AccessUVa Program
Recommendation
Pat Hogan and Megan Lowe
Presentation to the University of Virginia Board of Visitors
August 2, 2013
Presentation Outline
• AccessUVa Background
• Program Review
• Program Recommendation
• Next Steps
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AccessUVa Program
• Four main components to the program, as it
was conceived in 2004:
• Met 100% of financial need
• Provided all-grant aid for low-income students
• Capped need-based loans
• Included financial literacy education and debt
management strategies
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AccessUVa Program Benefits
• Increased socioeconomic diversity of the undergraduate
student population
• Reduced the rate of growth of student debt
• Met 100% of need for any student with financial need
• Brought the University significant acclaim as the:
• premiere need-based aid program for a public institution in
the United States
• national leader in issues of college access and affordability
• The success of AccessUVa has allowed the University to
continue to admit prospective students based on merit and
not ability to pay.
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Undergraduate Students with Need
36%
34%
32%
30%
28%
26%
24%
22%
20%
Fall
1996
Fall
1997
Fall
1998
Fall
1999
Fall
2000
Fall
2001
Fall
2002
Fall
2003
Fall
2004
Fall
2005
Fall
2006
Fall
2007
Fall
2008
Fall
2009
Fall
2010
Fall
2011
Fall
2012
Fall Head Count Students with Need As Percent of Related Population
Percent of All Undergraduate Students With Need
Percent of In-state Undergraduate Students With Need
Percent of Out-of-state Undergraduate Students With Need
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AccessUVa – Sources of Funds
2008-09 Academic Year
SelfHelp:
$12
million
20%
Other
Grants:
$26
million
44%
Unrestricted
Institutional
Grants:
$21 million
36%
Total: $59 million
2012-13 Academic Year
SelfHelp,
$20
million
21%
Other
Grants,
$32
million
35%
Unrestricted
Institutional
Grants:
$40 million
44%
Total: $92 million
Unrestricted Institutional Grants – Includes tuition revenue-funded grants
Other Grants – Includes federal, state and private grants, as well as UVa endowment grants (private
donor-funded, restricted grants)
Self Help – Includes all loans and work-study
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AccessUVa Institutional Cost by Family
Income (in $ millions)
45.0
40.0
$38.4
35.0
$5.1
$32.3
Millions
$26.0
25.0
$21.1
20.0
10.0
5.0
$5.2
$3.9
30.0
15.0
$40.2
$16.6
$11.5
$1.1
$4.4
$14.2
$1.3
$1.1
$1.7
$7.9
$22.5
$3.8
$2.6
$8.7
$7.3
2004-05
2005-06
$13.9
$11.0
$9.6
$5.7
$5.6
$6.0
$13.7
$19.6
$21.1
2011-12
2012-13
$17.4
$9.8
$11.5
$11.2
$12.6
2006-07
2007-08
2008-09
2009-10
-
Low
Middle
2010-11
High
Low:
Middle:
High:
$0 - $46,100
$46,101 - $92,200
$92,201 and above
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AccessUVa First-Year Student Profile
Virginians:
66.1% (all first-year students 65.2%)
Non-Virginians:
33.9% (all first-year students 34.8%)
SAT:
1304
(all first-year students 1349)
GPA:
3.16
(all first-year students 3.26)
Retention
97.1% (all first-year students 97.4%)
Graduation Rate:
88.9% (entire first-year cohort 93.3%)
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Program Review
• Art & Science Group LLC was hired at the end of
2011 to assess the effects of financial aid on the
admissions process and outcome.
1. Financial Aid Optimization Study
2. Peer Benchmarking Study
3. Prospective Student Survey
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Key Study Findings
• UVa’s aid program is generous for a public institution
• UVa’s prospects are more sensitive to changes in aid
than to changes in price
• Reductions in levels of aid would have negative
enrollment effects
• UVa is underpriced relative to both in-state and outof-state market competition
• Prospects overestimate cost of attendance and are
somewhat unaware of the generous components of
the AccessUVa program
• Areas for improvement include fundraising and
marketing/publicity
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Administrative Changes
• As reported to the Board in November 2012, the
following changes were implemented for the first
year class beginning 2013-14:
• Financial aid application deadline of March 1st
• Offering work study to low-income students and
developing meaningful work opportunities with
faculty
• Minimum student contribution for all financial aid
recipients
• Impact: moderates the escalation of annual
program costs by $4.3 million (upon full
implementation in 2017-18)
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Current Recommendation for
Program Modification
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Recommendation Objectives
• Recognizing that unrestricted institutional
grants will continue to increase each year, the
recommendation will moderate the escalation
of costs while preserving our premier financial
aid program and maintaining student yield and
socioeconomic diversity.
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Program Recommendation
• Standardize financial aid package components by
offering loans to all students with financial need,
regardless of income level
• Loan cap of $28,000 (over four years) would limit
indebtedness upon graduation
• Impact: moderates the escalation of annual program
costs by $6.0 million (upon full implementation in
2017-18)
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Future Annual Unrestricted
Institutional Grants
• Without Recommendation: $52.1 million, by 2017-18
• With Recommendation: $46.1 million, by full
implementation in 2017-18
• Net Difference: $6.0 million (annual, ongoing)
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Loan Repayment
• Assuming a student takes out the maximum in needbased loans, $28,000 over four years, a typical
repayment plan over 10 years would be:
• $287 per month
• $3,444 per year
• A typical repayment plan over 20 years (if loans are
consolidated) would be:
• $173 per month
• $2,076 per year
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Next Steps: Other Program
Improvements
•
Report key metrics annually to the Board and monitor
program internally on a quarterly basis
•
Create a greater awareness of price and financial aid
program through an ongoing communications and
marketing plan
•
Establish a campaign for private fundraising to
support AccessUVa – both need-based and meritbased aid
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Next Steps: Defining Affordable
Excellence
• Affordable Excellence: the University will develop
and implement a model that generates adequate
resources to sustain academic excellence in all schools
of the University while promoting a diverse student
body and University community and enhancing the
financial predictability and affordability through the
AccessUVa program and additional measures
envisioned in the Commonwealth of Virginia’s Higher
Education Opportunity Act.
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