M E M O R A N D U M


								September 12, 2012

To:		Members of the Board of Trustees

From:		Nancy L. Zimpher, Chancellor

Subject:		SUNY Smart Track Campaign


Action Requested

	The proposed resolution officially launches the SUNY Smart Track Campaign to combat student debt throughout New York and set a national model.
	
Resolution

	I recommend that the Board of Trustees adopt the following resolution:

Whereas statistics show that college students across the country are taking on more loan debt than ever before; and 

Whereas SUNY is taking a proactive, comprehensive approach to address this growing national concern; and  

Whereas the innovative and groundbreaking model that SUNY has designed with Smart Track, will reduce student debt at SUNY’s 64 colleges and universities by providing students, parents, and campuses with new tools and services to help educate students from the earliest stage of financing their education; and

Whereas this model will engage students at the highest risk for default throughout their time on campus, work with all student borrowers to help them complete their degrees and ensure the focus is on obtaining a job after graduation that will enable them to pay off their student loans; and


 

Whereas SUNY will endeavor through the Smart Track campaign to make college costs transparent, clearly outline financial aid opportunities and guide students toward only borrowing what they need and what they can afford; and, therefore, be it

Resolved that the SUNY Board of Trustees authorizes the State University of New York to adopt the SUNY Smart Track model, thereby enabling SUNY to help reduce student debt and create a more financially sound future for our students and alumni; and be it further

Resolved that the pilot campuses will fine-tune each of the various components in collaboration with one another and help to bring the campaign to scale across the system’s 64 campuses by Fall 2013. 


Background

      Approximately 267,000 SUNY students borrow through federal direct loans annually. According to recent U. S. Department of Education statistics, more than 75,000 SUNY students entered repayment during the most recent cohort year while 6,000 students fell into default during the same time period.  Forty percent of SUNY students, about the same as the national average, graduate without loan debt.

      The SUNY Smart Track campaign will be launched at five pilot campuses for the 2012-13 school year, with a charge to all 64 campuses of SUNY to adopt Smart Track by Fall 2013. The campaign includes the following tools:

* New SUNY Award Letter – As the first to adopt the federal Financial Aid Shopping Sheet, SUNY has developed a standard format for presenting financial aid offerings at a campus while also displaying campus-specific graduation rates, default rates, and the median student loan debt of the campus’ students. The new SUNY award letter will incorporate this information and enable students and their families to easily compare colleges and make informed decisions on loan borrowing.

* Student Loan Service Center Expansion – Currently used exclusively by SUNY’s State-operated campuses, the SUNY Student Loan Service Center provides Perkins Loan servicing for students and their families. The Center will be expanded to serve all SUNY campuses and provide additional services to support Smart Track.

* Early Engagement – SUNY has partnered with the U.S. Department of Education to develop a data-driven early-warning initiative that will use SUNY enrollment and federal student loan data to identify the root causes of loan default, enabling campuses to “flag” students who possess a high risk. Campus personnel will use the system to “flag” high risk students and engage them from the moment they take out a loan through graduation. Additional services for these students will include information on responsible borrowing and a connection with a web-based learning center with loan payment estimators and other useful tools for managing finances.

* Smart Track Website – Each of these components will be made available at a new website, where financial aid experts will host online chats via Facebook, Twitter, and other social media to answer questions and offer advice to students and families as they move through the financial aid process. The website will also provide financial literacy tools and services.

* Net Price Calculator – Launched last year by SUNY, the system’s Net Price Calculator enables prospective students to calculate the net costs of the attendance at any SUNY school by providing tuition, room and board costs, and fees for all campuses. The calculator also allows campuses to customize the tool for greater transparency.











Board Resolution				-2-		September 12, 2012