A Collaborative Approach To Financial Education

4.21.16University of North GeorgiaE. Mae St Julien – American Student Assistance

If you need this presentaton in another format, please contact Erick Jones at erick.jones@ung.edu or call 706-867-3308

2Session Overview

• Defining financial literacy• The importance of financial education• Developing and implementing a plan• Examples and best practices• Resources and materials

3Financial Literacy

“The ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial

well-being.”− The President’s Advisory Council on Financial Literacy, 2008 Annual

Report to the President

The Importance Of Financial Education

5Increasing Tuition & Fees 2015-16

Two-Year Public: $3,435

Four-Year Public: $9,410• Out of state = $23,893

Four-Year Private: $32,405

For-Profit: $15,610

Source: Trends in College Pricing 2015, The College Board

6Student Loan Debt For Undergrads

Class of 2014: 69% of graduates had debt; average of $28,950

• Up from $28,400 for class of 2013• Increase of 56% in a 10 year period ($18,550 in 2004 - $28,950 in 2014)

• About 1/6th of debt was private loans

Source: The Project on Student Debt, 2015

69%

7Credit Card Usage

In 2013, 77% of undergraduates had a credit card

• Down in 2 010 Due to Credit Card Act of 2009

• Average outstanding balance for a college Freshman: $940 Seniors owed $4,100

38% have auto loans 3%charged tuition• 4% of parents charged tuition

80% of students carry debit cards

Source: How America Pays for College 2012, Sallie Mae/IPSOS

8Student Loans vs. Credit Cards

Source: Federal Reserve Bank of New York, August 2011

Outstanding Student Loan Debt

> $1 Trillion

Student Loans Borrowed Last Year

> $100 Billion

Student Loan Debt > Credit Card Debt

93 Year CDR (Cohort Default Rate)

FY2010 FY2011 FY2012# of Borrowers in Repayment

4,082,570 4,732,793 5,143,918

# of Borrowers Defaulted

600,545 650,727 610,956

Default Rate 14.7% 13.7% 11.8

Source: U.S. Department of Education

10Repayment Is Proving Challenging For Many

Of all respondents in active repayment say it’s difficult for them to do each month

From ASA’s 2015 Life Delayed Study: Q. How easy or difficult is it for you to make your monthly loan payments?

51% Even more so for those making less than 70K

53% And for those who had debt greater than 30K

N= 901

N= 808

N= 1461

* This question was only asked only of those who indicated some degree of active repayment

11Student Loan Impact On Long-term, Healthy Financial Habits

Q Have you put off saving for retirement, or other major investments, because of student loan debt?

Q. Do you have an emergency fund?

Developing And Implementing A Plan

13Key Elements

• Perceived need/purpose • Goals and objectives• Format of program• Audience• Partners and resources• Measuring success

14

14 SALT CREATED BY AMERICAN STUDENT ASSISTANCE

Reduce Student Loan Debt and/or CDR

Improve Retention

Increase Annual Giving & Alumni Engagement

Increase Student Engagement

Position Students and Alumni for Financial success

Financial Aid Office & Media/Public Relations

Admissions, First Year Experience, and Academic Outreach

Alumni Relations & Development

Student Activities, Residential Life, Career Services

Everyone!

Perceived Need/Purpose

15TRIO Requirement

2008Higher Education Opportunity Act Passed (2008)

Sec 646.1(d) Improve the financial literacy and economic

literacy of students in areas such as –(1) Basic personal income, household money

management, and financial planning skills; and (2) Basic economic decision-making skills

16Off Campus Curriculum For TRIO Students

• Financial Institution/Banks

• State Guarantee Agencies

• Loan Organizations

• Consumer Credit Counseling Organizations

17On-Campus Curriculum

• Financial Aid Office

• On Campus Credit Unions

• Career service centers

• Student activities Peer - Peer counseling

• Freshman Orientation

• Business Office

18Possibility For Alumni Office

Very appealing32%

Somewhat appealing

35%

Neutral23%

Not very appealing

7%

Not at all appealing

3%

Melior Group & American Student Assistance, 2011

Appeal of Having College/University Offer Programs on Financial Literacy or Wellness to Graduates of the College

19Struggle Impacts Ability And Willingness To DonateQ. To what extent do you agree or disagree with the following statements when thinking about your alma mater?

Student loan debt hinders my actual ability to donate to my alma mater(s)

The amount of student loan debt I incurred impacts my willingness to donate to my alma

mater(s)

62% 64%

20Many Would Like To See Their Schools Help Them More

Strongly Disagree, 7%

Disagree, 14%

Neither Agree nor Disagree,

30%Agree, 26%

Strongly Agree, 23%

My alma mater(s) should play a larger role in helping me manage my student loans

Q. To what extent do you agree or disagree with the following statements when thinking about your alma mater?

49% AgreeOnly 21% Disagree

21Goals And Objectives

• Learn good financial decision making• Get students to attend• Get students to pay attention• Lower borrowing levels• Lower Cohort Default Rate• Collaborate with other offices

22Format Of Program

• In-person• Course

• Orientation

• Workshop series

• Online• Written material• Counseling

• Certified professionals

• Peer-to-peer

23Audience

• TRIO students• All entering freshmen• All graduating seniors• College 101 class• Greek life/residence hall groups• Commuter students• Campus organization/major• Young alumni

24Partners And Resources

Campus partners• Find some champions: staff, faculty, students

Community resources• Local credit unions, banks, insurance professionals, etc.

National resources• Not-for-profit agencies

Blogs and websites• blog.saltmoney.org, studentlendinganalytics.com,

todayscampus.com, academic-impressions.com

25Measuring Success

• Reduce loan debt• Reduce credit card debt• Increase alumni giving• Improve retention rates• Improve student

interaction• Increase enrollment

Outcomes

Examples And Best Practices

27University of Missouri

Source: http://pfp.missouri.edu/financial/index.html

28Virginia Tech

Source: http://www.finaid.vt.edu/financial_literacy/

29Kansas State University

Source: http://www.k-state.edu/pfc/

30Most Important

• Start somewhere• Anything can help!

• Find campus champions to help• Partner with community and national resources

31Make It Simple!

• School Newspaper• Write a regular article on money management and/or

student loan basics

• Pay for advertisements in the newspaper

• School radio or TV station• Social media tools

32Quick Money Leakage Examples

Dinner Out Every Saturday Night

$32/week

$1664/year

One Starbucks Grande Latte

Every Weekday

$3.80/drink

$988/year

Wendy’s #2 Combo Twice a

Week

$5.64/combo

$587/year

Resources

34Web Resources

• www.myfico.com• www.annualcreditreport.com• www.bankrate.com• www.jumpstart.org• www.afcpe.org (Association for Financial

Counseling and Plaining Education)• www.debthelper.com

35Your Plan

• Short Term• Identify three actions you would like to take when you

return to campus that will get you started on your road to a financial education program.

• Long Term• Consider the ideal state.

• What resources do you need to make this happen?

• Who do you need to partner with?

• What does the roadmap look like?

36You Owe it To your Students

Whether you use in-house financial education resourcesor other organizations resources or create your own,A financial education curriculum, evaluating student learning and program effectiveness is critical to the

financial health and welfare of your students

37Thank You

SALT: Money knowledge for college and beyond

CONTACT SALT

404 333 7256 msjulien@asa.org schools.saltmoney.org