Annual Update: Fall 2009

Stephen FarmerOffice of Undergraduate Admissions

Fall 2009 Admissions

Fourth straight record for applications—five-year increase of 21%

Record low admit rate

Yield up 1 point for OOS (to 30%) and 2 points for NC (to 69%)

Entering Class: Academics

2004 2008 2009

Top 10 percent 74.0% 79.1% 79.7%

Top 10 students 38.4% 42.9% 43.8%

Valedictorian/salutatorian 10.4% 13.3% 13.6%

SAT—average 1287 1301 1303

—middle 50% 1210–1380 1210–1390 1210-1410

—1400+ 744 876 955

Entering Class: Demographics

Gains in diversity parallel gains in academics

19% first-generation college, 7% fee waiver

2% international

97 NC counties, 44 states, 21 countries

Men/women still 40/60

Entering Class: Engagement

95 percent served the community

72 percent played a sport

68 percent founded an organization, captained a sport, or served as class, club, or student-body president

60 percent participated in the arts

57 percent traveled outside their home country

26 percent conducted original research

Market Share of Top North Carolinians

Competition for Top North Carolinians

Competition for Out-of-State Students

Competition with Other Flagships

Summary

Strong improvement in the face of intense competition

Economy helped us by highlighting our value

Top students still sought high quality

University-wide recruitment worked

Need- and merit-based aid was crucial

Annual Update:  Fall 2009Office of Scholarships and Student Aid 

Shirley Ort, Associate Provost and DirectorSeptember 2009

The role of the Office of Scholarships and Student Aid (OSSA) is to support the instructional mission of the University by . . .

Removing financial barriers for students

Recognizing and rewarding academic talent

Furthering mutual goals of “equity” and  “excellence,” thereby

Contributing to Carolina’s  “best value” ranking by Kiplinger’s (7th time)

During 2007‐2008 academic year, OSSA disbursed over$225 Million to 15,517 students…

50%50%

Total: $225.2 (In Millions)

Number of Students: 15,517

N=10,394Graduate and Professional: $113.2

Undergraduate: $112.0

N=5,123

Of this amount, the majority of all aid was provided by the federal government . . .

53%

10%

37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Federal State Institutional & Private

$119.4

$22.6

$83.2

Total Aid Distributed to All Students, by Source 2007‐2008, In Millions

A weakening economy

Rising unemployment

Changing demographics

More lenient eligibility criteria for Federalstudent aid

Exclusion of veterans’ benefits as “resources” in the equation of need

“Where are we now?”

The student aid operating environment has changed dramatically this year, attributable to…

As a result, Carolina experienced a 17% increase in applications for need‐based aid this year…a trend that is likely to continue…

0

5,000

10,000

15,000

20,000

25,000

2007-08 2008-09 2009-10 2010-11

Applications

Academic Year 2007‐08 2008‐09 2009‐10 2010‐2011Projected

Number of applications received for need‐based aid

14,612 15,836 18,521 21,670

The number of students who qualified for need‐based aid in 2009‐10 rose dramatically over the prior year . . .

23% increase in number of students with need

26% increase in freshmen with need

28% increase in Carolina Covenant Scholars  

34% increase in Federal Pell Grant recipients

More students than ever applied on time, March 1

These trends place a significant strain on the University to meet the full need of students . . .

Started with a $2.5 million carry‐forward in Trademark revenue (savings from last year)

State EARN grant funds, then cut by $800,000

Acceptance rate on money offered, higher than expected

All available funds spent by the start of school

Many non‐aided late applicants remain in queue

The University has responded thus far by…

providing $465,000 in supplemental money from new tuition receipts (increasing “hold harmless” funding)

authorizing OSSA to borrow against student aid reserves (merit aid payments) if necessary to continue to award aid in 2009‐10

engaging in comprehensive student aid budget planning for the upcoming academic year, 2010‐11

“What lies ahead?”

Looking forward, we expect students and families to exhibit even greater need next year . . . 

“Need” is the difference between what college costs and what families must pay (federal calculation)

Tuition will likely increase in 2010‐11 and health insurance will be added to the cost of attendance

More families are unemployed in 2009 than were in 2008 (eligibility is based on the prior tax year’s income), which means that more will need assistance

These factors will likely put even greater financial pressure on the University going forward . . . 

Economy, not expected to recover quickly

Growth in applications for need‐based aid are expected to continue  at least at this year’s level 

There will be no “carry forward” funds 

State likely to retain tuition revenues, eliminating “hold harmless” grants ($3.3 million or more)

State need‐based aid will be further reduced (total elimination of EARN program, $1.7 million) 

Many more students received institutional grants this year,  as Carolina tried to meet the full need of students with no less than 65% in grants and scholarships . . .  and the numbers will likely grow . . .

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2007-08 2008-09 2009-10 2010-11

Institutional Grants

Academic Year 2007‐08 2008‐09 2009‐10 2010‐2011Projected

Number of Students 4,762 4,901 5,577 6,358

The University has set a high standard in the past, by meeting full need of on‐time applicants with generous grant and scholarship support . . .

Trends in Type of Aid Distributed to Undergraduate Students With Need

Year Grants & Scholarships Loans Work‐Study

1999‐00 54% 45% 1%

2000‐01 57% 42% 1%

2001‐02 63% 34% 3%

2002‐03 63% 35% 2%

2003‐04 62% 35% 3%

2004‐05 63% 35% 2%

2005‐06 64% 34% 2%

2006‐07 68% 30% 2%

2007‐08 70% 27% 3%

Typical Financial Aid Package for Aid‐Eligible Undergraduates Applying On‐Time, 2007‐2008

Loans (27%)

Work-Study (3%)

Grants & Scholarships

(70%)

As a result, over time, fewer students have borrowed  and have borrowed less (after adjusting for inflation), even with tuition increases. . .

Average Cumulative Loan Indebtedness For Graduating Seniors Who Borrowed

Academic Year

% Who Borrowed

Current Dollar Amount Borrowed

What $13,687 in 1999‐2000 is worth this year

1999‐2000 24% $13,687 $13,6872000‐2001 24% $11,156 $14,0762001‐2002 23% $12,314 $14,2992002‐2003 31% $13,291 $14,6252003‐2004 34% $13,579 $15,0142004‐2005 34% $13,801 $15,5232005‐2006 32% $14,487 $16,0242006‐2007 34% $14,912 $16,4802007‐2008 31.5%  $14,936  $17,113

*Note: Debt includes only loans from Federal Title IV loan programs.

Looking ahead, the University must consider various policy options for awarding aid, with the goal of meeting full need while treating similarly‐situated students similarly . . .Options include. . .

Reducing the percentage of need met with grants and scholarships in an effort to serve more students (a “lever” in “packaging” aid)

Asking students to borrow more

Generating new revenues from institutional and private sources for grants and scholarships

Trying to restore state grant funding for students

Conclusion and Discussion:

Maintaining Carolina’s favorable need‐based aid patterns of the past, within this period of economic downturn, will remain an enormous challenge.

3/23 4/24 5/29 6/29 7/25 8/11 EQY

2010 1,604 4,966 10,305 11,861 12,513 12,910

2009 0 2,726 7,325 9,909 10,957 11,502 12,765

2008 0 2,726 8,186 9,983 10,590 10,954 12,004

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Date

Packaged

2010

2009

2008

How Financially Aided Families of NeedyUndergraduates Pay for College at Carolina

Summary, 2007-08

Shirley A. Ort, Associate Provost andDirector of Scholarships and Student Aid

Charges to Undergraduate Students2007- 08

Tuition/FeesTotal Student

Costs

In-State $5,340 $15, 796

Out-of State $20,988 $32,004

(Source: 2007-08 UNC Standard Student Budgets)

Income Data for Parents of Enrolled FreshmenUniversity of North Carolina at Chapel Hill

2007- 08

Income Range Percentage

$200,000+ 17.4

$150,000+ 28.6

$100,000+ 53.9

$75,000+ 69.1

$60,000+ 78.3

$50,000+ 84.2

$40,000+ 89.0

Source: Chapel Hill, Office of Institutional Research and Assessment (CIRP Data)

Family IncomeAmong Aided Needy Dependent Undergraduates

2007- 08

High11% Low

21%

Low-Middle15%

Middle18%

Upper Middle 35%

NumberIncome Expressed as % of

Federal Poverty RateIncome Range for Family

of FourLow 1,044 Up to 150% Less than $30,000 Low-Middle 734 151-220% $ 30,001 to $44,000 Middle 867 221-300% $ 44,001 to $60,000 Upper-Middle 1,689 301-500% $ 60,001 to $100,000 High 516 Greater than 500% $100,001 or more

Note: Dependent Students are those who remain financially dependent on their parents. Family income is parental adjusted gross income.

$7,020

$6,290

$8,860

$7,230

$12,610

$9,620

$14,620

$11,760

$17,030

$14,150

$6,170

$4,220

$3,210

$2,220

$1,590

$30

$130

$380

$660

$810

Grants Loans Work

Average Total AidAmong Aided Needy Dependent Undergraduates

by Family Income Level2007- 08

Average Disbursement

Total Aid Grant Loan Work

$16,550 85% 10% 5%

14,640 80 15 5

13,210 73 24 3

11,580 62 37 1

12,490 51 49 0

Average Need

Carolina met or exceeded the documented need of all aided students within each income range, though sources and types of aid varied.

Need

Need

Need

ow-Middle n=734)

Middle N=867)

Upper-Middle N=1,689)

High N=516)

Low n=1,044)

Need

Need

$800

$2,250

$4,150

$2,890

$3,090

$6,020

$5,960

$5,930

$6,420

$7,330

$140

$180

$2,670

$1,090

$130

High

Upper-Middle

Middle

Low-Middle

Low

Federal State Institutional/Private

Average Grants and Scholarships to Aided Needy Dependent Undergraduates,

by Family Income Level 2007- 08

UNC-Chapel Hill

AverageGrant

Grant As% of

All Aid

$14,150 85%

11,760 80

9,620 73

7,230 62

6,290 51

(n= 1,041)

(n=734)

(n= 866)

(n= 1,667)

(n= 502)

Average Loans to Aided Needy Dependent Undergraduates,

by Family Income Level2007- 08

UNC-Chapel Hill

$950

$1,260

$1,890

$1,600

$1,340

$2,020

$1,700

$870

$340

$2,590

$800

$610

$460

$100

$190

$90

$20

$260

$130

$190

High

Upper-Middle

Middle

Low-Middle

Low

Federal Need Based Federal Non-Need Based Federal Parent Loans Other Loans AverageLoan

Loan As% of

All Aid

$1,590 10%

2,220 15

3,210 24

4,220 36

6,170 49

(n=388)

(n= 359)

(n= 528)

(n= 1,065)

(n= 332)

How Financially Aided Families of Non-Needy Undergraduates Pay for College at Carolina

Summary, 2007- 08

Shirley A. Ort, Associate Provost andDirector of Scholarships and Student Aid

Charges to Undergraduate Students2007- 08

Tuition/FeesTotal Student

Costs

In-State $5,340 $15, 796

Out-of State $20,988 $32,004

(Source: 2007-08 UNC Standard Student Budgets)

Income Data for Parents of Enrolled FreshmenUniversity of North Carolina at Chapel Hill

2007- 08

Income Range Percentage

$200,000+ 17.4

$150,000+ 28.6

$100,000+ 53.9

$75,000+ 69.1

$60,000+ 78.3

$50,000+ 84.2

$40,000+ 89.0

Source: Chapel Hill, Office of Institutional Research and Assessment (CIRP Data)

Family IncomeAmong Aided Non-Needy Dependent Undergraduates

2007- 08

High72%

Low1%

Low-Middle1%

Middle2%

Upper Middle 24%

NumberIncome Expressed as % of

Federal Poverty RateIncome Range for Family

of FourLow 19 Up to 150% Less than $30,000 Low-Middle 13 151-220% $ 30,001 to $44,000 Middle 40 221-300% $ 44,001 to $60,000 Upper-Middle 506 301-500% $ 60,001 to $100,000 High 1,525 Greater than 500% $100,001 or more

Note: Dependent Students are those who remain financially dependent on their parents. Family income is parental adjusted gross income.

$2,000

$2,120

$2,810

$3,480

$5,020

$6,000

$5,330

$3,040

$5,640

$3,070

$0

$0

$0

$0

$0

Grants Loans Work

Average Total AidAmong Aided Non-Needy Dependent Undergraduates

by Family Income Level2007- 08

Average Disbursement

Total Aid Grant Loan Work

$8,090 62% 38% 0%

9,120 38 62 0

5,850 48 52 0

7,450 28 72 0

8,000 25 75 0

ow-Middle n=13)

Middle N=40)

Upper-Middle N=506)

High N=1,525)

Low n=19)

$1,770

$1,700

$2,290

$4,550

$1,000

$480

$440

$150

$260

$30

$0

$40

$160

$80

$2,480

High

Upper-Middle

Middle

Low-Middle

Low

Federal State Institutional/Private

Average Grants and Scholarships to Aided Non-Needy Dependent Undergraduates,

by Family Income Level 2007- 08

UNC-Chapel Hill

AverageGrant

Grant As% of

All Aid

$5,020 62%

3,480 38

2,810 48

2,120 28

2,000 25

(n= 14)

(n=8)

(n= 25)

(n= 268)

(n= 707)

Average Loans to Aided Non-Needy Dependent Undergraduates,

by Family Income Level2007- 08

UNC-Chapel Hill

$150

$210

$3,080

$2,970

$2,090

$1,190

$2,080

$1,440

$690

$710

$160

$150

$810

$2,320 $600

$2,850

$590

$790

$0

$200

High

Upper-Middle

Middle

Low-Middle

Low

Federal Need Based Federal Non-Need Based Federal Parent Loans Other Loans AverageLoan

Loan As% of

All Aid

$3,070 38%

5,640 62

3,040 52

5,330 72

6,000 75

(n=10)

(n= 7)

(n=20)

(n= 366)

(n=1,111)

33

Growth in Number of Recruitment/MeritScholarships Awarded to Freshmen 2000‐01 to 2009‐10

62 60

0

18

33

43

0

31

64 58

0

80

104

132

0

20

40

60

80

100

120

140

Morehead Robertson Carolina Scholars Colonel RobinsonScholars

OtherEndowed/University

Supported

Trademark RevenueSupported

College‐SponsoredNational Merit

2000‐2001 Total 263 2009‐2010 Total 424

34

Comparative Yield Rates:Merit Scholarship Offers (2008‐09 to 2009‐10)

49%51%

63%

86%

31%

57%

38%

45%

32%

43%

73%73%70%

60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CarolinaScholars

Pogue Scholars ColonelRobinsonScholars

Other Academic TrademarkDistinguished

Morehead Robertson2008‐20092009‐2010