The mission of the Student Financial Aid Office is to develop and maintain fair and equitable financial aid policies and practices which assure equal access by all students qualified for admission to MIT. Activities that advance this mission include counseling students and parents in all financial aid matters, managing grant and loan funds from outside agencies, stewarding undergraduate scholarship endowment funds, managing g on- and off-campus student employment opportunities, and advising senior management and faculty on all matters pertaining to financial aid policies.
The Financial Aid Office became heavily involved in the reengineering efforts for student services begun this year. A number of specific recommendations for improving the services provided by financial aid were made by a redesign team, and specific implementation plans were begun for improving the quality and efficiency of student financial services.
In 1995-96 MIT joined the federal Direct Loan Program and made its first student loans under the program in July 1995. The program was designed to eliminate the complications associated with the bank-based Family Education Loan Program. Students found the new program to be very helpful in providing the proceeds of their student loans simply and efficiently.
Communications with students and parents were enhanced by the creation of World Wide Web pages for both the Financial Aid and Student Employment Offices. The financial aid page provides information on MIT's policies, sources of outside loan and scholarship information, and answers to questions regarding application procedures. The Student Employment page provides students with the listings of job opportunities both on- and off-campus.
The year brought intense political fighting in Washington over the federal budget, and student aid allocation were under intense scrutiny. The Direct Loan Program was subject to partisan attacks with many Republicans vowing to eliminate the program in the face of strong support from the Democratic side. Proposals to cap the number of participating schools were narrowly defeated as were proposals to eliminate or greatly reduce the federal commitments to other student aid programs. In the end, modest cuts were made in some federal scholarship programs, but most of the funding of student loans was left intact.
(Awarded to undergraduates with need)
Source
|
1993-94
|
1994-95
|
1995-96
|
| Pell
Grants
|
1,261
|
1,276
|
1,183
|
| SEO
Grants
|
1,980
|
1,903
|
1,970
|
| ROTC
Scholarships
|
499
|
770
|
601
|
| Scholarship
Endowment
|
9,724
|
10,854
|
12,021
|
| Current
Gifts
|
1,064
|
873
|
773
|
| Direct
Grants
|
2,810
|
3,071
|
3,311
|
| Unrestricted
Funds
|
15,523
|
16,165
|
14,965
|
| Total
Grants Awarded
|
32,861
|
34,912
|
34,824
|
The average need of the undergraduate's eligible for financial aid increased to $20,078 in 1995-96. This is an increase of x% over last year. The economic picture continues to be bright for most parents and this improving economic situation is reflected in the moderating requirement for need-based financial aid.
(detail of use of funds will follow)
(Received by needy and non-needy students
Source
|
1993-94
|
1994-95
|
1995-96
|
|
A. Awarded to Undergraduates
|
|||
| Technology
Loan Fund
|
1,324
|
1,863
|
1,911
|
| Perkins/Nation
Direct Loans
|
3,043
|
3,753
|
4,406
|
| Stafford
Loans to Needy Students
|
7,555
|
8,091
|
8,631
|
| Stafford
Loans Beyond Need
|
186
|
459
|
475
|
| Supplimental
Loans to Students
|
580
|
130
|
188
|
| Sub-Total
|
12,688
|
14,296
|
15,611
|
|
B. Awarded to Graduate Students
|
|||
| Technology
Loan Fund
|
2,120
|
2,739
|
4,471
|
| Stafford
Student Loans
|
|||
|
by Commercial Lenders
|
3,572
|
4,970
|
5,651
|
| Stafford
Student Loans
|
|||
|
by MIT
|
236
|
0
|
0
|
| Stafford
Loans Beyond Need
|
13
|
2,768
|
3,553
|
| Perkins/National
Direct Loans
|
11
|
47
|
172
|
| Plus
Loans & Federal
|
|||
|
Supplimental Loans for Students
|
1,843
|
12
|
51
|
| Sub-Total
|
7,795
|
10,536
|
13,898
|
In 1996 student loans to undergraduates increased by 8.4% and loans to graduate students increased by 24%. This is the second year in which the loan volume to graduate students increased by more than 20%. This year MIT began participation in the The Stafford Direct Loan Program which represent the largest sourceof loan funds to undergraduates.
The off campus job market was clearly favorable for our students seeking employment. Together with our on campus jobs, there were more than enough offerings to satisfy all. High-end, skilled jobs were on the rise, and there was a decline in clerical positions; employers are seeking more technical and engineering skills.
2,880 undergraduate students worked on campus earning $5,671,771 in 1995-96.
The MIT Student Minimum Wage was increased to $7.25 as of June 1, 1996. This is the first increase since June of 1991. The MIT Self-help level has increase 34% during this time frame.
The College Work- Study Program allocation remained about the same as last year. One third of the CWS grant subsided work done by undergraduates and two thirds subsidized graduate student teaching assistantships.
The Higher Education Act of 1965, as amended, and the regulations of November 30,1994, require that each institution participating in the Federal College Work Study Program (FWS) must spend at least 5 percent of its FWS allocation to compensate students employed in community service activities. This past year was the second year of this program, and the participation has doubled. Now more than one hundred students are using their skills to enhance the lives of others.
The SEO designed a state of the art World Wide Web site. Jobs are posted to the WEB daily, students can also sign up for the 'On Call' lists on-line. Now students can browse through the job listings at their leisure, selecting topics of interest. The SEO site was featured at the National Student Employment convention as a model for others who were designing sites.
Elizabeth Barnes was promoted to Assistant to the Director after serving as administrative assistant for eight years. Daniel Langdale resigned as Associate Director and took a position as Associate Dean in the Graduate Education Office at MIT.
The coming year will bring substantial changes to the Student Financial Aid Office. Reengineering task will include not only changes in internal processes but also the reorganization of some of the functions of the Bursar, Registrar, and Financial Aid Offices. In addition significant part of today's financial aid services will be provided in a new student services center that has been recommended by the reengineering design team. These changes will be implemented at the same time that the office will be providing financial aid services to prospective freshman, upperclass, and graduate students.
Stanley Hudson
MIT Reports to the President 1995-96