June 2014

TRANSIT IMPACT REPORT EverFi University

Table Of Contents

•  Student Wellness Experience •  National Insights on Financial Literacy •  EverFi University Student Results •  Best Practice Recommendations & Conclusion •  Appendix:

–  Assessment Questions –  Course Map (for reference)

Student Wellness Experience

Alcohol Use

Non-curricular factors have a significant impact

on overall student and institutional success.

Online Behavior

Cyberbullying Cyberstalking

Hazing

Sleep

Marijuana Use Other

Drug Use

Financial Stress

Exercise

Interpersonal Violence

Sexual Assault •  Student Wellness •  Retention •  Reputation •  Risk Management •  Liability •  Regulatory Pressure •  Federal Aid

•  Physical Wellbeing •  Social Wellbeing •  Mental Health •  Financial Wellbeing •  Academic Engagement

Non-Curricular Factors

Student Issues

Institutional Issues

Impact of Non-Curricular Factors

Student  Wellness  Issues  are  Connected  

Substance abuse is as

predictive of student GPA as time spent

studying1

High-risk drinkers are 8 times more likely to commit

sexual assault as low-risk drinkers3

More than 50% of

students paid a bill late in

the last year2

70% of students polled said their colleges should

increase financial education programs4

Sources: 1. EverFi Research, 2013 2. July 2010, Higher One Holdings, Inc. 2010 National Survey by Higher One Holdings, Inc. 3. EverFi Research, 2013 4. July 2010, Higher One Holdings, Inc. 2010 National Survey by Higher One Holdings, Inc.

EverFi Wellness and Prevention Framework

EverFi’s evidence-based courses and data collection

Analyze Survey Data Baseline insights and opportunities to further prevention

Refine Campus Programs & Policies EverFi Research and Coalition provide actionable insights to inform campus programming

National insights and campus data inform areas of focus for following year’s implementation

Evaluate Outcomes

POPULATION-LEVEL

WELLNESS

Establish Foundation

Financial Stress and Student Wellness

“The number one reason for students leaving college is debt and financial stress, followed by poor academic performance and poor social fit” — Hoffman, McKenzie, & Paris, 2008; Chiang, 2007

Research shows: Students who report difficulty with mental health, experience academic failure, and withdraw from enrollment frequently cite financial difficulties as the key predictor of these problems. — Inceptia (2012). Financial stress: An everyday reality for college students

Sources: Chiang, L. (2007) Statistics on college student dropout rates. http://www.duck9.com/College-Student-Drop-Out-Rates.html Hoffman, M., McKenzie, K., & Paris, S. (2008). “Paper or Plastic? CPA’s can educate college students on responsible credit card use”. The CPA Journal, 17-20. Inceptia (2012). Financial stress: An everyday reality for college students. White paper, inceptia.org

The top four stressors for college students (among all possible sources of stress) are:

1. need to repay loans 2. cost of education 3. borrowing money for college 4. need to find a job after school

— Chiang, L. (2007)

SIX  LEARNING  MODULES    

1.  Back  to  School  2.0    2.  Best  Weekend  Ever    3.  Balancing  Act    4.  Best  Life  Ever    5.  Salary  Split    6.  Payback  Time    

 Personalized  Ac/on  Plan:  Students  add  to  their  personalized  AcJon  Plan  as  they  progress  through  each  module,  which  they  can  email  and  print  aMer  compleJng  the  course  

         

For  College  Students  —  highly  customizable  for  individuals  and  insJtuJons  Pre  &  Post  Module  knowledge  and    behavior  assessments    Approximately  1-­‐2  hours    

National Insights On Financial Literacy in Higher Education

Your results should be viewed within the broad and changing national context. Here are some highlighted insights from EverFi’s vast student survey respondents.

National Insights from the EverFi Network

Data collected from over 65,000 undergraduate students in 2013-2014

52% of students “worry about their debts”

40% say “it bothers them quite a bit that they can’t afford to buy

everything they want”

42% have bought things even though they

couldn’t afford them

35% believe “debt is an

integral part of today’s lifestyle” 42%

say they will check their credit report this year

But only

16% of students know how long items sent to a

collections agency stay on their credit report

Only

EverFi University Student Results

2013-2014 – Transit – EverFi University

1,700 COMPLETED PART 1

2,000 STUDENTS PARTICIPATED

1,500 (75%) COMPLETED FOLLOW UP

Students take a pre-survey before starting Transit and a post-survey 4-6 weeks after completion. Part 1 = Pre-survey through the Exam Follow Up = Completed post-course survey delivered 4-6 weeks after completing Part 1

54% 46%

Participant Demographics – EverFi University

Ethnicity Gender Age

White/Caucasian   71%  

Asian/Pacific   12%  

Hispanic/LaJno   9%  

African-­‐American   8%  

NaJve  American/  NaJve  Alaskan   >1%  

Male   71%  

Female   12%  

18  Years   72%  

17  Years   6%  

19  Years   12%  

20  Years   5%  

21+  Years   3%  

ITEM Campus National

Credit Survey 1 Survey 1

Students with any credit cards 28% 33%

Of those students with credit cards:

More than one credit card 34% 33%

Over $1,000 in credit card debt 40% 42%

Over $5,000 in credit card debt 4% 5%

Ever late on credit card payment 15% 18%

Student Loans

Students who will have loans when they graduate 63% 63%

Will have over $5,000 in student loan debt 40% 42%

Will have over $10,00 in student loan debt 33% 35%

Credit and Loan Behavior – EverFi University Campus vs. National

*Please note: Your N size is different from pre survey to follow up survey, please refer to Slide 12.

Knowledge Gain – EverFi University Measuring the Percentage of Correct Responses

63%

86%

87%

97%

68%

89%

National Average (Post)

74%

88%

92%

94%

85%

88%

88%

67%

81%

71%

54%

67%

Paycheck Deductions

Banking Terms

Credit Cards vs Debit Cards

Credit Terms

Subsidized vs Unsubsidized Federal Loans

Federal vs Private Loans

Pre Quiz Post Exam

Knowledge Gain – EverFi University Measuring the Percentage of Correct Responses

94%

61%

98%

72%

85%

91%

National Average (Post)

74%

88%

92%

94%

85%

88%

88%

67%

81%

71%

54%

67%

Student Loan Default

Student Loan Repayment

Insurance Payments

Fixed Expenses

Diversified Investment

Credit Score

Pre Quiz Post Exam

Campus

National

During the next year, to what degree do you plan to: (1 - Never to 7 - Always)

Pre Survey

Follow Up Survey

% change

Pre Survey

Follow Up Survey

% change

Follow a budget to manage your spending? (5 - 7) 50% 70% +18% 56% 76% +20%

Balance your checkbook every month? (5 - 7) 55% 45% -10% 45% 60% +15%

Review your credit report to make sure there are no mistakes? (5 - 7) 55% 60% +8% 45% 58% +13%

Carefully review the terms on any credit cards or loans you apply for? (5 - 7) 60% 75% +20% 58% 70% +12%

Green = Positive finding Red = Negative finding

Campus vs. National

Percentage of students with healthy/positive responses as indicated by the “5 - 7” label for each item.

Planned Behaviors (Short Term) – EverFi University

*Please note: Your N size is different from pre survey to follow up survey, please refer to Slide 12.

Campus

National

During the next 5 years, to what degree do you plan to: (1 - Never to 7 - Always)

Pre Survey

Follow Up Survey

% change

Pre Survey

Follow Up Survey

% change

Save a specific percent of your income each month? (5 - 7)

50% 70% +18% 65% 73% +8%

Start saving for retirement? (5 - 7) 55% 45% -10% 41% 55% +14%

Evaluate banks for the best blend of features and services? (5 - 7) 55% 60% +8% 51% 62% +11%

Evaluate different forms of savings vehicles (CD’s, money market accounts, etc.)? (5 - 7) 43% 50% +20% 34% 48% +14%

Green = Positive finding Red = Negative finding

Campus vs. National

Planned Behaviors (Long Term) – EverFi University

Percentage of students with healthy/positive responses as indicated by the “5 - 7” label for each item.

*Please note: Your N size is different from pre survey to follow up survey, please refer to Slide 12.

Best Practice Recommendations

Prevention Education Leveraging your Data Ongoing Education and Support

Population Level Prevention Program for all First year

Students

Focus on broad data collection and analysis

Promote student success during college and beyond

Research shows that the first 6-8 weeks is the riskiest time during a student’s college career. Campuses should:

● Require students to complete Transit prior to arriving on-campus

● Decide who will manage the Transit implementation

● Develop a clear communication plan

● Gain institution wide support for financial wellness on campus

● Determine an effective mandate to ensure a successful Transit implementation

EverFi provides data to help campuses promote action and change on their campuses.

By implementing Transit, campuses are able to:

● Receive knowledge gains assessments, attitudinal and behavioral surveys

● Use data to inform others on campus around successes and challenges

● Inform decisions regarding programming efforts

Additionally campuses should collect campus level data through exit interviews and student focus groups, to identify links to retention.

Continue to create opportunities for ongoing education for all students:

● Engage faculty and staff to help reinforce messaging provided through the course experience

● Leverage student leaders to facilitate peer to peer conversation regarding finances

● Work with financial aid in supporting students who are receiving financial assistance and those that have identified themselves as high need

● Engage Student Affairs and Wellness administrators to identify areas for collaborative wellness education

2014 Best Practice Recommendations H

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Conclusion: Transit as a Foundation

For Administrators and Prevention Practitioners: On-Going Prevention Efforts

This summary provides key research findings and campus-based data insights to guide the design and delivery of effective programming while better understanding the financial needs of your students.

For Students: Population-Level Prevention

Transit provides a foundation to empower students with the skills to understand their finances and successfully transition into and out of the college experience.

Don’t hesitate to reach out to your Partner Services Director at EverFi for ways we can assist with on-going prevention.

Appendix

What is the advantage of Federal Loans over Private Loans: A. Federal Loans have fixed interest rates and Private Loans can have variable interest rates B. Federal Loans have interest rates that are generally lower than Private Loans C. Neither of these D. Both of these Compared to a Direct Unsubsidized Federal Loan, a Direct Subsidized Federal Loan provides which benefits? A. The government will forgive your Direct Subsidized Federal Loan after you graduate. B. The government will pay the interest that accrues on a Direct Subsidized

Federal Loan while you’re in school. C. The government will automatically consolidate your Direct Subsidized Federal Loan after you graduate. D. The government will erase your loan history for your Direct Subsidized Federal Loan after you graduate. Which of the following is a credit card term that would NOT increase the amount of money you owe the credit card company? A. Annual Fee B. Annual Percentage Rate C. Monthly Billing Statement D. Late Payment Fee Unlike a debit card, a credit card: A. Allows you to spend money that you do not have. B. Cannot negatively impact your credit score. C. Does not offer protection against unverified purchases. D. Is tied to the amount of money in your checking account. Which of the following is NOT a banking term or fee that could result in an additional charge on your checking account? A. Maximum Balance Service Fee B. Checking Account C. Minimum Balance Service Fee D. Out-of-Network ATM Withdrawal Which of the following deductions are typically found in an employee’s paycheck? A. Employer Payroll Tax B. Social Security Tax C. Property Tax D. Sales Tax

Pre- and Post-course Assessment Questions Which of the following MOST impacts your credit score? A. Payment History B. Length of History C. New Credit D. Credit Types Which of the following is considered a “diversified” investment? A. Mutual Fund B. Index Fund C. Both of these D. Neither of these When it comes to budgeting, which of the following is considered a fixed expense? A. Clothing B. Utilities C. Eating Out D. Entertainment The amount you pay your insurer for your insurance plan is which of the following? A. Insurance coverage B. Insurance premium C. Out-of-pocket expenses D. Insurance co-pay Let’s say you graduate from school and you are unemployed or take a low-paying job. What are your debt repayment options if you have federal student loans? A. Income-based repayment B. Salary-based forgiveness C. Student Loan Cancellation D. Student Loan Default If you are falling behind on your student loan payments, which of the following steps should you take to avoid default? A. Transfer your balance to a credit card B. File for bankruptcy C. Contact your lender D. You cannot default on student loans

Note: This is for reference purposes. Items are randomized to combat cheating and therefore are unlikely to appear in this sequence.

***Correct Answer

Transit Course Map

Pre-Course

•  Credit, Mortgages and buying a home

•  Credit reports and scores

•  Calculating a credit score

•  Setting long-term savings goals

•  Savings Strategies

•  Investment Vehicles and Compounding Returns

•  Action Plan

•  Introductory Content

•  Pre-Course Survey

•  Pre-Course Assessment

Back to School 2.0 •  Financial Aid Terms

•  Managing Student Loan Borrowing and Spending Decisions

•  Choosing the Right Financial Aid Options

•  Action Plan

Best Weekend Ever

•  Spending Simulation

•  Checking Account Features and Fees

•  Credit Card Fees and Secure Online Purchasing

•  Credit vs. Debit

•  Spending, Budgeting and Impulse Purchases

•  Action Plan

Balancing Act

•  Animated Balancing Act Case Studies

•  Taxes and Take-home pay

•  Positive consequences of Avoiding unnecessary Debt

•  Personal Balancing Act Exercise

•  Action Plan

Best Life Ever

Salary Split

•  Net Income and Taxes

•  Discretionary and Variable Expenses

•  Fixed Expenses and “needs vs. wants”

•  Insurance Basics

•  Budgeting for Saving and Savings Vehicles

•  Action Plan

Payback Time •  Student Debt Repayment

Options

•  Career Case Studies

•  Student Loan Payback tips

•  Steps to begin Repayment

•  Avoiding Default/ Unnecessary Debt

•  Action Plan

Next Steps

•  Post-Course Assessment

Intersession Post Course

•  Post-Course Survey