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North Carolina State Education Assistance Authority Annual Report 2011-12 2 This annual report is designed as a Web document and can be accessed at www.NCSEAA.edu. 3 October 1, 2012 To the Citizens of North Carolina: The Board of Directors and staff of the State Education Assistance Authority are privileged to have participated in the accomplishments of this, our 46th year of investment in the future of North Carolina, and to publish this annual report as required under G.S. § 116-209.14. The Authority is a political subdivision of the State, governed by a nine-member Board of Directors. The University of North Carolina provides the secretariat for the Authority, which has some 67 receipts-supported employees. In a number of key areas, our efforts help North Carolina pay for college. The Authority: • Administers inter-institutional programs of student financial aid, created under State and federal law, funded with governmental as well as private resources, and designed to help North Carolinians meet the cost of higher education at public four-year, public two-year, and independent colleges and universities in North Carolina • Provides significant online (www.cfnc.org and www.ncseaa.edu) and telephone resources (866-866- CFNC), as well as publishes and distributes annual printed publications that assist families, financial aid administrators, and school counselors as they plan, apply, and pay for higher education • Obtains and insures capital for educational loans made available under North Carolina’s Federal Family Education Loan Program (NCFFELP) • Maintains sensitive and affirmative default prevention and aversion activities and operates an aggressive student loan collection system for recovery of defaulted student loan obligations • Promotes access to financial aid opportunities through outreach activities with school counselors and financial aid administrators, so they can assist students and families in planning for higher education • Administers North Carolina’s National College Savings Program, a “529” plan providing flexible, tax-advantaged savings and investment options for parents, grandparents, and others • Assists the Governor, the General Assembly, and other elected officials, the University of North Carolina General Administration, the North Carolina Community College System, and North Carolina Independent Colleges and Universities on various matters pertaining to financial aid and paying for college costs • Contracts with College Foundation, Incorporated (CFI) of Raleigh for certain operational functions. CFI is a nonprofit organization, chartered in 1955 under Chapter 55A of the General Statutes to assist North Carolinians in financing the cost of higher education. As an agent and independent sole source contractor for the Authority since 1966, CFI serves as the central loan servicer under the NCFFELP. CFI also administers need-based student grant programs and North Carolina’s National College Savings Program on behalf of the Authority and services student loans on behalf of the Authority and other investors. The Authority reimburses CFI for its pro-rata share of operating and reasonable capital costs incurred in the administration of the programs for which it contracts. Through its numerous aid programs, outreach and educational efforts, the Authority is committed to helping North Carolina achieve the goal of universal access to higher education, regardless of financial means. Steven E. Brooks Executive Director 4 Mission: We help North Carolina pay for college. We are the State agency that promotes access to higher education by administering financial aid and savings programs, informing students and families about paying for college, teaching educators about financial aid administration, and advocating for resources to support students. Vision: Working in effective collaboration with our partners, we are the recognized leader in service to North Carolina students and families, schools, colleges, and policy makers for innovative, high quality financial aid programs and activities. Values: Respect We respect the contributions of our colleagues and value their commitment to helping the agency serve the people of North Carolina. We treat our customers, our partners, and each other with compassion, friendliness, courtesy, and honesty. Professionalism We are dedicated to achieving the highest standards of integrity and ethical behavior, technical knowledge and informed judgment. Responsibility We expect efficiency, effectiveness, and accountability in service to our customers and to each other. Innovation We strive to be forward-thinking and flexible in identifying business challenges and seeking creative solutions. Teamwork We are committed to a collaborative cohesive work environment, understanding that our success depends on open communication and working together. 5 2011-2012 Highlights During the period from July 1 through June 30, the Authority: • Administered 178,176 student grant, scholarship and loan awards, totaling $300,213,587, as detailed in tables on pages 11 -12 of this report. • Granted loan forgiveness to 390 teachers under the Federal Teachers Loan Forgiveness Program, totaling $2.9 million. With this amount, the Authority has in total granted close to $10 million dollars to over 1,200 teachers through this program since its inception in 2002. • Granted an annual NCFFELP payment holiday to 1,424 North Carolina teachers, totaling $237,387. • Recorded default rates for the most recent federal fiscal years at 2.8% (FFY 10 Cohort Rate) and 0.88% (FFY 11 Trigger Rate) for the NCFFELP, ranking among the four lowest default rates of all guaranty agencies in the nation for the ninth consecutive year. • Processed 4,473 NCFFELP borrower default and other guaranty claims, totaling $59,244,011. • Recovered $33.2 million from defaulted NCFFELP borrowers, including funds from litigation and wage garnishment activities, seizure of federal and State tax refunds, collection agencies, and loan rehabilitation and loan consolidation programs. The Authority’s recovery rate for the federal fiscal year 2011 was 24%. • Cancelled $13 million of principal in State forgivable loan program indebtedness for borrowers repaying their debts through vocational service under program terms, and collected $5.3 million in principal and interest payments from borrowers who did not fulfill their vocational service obligations. Historical data on loans closed through repayment in these programs indicates that nearly 85% of borrowers do repay their debts in service to the State. • Originated 279 loans totaling $592,150 for teachers pursuing National Board Certification. • Conducted 22 training sessions, attended by 1,021 school counselors and financial aid administrators, on availability and administration of State financial aid programs for students. • Organized “FAFSA Day” activities on 63 campuses and in 243 State Employees’ Credit Union locations across North Carolina with the assistance of the Credit Union and the Cooperative Extension Service, to help high school students and their families complete applications for federal and State financial aid. 4,711 students and their families participated in the event in February 2012, thanks to the efforts of 1,720 volunteers who provided assistance across the state. • Implemented and launched the new North Carolina Forgivable Education Loan for Service for students enrolling for terms beginning after July 1, 2012. • Implemented and launched the new North Carolina Need Based Scholarship to assist eligible North Carolina residents attending independent non-profit colleges and universities for terms beginning after July 1, 2012. • Began a partnership with the State Employees Credit Union to expand the Authority’s Loan Rehabilitation Program, providing borrowers a chance to earn a fresh start by restoring their defaulted loans to good standing. • Served as the pilot state for and conducted a joint study with The College Board on early communication of financial aid opportunities to low-income middle school parents. See pages 16-17 of this report for a summary. 6 College Foundation of North Carolina As part of its commitment to help more students obtain an education beyond high school, the State Education Assistance Authority actively participates in a partnership called “College Foundation of North Carolina” (CFNC). This collaborative effort involves working with CFI, the University of North Carolina, the North Carolina Community College System, North Carolina Independent Colleges and Universities, and the Department of Public Instruction in providing a comprehensive website and a call center staffed with college planning and financing specialists. Fiscal year 2012 marked the eleventh full year of CFNC. The service provides, in one place, the information North Carolina students and families need to plan, apply and pay for college. The CFNC service helps communicate through a single, one-stop resource that higher education is available and possible for all North Carolinians, creating greater opportunities to go to college than ever before. Through CFNC, SEAA assists students and families from elementary school years through high school graduation and beyond. Services include helping young people to understand career opportunities and the education required to sustain them; assisting students to chart their coursework to prepare for college and career and to select colleges appropriate to their ambitions and talents; communicating with families the availability of financial aid to make college affordable; and advising students and families to take appropriate actions to minimize borrowing and prevent delinquency and default. Services continue through the student’s college education and on into adulthood for nontraditional students, promoting financial literacy education and encouraging college completion, and last until any college indebtedness has been satisfied. CFNC includes information on both State and federal student aid programs to give students a comprehensive picture specific to their own situations. It also promotes the value of saving for college through the tax-advantaged NC 529 program. CFNC Usage Statistics, FY 2011-12 • CFNC.org on June 30, 2012 had more than 4.3 million user accounts and had averaged 8,500 daily visitor sessions for the year; 516,126 new user accounts were created during the year. • The CFNC Call Center responded to over 127,015 phone calls on paying for college and responded to 5,373 emails on financial aid. The CFNC Resource Center took 11,099 calls on careers and college admission and responded to 4,217 emails with questions or publication requests on college admission and careers. • CFNC Regional Representatives located across the state made a total of 2,637 college access presentations to 65,274 people in schools and community groups. • North Carolina students submitted 482,297 college admissions applications using CFNC.org. • CFNC tranmitted 304,929 electronic North Carolina high school transcripts to North Carolina colleges and universities during the year. 7 In May 2012 a use and awareness survey of CFNC.org was conducted by M/A/R/C, Inc., on behalf of the Authority. The study involved samples of students in grades 7-12, parents, adult learners, and educators across the state of North Carolina. The following graphs summarize the findings of that study regarding total awareness (prompted and unprompted) of the CFNC services and use of the services among those who are aware. Overall awareness and use by all groups surveyed is remarkably strong, with awareness by any group no lower than 80% and as high as 93%. Among those aware, clear majorities in all groups actually use the service, and at rates higher than reported in the last study in 2006. . Among students, awareness is highest, as one would expect, for high school juniors and seniors. But awareness and use are substantial even among younger students in North Carolina. 0% 20% 40% 60% 80% 100% Students Parents Adults Educators 84% 90% 80% 93% 65% 54% 60% 70% Total Awareness and Use of CFNC Awareness Use 0% 20% 40% 60% 80% 100% Grades 7‐8 9‐10 11‐12 60% 84% 90% 43% 52% 79% Student Awareness and Use of CFNC by Grade Level Total Awareness Use 8 Parental awareness is very high, achieving a minimum of 90% across all income groups. Use, as might be expected based on likelihood of sending children to college, is higher among higher income parents, but a majority of parents from lower income groups who are aware of the CFNC also indicated that they use its services. Awareness by ethnicity is higher for Caucasian students and for African American parents. Latino parents are significantly less aware of the service. Use by those aware of the services is similar across ethnicities, with variances not statistically significant. 0% 20% 40% 60% 80% 100% Students Parents Adults Educators 64% 54% 61% 62% 67% 58% 55% 88% 59% 55% * * Use of CFNC, by Ethnicity Caucasian African American Hispanic When Hispanic Cell is flagged with *, the African American cell contains all non‐Caucasians 0% 20% 40% 60% 80% 100% Students Parents Adults Educators 87% 91% 81% 92% 72% 96% 79% 97% 70% 76% * * Awareness of CFNC, by Ethnicity Caucasian African American Hispanic When Hispanic Cell is flagged with *, the African American cell contains all non‐Caucasians 9 North Carolina’s National College Savings Program (NC 529 Plan) North Carolina’s National College Savings Program is maintained by the State Education Assistance Authority to enable residents of any state to invest funds to pay the qualified higher education expenses of their designated beneficiaries on a flexible basis that achieves certain tax savings in accordance with federal tax law and, for North Carolina residents, North Carolina tax law. The program is designed to meet the requirements of a qualified tuition program under Section 529 of the Internal Revenue Code. As part of the program, the General Assembly of North Carolina has established the Parental Savings Trust Fund, of which the Authority is trustee, to hold all assets of the program. The Trust Fund assets are not the property of the State of North Carolina. Current information on investment options and details on the program can be found at www.CFNC.org/savings. Investment Option 6/30/2012 6/30/2011 Change Federally Insured Deposit Account $40,705,147 $23,545,054 72.9% Dependable Income Fund $66,536,244 $70,501,395 ‐5.6% Protected Stock Fund $1,189,059 $2,112,823 ‐43.7% Vanguard Individual Funds $360,404,306 $314,799,544 14.5% Vanguard Age‐Based Funds $503,309,547 $411,210,904 22.4% Total Fund Value $972,144,303 $822,169,720 18.2% Accounts 105,290 92,176 14.2% Savings Program ‐ Account Contributions FY12 FY11 Change Active Core Equity Fund $3,098,725 ‐100.0% Federally Insured Deposit Account $14,213,732 $11,063,010 28.5% Dependable Income Fund $9,140,893 $10,072,590 ‐9.2% Protected Stock Fund ‐ Vanguard Individual Funds $66,011,201 $60,102,563 9.8% Vanguard Age‐based Funds 1 07,250,700 97,279,672 10.2% Total $196,616,526 $181,616,560 8.3% Savings Program ‐ Account Distributions FY12 FY11 Change Active Core Equity Fund $2,128,782 ‐100.0% Federally Insured Deposit Account $6,223,680 $2,190,110 184.2% Dependable Income Fund $11,569,513 $11,779,988 ‐1.8% Protected Stock Fund $350 Vanguard Individual Funds $21,588,657 $14,816,818 45.7% Vanguard Age‐based Funds $18,101,966 $14,881,557 21.6% Total $57,484,166 $45,797,255 25.5% 10 NCSEAA Board of Directors 2011-2012 Richard B. Roberts, Chairman F.V. Allison, Vice-Chairman Arlene M. Ferren, Treasurer Martha J. Beasley Carolyn F. Edwards (term ended 2/3/2012) Jennifer H. Haygood, Ex Officio Robert S. Misenheimer Charles E. Perusse, Ex Officio James O. Roberts Board members are appointed by the Governor for terms of four years, with the exception of the Chief Financial Officers of the University of North Carolina and the North Carolina Community College System, who serve ex officio per State law. NCSEAA Senior Management Steven E. Brooks, Executive Director Iona Duckworth, Director of Administrative Services and Quality Control Sharon E. Grubb, Assistant to the Executive Director for Agency Management Julia R. Hoke, Esq., Director of Legal Affairs and General Counsel Wayne E. Johnson, Director of Guaranty Agency and Repayment Services Elizabeth V. McDuffie, Director of Grants, Training and Outreach Contacting the NCSEAA Post Office Box 14103 Research Triangle Park, NC 27709 10 T.W. Alexander Drive Research Triangle Park, NC 27709 Telephone: (919) 549-8614 FAX: (919) 549-8481 Email: information@ncseaa.edu Financial Aid Information: www.CFNC.org 11 Financial Aid Awards Administered by NCSEAA Grants and Scholarships Grant and scholarship programs are offered from State, federal and private sources Number Amount Number Amount of Awards Awarded of Awards Awarded Dr. Wade H. Atkinson Scholarship 9 $22,500 1 1 $23,000 Aubrey Lee Brooks Scholarship 6 1 794,735 6 4 713,541 Thomas Holmes Carrow Scholarship 2 2 107,500 2 3 112,500 Certain Private Education Institutions 1 63 280,548 1 59 283,976 Contract Programs in Medicine, Dentistry, Optometry *** ****** 1 8 250,200 Criminal Justice Scholarship 9 18,000 6 12,000 A.P. and Frances Dickson Scholarship 1 1 22,000 1 2 24,000 Education Lottery Scholarship 3 1,768 32,852,215 3 2,912 34,449,071 Golden LEAF Scholarship Program (UNC) 5 64 1,648,246 5 64 1,624,500 Mayor Anthony Foxx Scholarship 1 8 18,000 3 3 33,000 Jagannathan Scholarship 1 3 43,750 1 1 36,750 Ruth Jewell Scholarship *** ****** 1 2,000 James Lee Love Scholarship 1 4 77,000 1 4 67,500 John B. McLendon Scholarship 1 2 6,000 1 0 6,250 Medical Student Grants *** ***** 2 24 1,115,000 North Carolina Community College Grant 2 6,622 15,187,030 2 7,762 16,011,721 North Carolina Legislative Tuition Grant 3 6,312 50,709,390 3 6,091 57,757,183 North Carolina National Guard Tuition Asst Program 6 18 1,808,756 7 89 1,810,571 NC Reach (Child Welfare Postsecondary Support) 333 1,754,525 525 1,275,771 North Carolina School of Science & Mathematics Tuition Grant 6 23 2,930,749 8 41 3,745,347 North Carolina Student Incentive Grant *** ****** 9 ,398 5,635,362 Penn Family Scholarship 168 200,285 *** ****** State Contractual Scholarship Fund 1 7,081 40,257,144 1 8,349 46,397,693 C.M. and M.D. Suther Scholarship 1 3 43,750 1 5 40,600 Teacher Assistant Scholarship Fund 1 16 276,600 1 94 491,632 Turrentine Foundation Scholarship 271 535,000 *** ****** UNC Campus Scholarships 3 ,058 5,524,695 2 ,539 5,377,292 UNC Need Based Grant 5 7,095 125,632,901 6 5,993 161,439,804 Total Grants and Scholarships 174,974 $280,751,319 196,558 $338,736,264 2011-2012 2010-2011 12 Forgivable Loans for Vocational Service in North Carolina Made for vocational areas of high demand and critical shortage. Repayment may be canceled through vocational service or made in cash for those not fulfilling the service obligation Number Amount Number Amount of Awards Awarded of Awards Awarded Board of Governors' Dental Scholarship Loans 23 $904,704 28 $969,153 Board of Governors' Medical Scholarship Loans 71 1,866,938 73 1,782,221 Future Teachers of North Carolina *** ****** 19 107,250 Health, Science, and Mathematics Loans 274 2,260,804 383 2,780,215 Millennium Teacher Scholarship Loans 41 248,831 46 285,015 Nurse Education Scholarship Loans 469 969,121 542 1,086,560 Nurse Educators of Tomorrow Scholarship Loans 127 1,812,250 142 1,995,250 Nurse Scholars Program -- Masters 165 844,106 153 805,560 Nurse Scholars Program -- Undergraduate 821 3,555,432 805 3,502,775 Optometry Scholarship Loan 16 228,800 17 236,300 Principal Fellows Program 110 3,139,300 115 3,228,868 Prospective Teacher Scholarship Loan 1,085 3,632,000 1,266 4,201,466 Total Forgivable Loans 3,202 $19,462,286 3 ,589 $20,980,633 Total NCSEAA Aid $300,213,587 $359,716,897 2011-2012 2010-2011 13 As of June 30 (in thousands) ASSETS 2012 2011 Current Assets State Student Aid Program Cash** $ 50,987 $ 49,466 Restricted Cash and Investments 387,100 286,656 Receivables 374,053 361,478 Other Current Assets 44 0 Noncurrent Assets Restricted Cash and Investments 960,195 847,308 Notes Receivable 2,764,509 3,126,572 Deferred Charges 15,525 16,597 Capital Assets 5,657 6,044 Total Assets $ 4,558,070 $ 4,694,121 LIABILITIES AND NET ASSETS Current Liabilities Accounts, Notes, Bonds Payable $ 421,370 $ 327,598 Other Payables & Accrued Liabilities 96,648 4,848 Noncurrent Liabilities Accounts/Bonds Payable 3,453,677 3,780,290 Other Liabilities 312 326 Total Liabilities 3,972,007 4,113,062 Net Assets Invested in Capital Assets, net of Related Debt 5,657 6,044 Restricted for Educational Assistance Programs 518,930 516,080 Unrestricted for Student Aid Programs 61,476 58,935 Total Net Assets 586,063 581,059 Total Liabilities and Net Assets $ 4,558,070 $ 4,694,121 REVENUES: Non-operating Aid $ 126,192 $ 168,421 Grants 59,971 44,405 Investment Earnings 6,491 4,420 Interest Earnings on Loans 69,976 82,159 Miscellaneous 5,793 26,034 Grants, Aids, Subsidies (161,315) (203,847) Total Revenues (Expenses) 107,108 121,592 EXPENSES: Student Loan Service Cancellations 17,263 18,302 Interest Costs 38,478 38,755 Other Administrative and General 46,363 67,315 Total Expenses 102,104 124,372 Change in Net Assets 5,004 (2,780) NET ASSETS--Beginning of Year 581,059 583,839 NET ASSETS--End of Year $ 586,063 $ 581,059 **Includes Education Lottery Scholarship and State Scholarship Loan Funding for disbursement in 2012-2013 Statement of Net Assets Statement of Revenues, Expenses & Changes in Net Assets Note: Audited figures will be available on our website at www.ncseaa.edu after October 1, 2012 14 NORTH CAROLINA STATE EDUCATION ASSISTANCE AUTHORITY Listing of Programs Administered, September 2012 State Scholarship and Grant Programs Child Welfare Postsecondary Support Program (NCREACH) (Disbursement) John B. McLendon Scholarship Fund North Carolina Community College Grant North Carolina Education Lottery Scholarship North Carolina National Guard Tuition Assistance Program North Carolina School of Science and Mathematics Tuition Grant for UNC North Carolina Need-Based Scholarship Program UNC Campus Scholarships UNC Need Based Grant State Career-Specific Forgivable Education Loan for Service Programs ∗ Board of Governors’ Dental Scholarship Loan (Collections and Renewals) Board of Governors’ Medical Scholarship Loan (Collections and Renewals) Forgivable Education Loan for Service Future Teachers of North Carolina Scholarship Loan (Collections and Renewals) Health, Science, and Mathematics Scholarship Loan (Collections and Renewals) Millennium Teacher Scholarship Loan (Collections and Renewals) North Carolina Optometry Scholarship Loan (Collections) Nurse Education Scholarship Loan (Collections and Renewals) Nurse Educators of Tomorrow Scholarship Loan (Collections and Renewals) (Graduate Nurse Scholarship Program for Faculty Production) Nurse Scholars Program (Collections and Renewals) Physical Education-Coaching Scholarship Loan (Collections) Principal Fellows Program Prospective Teacher Scholarship Loan (Collections and Renewals) Social Work Education Loan Fund (Collections) Teaching Fellows Program (Collections) Teacher Assistant Scholarship Loan (Collections) ∗ While sometimes labeled “scholarships,” the awards made through these programs are actually loans that carry a service repayment obligation. The State of North Carolina issues a loan to pay for a student’s education in preparation for a specific career. The borrower earns forgiveness of the loan by working in that career in North Carolina. If the borrower does not complete the service obligation, the loan is repaid in cash, with interest. These programs are better termed “forgivable education loans for service,” which is the name of a new program established by the General Assembly beginning in 2012-13 to consolidate many of the programs listed in this category. Programs indicated by “Renewals” were consolidated and renewal awards will be phased out as 2011-2012 recipients complete their educational programs. 15 Private Scholarship Programs Dr. Wade H. Atkinson Scholarship Aubrey Lee Brooks Foundation Scholarship Thomas Holmes Carrow Scholarship Criminal Justice Scholarship Dr. A.P. and Frances Dickson Scholarship Mayor Anthony Foxx Scholarship Golden LEAF Scholarship Program (UNC and NC Independent Colleges) Jagannathan Scholarship Ruth Jewel Scholarship James Lee Love Scholarship Penn Family Scholarship C.M. and M.D. Suther Scholarship Turrentine Foundation Scholarship John Sharpe Williams Memorial Scholarship Federal Family Education Loan Program (Guaranty and Collections) Stafford Loans Unsubsidized Stafford Loans Graduate/Professional PLUS Loans Parental PLUS Loans Consolidation Loans Other Programs Administered Carolina Computing Initiative Loan Program (Alternative Loan Collections) College Foundation of North Carolina (Information Dissemination) National Board Certification Loan Program (National Board for Professional Teaching Standards) North Carolina EXTRA Loan Program (Alternative Loan - Collections) North Carolina’s National College Savings Program (NC 529 Plan) Paul Douglas Scholarship/Loan Program (Collection Only) 16 17
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Title | NCSEAA annual report |
Other Title | North Carolina State Education Assistance Authority annual report |
Date | 2012 |
Description | 2011-2012 |
Digital Characteristics-A | 910 KB; 17 p. |
Digital Format | application/pdf |
Pres File Name-M | pubs_serial_ncseaaannualreport20112012.pdf |
Pres Local File Path-M | \Preservation_content\StatePubs\pubs_borndigital\images_master\ |
Full Text | North Carolina State Education Assistance Authority Annual Report 2011-12 2 This annual report is designed as a Web document and can be accessed at www.NCSEAA.edu. 3 October 1, 2012 To the Citizens of North Carolina: The Board of Directors and staff of the State Education Assistance Authority are privileged to have participated in the accomplishments of this, our 46th year of investment in the future of North Carolina, and to publish this annual report as required under G.S. § 116-209.14. The Authority is a political subdivision of the State, governed by a nine-member Board of Directors. The University of North Carolina provides the secretariat for the Authority, which has some 67 receipts-supported employees. In a number of key areas, our efforts help North Carolina pay for college. The Authority: • Administers inter-institutional programs of student financial aid, created under State and federal law, funded with governmental as well as private resources, and designed to help North Carolinians meet the cost of higher education at public four-year, public two-year, and independent colleges and universities in North Carolina • Provides significant online (www.cfnc.org and www.ncseaa.edu) and telephone resources (866-866- CFNC), as well as publishes and distributes annual printed publications that assist families, financial aid administrators, and school counselors as they plan, apply, and pay for higher education • Obtains and insures capital for educational loans made available under North Carolina’s Federal Family Education Loan Program (NCFFELP) • Maintains sensitive and affirmative default prevention and aversion activities and operates an aggressive student loan collection system for recovery of defaulted student loan obligations • Promotes access to financial aid opportunities through outreach activities with school counselors and financial aid administrators, so they can assist students and families in planning for higher education • Administers North Carolina’s National College Savings Program, a “529” plan providing flexible, tax-advantaged savings and investment options for parents, grandparents, and others • Assists the Governor, the General Assembly, and other elected officials, the University of North Carolina General Administration, the North Carolina Community College System, and North Carolina Independent Colleges and Universities on various matters pertaining to financial aid and paying for college costs • Contracts with College Foundation, Incorporated (CFI) of Raleigh for certain operational functions. CFI is a nonprofit organization, chartered in 1955 under Chapter 55A of the General Statutes to assist North Carolinians in financing the cost of higher education. As an agent and independent sole source contractor for the Authority since 1966, CFI serves as the central loan servicer under the NCFFELP. CFI also administers need-based student grant programs and North Carolina’s National College Savings Program on behalf of the Authority and services student loans on behalf of the Authority and other investors. The Authority reimburses CFI for its pro-rata share of operating and reasonable capital costs incurred in the administration of the programs for which it contracts. Through its numerous aid programs, outreach and educational efforts, the Authority is committed to helping North Carolina achieve the goal of universal access to higher education, regardless of financial means. Steven E. Brooks Executive Director 4 Mission: We help North Carolina pay for college. We are the State agency that promotes access to higher education by administering financial aid and savings programs, informing students and families about paying for college, teaching educators about financial aid administration, and advocating for resources to support students. Vision: Working in effective collaboration with our partners, we are the recognized leader in service to North Carolina students and families, schools, colleges, and policy makers for innovative, high quality financial aid programs and activities. Values: Respect We respect the contributions of our colleagues and value their commitment to helping the agency serve the people of North Carolina. We treat our customers, our partners, and each other with compassion, friendliness, courtesy, and honesty. Professionalism We are dedicated to achieving the highest standards of integrity and ethical behavior, technical knowledge and informed judgment. Responsibility We expect efficiency, effectiveness, and accountability in service to our customers and to each other. Innovation We strive to be forward-thinking and flexible in identifying business challenges and seeking creative solutions. Teamwork We are committed to a collaborative cohesive work environment, understanding that our success depends on open communication and working together. 5 2011-2012 Highlights During the period from July 1 through June 30, the Authority: • Administered 178,176 student grant, scholarship and loan awards, totaling $300,213,587, as detailed in tables on pages 11 -12 of this report. • Granted loan forgiveness to 390 teachers under the Federal Teachers Loan Forgiveness Program, totaling $2.9 million. With this amount, the Authority has in total granted close to $10 million dollars to over 1,200 teachers through this program since its inception in 2002. • Granted an annual NCFFELP payment holiday to 1,424 North Carolina teachers, totaling $237,387. • Recorded default rates for the most recent federal fiscal years at 2.8% (FFY 10 Cohort Rate) and 0.88% (FFY 11 Trigger Rate) for the NCFFELP, ranking among the four lowest default rates of all guaranty agencies in the nation for the ninth consecutive year. • Processed 4,473 NCFFELP borrower default and other guaranty claims, totaling $59,244,011. • Recovered $33.2 million from defaulted NCFFELP borrowers, including funds from litigation and wage garnishment activities, seizure of federal and State tax refunds, collection agencies, and loan rehabilitation and loan consolidation programs. The Authority’s recovery rate for the federal fiscal year 2011 was 24%. • Cancelled $13 million of principal in State forgivable loan program indebtedness for borrowers repaying their debts through vocational service under program terms, and collected $5.3 million in principal and interest payments from borrowers who did not fulfill their vocational service obligations. Historical data on loans closed through repayment in these programs indicates that nearly 85% of borrowers do repay their debts in service to the State. • Originated 279 loans totaling $592,150 for teachers pursuing National Board Certification. • Conducted 22 training sessions, attended by 1,021 school counselors and financial aid administrators, on availability and administration of State financial aid programs for students. • Organized “FAFSA Day” activities on 63 campuses and in 243 State Employees’ Credit Union locations across North Carolina with the assistance of the Credit Union and the Cooperative Extension Service, to help high school students and their families complete applications for federal and State financial aid. 4,711 students and their families participated in the event in February 2012, thanks to the efforts of 1,720 volunteers who provided assistance across the state. • Implemented and launched the new North Carolina Forgivable Education Loan for Service for students enrolling for terms beginning after July 1, 2012. • Implemented and launched the new North Carolina Need Based Scholarship to assist eligible North Carolina residents attending independent non-profit colleges and universities for terms beginning after July 1, 2012. • Began a partnership with the State Employees Credit Union to expand the Authority’s Loan Rehabilitation Program, providing borrowers a chance to earn a fresh start by restoring their defaulted loans to good standing. • Served as the pilot state for and conducted a joint study with The College Board on early communication of financial aid opportunities to low-income middle school parents. See pages 16-17 of this report for a summary. 6 College Foundation of North Carolina As part of its commitment to help more students obtain an education beyond high school, the State Education Assistance Authority actively participates in a partnership called “College Foundation of North Carolina” (CFNC). This collaborative effort involves working with CFI, the University of North Carolina, the North Carolina Community College System, North Carolina Independent Colleges and Universities, and the Department of Public Instruction in providing a comprehensive website and a call center staffed with college planning and financing specialists. Fiscal year 2012 marked the eleventh full year of CFNC. The service provides, in one place, the information North Carolina students and families need to plan, apply and pay for college. The CFNC service helps communicate through a single, one-stop resource that higher education is available and possible for all North Carolinians, creating greater opportunities to go to college than ever before. Through CFNC, SEAA assists students and families from elementary school years through high school graduation and beyond. Services include helping young people to understand career opportunities and the education required to sustain them; assisting students to chart their coursework to prepare for college and career and to select colleges appropriate to their ambitions and talents; communicating with families the availability of financial aid to make college affordable; and advising students and families to take appropriate actions to minimize borrowing and prevent delinquency and default. Services continue through the student’s college education and on into adulthood for nontraditional students, promoting financial literacy education and encouraging college completion, and last until any college indebtedness has been satisfied. CFNC includes information on both State and federal student aid programs to give students a comprehensive picture specific to their own situations. It also promotes the value of saving for college through the tax-advantaged NC 529 program. CFNC Usage Statistics, FY 2011-12 • CFNC.org on June 30, 2012 had more than 4.3 million user accounts and had averaged 8,500 daily visitor sessions for the year; 516,126 new user accounts were created during the year. • The CFNC Call Center responded to over 127,015 phone calls on paying for college and responded to 5,373 emails on financial aid. The CFNC Resource Center took 11,099 calls on careers and college admission and responded to 4,217 emails with questions or publication requests on college admission and careers. • CFNC Regional Representatives located across the state made a total of 2,637 college access presentations to 65,274 people in schools and community groups. • North Carolina students submitted 482,297 college admissions applications using CFNC.org. • CFNC tranmitted 304,929 electronic North Carolina high school transcripts to North Carolina colleges and universities during the year. 7 In May 2012 a use and awareness survey of CFNC.org was conducted by M/A/R/C, Inc., on behalf of the Authority. The study involved samples of students in grades 7-12, parents, adult learners, and educators across the state of North Carolina. The following graphs summarize the findings of that study regarding total awareness (prompted and unprompted) of the CFNC services and use of the services among those who are aware. Overall awareness and use by all groups surveyed is remarkably strong, with awareness by any group no lower than 80% and as high as 93%. Among those aware, clear majorities in all groups actually use the service, and at rates higher than reported in the last study in 2006. . Among students, awareness is highest, as one would expect, for high school juniors and seniors. But awareness and use are substantial even among younger students in North Carolina. 0% 20% 40% 60% 80% 100% Students Parents Adults Educators 84% 90% 80% 93% 65% 54% 60% 70% Total Awareness and Use of CFNC Awareness Use 0% 20% 40% 60% 80% 100% Grades 7‐8 9‐10 11‐12 60% 84% 90% 43% 52% 79% Student Awareness and Use of CFNC by Grade Level Total Awareness Use 8 Parental awareness is very high, achieving a minimum of 90% across all income groups. Use, as might be expected based on likelihood of sending children to college, is higher among higher income parents, but a majority of parents from lower income groups who are aware of the CFNC also indicated that they use its services. Awareness by ethnicity is higher for Caucasian students and for African American parents. Latino parents are significantly less aware of the service. Use by those aware of the services is similar across ethnicities, with variances not statistically significant. 0% 20% 40% 60% 80% 100% Students Parents Adults Educators 64% 54% 61% 62% 67% 58% 55% 88% 59% 55% * * Use of CFNC, by Ethnicity Caucasian African American Hispanic When Hispanic Cell is flagged with *, the African American cell contains all non‐Caucasians 0% 20% 40% 60% 80% 100% Students Parents Adults Educators 87% 91% 81% 92% 72% 96% 79% 97% 70% 76% * * Awareness of CFNC, by Ethnicity Caucasian African American Hispanic When Hispanic Cell is flagged with *, the African American cell contains all non‐Caucasians 9 North Carolina’s National College Savings Program (NC 529 Plan) North Carolina’s National College Savings Program is maintained by the State Education Assistance Authority to enable residents of any state to invest funds to pay the qualified higher education expenses of their designated beneficiaries on a flexible basis that achieves certain tax savings in accordance with federal tax law and, for North Carolina residents, North Carolina tax law. The program is designed to meet the requirements of a qualified tuition program under Section 529 of the Internal Revenue Code. As part of the program, the General Assembly of North Carolina has established the Parental Savings Trust Fund, of which the Authority is trustee, to hold all assets of the program. The Trust Fund assets are not the property of the State of North Carolina. Current information on investment options and details on the program can be found at www.CFNC.org/savings. Investment Option 6/30/2012 6/30/2011 Change Federally Insured Deposit Account $40,705,147 $23,545,054 72.9% Dependable Income Fund $66,536,244 $70,501,395 ‐5.6% Protected Stock Fund $1,189,059 $2,112,823 ‐43.7% Vanguard Individual Funds $360,404,306 $314,799,544 14.5% Vanguard Age‐Based Funds $503,309,547 $411,210,904 22.4% Total Fund Value $972,144,303 $822,169,720 18.2% Accounts 105,290 92,176 14.2% Savings Program ‐ Account Contributions FY12 FY11 Change Active Core Equity Fund $3,098,725 ‐100.0% Federally Insured Deposit Account $14,213,732 $11,063,010 28.5% Dependable Income Fund $9,140,893 $10,072,590 ‐9.2% Protected Stock Fund ‐ Vanguard Individual Funds $66,011,201 $60,102,563 9.8% Vanguard Age‐based Funds 1 07,250,700 97,279,672 10.2% Total $196,616,526 $181,616,560 8.3% Savings Program ‐ Account Distributions FY12 FY11 Change Active Core Equity Fund $2,128,782 ‐100.0% Federally Insured Deposit Account $6,223,680 $2,190,110 184.2% Dependable Income Fund $11,569,513 $11,779,988 ‐1.8% Protected Stock Fund $350 Vanguard Individual Funds $21,588,657 $14,816,818 45.7% Vanguard Age‐based Funds $18,101,966 $14,881,557 21.6% Total $57,484,166 $45,797,255 25.5% 10 NCSEAA Board of Directors 2011-2012 Richard B. Roberts, Chairman F.V. Allison, Vice-Chairman Arlene M. Ferren, Treasurer Martha J. Beasley Carolyn F. Edwards (term ended 2/3/2012) Jennifer H. Haygood, Ex Officio Robert S. Misenheimer Charles E. Perusse, Ex Officio James O. Roberts Board members are appointed by the Governor for terms of four years, with the exception of the Chief Financial Officers of the University of North Carolina and the North Carolina Community College System, who serve ex officio per State law. NCSEAA Senior Management Steven E. Brooks, Executive Director Iona Duckworth, Director of Administrative Services and Quality Control Sharon E. Grubb, Assistant to the Executive Director for Agency Management Julia R. Hoke, Esq., Director of Legal Affairs and General Counsel Wayne E. Johnson, Director of Guaranty Agency and Repayment Services Elizabeth V. McDuffie, Director of Grants, Training and Outreach Contacting the NCSEAA Post Office Box 14103 Research Triangle Park, NC 27709 10 T.W. Alexander Drive Research Triangle Park, NC 27709 Telephone: (919) 549-8614 FAX: (919) 549-8481 Email: information@ncseaa.edu Financial Aid Information: www.CFNC.org 11 Financial Aid Awards Administered by NCSEAA Grants and Scholarships Grant and scholarship programs are offered from State, federal and private sources Number Amount Number Amount of Awards Awarded of Awards Awarded Dr. Wade H. Atkinson Scholarship 9 $22,500 1 1 $23,000 Aubrey Lee Brooks Scholarship 6 1 794,735 6 4 713,541 Thomas Holmes Carrow Scholarship 2 2 107,500 2 3 112,500 Certain Private Education Institutions 1 63 280,548 1 59 283,976 Contract Programs in Medicine, Dentistry, Optometry *** ****** 1 8 250,200 Criminal Justice Scholarship 9 18,000 6 12,000 A.P. and Frances Dickson Scholarship 1 1 22,000 1 2 24,000 Education Lottery Scholarship 3 1,768 32,852,215 3 2,912 34,449,071 Golden LEAF Scholarship Program (UNC) 5 64 1,648,246 5 64 1,624,500 Mayor Anthony Foxx Scholarship 1 8 18,000 3 3 33,000 Jagannathan Scholarship 1 3 43,750 1 1 36,750 Ruth Jewell Scholarship *** ****** 1 2,000 James Lee Love Scholarship 1 4 77,000 1 4 67,500 John B. McLendon Scholarship 1 2 6,000 1 0 6,250 Medical Student Grants *** ***** 2 24 1,115,000 North Carolina Community College Grant 2 6,622 15,187,030 2 7,762 16,011,721 North Carolina Legislative Tuition Grant 3 6,312 50,709,390 3 6,091 57,757,183 North Carolina National Guard Tuition Asst Program 6 18 1,808,756 7 89 1,810,571 NC Reach (Child Welfare Postsecondary Support) 333 1,754,525 525 1,275,771 North Carolina School of Science & Mathematics Tuition Grant 6 23 2,930,749 8 41 3,745,347 North Carolina Student Incentive Grant *** ****** 9 ,398 5,635,362 Penn Family Scholarship 168 200,285 *** ****** State Contractual Scholarship Fund 1 7,081 40,257,144 1 8,349 46,397,693 C.M. and M.D. Suther Scholarship 1 3 43,750 1 5 40,600 Teacher Assistant Scholarship Fund 1 16 276,600 1 94 491,632 Turrentine Foundation Scholarship 271 535,000 *** ****** UNC Campus Scholarships 3 ,058 5,524,695 2 ,539 5,377,292 UNC Need Based Grant 5 7,095 125,632,901 6 5,993 161,439,804 Total Grants and Scholarships 174,974 $280,751,319 196,558 $338,736,264 2011-2012 2010-2011 12 Forgivable Loans for Vocational Service in North Carolina Made for vocational areas of high demand and critical shortage. Repayment may be canceled through vocational service or made in cash for those not fulfilling the service obligation Number Amount Number Amount of Awards Awarded of Awards Awarded Board of Governors' Dental Scholarship Loans 23 $904,704 28 $969,153 Board of Governors' Medical Scholarship Loans 71 1,866,938 73 1,782,221 Future Teachers of North Carolina *** ****** 19 107,250 Health, Science, and Mathematics Loans 274 2,260,804 383 2,780,215 Millennium Teacher Scholarship Loans 41 248,831 46 285,015 Nurse Education Scholarship Loans 469 969,121 542 1,086,560 Nurse Educators of Tomorrow Scholarship Loans 127 1,812,250 142 1,995,250 Nurse Scholars Program -- Masters 165 844,106 153 805,560 Nurse Scholars Program -- Undergraduate 821 3,555,432 805 3,502,775 Optometry Scholarship Loan 16 228,800 17 236,300 Principal Fellows Program 110 3,139,300 115 3,228,868 Prospective Teacher Scholarship Loan 1,085 3,632,000 1,266 4,201,466 Total Forgivable Loans 3,202 $19,462,286 3 ,589 $20,980,633 Total NCSEAA Aid $300,213,587 $359,716,897 2011-2012 2010-2011 13 As of June 30 (in thousands) ASSETS 2012 2011 Current Assets State Student Aid Program Cash** $ 50,987 $ 49,466 Restricted Cash and Investments 387,100 286,656 Receivables 374,053 361,478 Other Current Assets 44 0 Noncurrent Assets Restricted Cash and Investments 960,195 847,308 Notes Receivable 2,764,509 3,126,572 Deferred Charges 15,525 16,597 Capital Assets 5,657 6,044 Total Assets $ 4,558,070 $ 4,694,121 LIABILITIES AND NET ASSETS Current Liabilities Accounts, Notes, Bonds Payable $ 421,370 $ 327,598 Other Payables & Accrued Liabilities 96,648 4,848 Noncurrent Liabilities Accounts/Bonds Payable 3,453,677 3,780,290 Other Liabilities 312 326 Total Liabilities 3,972,007 4,113,062 Net Assets Invested in Capital Assets, net of Related Debt 5,657 6,044 Restricted for Educational Assistance Programs 518,930 516,080 Unrestricted for Student Aid Programs 61,476 58,935 Total Net Assets 586,063 581,059 Total Liabilities and Net Assets $ 4,558,070 $ 4,694,121 REVENUES: Non-operating Aid $ 126,192 $ 168,421 Grants 59,971 44,405 Investment Earnings 6,491 4,420 Interest Earnings on Loans 69,976 82,159 Miscellaneous 5,793 26,034 Grants, Aids, Subsidies (161,315) (203,847) Total Revenues (Expenses) 107,108 121,592 EXPENSES: Student Loan Service Cancellations 17,263 18,302 Interest Costs 38,478 38,755 Other Administrative and General 46,363 67,315 Total Expenses 102,104 124,372 Change in Net Assets 5,004 (2,780) NET ASSETS--Beginning of Year 581,059 583,839 NET ASSETS--End of Year $ 586,063 $ 581,059 **Includes Education Lottery Scholarship and State Scholarship Loan Funding for disbursement in 2012-2013 Statement of Net Assets Statement of Revenues, Expenses & Changes in Net Assets Note: Audited figures will be available on our website at www.ncseaa.edu after October 1, 2012 14 NORTH CAROLINA STATE EDUCATION ASSISTANCE AUTHORITY Listing of Programs Administered, September 2012 State Scholarship and Grant Programs Child Welfare Postsecondary Support Program (NCREACH) (Disbursement) John B. McLendon Scholarship Fund North Carolina Community College Grant North Carolina Education Lottery Scholarship North Carolina National Guard Tuition Assistance Program North Carolina School of Science and Mathematics Tuition Grant for UNC North Carolina Need-Based Scholarship Program UNC Campus Scholarships UNC Need Based Grant State Career-Specific Forgivable Education Loan for Service Programs ∗ Board of Governors’ Dental Scholarship Loan (Collections and Renewals) Board of Governors’ Medical Scholarship Loan (Collections and Renewals) Forgivable Education Loan for Service Future Teachers of North Carolina Scholarship Loan (Collections and Renewals) Health, Science, and Mathematics Scholarship Loan (Collections and Renewals) Millennium Teacher Scholarship Loan (Collections and Renewals) North Carolina Optometry Scholarship Loan (Collections) Nurse Education Scholarship Loan (Collections and Renewals) Nurse Educators of Tomorrow Scholarship Loan (Collections and Renewals) (Graduate Nurse Scholarship Program for Faculty Production) Nurse Scholars Program (Collections and Renewals) Physical Education-Coaching Scholarship Loan (Collections) Principal Fellows Program Prospective Teacher Scholarship Loan (Collections and Renewals) Social Work Education Loan Fund (Collections) Teaching Fellows Program (Collections) Teacher Assistant Scholarship Loan (Collections) ∗ While sometimes labeled “scholarships,” the awards made through these programs are actually loans that carry a service repayment obligation. The State of North Carolina issues a loan to pay for a student’s education in preparation for a specific career. The borrower earns forgiveness of the loan by working in that career in North Carolina. If the borrower does not complete the service obligation, the loan is repaid in cash, with interest. These programs are better termed “forgivable education loans for service,” which is the name of a new program established by the General Assembly beginning in 2012-13 to consolidate many of the programs listed in this category. Programs indicated by “Renewals” were consolidated and renewal awards will be phased out as 2011-2012 recipients complete their educational programs. 15 Private Scholarship Programs Dr. Wade H. Atkinson Scholarship Aubrey Lee Brooks Foundation Scholarship Thomas Holmes Carrow Scholarship Criminal Justice Scholarship Dr. A.P. and Frances Dickson Scholarship Mayor Anthony Foxx Scholarship Golden LEAF Scholarship Program (UNC and NC Independent Colleges) Jagannathan Scholarship Ruth Jewel Scholarship James Lee Love Scholarship Penn Family Scholarship C.M. and M.D. Suther Scholarship Turrentine Foundation Scholarship John Sharpe Williams Memorial Scholarship Federal Family Education Loan Program (Guaranty and Collections) Stafford Loans Unsubsidized Stafford Loans Graduate/Professional PLUS Loans Parental PLUS Loans Consolidation Loans Other Programs Administered Carolina Computing Initiative Loan Program (Alternative Loan Collections) College Foundation of North Carolina (Information Dissemination) National Board Certification Loan Program (National Board for Professional Teaching Standards) North Carolina EXTRA Loan Program (Alternative Loan - Collections) North Carolina’s National College Savings Program (NC 529 Plan) Paul Douglas Scholarship/Loan Program (Collection Only) 16 17 |
OCLC number | 870673879 |