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Creating a debt-free education: Quinebaug Valley Community College (QVCC)

Creating a debt-free education: Quinebaug Valley Community College (QVCC). Bob Fernandez Director, Willimantic Center QVCC. Background. Student debt has skyrocketed: In 2003 outstanding loan balances ($240 billion) In 2013 outstanding loan balances (1 trillion dollars)

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Creating a debt-free education: Quinebaug Valley Community College (QVCC)

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  1. Creating a debt-free education: Quinebaug Valley Community College (QVCC) Bob Fernandez Director, Willimantic Center QVCC

  2. Background • Student debt has skyrocketed: • In 2003 outstanding loan balances ($240 billion) • In 2013 outstanding loan balances (1 trillion dollars) • If current student loan trends continue: • 2 trillion dollars by 2025! • 66% of all college seniors now graduate with an average of $26,600, which represents a 41% increase from 1989.

  3. Causes • Sharp decline in state funding for higher education. • Funding on average, has declined 25% since its peak 2000 • Increasing tuition costs • Costs of educational supplies and books • In CT the average STEM text book is between $260-$450 • College fees (ie: Lab and Art fees) on top of already charged college / University fees • For profit large cooperate universities

  4. Result • Federal Reserve Board’s Survey on Consumer Finances estimate: • $53,000 in education debt, leads to a wealth loss of nearly $208,000 • The $1 trillion in outstanding debt, will lead to a wealth loss of $4 trillion for indebted households (not accounting for the default rate) • For minority and low-income borrowers: • Those making less than $30,000 in total family income; • 61% have on average of $30,500 (student loan debt) • 13% have on average over $30,500 (student loan debt) • 27% have no debt

  5. Sources of funding in CT Federal Pell Grant ProgramThese grants, based upon financial need, are intended to be the "foundation" of a financial aid package, and may be combined with other forms of aid to meet the direct cost of education. Generally, Pell Grants are awarded only to undergraduate students who have not earned a bachelor’s or professional degree.

  6. Sources of funding in CT Federal Supplemental Educational Opportunity Grant (SEOG)This program provides grants to eligible students demonstrating financial need. Preference is given to students with exceptional need. Connecticut Aid for Public College Students (CAPS)State of Connecticut grants are awarded to Connecticut resident students who have serious financial need. Grants range up to the direct cost of education (tuition, fees, books) per academic year and are based on satisfactory academic progress, financial need, and the availability of funds.

  7. Sources of funding in CT • Quinebaug Valley Community College Grant ProgramThis State program allows for the remission of tax-supported tuition, fees, and cost of books for resident students who demonstrate substantial financial need. • Tuition set-a-side

  8. Changes • Connecticut Aid for Public College Students (CAPS)Now known as the Governors Scholarship: • Very restrictive for part time students: • Average award now went from standard EFC calculations (ie: 4398) to average of just $250-500 per year. • The 4C’s is working on a legislative fix, this upcoming year • Rewards traditional students, at the expense of working adults, and part-time students • Following Complete College America, of rewarding completion

  9. What QVCC did We are committed to reducing economic barriers to higher education. Financial assistance is provided primarily through federal grants, state grants, scholarships, and work study. More than 65% of QVCC students receive some aid. Population of 1800-2000 students

  10. What QVCC did • In 2006 with the assistance of the President, QVCC stopped processing student loans • Worked with the foundation to establish: • Student Emergency fund (most student loans are used for everyday living expenses or emergencies) • Car repairs • Rent • Primarily used to eliminate a barrier that prevents the student from completing or coming to school • F/A Officers made the determination

  11. What QVCC did • Foundation Science Text fund: • Actively sought donors to fund every increasing text book (especially in science) • Reduced the cost to the student, by not having to allocate the majority of F/A award (in CT max for books and supplies as awarded $600) • Not having to pay that back • F/A officers made the determination

  12. What QVCC did • Foundation annual scholarships: • Every year the QVCC Foundation offers a large number of scholarships to both incoming and current students. More than $90,000 in scholarship money will be awarded May 1, 2013. All students are encouraged to apply. • Scholarship applications are screened by an impartial committee from the QVCC Foundation based on the criteria of the scholarship. • Well over 30% of the student population, received some sort of assistance

  13. Results as of 11/14/2013

  14. Contact Information • Robert Fernandez • (860) 423-1824 • Rfernandez@qvcc.edu • Rfernandez@the4cs.org • Alfred Williams • (860) 412-7219 • Awilliams@qvcc.edu

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