create successful financial literacy on campus presented by: dianne fulmer, usa funds colleen...

WASFAA Conference 2013

Create Successful Financial Literacy on Campus

Presented by:Dianne Fulmer, USA Funds

Colleen MacDonald, SimpleTuitionPat Robles-Friebert, Inceptia

CLFE Mission

As a diverse coalition of industry participants, CLFE shall engage in activities that improve and preserve the quality and integrity of education financing products and services delivered to California students, parents and schools.



What is financial literacy?• Aptitude for understanding finance• Ability to make informed, effective decisions

about finances• Knowledge of personal finances

Budgeting ▪ Banking basics Managing credit cards ▪ Student loan Understanding a paycheck


Delivery Methods

Website Links Email Group Workshops One-on-one Sessions Online Education/Gaming

Publications Inserts Articles Flyers Other


Making the Case – Rise in COA & Student Debt

• 19% of full-time students at public four-year colleges and universities attend institutions that increased their published prices by 12% or more.

• Average debt per borrower was $22,000 from the public 4-year colleges and $28,100 from private 4-year colleges

Source: 2011 College Board Trends in Student Aid

Source: 2009 Decision Partners Financial Literacy 101 webinar


Making the Case – Lack of Financial Skills2010 State-by-State Financial Capability Survey

Spend more than household income

Engage in non-bank borrowing - pawn shops, rent-to-own stores, advance on tax return

No money set aside to cover expenses for 3 months

0 10 20 30 40 50 60 70 80

23 percent

75 percent

34 percent

18- to 34-year-olds

Source: 2010 State-by-State Financial Capability Survey conducted by FINRA Investor Education Foundation


Making the Case – Legislative Environment

Changes to Cohort Default Rates (CDR) Initiatives by Consumer Financial Protection

Bureau (CFPB) Gainful Employment Regulations


Making the Case – Stress and Money

Source: 2007 DUCK = Deep Underground Credit Knowledge


Making the Case – Students Want Help 84% of college students want more

information on financial education topics.

24% of college students say they are well prepared for the financial challenges that await them after graduation

Source: 2007 Hartford Financial Services

Source: 2009 Sallie Mae survey


Identify Your Students’ Needs

• Survey students– Topics– Delivery

methods

• Review results

• Draft a curriculum

Survey Topics• Banking Basics• Buying a home or car• Credit reports and scores • Debt and Borrowing• Financial Goal-Setting• Health and life insurance • Identity theft • Investment basics • Making a budget • Making major purchases • Paycheck and taxes• Paying for College • Rebuilding credit • Renter’s and auto insurance • Setting and saving for goals • Understanding credit


Create a Success Team Look at your organization chart to identify

potential departments to partner with Create a proposal

Define the purpose Identify benefits to school and students Propose delivery methods and potential content Note success measurements Outline costs, resources, and potential personnel Confirm buy-in


Public/Private College Organizational Chart


Career School Organizational Chart


Why They’ll Buy In

Full chart available at: http://apps.Inceptia.org/PDF/Inceptia_FinancialCapability_Whitepaper.pdf

http://apps.inceptia.org/PDF/Inceptia_FinancialCapability_Whitepaper.pdf




Implementing Financial Literacy on Campus


Planning Timeline


The Proposal


Marketing - Getting Students to Attend What is the topic/name of the workshop? What time does the workshop begin and end? Where is the workshop? Which methods will be used to promote the workshop?

flyers /posters e-mail newsletter/newspaper word of mouth/social media other

How will the attendee benefit?


Marketing and Promotion

Utilize social media

Build in to existing services (FYE, Greek Life, Housing, etc.)

Educate your colleagues

Word-of-mouth


Example Flyer


Paying for a Financial Education Program

External Internal dollars In-kind

Leverage existing resources Certify your staff

Students Free resources


Student Participation

Innovators – Seek new opportunities and ideas

Early adopters – Grasp and apply some ideas

Early majority – Gathering ideas

Late majority – Aware of ideas

Laggards – Unconcerned


Case Study: Corinthian Colleges, Inc.

A Campus Student Loan Specialist at Every Everest and WyoTech campus: Creating and Fostering Rapport

Mandatory Financial Literacy Mandatory In-Person Exit Counseling for

Graduates On-going workshops and outreach events


Case Study: Monterey Institute of International Studies

Summer Debt Letters with Current and Projected Repayment

Mandatory Exit Loan Counseling Post Enrollment Budgeting Assistance

MIIS Summer Debt Breakdown

Loan Type

Total Outstanding Debt

Current est. monthly payment

Total Paid over life of loan (includes interest)

Amount paid in interest only

Prior Borrowing History

Perkins Loan $0 $0 $0 $0

Stafford Loans $41,000 $472 $56,620 $15,620

Grad PLUS $48,214 $598 $71,734 $23,520

Private $0 $0 $0 $0

Totals to date $89,214 $1,070 $128,354 $39,140

2010-11 Anticipated Loan Debt

Perkins Loan $0 $0 $0 $0

Stafford Loans $20,500 $271 $32,481 $11,981

Grad PLUS/Private $13,970 $169 $20,251 $6,281Anticipated Totals for 10-11 $34,470 $440 $52,732 $18,262

New Total Repayment $123,684 $1,510 $181,086 $57,402

Debt Management for the Real World

IncomeIncome Source Budgeted

Student Loans 800.00$

Job 1 900.00$

Total income 1,700.00$

ExpensesFinance Payments Budgeted

Credit card 48.00$

Auto loan -$

Total finance payments 48.00$

Fixed Expenses Budgeted

Rent 675.00$

Auto insurance -$

Medical insurance 158.00$

Cable TV 45.00$

Telephone 70.00$

Internet 30.00$

Investments/Savings -$

Utilities 50.00$

Total fixed expenses 1,028.00$

Variable Expenses Budgeted

Household 50.00$

Groceries 400.00$

Auto upkeep and gas -$

Clothing

Medical/prescriptions 25.00$

Entertainment 100.00$

Dining out/Fast Food 50.00$

Total variable expenses 625.00$

Totals Budgeted

Income 1,700.00$

Expenses 1,701.00$

Income less Expenses (1.00)$

Budget assumes the following:

Student has no undergraduate student loan debt

Student creates a budget based on actual expenses of $1700/month

Student has one roommate

Student does not own a car

#REF!

Student Creates Personal Budget and Borrows Only What She Needs

Notes

Average Grad Student Credit Card Debt was $2200*

#REF!

Notes

Student works 15 hours per week @ $15/hour

20400

Notes

MIIS Personal Budget

IncomeIncome Source Budgeted

Job 1 8,333.00$

Total income 8,333.00$

ExpensesIncome Tax Withholdings Budgeted

Federal income tax 1,676.00$

State income tax 626.50$

FICA 637.48$

Medical See FICA

Social Security See FICA

SDI 91.66$

Total withholdings 3,031.64$

Finance Payments Budgeted

Credit card 200.00$

Auto loan 479.00$

Student Loans 1,060.00$

Total finance payments 1,739.00$

Fixed Expenses Budgeted

Rent 1,860.00$

Auto insurance 108.83$

Medical insurance 68.00$

Cable TV 45.00$

Telephone 75.00$

Internet 30.00$

Investments/Savings 250.00$

Utilities 50.00$

Total fixed expenses 2,486.83$

Variable Expenses Budgeted

Household 50.00$

Groceries 600.00$

Auto upkeep and gas 130.00$

Other travel expenses -$

Clothing 100.00$

Medical/prescriptions 25.00$

Entertainment 200.00$

Dining out/Fast Food 160.00$

Total variable expenses 1,265.00$

Totals Budgeted

Income 8,333.00$

Expenses 8,522.47$

Income less Expenses (189.47)$

Budget Assumes the following: Student graduated and earns $100K per year Student moves to SF after graduation and opts to no longer have a roommate Students rewards her hard work by buying a new car Student was relatively responsible with her credit as a Grad student, total balances total $2500 Total Loans borrowed come to $80,724 (does not account for interest accumulated in school.)

0-$4,750=0%, $4,751-$7,000=10%, >$7,000=15%

0-$3,070=0%, $3,071-$5,960=1%, >$5,960=2%

Notes

1.18 % of Gross Wages

Monthly Budget at Graduation

$17K Sub, $24K Unsub, $39,724Grad PLUS

Notes

Student's outstanding credit card debt is $2500*

1.45% of Gross Wages

Notes

6.2 % of Gross Wages

#REF!

#REF!

Notes

MIIS Post Grad Budgeting


Case Study – Stanford Graduate School of Business

Workshop Series

Autumn Financial Aid At the

GSB “Why Didn’t Any One

Tell Me This While I Was in Business School?”

Monitoring Spending, Determining Needs and Wants, and Creating a Spending Plan

Spring Financing 101:

Mortgage The Path to Home

Ownership Foreclosures and Short

Sales Mandatory

In-Person Exit Counseling for Graduating Students

Loan Repayment Strategies

Winter Deducting Your

GSB Expenses International Tax

Workshop Knowing Your

Credit Score Identity Theft:

Protect Yourself


Training Created by

Colleen MacDonald [email protected]

Dennis Zanchi/Ruby [email protected]/[email protected]

Pat Robles-Friebert & Kate [email protected] / [email protected]

Dianne [email protected]

mailto:[email protected]

mailto:[email protected]/[email protected]




create successful financial literacy on campus presented by: dianne fulmer, usa funds colleen...

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