College finances rebound despite national trend
Tuition increases and budget cuts flood the minds of students as the deadline for FAFSA approaches, but the current economic situation does not seem to have major effects on Franklin College.
While budget cuts of 6 percent or more are expected at public universities in Indiana and other private universities across the nation are cutting scholarships and funding, Franklin is doing as well as can be expected, Vice President for Finance Bryan Spetter said.
"The core of our business, educating students, has gone on just fine. We had record enrollment in the fall," he said. "We budget pretty conservatively. We want to make sure we don’t miss. I feel good that the college has such fiscal integrity and transparency, we haven’t had to put ourselves in that position to do that [to make cuts]."
Last year, the endowment dropped as the stock market declined, but since that time, the endowment has regained most of what was lost.
"The endowment during that period of July 2008 to June 2009 lost more than 20 percent of its value. Since then it has come back up about 15 percent since July 1, and it’s about $75 million right now. Obviously we’d like to see that higher, but it’s hanging in there," he said.
Spetter said some changes were made in financial aid because of the decrease of funds from state financial aid last year.
While student finacial aid funding from the state is projected to remain the same this year, exact figures will not be available until early spring or summer.
"[The] current student body will not see a change in funds," said Elizabeth Sappenfield, director of financial aid. "We can anticipate the state caps will remain the same as they are currently."
While most aid will remain close to the same, increases of $200 per student in federal Pell grants are expected in federal funding for the coming school year.
Students trying to find other sources of financial assistance may be able to find some help with private loans again this year. Unlike last year, finding loans with private institutions may not be as difficult.
"It’s kind of flattened out," Sappenfield said.
She also said new legislation from the federal government passed last month affecting private loans.
Private lenders will be required to go through three different loan disclosures. While disbursement of the loan may take a little more time than last year, the new legislation will be good for students and make students more aware of what their loans are going to be, she said.
Sappenfield said Franklin helped students because of the decrease of private loans with the Franklin College Loan program last year, and this program will be available again this year to upperclassmen.
Although the amount of private loans may be stabilizing, the amount of students defaulting on loans after graduation is rising.
"Because of the economy, you can anticipate the default rates will be going up," Sappenfield said.
She said Franklin plans to help students aware of their rights and responsibilities for paying back loans after graduating by implementing a four-year financial plan in the coming years, which would be similar to the four-year academic plans for students.
