After my earlier post about the history behind the incentive compensation ban and later "safe harbors",
I thought it would be interesting to analyze the historical distribution of federal student loan dollars and how it has varied by school type over the past decade. Here are the figures for the 1990-2000 period (which include FFEL for the ten year period and DL from 1997-2000), which show proprietary schools share of federal student loan volume dropping from a high of 24.2% in 1990 to a low of 9.4% in 1997.
| Fiscal Yr. |
Public
4-year |
Private
4-year |
Public
2-year |
Private
2-year |
Proprietary |
| 1990 |
34.4% |
34.2% |
5.4% |
1.8% |
24.2% |
| 1991 |
37.7% |
36.0% |
5.8% |
1.7% |
18.7% |
| 1992 |
40.0% |
36.7% |
6.0% |
1.8% |
15.5% |
| 1993 |
43.3% |
37.7% |
5.8% |
1.7% |
11.5% |
| 1994 |
42.4% |
39.8% |
5.6% |
1.6% |
10.6% |
| 1995 |
38.1% |
42.6% |
6.3% |
1.8% |
11.2% |
| 1996 |
36.2% |
44.5% |
6.3% |
1.9% |
11.1% |
| 1997 |
45.8% |
39.0% |
5.1% |
0.7% |
9.4% |
| 1998 |
45.2% |
39.2% |
5.0% |
0.7% |
9.9% |
| 1999 |
44.1% |
39.2% |
4.7% |
0.7% |
11.3% |
| 2000 |
43.6% |
39.2% |
4.5% |
0.6% |
12.0% |
Continue reading "Share of Federal Loans Taken Out By Proprietary (For-Profit) School Students Near 20 Year High " »
From the FSA Data Center, here are the top 20 schools based on their federal loan disbursements for the 2008-09 academic year. Figures below are in millions of dollars. I thought it would also be interesting to chart the growth of each of these institutions over the past three years. Their growth over the 2006-07 to 2008-09 period are provided in the last column:
|
|
|
Academic Year |
|
|
| |
|
|
|
|
|
|
| School |
Type |
2006-07 |
2007-08 |
2008-09 |
|
Change
|
| UNIVERSITY OF PHOENIX |
Prop. |
2,228.0 |
3,006.5 |
3,593.3 |
|
61.3% |
| DEVRY UNIVERSITY |
Prop. |
390.4 |
417.1 |
741.7 |
|
90.0% |
| ITT TECHNICAL INSTITUTE |
Prop. |
430.7 |
565.5 |
736.8 |
|
71.1% |
| KAPLAN UNIVERSITY |
Prop. |
248.6 |
419.2 |
603.3 |
|
142.6% |
| NOVA SOUTHEASTERN
UNIVERSITY |
Private |
414.3 |
477.0 |
493.5 |
|
19.1% |
| PENNSYLVANIA STATE
UNIVERSITY |
Public |
368.7 |
396.3 |
483.5 |
|
31.2% |
| NEW YORK UNIVERSITY |
Private |
329.5 |
385.6 |
456.0 |
|
38.4% |
| WALDEN UNIVERSITY |
Prop. |
334.7 |
449.1 |
407.3 |
|
21.7% |
| STRAYER UNIVERSITY |
Prop. |
277.9 |
399.6 |
391.8 |
|
41.0% |
| ASHFORD UNIVERSITY |
Prop. |
67.9 |
191.5 |
389.5 |
|
473.9% |
| CAPELLA UNIVERSITY |
Prop. |
235.7 |
309.3 |
378.4 |
|
60.5% |
| UNIVERSITY OF SOUTHERN
CALIFORNIA |
Private |
300.0 |
325.3 |
353.6 |
|
17.9% |
| MICHIGAN STATE
UNIVERSITY |
Public |
221.3 |
243.8 |
295.9 |
|
33.7% |
| ARIZONA STATE UNIVERSITY |
Public |
197.3 |
215.0 |
295.5 |
|
49.8% |
| OHIO STATE UNIVERSITY
(THE) |
Public |
296.6 |
334.2 |
293.5 |
|
-1.1% |
| EVEREST COLLEGE |
Prop. |
152.3 |
202.7 |
285.1 |
|
87.1% |
| AMERICAN INTERCONTINENTAL
UNIVERSITY |
Prop. |
276.0 |
254.7 |
284.7 |
|
3.1% |
| UNIVERSITY OF MINNESOTA -
TWIN CITIES |
Public |
235.1 |
248.5 |
278.4 |
|
18.4% |
| GRAND CANYON UNIVERSITY |
Prop. |
127.1 |
283.3 |
272.2 |
|
114.2% |
| TEMPLE UNIVERSITY |
Public |
209.1 |
249.8 |
269.1 |
|
28.7% |
Continue reading "Which Schools Have The Largest Annual Federal Loan Volumes?" »
I thought I would provide a preview to the results of the recent SLA 2009 Flash Survey on Financial Literacy programs (should have it completed by tomorrow). So, what you would expect if you asked almost 100 FAAs the following question?:
What source(s) would you recommend for a financial aid administrator interested in developing a financial literacy program for his/her institution? Please include any educational institutions that you are aware of that have stellar programs.
NEFE's CashCourse stood out atop this list with 15 mentions, which isn't surprising since their website lists over 313 participating universities. Given the small sample size, please don't extrapolate market shares based on the figures below. I find the diversity of options the more interesting finding of this survey, with almost 50 recommended programs identified by the almost 100 respondents to this question. The market has clearly not coalesced around two to three standard financial literacy programs but instead has relied on a rich array of non-profits, lenders, guarantors, universities and government as the primary sources of content. The College Access and Completion Innovation Fund in SAFRA is expected to provide hundreds of millions of dollars to states and institutions to specifically fund financial literacy programs so this fragmentation may continue. This information on the financial literacy providers will be helpful also as SLA develops a comprehensive list of financial literacy resources (click on link for more details about this project).
Here are the providers mentioned by the respondents to the open-ended question in the SLA 2009 Flash Survey on Financial Literacy:
Continue reading "Which Financial Literacy Programs Are Most Popular With The Financial Aid Community?" »
I saw the results of the NASFAA survey this morning which showed how financial needs of families with college-bound students continue to grow. This survey analyzed financial aid applications, Pell Grants, aid appeals and institutional aid as markers for this trend.
With the increased access to databases on the FSA Data Center, I thought that it would be interesting to analyze trends at the school level for FAFSA filings, Pell Grants and federal loans.
Part 1 of this analysis will look at financial aid applications (also known as FAFSAs filed):
FAFSA Analysis
Continue reading "Trends in Financial Aid Applications At School Level: For-Profits See Large Increases" »
The short answer: more recipients getting larger grants. I ran some numbers off of the FSA Data Center site to analyze Pell Grant trends over the past three years:
| Academic
Year |
Recipients |
Disbursements |
$/Recipient |
| 2008-09 |
6,259,471 |
$18,139,589,869 |
$2,898 |
| 2007-08 |
5,684,582 |
$14,666,078,963 |
$2,580 |
| 2006-07 |
5,289,141 |
$12,791,917,984 |
$2,419 |
|
|
|
|
| Year-Over-Year Growth |
|
|
|
| 2008-09 |
10.1% |
23.7% |
12.3% |
| 2007-08 |
7.5% |
14.7% |
6.7% |
|
|
|
|
| School Mix |
2008-09 |
2007-08 |
2006-07 |
| Public |
62.1% |
63.6% |
64.8% |
| Proprietary |
23.5% |
20.9% |
19.3% |
| Private |
14.4% |
15.5% |
15.9% |
--------------------------
Insights:
- The 23.7% increase in Pell Grant disbursements for 2008-09 was driven by a 10.1% increase in recipients to 6.3 million and a 12.3% increase in the average grant size to $2,898.
- Proprietary schools saw the sharpest increase in Pell Grant disbursements over the past three years, rising from a 19.3% share of Pell Grants in 2006-07 to 23.5% in 2008-09.
Continue reading "What's Behind Sharp 23.7% Increase In Pell Grants In 2008-09?" »
I came across this article in the Phoenix New Times "Arizona Leads Nation in Student Loan Defaults" and thought that I would see how all the other states stacked up. I thought it would be instructive to see what percentage of borrowers in repayment came from for-profit schools since they tend to default at higher rates. In fact, as you will see Arizona has the highest percentage of borrowers at for-profit schools, primarily driven by the fact that all of the University of Phoenix campuses, the largest for-profit in the country, are captured under one OPEID, which is based in Arizona. Note that the upper Midwest states (the Dakotas, Minnesota and Wisconsin) have four of the five lowest cohort default rates.
Here are the 50 states and DC ranked by 2007 cohort default rate from highest to lowest:
Continue reading "How Does Your State Stack Up On the Federal Loan Default Charts? " »
Moody's says "No." Here is a summary of a report they released today:
"If
passed in substantially its current form, the Student Aid and Fiscal
Responsibility Act (SAFRA) moving through Congress would not affect the
ratings of the vast majority of outstanding Federal Family Education
Loan Program (FFELP) student loan transactions, says Moody's Investors
Service in a new report. Loans serviced or administered
by small for-profit companies and some not-for-profit corporations
could be affected, though the impact would be mild.
Continue reading "Will Student Loan Reform Legislation Cause Disruptions In Servicing And Administration of Securitized FFELP Loans?" »