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April 2, 2009 Taos, New Mexico

Educating New Mexico’s Future Today. New Mexico Association of Student Financial Aid Administrators. April 2, 2009 Taos, New Mexico. Overview. State Financial Aid Legislative Updates 3% Gratis Scholarship NMAC Budget Changes Lottery Stats Program Stats Stimulus Funds Annual Report.

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April 2, 2009 Taos, New Mexico

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  1. Educating New Mexico’s Future Today New Mexico Association of Student Financial Aid Administrators April 2, 2009 Taos, New Mexico

  2. Overview • State Financial Aid • Legislative Updates • 3% Gratis Scholarship NMAC • Budget Changes • Lottery Stats • Program Stats • Stimulus Funds • Annual Report New Mexico Higher Education Department Page 2

  3. State Financial Aid • Financial Aid Division is responsible for administering the day-to-day operations of 20 state financial aid programs and managing the distribution of more than $80 million dollars in state programs for 2009-10. • During the 2007-08 academic year, students received over $72 million in state appropriated financial aid and $345 million in federal aid, less than 1% of the $86 billion distributed nationally. In 2007-2008, 40% of New Mexico students who received need-based aid are from families with combined incomes of $10,000 or less. New Mexico Higher Education Department Page 3

  4. NM 2009 Legislative Session • Senate Bill 136 VETERANS WAIVER • House Joint Resolution 11 WAR VETERAN COLLEGE SCHOLARSHIP • Senate Bill 593 UNM MEDICAL SCHOOL WAIVER • Senate Bill 28 3% GRATIS SCHOLARSHIP • House Bill 2 BUDGET Bill Number Bill Title

  5. Senate Bill 136: PROVIDING RESIDENT TUITION ELIGIBILITY FOR VETERANS OF THE UNITED STATES ARMED FORCES AT NEW MEXICO INSTITUTIONS OF HIGHER EDUCATION • SB136 provides veterans, that are not residents of New Mexico, in-state tuition rates on the condition the Veteran uses their federal educational benefits, the Montgomery or 9/11 GI bill, at one of New Mexico’s public post-secondary institutions. • No Appropriation. New Mexico Higher Education Department Page 5

  6. House Joint Resolution 11: WAR VETERAN COLLEGE SCHOLARSHIP • HJR11 amends Article 9, Section 14 of the Constitution of New Mexico to permit the establishment of a college scholarship program for New Mexico military war veterans. The scholarship will be for tuition. • Joint Resolutions must be voted on in the next general election before becoming law. • If voters pass this resolution, the scholarship will be available to military war veterans who served beginning August 1, 1990 to present day to those Veterans who have exhausted their GI educational benefits. • No Appropriation.

  7. SB593: UNM School of Medicine Tuition Waiver • SB593 creates the Conditional Tuition Waiver for Primary Care Medical Students Act to become effective January 2010. • The Act provides the opportunity each year for 10 students to attend the University of New Mexico's School of Medicine (UNM SOM) and have tuition and fees waived for a period up to five years, and to provide a reasonable living stipend if and when funds may become available, • The condition is for every year of tuition waived they will provide service as a licensed primary care physician in an underserved area of New Mexico as defined by the Rural Primary Care Health Care Act. • Not need-based • No Appropriation

  8. Senate Bill 28: 3% GRATIS SCHOLARSHIP Senator Mary Jane Garcia introduced Senate Bill 28 which proposed to require 100% of 3% Gratis Scholarships to need-based scholarships. After a Senate Education Committee amendment, a two-thirds requirement passed both houses. Governor Richardson signed SB28 into law. Senate Bill 28 shifts the distribution of the 3% Gratis Scholarship to more need-based financial aid which is a weak area for New Mexico when compared to other state aid priorities. New Mexico Higher Education Department Page 8

  9. SB28 Implementation Schedule • Fall 2009 - No change; one-third of scholarships awarded must be need-based • Fall 2010 - One-half must be need-based awards • Fall 2011 - Two-thirds must be need-based awards

  10. What’s Ahead for 3%?Administrative Code Drafting Team • Need 3 – 4 Financial Aid Directors to assist in the drafting of the NMAC. • Rules to follow legislation • Reporting requirements • Tentative Drafting Timeline – • April – July: Draft Rules • August: Public Hearing • September: NMAC Adopted and Posted

  11. 3% Gratis Scholarship Benefits to Students • $950 per student • 9,100 students served • The 3% Gratis Scholarships come from taxpayer funds • Senate Bill 28 opens college doors for approximately 40% of our total degree-seeking undergraduate population. • With the expected rise in tuition rates and with unemployment rates rising steadily, this legislation provides a financial safety net 50% of all students who enter college do not complete their bachelor degrees – HED is working to ensure state funds are available to the low to moderate income families. New Mexico Higher Education Department Page 11

  12. Approved Budget New Mexico Higher Education Department Page 12

  13. Budget Snapshot: Relevant to Institutions New Mexico Higher Education Department Page 13

  14. Lottery Scholarship Update Nearly 30% of the Legislative Lottery Scholarship recipients also received a federal Pell grant in 2007-2008. • Since inception, 54,458 students have received $239,662,418 in Legislative Lottery Scholarships. • Historically, Lottery revenues exceeded expenditures and we do not expect this year to be any different. Therefore we do not draw from the Lottery Fund’s healthy balance of $68 million. New Mexico Higher Education Department Page 14

  15. New Mexico Higher Education Department Page 15

  16. New Mexico Higher Education Department Page 16

  17. “What Does the Increase in Pell Grants and Work Study Mean for New Mexico?” New Mexico Higher Education Department Page 17

  18. Pell Grant – How does ARRA help? Award Year 2009-2010 – $4,360 (discretionary FY08 base of $4,241 + FY09 discretionary increase of $119) + $500 (stimulus supplemental appropriation) + $490 (CCRAA mandatory add-on) = $5,350 max award Award Year 2010-2011 – $4,360 (discretionary FY08 base of $4,241 + FY09 discretionary increase of $119 and assuming no discretionary FY10 increase) + $500 (stimulus supplemental appropriation)+ $690 (CCRAA mandatory add-on) = $5,550 max award New Mexico Higher Education Department Page 18

  19. Federal Work Study – Key Targets • An estimated 632 additional students benefit per school statewide each academic year • Annual award expected to return to $2,250 per student earning $7.50/hr for 300 hours New Mexico Higher Education Department Page 19

  20. Pell Grants help tip the scale • According to the most recent census data, in New Mexico there are 344,050 people living in poverty. • We know that 43,000 students received the Pell grant in 2007-2008 – that is 71% of students who filled out the FAFSA. • The Pell Grant was increased to $5,350 in 2009-10 and to $5,550 in 2010-11. New Mexico Higher Education Department Page 20

  21. In the Works - A Major Financial Aid Research Project • Goals: • To better understand the demographic characteristics of students in New Mexico’s 33 counties, including sample characteristics and outcome variables below. • To better understand the relationship between geographic place of origin (urban vs. rural) and educational success • Research Question: • How does geographic location relate to access to higher education? • Outcome variables: • High school graduation • Initial enrollment in a higher education institution • Filling out a FAFSA (1st year) • Degree attainment (cert-grad degree) • A measure of employment outcome New Mexico Higher Education Department Page 21

  22. Annual Report A taste of what’s in the Annual Report…… • HED division reports with supporting statistics • Available as PDF on HED website or by stopping by… • 50% of students attending two-year institutions and 80% of four-year institutions borrowed an average of $5,000 per year to help with costs of attendance. • 42% of first time freshman in New Mexico complete a bachelor’s degree within six years (35% Hispanics, 25% of Native Americans and 47% whites) • In 35 states including New Mexico, more than 60% of the population does not have an associate’s degree or higher. New Mexico Higher Education Department Page 22

  23. Educating Our Community: Positive Results • The typical college graduate working full-time year-round pays about 134 percent more in federal taxes and almost 80 percent more in total federal, state and local taxes than the typical high school graduate. • College graduates are more likely than others to donate blood. • In every age group, adults with higher levels of education are more likely to vote. • Adults with higher levels of education are more likely than others to be open to differing opinions. • Workers with lower education levels earn more if others in the same metropolitan area are more educated. • College graduates are much less likely than individuals with lower levels of education to be unemployed, rely on public assistance programs, or live in a poverty-level household. • Among all racial/ethnic groups, unemployment rates are much lower for college graduates than for high school graduates. Source: College Board’s Benefits of Higher Education for Individuals New Mexico Higher Education Department Page 23

  24. How to Contact the Higher Education Department Financial Aid Division Hotline 1-800-279-9777 Or visit online at: http://hed.state.nm.us 2048 Galisteo Street Santa Fe, NM 87505-2100 New Mexico Higher Education Department Page 24

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