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Impact of the Economy on Higher Education and Financial Aid

Impact of the Economy on Higher Education and Financial Aid. David Rice St. Louis College of Pharmacy. Top 10 Things Vanishing in America.

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Impact of the Economy on Higher Education and Financial Aid

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  1. Impact of the Economy on Higher Education and Financial Aid David Rice St. Louis College of Pharmacy

  2. Top 10 Things Vanishing in America • 10. The Milkman - According to the U.S. Department of Agriculture, in 1950, over half of the milk delivered was to the home in quart bottles, by 1963, it was about a third and by 2001, it represented only 0.4% percent. Nowadays most milk is sold through supermarkets in gallon jugs. The steady decline in home-delivered milk is blamed, of course, on the rise of the supermarket, better home refrigeration and longer-lasting milk. Although some milkmen still make the rounds in pockets of the U.S., they are certainly a dying breed.

  3. Top 10 Things Vanishing in America • 9. Hand-Written Letters - In 2006, the Radicati Group estimated that, worldwide, 183 billion e-mails were sent each day. Two million each second. By November of 2007, an estimated 3.3 billion Earthlings owned cell phones, and 80% of the world's population had access to cell phone coverage. In 2004, half-a-trillion text messages were sent, and the number has no doubt increased exponentially since then. So where amongst this gorge of gabble is there room for the elegant, polite hand-written letter?

  4. Top 10 Things Vanishing in America • 8. Wild Horses - It is estimated that 100 years ago, as many as two million horses were roaming free within the United States. In 2001, National Geographic News estimated that the wild horse population had decreased to about 50,000 head. Currently, the National Wild Horse and Burro Advisory board states that there are 32,000 free roaming horses in ten Western states, with half of them residing in Nevada. The Bureau of Land Management is seeking to reduce the total number of free range horses to 27,000, possibly by selective euthanasia.

  5. Top 10 Things Vanishing in America • 7. Personal Checks - According to an American Bankers Assoc. report, a net 23% of consumers plan to decrease their use of checks over the next two years, while a net 14% plan to increase their use of PIN debit. Bill payment remains the last stronghold of paper-based payments -- for the time being. Checks continue to be the most commonly used bill payment method, with 71% of consumers paying at least one recurring bill per month by writing a check. However, on a bill-by-bill basis, checks account for only 49% of consumers' recurring bill payments (down from 72% in 2001 and 60% in 2003).

  6. Top 10 Things Vanishing in America • 6. Drive-in Theaters - During the peak in 1958, there were more than 4,000 drive-in theaters in this country, but in 2007 only 405 drive-ins were still operating. Exactly zero new drive-ins have been built since 2005. Only one reopened in 2005 and five reopened in 2006, so there isn't much of a movement toward reviving the closed ones.

  7. Top 10 Things Vanishing in America • 5. Mumps & Measles - Despite what's been in the news lately, the measles and mumps actually, truly are disappearing from the United States. In 1964, 212,000 cases of mumps were reported in the U.S. By 1983, this figure had dropped to 3,000, thanks to a vigorous vaccination program. Prior to the introduction of the measles vaccine, approximately half a million cases of measles were reported in the U.S. annually, resulting in 450 deaths. In 2005, only 66 cases were recorded.

  8. Top 10 Things Vanishing in America • 4. Honey Bees - Perhaps nothing on our list of disappearing America is so dire; plummeting so enormously; and so necessary to the survival of our food supply as the honey bee. 'Colony Collapse Disorder,' or CCD, has spread throughout the U.S. and Europe over the past few years, wiping out 50% to 90% of the colonies of many beekeepers -- and along with it, their livelihood.

  9. Top 10 Things Vanishing in America • 3. News Magazines and TV News - While the TV evening newscasts haven't gone anywhere over the last several decades, their audiences have. In 1984, in a story about the diminishing returns of the evening news, the New York Times reported that all three network evening-news programs combined had only 40.9 million viewers. Fast forward to 2008, and what they have today is half that.

  10. Top 10 Things Vanishing in America • 2. Analog TV - According to the Consumer Electronics Association, 85% of homes in the U.S. get their television programming through cable or satellite providers. For the remaining 15% -- or 13 million individuals -- who are using rabbit ears or a large outdoor antenna to get their local stations, change is in the air. If you are one of these people you'll need to get a new TV or a converter box in order to get the new stations which will only be broadcast in digital.

  11. Top 10 Things Vanishing in America • 1. The Family Farm - Since the 1930s, the number of family farms has been declining rapidly. According to the USDA, 5.3 million farms dotted the nation in 1950, but this number had declined to 2.1 million by the 2003 farm census (data from the 2007 census hasn't yet been published). Ninety-one percent of the U.S. farms are small family farms.

  12. Who is in the ROOM http://www.cnn.com

  13. Why this SESSION

  14. WHY St. Louis College of Pharmacy

  15. Why St. Louis College of Pharmacy • We do ONE THING – Six Year Professional Program • It eliminates the clutter • We’ve been SUCCESSFUL • Quantity & Quality BOTTOM LINE – We SIMPLIFIED the QUESTION: What do STUDENTSNEED

  16. Why St. Louis College of Pharmacy • Students NEED • A PLAN to complete a DEGREE • They need a great VALUE

  17. Why St. Louis College of Pharmacy • We KNOW our students – WHY DO THEY COME • Direct Entry to a professional program …and • We’re close to home… • We’re a small school… and • We developed a PLAN to pay for a DEGREE • We took the FEAR out of Financial Aid with personalized SERVICE

  18. STATE OF THE “UNION” Where are you with your Goals • Do you have good Academic & Financial PLANS? • Quantity & Quality – how do you shape your class • Discount Rate / Budget • Endowment • WHY do students come to your school? • Why do they LEAVE? • Do you look good NOW and in the FUTURE?

  19. HEADLINES - COST Why Does College Cost So Much? (Forbes) "Most of what is written about rising college costs places primary blame on a dysfunctional university system," write David Feldman and Robert Archibald, professors of economics at the College of William and Mary, in Forbes. "Like many large organizations, American universities could be made more efficient, but our review of the evidence convinces us that the primary forces that are driving up costs are not to be found by scouring the account books of colleges for examples of waste. ... Instead of holding up a magnifying glass to the industry, we take an aerial view. The view from above shows us different things. Rising college costs are an important byproduct of broad economic forces that have reshaped the entire economy, and in particular of the technological progress that has so dramatically raised living standards over time." You can read the complete Aug. 12, 2010 Forbes article on-line. http://www.nasfaa.org/publications/2010/awcollegecost081310.html

  20. HEADLINES Discount Rates - NACUBO • Fall of 2008 rose to 41.8 percent, up from 39.1 percent in the previous academic year. • The average discount rate jumped rapidly from 1990 to 2002, rising from 27 percent to 39 percent. But rates had been stable since 2002, hovering around 38 percent. • On average, 12 percent of grant aid in the fall of 2008 came from endowment money. • Endowments worth more than $1-billion paid for 34 percent of grant aid with those endowment assets, compared with 6 percent of grant aid supported by endowment earnings for colleges with endowments valued at $25-million or below. • http://chronicle.com/article/Tuition-Discount-Rate-Hits/64881/

  21. HEADLINES - LOANS FY 2008 Official Cohort Default Rates To Be Released on Sept. 13 • Department officials have been warning institutions that the combination of the economic downturn and the new three-year rates could increase CDRs to surprising levels. • At NASFAA's National Conference, Department officials said that their calculations show the change from a two-year CDR to a three-year CDR will increase cohort default rates anywhere from 30 to 50 percent for most schools. http://www.nasfaa.org/publications/2010/rcdrrelease082510.html

  22. HEADLINES - LOANS New Analysis of Student Loan Repayment Rates (San Francisco Chronicle) "A large percentage of borrowers who left college in the past four years made no principal payments on their federally guaranteed student loans in 2009, according to the Department of Education," the San Francisco Chronicle reports. This is the first time the department has calculated and published repayment rates for every college and university whose students get federal loans. The data, released Aug. 13, should be a wake-up call to taxpayers, who will be on the hook if these loans are never repaid, and to students who wonder whether they'll earn enough to repay them. Repayment rates vary widely from college to college. ... Prospective students who need to borrow for college should take the data into consideration before choosing a school, but it's important to understand them." You can read the complete Aug. 25, 2010 San Francisco Chronicle article on-line. http://www.nasfaa.org/publications/2010/awrepayment082610.html

  23. HEADLINES - LOANS Effects of Debt Level and Income on Default The analysis by Mark Kantrowitz, publisher of Fastweb.com and FinAid.org, shows that • default rates decrease as income increases • with default rates leveling off at less than 2 percent for borrowers with incomes of $60,000 or more. • Default rates are more than 25 percent for borrowers with incomes of $15,000 and just under 15 percent for those making $20,000. http://www.nasfaa.org/publications/2010/rndefault082010.html

  24. HEADLINES - LOANS Student-Loan Debt Surpasses Credit Cards (Wall Street Journal) "Americans owe some $826.5 billion in revolving credit, according to June 2010 figures from the Federal Reserve. (Most of revolving credit is credit-card debt.) Student loans outstanding today-- both federal and private -- total some $829.785 billion, • $605.6 billion in federal student loans outstanding • $167.8 billion in private student loans outstanding. • $300 billion in federal student loan debts have been incurred in the last four years." You can read the complete Aug. 9, 2010 Wall Street Journal article on-line. http://www.nasfaa.org/publications/2010/awdebt081010.html

  25. HEADLINES CO$$$$$$T

  26. TUITION St. Louis College of Pharmacy 1998 TUITION = $12,000 2010 TUITION = $22,400

  27. TUITION PROJECTIONS AVERAGE SALARY 2006 2007 Household $ 50,233 Women $ 33,437 $ 35,102 Men $ 44,460 $ 45,113 http://en.wikipedia.org/wiki/Household_income_in_the_United_States

  28. TUITION PROJECTIONS 2008-09 TUITION % of Household Income Public Two-year $ 2,402 4.8% Public Four-Year $ 6,585 13.1% Private Four-Year $ 25,143 50.1% Private Doctoral $ 31,068 61.8% http://www.collegeboard.com/student/pay/add-it-up/4494.html

  29. TUITION PROJECTIONS 10 Years TUITION % of Household Income Public Two-year $ 3,726 5.5% Public Four-Year $ 10,215 15.1% Private Four-Year $ 39,005 57.8% Private Doctoral $ 48,194 71.4% http://www.collegeboard.com/student/pay/add-it-up/4494.html

  30. TUITION PROJECTIONS 20 Years & 30 Years TUITION % of IncomeTUITION% of Income Public Two-year $ 6,070 6.7% $ 9,887 8.1% Public Four-Year $ 16,640 18.3% $27,105 22.2% Private Four-Year $ 63,535 70.0% $103,492 84.9% Private Doctoral $ 78,502 86.5% $127.872 104.9% http://www.collegeboard.com/student/pay/add-it-up/4494.html

  31. TUITION PROJECTIONS 40 Years & 50 Years TUITION % of IncomeTUITION% of Income Public Two-year $ 16,105 9.8% $26,233 11.9% Public Four-Year $ 44,151 26.9% $71,917 32.7% Private Four-Year $168,578 102% $274,595 124% Private Doctoral $208,290 127% $339,282 154% http://www.collegeboard.com/student/pay/add-it-up/4494.html

  32. TUITION PROJECTIONS 100Years 2107TUITION % of Household Income Public Two-year $ 300,825 31.2% Public Four-Year $ 824,701 85.4% Private Four-Year $3,148,892 326.2% Private Doctoral $3,890,684 403.0% http://www.collegeboard.com/student/pay/add-it-up/4494.html

  33. HISTORY 1643 First scholarship established by Lady Anne Radcliffe Mowlson at Harvard University 1840 First student loan program at Harvard University 1867 Authorized creation of US Department of Education

  34. HISTORY - 1900 POPULATION Avg SALARY WORK WEEK 75 Million $ 12.98 / Week 59 Hours * $48 Million in U.S. Treasury* 8,000 Cars* 10 Miles of paved roads

  35. HISTORY - 1910 POPULATION UNEMPLOYMENT Annual SALARY92.4 Million 2,150,000 $750 $1.15 Million National DebtZiegfeld Girls earned $75 per week

  36. HISTORY - 1920 POPULATION UNEMPLOYMENT Annual SALARY106.5 Million 2,132,000 $1236 Annual Teacher Salary = $970 Life Expectancy Male = 53.6 Years Female = 54.6 Years

  37. HISTORY - 1930 POPULATION UNEMPLOYMENT Annual SALARY123.8 Million 25% $1368 • $100 = $1204.42 (2005 dollars) • New House = $7,145 ($3,800 by 1939) • New Car = $ 640 • Gallon of Gas = 10 cents • Life Expectancy = Male = 53.6 Female = 54.6 • Huey Long proposes minimum national income of $2498

  38. HISTORY - 1940 POPULATION UNEMPLOYMENT Annual SALARY132.1 Million 8,120,000 $1725 • $100 = $1433.77 (2005 dollars) • New House = $3,920 • New Car = $ 850 • Gallon of Gas = 11 cents • Life Expectancy =Male = 60.8 Female = 68.2 • 55% of US homes have indoor plumbing • NATIONAL DEBT = $43 BILLION

  39. HISTORY - 1950 POPULATION UNEMPLOYMENT Annual SALARY151.7 Million 3,288,000 $3,210 • $100 = $ 835.41 (2005 dollars) • New House = $8,450 • New Car = $1,510 • Gallon of Gas = 18 cents • Life Expectancy =Male = 65.6 Female = 71.1 • Labor force male / female 5 / 2

  40. HISTORY - 1960 POPULATION UNEMPLOYMENT Annual SALARY177.8 Million 3,852,000 $5,315 • $100 = $ 679.09 (2005 dollars) • New House = $12,700 • New Car = $ 2,600 • Gallon of Gas = 25 cents • Life Expectancy = Male = 66.6 Female = 73.1 • Estimated 850,000 “war baby” freshman enter college • NATIONAL DEBT = $286.3 BILLION

  41. HISTORY - 1960 http://www.time.com/time/photogallery/0,29307,1638066_1398331,00.html

  42. HISTORY - 1960 http://www.time.com/time/photogallery/0,29307,1638066_1398331,00.html http://www.time.com/time/photogallery/0,29307,1638066_1398351,00.html

  43. HISTORY - 1960 http://www.time.com/time/photogallery/0,29307,1638066_1398331,00.html

  44. HISTORY - 1960 http://www.time.com/time/photogallery/0,29307,1638066_1398331,00.html

  45. HISTORY - 1960 http://www.time.com/time/photogallery/0,29307,1638066_1398331,00.html

  46. The Great Society The Great Society is a place where every child can find knowledge to enrich his mind and to enlarge his talents. http://www.time.com/time/photogallery/0,29307,1638066_1398331,00.html

  47. The Great Society Higher Education Act of 1965, PL89-329 Authorized most federal student financial aid programs, including the • Educational Opportunity Grant Program • Guaranteed Student Loan Program

  48. The Great Society

  49. HISTORY - 1970 POPULATION UNEMPLOYMENT Annual SALARY204.8 Million 4,088,000 $9,350 • $100 = $ 517.65 (2005 dollars) • New House = $23,400 • New Car = $ 3,900 • Gallon of Gas = 36 cents • Life Expectancy = Male = 67.1 Female = 74.8 • NATIONAL DEBT = $382 BILLION

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