://www.westminstercollege.edu/pdf/institutional_research/Enrollment%20and%20Persistence.pdf
July 30, 2015 – David A. Feitz

15. How much tuition will the maximum Pell Grant of
$5,775 cover in 2015-16?
School
Percent of tuition &
fees paid by Pell
University of Utah 70%
Utah State University 87%
Utah Valley University 107%
Dixie State University 125%
Weber State University 108%
Southern Utah University 92%
Salt Lake Community College 162%
Snow College 166%
Brigham Young University 112%
Westminster College 18%
LDS Business College 183%
Board of Regents 15July 30, 2015 – David A. Feitz
Percentages are based on full-time enrollment, or 15 credit hours each semester for two semesters, for resident students as
applicable, according to each school’s website as of July 21, 2015.

16. Congressional proposals: Mixed message
More Pell
 Restoring the year-round Pell Grant
 One six-year grant that students can
draw from at any time until the money
is spent
Less Pell
 House 2016 budget proposal to
freeze Pell funding for 10 years
Everyone agrees
 Simplify FAFSA from over 100
questions to as few as two
 Eliminate FAFSA and use tax data
July 30, 2015 – David A. Feitz Board of Regents 16
Year 1 Year 2 Year 3 . . .

17. Two concerns of financial aid directors
1. Increasing number of students using
Pell Grants for remedial course work
• Up to 30 hours of remedial study is eligible
for Pell.
2. Students who have made multiple
major changes
• Exhausted Pell eligibility and haven’t yet
earned a degree
Pell grant lifetime eligibility is limited to
12 full-time semesters.
July 30, 2015 – David A. Feitz Board of Regents 17

18. Student loans: The largest source of student
financial aid
Pell Grant and Federal Student Loan use in Utah for the
2013-14 award year: $1.23 Billion
July 30, 2015 – David A. Feitz Board of Regents 18
$820
Million
67%
$408
Million
33%
Loans Pell Grants

19. Top ten highest loan volume schools in Utah for
2013-14 award year
School Amount
1 WESTERN GOVERNORS UNIVERSITY $ 203.5 M
2 UNIVERSITY OF UTAH $ 136.2 M
3 STEVENS HENAGER COLLEGE $ 77.9 M
4 UTAH VALLEY UNIVERSITY $ 67.7 M
5 UTAH STATE UNIVERSITY $ 60.0 M
6 BRIGHAM YOUNG UNIVERSITY $ 52.1 M
7 WEBER STATE UNIVERSITY $ 46.6 M
8 SALT LAKE COMMUNITY COLLEGE $ 30.5 M
9 DIXIE STATE UNIVERSITY $ 22.8 M
10 WESTMINSTER COLLEGE $ 20.8 M
July 30, 2015 – David A. Feitz Board of Regents 19
Source: U.S. Department of Education Title IV program volume reports as of 1-10-15

20. Student loans: The largest source of student
financial aid
• One in five American households has education debt
July 30, 2015 – David A. Feitz Board of Regents 20
Source: http://www.pewresearch.org/fact-tank/2013/07/01/2428455/

21. Student loans: Largest source of household debt
July 30, 2015 – David A. Feitz Board of Regents 21
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

22. Average student loan debt burden
July 30, 2015 – David A. Feitz Board of Regents 22
National average debt for
graduating seniors: $28,400
Utah average debt for
graduating seniors: $22,418
- 21% less than national average
52% of Utah college graduates had student loans: 17% less
than national average
Calculations by the Project on Student Debt, based on data from Thomson Peterson’s Undergraduate
Financial Aid and Undergraduate Databases. http:http://ticas.org/posd/map-state-data-2014

23. Payment on average Utah student loan debt
• $22,418 balance
• 4.29% interest rate
• 10-year repayment period
Monthly payment = $230.07
July 30, 2015 – David A. Feitz Board of Regents 23

24. • What new car could you buy for $22,418?
• Importance of teaching
financial literacy
• The value of a car depreciates
• Education Pays: The value of a college degree appreciates
• Approximately $1 million more lifetime earnings with a 4-year
degree over a high school diploma*
• Borrow wisely: consistent with earnings potential
July 30, 2015 – David A. Feitz Board of Regents 24
Perspective: The price of a new car
Ford Fusion
*Source: Current Population Survey, U.S. Bureau of Labor Statistics, U.S. Department of Labor

25. Reality of borrowing patterns
July 30, 2015 – David A. Feitz Board of Regents 25
Only 4.2% of
borrowers
have balances
greater than
$100,000
Press stories of extremely high debt levels are the exception.
Source: FRBNY Consumer Credit Panel / Equifax
38.8%
28.5%
18.5%
10.1%
2.4% 1.0% 0.8%
$1-$10,000
$10,000-$25,000
$25,000-$50,000
$50,000-$100,000
$100,000-$150,000
$150,000-$200,000
$200,000+

26. Who defaults? Students who don’t complete
July 30, 2015 – David A. Feitz Board of Regents 26
Source: National Center of Education Statistics Beginning Postsecondary Students Survey 2004/09
Educational attainment of students who default, as of 2009.
Only 1.1% of
students
who earned
a bachelor’s
degree
defaulted
1.1% 2.4%
24.7%
8.9%62.9%
Bachelor's Degree
Associate's Degree
Certificate
Still Enrolled
Did Not Complete

27. Student loans – National political debate
1. Proposal for “free,” no-debt
education
2. Proposal that colleges and
universities have “skin in the
game”
a. Pay for a percentage of defaults
b. Allow institutions to limit
borrowing for some students
July 30, 2015 – David A. Feitz Board of Regents 27

28. One day at the gas station . . .
July 30, 2015 – David A. Feitz Board of Regents 28

29. David A. Feitz, Executive Director UHEAA  60 South 400 West  Salt Lake City, UT 84101  (801) 321-7210  dfeitz@utahsbr.edu
STUDENT DEBT & IMPACT OF PELL GRANTS
DAVID A.FEITZ
EXECUTIVEDIRECTOR OF UHEAA, AND
ASSOCIATECOMMISSIONER FOR STUDENT FINANCIAL AID
Joint Working Meeting
State Board of Regents & Institutional Boards of Trustees
July 30, 2015