1 / 25

Debt Analysis 101

2013 RMASFAA Annual Conference Joel Laos and Michael Murphy Denver Seminary J. Debt Analysis 101. Welcome to. Location : Littleton, CO Population : 1,000+ students, 109 faculty/staff Type : Private, Graduate only Tuition : $530/credit for 2013-14

shilah
Download Presentation

Debt Analysis 101

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2013 RMASFAA Annual Conference Joel Laos and Michael Murphy Denver Seminary J Debt Analysis 101

  2. Welcome to Location: Littleton, CO Population: 1,000+ students, 109 faculty/staff Type: Private, Graduate only Tuition:$530/credit for 2013-14 Ave 4.7% annual increase Primary Degrees:Master of Divinity (97 credits) Master of Arts (62 credits) Financial Aid: Federal loans, work study, institutional grants/scholarships, veterans benefits 55% participation 11.2% institutional discount rate $39k ave graduating debt per borrower

  3. The national rate of tuition inflation is second only to health care • Student loan amounts have increased at 1.5x the rate of the national cost of education, nearing $1 trillion

  4. Denver Seminary’s average tuition has increased 47% over the past 10 years, representing an average 4.7% increase per year

  5. Our institutional discount rate has remained steady at only 11%

  6. Denver Seminary’s graduating debt has risen 64% over the past 10 years

  7. Our most-recent default rate is 7.6% below the national average

  8. Left unchecked, 10 years from now average graduating debt will increase 80% • Over a 20-year period average graduating debt will have increased 182%

  9. Tuition has increased at twice the rate of inflation since 2001 • For every 1% increase in tuition, average graduating debt increases 1.12%

  10. In order to stay at the recommended 10% educational debt-to-income ratio, the salary required to service the average graduating debt currently exceeds the average salaries for associate pastors, counselors/chaplains and youth/worship pastors • In 10 years, the required salary for the projected graduating debt will exceed all positions

  11. What are we doing about it? • Increasing Financial Literacy • Loan Management page DenverSeminary.edu/FinancialAid

  12. What are we doing about it? • Increasing Financial Literacy • Loan Management page DenverSeminary.edu/FinancialAid • Before You Borrow • Anticipate your income • Know your limits

  13. What are we doing about it? • Increasing Financial Literacy • Loan Management page DenverSeminary.edu/FinancialAid • Before You Borrow • Anticipate your income • Know your limits • Understand your loan • Integrate your budget • Know What You Owe • Visit and bookmark NSLDS • Revisit and keep track • Anticipate Repayment • Prepare • Transition • Repay

  14. What are we doing about it? • Increasing Financial Literacy • Loan Management page • Award Letter: • Customized loan offers • The initial student loan offer is customized to the student’s actual net tuition and fees.

  15. Customized Loan Offers

  16. Customized Loan Offers

  17. What are we doing about it? • Increasing Financial Literacy • Loan Management page • Award Letter: • Customized loan offers • Debt literacy statement

  18. Debt Literacy Statement

  19. What are we doing about it? • Increasing Financial Literacy • Loan Management page • Award Letter: • Customized loan offers • Debt literacy statement • Additional counseling for high debt levels • Students with aggregate debt of $40k or higher are asked to complete Financial Awareness Counseling through StudentLoans.gov

  20. What are we doing about it? • Increasing Financial Literacy • Loan Management page • Award Letter: • Customized loan offers • Debt literacy statement • Additional counseling for high debt levels • Webinars and on-campus seminars

  21. The average percentage of the Denver Seminary student body that utilizes student loans has consistently hovered around 45% • Current research: Is the recent decrease reflective of the loss of subsidized loans or of our increased financial literacy efforts? Or perhaps a bit of both?

  22. What has worked for you? • What methods are you using to help mitigate student debt? • What methods have not seemed to produce results?

  23. Contact Michael Murphy Joel Laos Financial Aid Officer Director of Financial Aid FinancialAid@DenverSeminary.edu 303-762-6888 direct 800-922-3040 ext. 1239 toll free

More Related