AICUM in the News
Mass. College Grads Have Lowest Student Loan Default Rate in Nation
By Catherine Cloutier
September 30, 2015
Graduates of Massachusetts colleges and universities have the lowest student loan default rate in the nation, according to new figures released by the US Department of Education.
The official default rate for the more than 101,000 Massachusetts federal student loan borrowers who entered repayment in fiscal year 2012 was 6.4 percent. The second lowest statewide rate was North Dakota’s, at 6.6 percent.
The official default rate nationwide fell almost two percentage points to 11.8 percent. The drop was seen across public, private, and for-profit institutions.
“The Obama Administration has taken historic steps to give borrowers more options to manage their student debt and stay on track to repayment and to hold institutions accountable for improving student outcomes,” said US Secretary of Education Arne Duncan in a statement.
National default rates among students who attended private schools were lower than those at public schools, according to the department’s figures. They were also generally lower at four-year institutions.
The federal agency looked at students who entered repayment during fiscal 2012 and defaulted by the end of fiscal 2014.
Among private colleges represented by the Association of Independent Colleges and Universities in Massachusetts, the default rate was 3.7 percent, according to the association.
“This demonstrates the commitment of Massachusetts private colleges to prepare their students to enter the workforce with manageable student loan obligations,” said Richard Doherty, president of the association, in a statement.
“Our colleges and universities put tremendous emphasis on investing in their students through financial aid and helping them fully understand the obligations of their loans,” he said.
To view the article, click here.
TRENDS IN BACK-TO-COLLEGE SPENDING HIGHLIGHT ECONOMIC VALUE OF MASSACHUSETTS COLLEGES AND UNIVERSITIES
The National Retailers Federation estimates that students across the U.S. will spend an average of $899.18 on back-to-school expenses, reaching $43.1 billion nationally this year, with increased spending on trendy dorm furnishings.
BOSTON – August 20, 2015 – As college-bound students from across the Commonwealth head to campus for the fall semester this month, local retailers benefit from their desire to be prepared with the right technology and dorm furnishings to start off the new school year.
According to an annual survey from the National Retailers Federation (NRF), students across the country this year will spend an average of $899.18 on back to school expenses, with total spending expected to reach $43.1 billion. The Association of Independent Colleges and Universities in Massachusetts (AICUM) anticipates that the 175,000 undergraduate students arriving at its 58 member campuses this fall will spend over $157 million on back to college expenses.
“This is another example of how essential Massachusetts independent colleges and universities are to driving the state’s economy,” said Richard Doherty, president of AICUM. “Not only do students across the state, country and world contribute to our local economies during their college years, but there is a surge in spending as students gear up to head to campus for their next semester or for the start of their college career.”
An NRF survey found that the average college student or family shopping for electronics will spend $207.27 this year. According to the NRF, “Families with college students and students themselves will spend $136.95 on apparel, $117.98 on food items to stock their dorms and apartments, $66.70 on school supplies, $72.79 on shoes and $78.02 on personal care items.”
“New and returning college students are vital segments of the consumer economy in Massachusetts,” said Jon Hurst, President of the Retailers Association of Massachusetts. “The investment began last weekend during our sales tax holiday, and the students will continue to make those purchases for weeks to come, giving a vital economic boost for a wide variety of merchants across the Commonwealth,” Hurst said.
The NRF back-to-school survey also found that millennials are trending toward purchasing matching bed sets, curtains, linens and other home goods, seen as a change from previously lower standards for dorm décor. NRF’s survey found that 51.3 percent of college shoppers will purchase dorm or apartment furnishings and will spend an average $126.30, up 30 percent from last year – the highest amount since NRF began tracking these numbers in 2007.
“There is no question that in addition to educating Massachusetts residents, our colleges and universities draw on talent from across the country and world, and this benefits our economy,” said Doherty. “Back-to-school season is just one way in which that economic impact is pronounced. Students aren’t only here getting outstanding educations, but they are contributing greatly to our economy.”
The Association of Independent Colleges and Universities in Massachusetts (AICUM) was founded by independent college presidents and today comprises 58 degree-granting, accredited independent colleges and universities in the Commonwealth. It is the leading voice on public policy matters affecting independent colleges and universities in Massachusetts. AICUM plays a critical role in advocating for state and federal funding for need-based student financial aid, research and addressing state and Federal legislative and regulatory issues.
As I See It: Financial Aid Increase Needed
By Richard Doherty
April 1, 2015
In February, when most of the commonwealth’s residents were stymied by the record snowfall, more than 150 college and university students made their way to Beacon Hill to personally advocate for continued funding of need-based financial aid.
So many young people’s dreams of gaining a college education depend on them having access to such assistance. Their need for aid is critical; their advocacy is essential, their gratitude is sincere, and their voices need to be heard.
These students, from colleges such as Holy Cross and Worcester Polytechnic Institute, displayed living proof as to the importance of financial aid — as they will write the future of our state, its economy and its vibrancy.
Thankfully, last year the Legislature increased the need-based financial aid line item of the state budget by $3 million. This was an important and commendable step, but Massachusetts is still significantly behind the national average need-based award.
The financial aid line item funds a variety of grant and scholarship programs for Massachusetts residents attending college in Massachusetts, including the MassGrant program — the commonwealth’s principal need-based grant.
Even with last year’s funding increase, the state scholarship programs have essentially been level-funded over the past decade. This, and the fact that more students are eligible for need-based aid, have reduced the real buying power of these scholarships.
The fiscal 2016 budget process is currently in the hands of the Ways and Means Committee, whose members came to Greenfield Community College recently to solicit public opinion.
The Association for Independent Colleges and Universities in Massachusetts (AICUM) offered testimony that commended the Legislature’s success last year in increasing aid, while also making the case for additional support.
AICUM represents the interests of 59 independent colleges and universities throughout the commonwealth, the 280,000 students attending those institutions and the nearly 85,000 people working at them. AICUM also is the primary sponsor of the student financial aid advocacy day each February. This activism is essential as more students need grants to keep college affordable.
In the past twelve months, three separate independent commissions (the Subcommittee on Student Loan and Debt, the Higher Education Finance Commission, and the Special Commission on Educational Scholarships) produced reports that recommend a substantial increase in funding for need-based scholarship programs.
A recent report issued by the Pell Institute for the Study of Opportunity in Higher Education, revealed that Massachusetts trails all states except Arkansas in the average award given to eligible students.
We recognize that the Legislature faces many difficult budget decisions, with higher education funding being one of many critical priorities. There is no greater need in higher education than providing opportunity to those talented students desiring, but unable to afford, a quality education.
AICUM believes a reasonable path for the FY 16 budget would be to move Massachusetts closer to the national average for scholarship awards by increasing the aid by $6.4 million. This would continue the state’s positive momentum from recent years.
Massachusetts is home to many of the top colleges and universities in the world and we take great pride in the high quality of education that our students receive. The return on investing in our students accrues many times over, as talented graduates help to keep and attract companies, innovate new technologies, advance efforts to cure diseases, make Massachusetts their home, and strengthen our communities.
A properly funded financial aid program will send the right message to hardworking students that the commonwealth supports them and wants them to reach their full potential — and to do so right here in Massachusetts.
Richard Doherty is president of the Association for Independent Colleges and Universities in Massachusetts (AICUM).
To view the article, click here.
AICUM Student Financial Aid Advocacy Day
On Wednesday, February 25, 2015, AICUM will again rally with college students from across Massachusetts in the State House and lend support for funding for need-based financial aid programs. Student Financial Aid Advocacy Day is a chance to say “thank you” to legislators for last year’s funding of need-based financial aid programs that help Massachusetts students stay in Massachusetts to attend a college here. It is a powerful message of thanks when a legislator can put a student’s face and story to the budget line item which funds these programs. This funding is critical to helping MA students get to – and through – college.
After assembling in the Great Hall, the students will listen to brief remarks from 2 or 3 elected officials. The legislators talk about the importance of a college education and the key role that colleges and students play in the economic engine of the state. They also offer some advice on how to effectively lobby/talk to legislators and their staff during office visits.
After the speaking portion of the program the students are then directed to visit the offices of the Senators and Representatives that represent the city or town where their college is located as well as the elected official from their home town.
WHERE: Massachusetts State House in Boston- Great Hall, Second Floor.
WHEN: Wednesday, February 25th: Registration from 12:30 to 1:00 p.m.; Speaking program and legislative meetings from 1:00 p.m. to 4 p.m.
WHAT TO WEAR: Represent your school by wearing your college sweatshirt or t-shirt.
Interested students should contact email@example.com or their institutions Financial Aid office for additional information.
Please join us for the 10th Annual AICUM Dinner!
This year we are celebrating the success of our graduates and the contributions of our colleges and universities to the innovation economy in the Commonwealth.
Monday, December 8, 2014
Dinner and Program: 7:00pm
Location: Seaport Hotel, Boston
Honoring: Paul Guzzi, President & Chief Executive Officer, Greater Boston Chamber of Commerce
For more information including ticket sales and Sponsorship opportunities, please contact Kaitlyn Rodriguez, Director of Member Relations at 617-742-5147 ext. 1000 or at Kaitlyn.Rodriguez@aicum.org
We very much look forward to and appreciate your participation in what promises to be an exciting and memorable evening.
Sponsorship Options: Click here.
AICUM Annual Symposium: October 2, 2014
AICUM’s 2014 Fall Symposium, held on October 2nd at the College of the Holy Cross, was a resounding success. Each year, AICUM hosts a symposium where Affiliate Members provide best practice presentations to administrators and staff from AICUM member institutions. Our Symposium this year featured 25 presentations and was attended by over 150 representatives from 30 college and universities.
The day focused on Emerging Challenges to Independent Higher Education and included a wide range of presentations on student debt, state authorization reciprocity agreements, trends in student lifestyle and habits, sexual assault on campus, medicinal marijuana, campus design using the latest technology, the unionization of student athletes, campus health and wellness initiatives, reputation management in the social media age and many other hot topics in higher education.
In addition to the informative presentations, attendees engaged in networking opportunities throughout the symposium to develop new relationships with colleagues from peer institutions and reconnect with former colleagues.
Many of the presentations from our Affiliate Members are available here and we will continue to add more as they are made available.
AICUM in the News
How to Make College More Affordable
By Richard Doherty
May 20, 2014
Although the colleges and universities in Massachusetts are critical to the state’s economy, the rising level of student debt could temper our economic growth. Independent colleges and universities in the Commonwealth are acutely aware of their responsibility to help control debt levels and, last year, awarded nearly $600 million in scholarship aid to Massachusetts residents. However, we can do more to leverage that investment through federal and state partnerships. We need to work together to create a cradle-to-career approach to financing higher education by providing an incentive to increase college savings from birth, increasing state support for need-based financial aid, and lowering student loan interest rates. We can help college students and graduates refinance debt and stimulate the economy.
First, on the state level, we must provide families with an important incentive to start saving for college as soon as their first child is born. State Senator Eileen Donoghue is championing a proposal to give Massachusetts families what is already offered in more than 30 states — an income tax deduction for contributions made to qualified college savings plans. Donoghue recently completed a far-reaching examination of the student debt issue as co-chair of the Sub-Committee on Student Loans & Debt, which concluded that it was “incumbent on the Commonwealth to help students and families pay for college themselves,” and recommended offering a tax deduction for contributions— up to $5,000 — made to such plans. Incentivizing college savings early will put Massachusetts families on the right path well before arriving on campus.
Second, the state must reinvest meaningfully in need-based financial aid programs. By committing to a multi-year plan to reinvest in need-based scholarship programs, Massachusetts would enable more deserving students, who possess the talent but not the financial resources, to attend the Massachusetts college which best match their educational interests and learning style. Increasing the average award will surely entice Massachusetts students exploring colleges outside the Commonwealth to reconsider and attend one of our outstanding colleges. In 2010, over 18,000 high school graduates left Massachusetts in part, some argue, because our state financial aid program isn’t robust enough to keep them here. We need to stop this brain drain.
Third, we can help students and recent grads better manage student debt. At the federal level, Sen. Elizabeth Warren and Rep. John Tierney have again demonstrated their commitment to ensuring access and affordability by introducing legislation to allow students and graduates with existing student loan debt to refinance at lower interest rates. This commonsense approach would provide instant relief to borrowers struggling to make payments on high-interest loans as they are beginning their careers. Their plan would allow these recent grads to reinvest those savings — to purchase a car, save for a home, start a family — and positively impact all segments of the economy.
For the more than 500,000 students attending college in the Commonwealth and the more than 1.4 million Massachusetts residents under age 18, we must work together to provide affordable access to college without burdening graduates with unmanageable debt. Working together, through public/private partnerships involving the federal government, state government, colleges and universities, and families, we can take steps to ensure a new pathway to higher education, one that is truly cradle to career.
To view the article, click here.
AICUM in the News
Viewpoint: Mass. in Back of the Class for College Aid
By Richard Doherty
May 9, 2014
As the home to over 100 colleges and universities, Massachusetts is rightly known as the hub of higher education. Each fall, tens of thousands of high school graduates from across Massachusetts arrive on our campuses to begin their pursuit of a higher education. In doing so, these students become integral members of the community, contributing both economically and culturally throughout their college career — and often their professional career.
This homegrown talent, which forms the bulk of incoming freshmen classes across all campuses, is a critical component to the higher education sector in the state. However, in order for Massachusetts’ colleges and universities to continue to retain our own high school graduates, we must provide adequate state scholarships to help make college affordable and to incentivize these talented students to attend college here.
We have work to do. Right now, Massachusetts is ahead of only Arkansas measured by the average state need-based financial aid award. In 2012, the average qualifying student in Massachusetts received a MassGrant award of $657 — as compared to the national average of $2,405. A California student from a similar family income received $5,983 on average.
Our low average award is a result of many factors, primarily the relative level-funding of scholarship aid over past decades combined with a skyrocketing increase in the number of students eligible for the need-based award. In fact, the average MassGrant award was 43 percent higher in 2008 than in 2012, largely the result of a whopping 91-percent increase in the number of eligible students. For a state that justifiably points to its higher education institutions, both public and private, as examples of excellence, this is not an acceptable financial commitment to our students.
A legislative subcommittee tasked with studying student loans and debt in the commonwealth just released a report containing recommendations to aid students in attending college and graduating with less debt. The report rightly points out that, in 1988, a MassGrant award covered 80 percent of tuition and fees at public colleges and universities. Today, the same grant only covers 9 percent. This is a stunning reduction in purchasing power. Among the subcommittee’s nine recommendations was a call for an immediate increase in the state scholarships to make college more affordable.
To that end, we are asking the Legislature to restore funding for these important scholarship programs to prerecession levels. Doing so will enable more deserving students, who may lack the financial resources, to attend the college in Massachusetts that best fits their interests and talents. In addition, increasing the average award may entice Massachusetts high school graduates exploring colleges outside the commonwealth to reconsider and remain here.
The federal government and colleges and universities here in Massachusetts are doing their part to help students attend college — the federal government by increasing Pell Grants and colleges and universities by offering a record amount of institutional aid to Massachusetts residents last year. Now it is time for Massachusetts to do the same.
To view the article, click here.
Jeff Selingo, Sen. Linda Dorcena Forry, and Sen. Eileen Donoghue Speak at AICUM’s Annual Meeting, April 29, 2014
Lynn Pasquerella, President of Mount Holyoke, Elected New Chair of AICUM Board.
More than 100 college and affiliate members from across the Commonwealth attended AICUM’s annual meeting (April 29) at Boston College. The agenda included election of officers and remarks from three guest speakers.
New members of the Board will be: Chris Hopey, President of Merrimack College, Deborah Jackson, President of Cambridge College, and Antoinette Hays, President of Regis College.
Second, he urged college administrators to think about what is innovative and distinctive about their particular college. For all but a few colleges, he said. being a “commodity” will not continue to work. Each college must decide what it wants to offer and how it wants to be perceived. The major types of college learning he predicted will be: MOOCs (massive open online course), face-to-face, and hybrid (part MOOC and part face-to face) “Can a small liberal arts college scale high-impact practices (MOOCs and hybrids) with a short residential course?,” he queried. Selingo noted the predominant disconnect now between age and financial independence and maintained that people now in their twenties are developing a different approach to skills, training, certificates, and degrees. He said they are becoming true “life-long learners.”
Selingo’s fourth trend was the Bachelor’s Degree and what it means. “We’ve been stuffing more and more in the B.A.,” he said., “it’s been overworked.” What goes into it and why everyone needs one should be re-thought and will be. The fifth trend, he stated, is “value, not price.” Economics is certainly one factor but only one. “Can the person get a job, progress, be part of the community?” These are all part of the mission and value of higher education,” he said.
Senator Donoghue discussed the findings of the subcommittee and some of its major recommendations, which include:
- Expand financial literacy for all Massachusetts students by offering financial literacy courses in high school, embedding financial literacy in the Massachusetts Core Curriculum, and requiring colleges and universities to uniformly describe financial aid information.
- Expand and reform state aid, by increasing MassGrant scholarship funds, reforming the Adams scholarship, and exploring concepts such as “Pay It Forward.”
- Decrease the time it takes to get a degree, by expanding the dual enrollment option for high school students (taking college courses while still in high school), getting credit in college for advanced placement courses, and accessing programs that allow progression from community colleges to four-year colleges.
- Create incentives for students to save, by improving the Commonwealth’s 529 College Savings Plan and increasing greater coordination with non-profits.
- Advance loan forgiveness programs–particularly for occupations where there is both great need and a lack of financial incentive (i.e. social work).
- Develop public-private partnerships that would incentivize employers to assist employees that have student debt and would like to pursue continuing education opportunities.
Financial Aid Advocacy Day
February 24, 2014.
More than 150 students from independent colleges and universities across the Commonwealth convened at the State House on Monday, February 24. They met with state representatives and senators, thanked them for previous support, and urged them to legislate for increased financial aid and scholarships.
House Speaker Robert De Leo addressed the students in the Great Hall. “Each of you is critical to the future of the Commonwealth, he emphasized. “And my hope is that you stay here after you graduate and continue to be part of our dynamic Massachusetts economy.” Speaker De Leo also noted that Massachusetts is the only state that educates more students at private, independent colleges than at public institutions. “We have the best and the brightest here,” and we want to keep you here.”
The Speaker urged students to meet with their state legislators and share their experiences. “The most important lobbying efforts are by the people who are actually affected. That’s what makes the real difference to lawmakers,” he said.
AICUM Annual Dinner, December 9, 2013
More than 400 people, including top leaders in education and government, turned out for AICUM’s 9th annual dinner, which took place on Monday, December 9, at Boston’s Seaport Hotel. AICUM celebrated the value of a liberal arts education in the Massachusetts innovation economy (check out our video on YouTube) and the 40-year impact of the federal Pell Grant program on access and affordability. Former Senator Mo Cowan (pictured) talked about what a Pell Grant meant to him, his family and his education. For more images, visit our photo gallery.
Fall Symposium– A Great Success
AICUM’s 2013 fall symposium–where Affiliated Members provide best practice presentations to administrators and staff from AICUM member institutions–was an outstanding success. Over 100 attended and more than 35 colleges and universities were represented at the annual event, held at College of the Holy Cross on October 3, 1013.
The day focused on Campus Accountability and Cost Containment and included talks on: hot topics in labor law, college affordability, transforming building eyesores into assets, saving on college operations, surviving the IT audit, negotiating with adjunct faculty, non-profit taxation developments, growth plans for STEM programs, and the effects of student debt on post-college spending. Considerable networking over lunch and much discussion on other higher education issues rounded out the event. For more photos, visit our Event Gallery.
Senator Elizabeth Warren addresses ACIUM Annual Meeting (April 30, 2013)
AICUM’s annual meeting (April 30) brought together college and affiliate members from across the state, with an agenda that included election of officers and remarks from three prominent leaders. U.S. Senator Elizabeth Warren, Massachusetts Secretary of Housing and Economic Development, Greg Bielecki, and State Senator Gale Candaras, spoke to more than 100 attendees on education and economic policies affecting higher education.
In the AICUM election, Ronald W. Crutcher, President of Wheaton College, became Chair of the Board, Lynn Pasquerella, President of Mount Holyoke College, was elected Vice Chair/Chair Elect, and Paula M. Rooney, President of Dean College, continues to serve as Secretary/Treasurer. New members of the Board are: Corlis McGee, President of Eastern Nazarene College, David Angel, President of Clark University, Jan Bellack, President of the MGH Institute of Health Professions, and Lee Pelton, President of Emerson College.
In her keynote speech, Senator Warren voiced her strong support for and understanding of the critical role that institutions of higher education play in so many aspects of the Commonwealth’s economy. She also addressed the issue of student debt and the need for college to be more affordable. Senator Warren acknowledged that the level of regulations imposed on colleges and universities by the federal government added to the cost of attending college.
She encouraged attendees to get involved, meet with each other and identify a “dirty dozen” list of the most costly and cumbersome regulations that have the least benefit. She said she would meet with Arne Duncan, Secretary of Education, with the Senate Health Committee (on which she serves) to represent college and university policies and interests. The Senator also talked about the power of education, alluding to her own evolution from daughter of a janitor to young mother going to law school. “Higher education opened up a whole new world,” she said, recommending that four-year college degrees be available to everyone.
Noting that higher education is the “fundamental building block of the Massachusetts economy,” Greg Bialecki, Massachustts Secretary of Housing and Economic Development, attributed that distinction not only to the size and scope of our colleges and universities, but to their international reputation, and its ability to attract talent from across the country and across the world. Sec. Bielecki focused on the important way that the Commonwealth’s innovation economy helps create not only new jobs but the workforce needed to fill those jobs. He urged more partnerships between universities and industry to produce a new wave of data scientists and a new framework for online learning.
State Senator Gale Candaras, who chairs the Economic Development and Emerging Technologies Committee, spoke about the “new normal” which aims to provide a young diverse population with education and training for new jobs in a different economy.
Sen. Candaras also talked about Senate 575/House bill 1076, which she and Rep. Alice Peisch of Wellesley filed this year, and AICUM initiated. “We need to ensure that private institutions are not hampered by red tape and bad public policy,” she said, noting that Massachusetts is one of very few states that burden private colleges–when they want to offer a new field of study or additional degree program–with a lengthy academic regulatory process. She urged college and university staff to call representatives and senators and “help them pass this bill.”