The financial aid budget for next year is $20,900,000, an increase of $2,720,000 or 15% over this year. This large increase is a result of the fact that our discount rate was higher than we had originally anticipated for the current first-year class and this class will roll through the budget for 3 more years. Thus, its financial aid needs must be incorporated into our budget models. In addition, the budget model includes a more generous methodology for calculating need (in line with virtually all of our peers) that will apply to next year's incoming class (and ultimately to all 4 classes over the next 4 years), a formal loan reduction program, increasing the size of the Posse program consistent with our core values and strategic goals and a more realistic accounting (a substantial increase) of students' personal expenses when calculating need. Next year, merit aid is being held constant and will be managed the same as this year.