<p>Adverse selection doomed the program--too costly.</p>
<p>Loans</a> to be included in AccessUVa - The Daily Progress: News</p>
<p>Schools are eliminating the programs to control spiraling costs. </p>
<p>Their costs, not yours…just to be clear.</p>
<p>Schools are eliminating the programs to control spiraling costs. </p>
<p>Their costs, not yours…just to be clear.</p>
<p>The fact that parents get no relief on the EFC under any policy is still a hardship.</p>
<p>UVa still has caps on the amounts of federal loans that a student needs to take out. They simply are removing the ability of the lowest income students to avoid taking out any loans. </p>
<p>This only applies to students who have not yet enrolled. </p>
<p>In effect, the federally subsidized loans and work during the summer and/or work study would be expected so the student can pay parts of their room and board and their personal expenses. For the lowest income students, the University will still be paying most of their tuition and their books. UVa also offers aid to buy a laptop for the lowest income students.</p>
<p>UVa is continuing to be truly need-blind in admissions and to meet 100% of the documented financial need of all undergrad US students.</p>
<p>Right before the Great Recession hit, a number of other colleges tried to remove the need for low income students to take out loans, but most also had to backtrack because of increasing costs.</p>
<p>Hmmm, interesting… <a href=“Net Price Calculator”>Net Price Calculator; (presumably based on the pre-change method) actually gave a net price = $0 (i.e. $0 student contribution or self-help) when I put in a maximum financial aid student (out-of-state, $20,000 parental income => list price of $51,636, Pell grant of $5,550, other grants of $46,086). A $0 student contribution is highly unusual even among “meet full need” schools (e.g. Harvard’s minimum net price is $4,600).</p>
<p>So it seems that policy change would just put Virginia in line with most other “meet full need” schools that do expect some sort of student contribution. The $7,000 student contribution is neither at the lower end of the typical range (around $4,000) nor at the higher end of the range (around $10,000) of expected student contribution from “meet full need” schools.</p>
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<p>Something I’ve never understood: why the taxpayers of Virginia subsidize the OOS students with full need.</p>
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<p>Well, I don’t think they do. UVA gets about 6% of its operating budget from the state. That’s not enough to cover the value of the FA in-state students get from university funds, combined with the value of the in-state tuition discount (i.e., the difference between the actual unit cost to the university of delivering its educational product, and the sticker price paid by in-state students). In short, the Commonwealth of Virginia is only partially subsidizing in-state students, and that subsidy is matched by a subsidy from the university, drawn from non-state sources (e.g., payout on endowment, OOS tuition). It takes some really tangled and fudgy math to support the claim that Virginia taxpayers are somehow subsidizing OOS students when so little state money is going to the university.</p>
<p>Even after taking out profit-making large med center UVa only gets about 11% from state. Hardly enough to subsidize instate let alone OOS.</p>
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<p>Not even close to being tangled.</p>
<p>It only takes a basic understanding that all cash is fungible. If the Univ was not meeting the full need of OOS students – by which ever bucket they get the money – they would have more money for instate students. Moreover, its the state residents (aka taxpayers) that approve the installation of the powers-that-be that institute the policies that meet the full need of OOS students. By supporting the Trustees, the residents are directly or indirectly supporting their financial aid policies. Rather simple, really. </p>
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<p>Somebody or somebodies is/are subsidizing all the students on financial aid, both IS and OOS. :rolleyes:</p>
<p>*Quote:
UVa is continuing to be truly need-blind in admissions and to meet 100% of the documented financial need of all undergrad US students.</p>
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<p>Something I’ve never understood: why the taxpayers of Virginia subsidize the OOS students with full need.
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<p>Doesn’t UVA have a very large endowment? If so, maybe the OOS students are funded with that?</p>
<p>Altho UVA’s aid is need-based for these OOS students, since only a small number of OOS students are admitted and they typically have some kind of hook (high stats or some kind of diversity/talent), my feeling has been that those awards have a “merit” contingency. </p>
<p>It’s much easier to justify meeting need for OOS students when you don’t accept many and they aren’t just the “run of the mill” students.</p>
<p>I can understand the policy of including up to $28k total in loans for low income students. I understand that the “old policy” took into acct that low income kids wouldn’t have parents to help them with those loans, but they probably are now realizing that many/most middle income students don’t have parents paying for their loans either.</p>
<p>The UVA web site lists the 2010-2011 endowment at $5.3 billion. </p>
<p>A 2/2012 article in Forbes magazine listed UVA as one of the fastest growing endowments with an annual growth of 28%.</p>
<p>UVA acceptes OOS student to boost what they want in their school. The OOS pool as group is a highly selective one, and the stats for them are higher, or they bring something else to the table in a big way, like athletic prowess. That’s what they pay for. Don’t know if the app process is need blind for OOS students I can tell you that the kids I know who were accepted UVA are truly the top of the top, and many got all kinds of nice merit money from other schools. I don’t blame UVA a minute for wanting them and being willing to pay for them if they have need.</p>
<p>UVa charges international students and full pay out of state students more than it costs to educate them, on the average. Their tuition is now $40K to $45K depending upon the program. President Sullivan said this week that those students are effectively subsidizing the lower income out of state students. </p>
<p>At the same time, if an out of state student is receiving a modest amount of UVa aid, they are not being subsidized - the U. is just breaking even.</p>
<p>The U. is very aware that out of state alums provide a disproportionate share of donations to the University. Pres. Sullivan specifically noted their sensitivity to many matters in the Board’s discussion about this topic.</p>
<p>Last I saw, UVa had a $5 billion endowment, but $1 billion of that is for the health system. Of the remaining $4 billion, most has been donated for specific purposes, and cannot be moved around by the U. at will. For example, one donor insisted on donating millions for new squash courts at a university-owned hotel, while another insisted that his money go to a “contemplative institute” emphasizing yoga.</p>
<p>The Board is continuing with policies that will continue a 70% in-state undergrad student body. That has been the policy for at least the last 35 years, and has served the U. well.</p>
<p>I think this change is more realistic. I know this has been said elsewhere, but the idea of no loans at all based on parental income ignores the fact that it is the student on the student’s future salary who usually repays. Presumably all graduates from the COMM school, for example, have the same opportunity to earn a salary that will allow them to repay some loans. Everyone should have some skin in the game, IMO. </p>
<p>Regarding OOS students, since the state limits the number who can be accepted, of course it is very competitive, but there is no merit money component outside Jefferson Scholars. If one does not demonstrate need via the CSS Profile, no money. As for the relative caliber of student, cc is filled with stories of in-state kids, particularly from NOVA, who don’t get in with tippy -top stats. Each class could be filled with top students just from in-state if desired. As an OOS parent, and former OOS student, I’m glad this is not the case!</p>
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<p>Not commenting on the issue of “subsidizing,” but if you’re asking: </p>
<p>What is the main financial source of U-Va’s budget?</p>
<p>It is: patient fees at the hospital.</p>
<p>[Questions</a> and Answers, Financing the University 101, U.Va.](<a href=“http://www.virginia.edu/finance101/answers.html]Questions”>http://www.virginia.edu/finance101/answers.html)</p>
<p>*UVa charges international students and full pay out of state students more than it costs to educate them, on the average. Their tuition is now $40K to $45K depending upon the program. President Sullivan said this week that those students are effectively subsidizing the lower income out of state students. *</p>
<p>There you go. The full pay OOS students are subsidizing. </p>
<p>BTW…how many low-income non-athlete OOS students does UVA have?</p>
<p>I was puzzling over a bait and switch issue on another thread. Now that I know that the school involved is UVA, I think I can see how $14K in grants were switched to loans and work study this year for a high need student. For shame, UVA! Would have never guess the school.</p>
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<p>Impossible to cover all of the finaid by full-payors, based on the fact that 31% receive $. And it HAS to cost at least $30k to educate the average undergrad.</p>
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<p>[UVA</a> Board of Visitors Votes to Increase Tuition - NBC29 WVIR Charlottesville, VA News, Sports and Weather](<a href=“http://www.nbc29.com/story/22019551/uva-board-of-visitors-votes-to-increase-tuition]UVA”>http://www.nbc29.com/story/22019551/uva-board-of-visitors-votes-to-increase-tuition)</p>
<p>Please keep in mind that this change does not affect any currently enrolled students. They purposefully made the change now so they could be upfront about it before any new students enroll.</p>
<p>Let’s also keep in mind that the funds provided by the state of Va. are insufficient to even cover the difference in costs between average cost of educating each in-state student vs. the tuition paid by full pay Virginia residents. Average state funding per in-state student has fallen dramatically.</p>
<p>Fortunately, UVa has had a profitable health care system, but that is not guaranteed over the long-run. Also, I understand most of the transfers from the health care system go to fund the med school and probably the nursing program.</p>