Effectively Preparing Students For Repayment Eric Meadows Assistant Director HSC Financial Aid Office

Overview Federal Regulations The Millennial Generation Partnership Resources Financial Aid Counseling Outreach Institutional Support Student-to-Student Peer Counseling

Federal Regulations and Guidance Entrance Counseling required for 1st time borrowers Online counseling at studentloans.gov (optional) Can provide additional content; cannot require participation in any subsequent counseling as a condition of receiving a Direct Loan Can require 1st time students to participate in a workshop, loan orientation presentation, etc. Can use professional judgement to deny or limit loans An institution may on a case-by-case basis refuse to originate a loan or originate a loan for an amount that is less than what the borrower is eligible to receive* * Per section 479A(c) of the HEA and the regulations at 34 CFR 685.301(a)(8)

Federal Regulations and Guidance Exit Counseling A student that is graduating, leaving school or dropping below half- time enrollment is required to complete exit counseling. School must confirm completion of exit counseling even if the borrower does not notify the institution. Confirm that online counseling is complete or mail/e-mail exit counseling material to borrower at last known address if you have it. Must provide materials by mail or e-mail if borrower fails to participate in an exit counseling session Must document that materials were sent to borrower

Federal Regulations and Guidance Providing additional information Counseling and Communications to Borrowers Developing a budget Planning for repayment SAP reminders Future employment expectations Staying in touch with loan servicer Providing financial literacy tools Identify and provide special counseling for at-risk students

STATISTICS Consumer Protection Bureau – $1.4 trillion in fed loan debt Average debt per borrower - $28,400* National Default rate average – 11.3%** (State of WV 16%) 38% do not know how much they borrowed** 19% underestimate that amount** *per www.lendedu.com **per Department of Education ***per survey conducted by Brookings in 2014 https://www.brookings.edu/wp-content/uploads/2016/06/Are-College-Students-Borrowing- Blindly_Dec-2014.pdf 1 – Average debt per borrower is federal debt only. This doesn’t account for Private or Institutional Loans. 2 – Over 7 million of the US population has defaulted on their student loans 3 – About 30% of student loan borrowers have moved back in with their parents – over 40% have delayed starting a family/60% buying a car/70% retirement/75% buying a home/30% delayed marriage

The Millennial Generation Born roughly between 1980 and 1994 Roughly 25% of the US population* 75% of Higher Education Enrollment* Prefer brief communication, but meaningful Still want detail provided Must reach their mobile devices Don’t condescend their age Nurture their passion *per Pew Research Center

Partnership WVU partnering with Inceptia “Financial Avenue” WVU currently provides a program called Transit Financial Wellness through a company called EVERFI Every WVU student can participate in course modules Survey determines your “Action Plan” First time students enrolled in the “first year seminar” are required to complete Transit WVU partnering with Inceptia “Financial Avenue” Courses for students Blue To Gold Financial Wellness Topics, Blog, Podcasts, Videos & Presentations

Resources for students WVU Financial Aid Website Debt Management Budgeting resources which includes budget calculators Savings resources Scholarship opportunity searches Info on earning money through part time employment Resources for finding loans Interest calculators

Target Audience Federal Loans (includes PLUS) Direct $949.1 billion FFEL Loans $335.2 billion Perkins $7.9 billion Graduates (4 year colleges) 71% 1.3 million with debt 66% of grads from public colleges had loans Average debt $25,550 75% of graduates from private colleges had loans Average debt $32,300 Pell Grant recipients more likely to borrow & borrow more 88% of grads had student loans with an average balance of $31,200 53% of those without Pell had student loan debt & borrowed 4,750 less About 40% of $1 trillion+ loan debt used for grad/professional degrees *All stats from www.studentloanhero.com

Communications E-mail that student must complete Entrance Counseling Any student that has accepted a Federal Direct Loan receives a communication from us with instructions on how to complete Entrance Counseling through studentloans.gov Notification of Federal Loan Disbursement All schools that disburse Direct Loans are required to send a notification of Federal Loan Disbursement Also references that they can cancel all or a portion of their loan within 14 days Encourage students to return loan funds within 120 days Letter of total federal loan debt Informs student of Federal Loan Debt, which includes Subsidized, Unsubsidized, Perkins and Graduate PLUS loans

Social Media WVU SFSS Social Media sites Reaching out to millennial students Short Financial Aid educational tips daily Student Financial Support & Services Facebook www.facebook.com/wvusfs Student Financial Support & Services Twitter www.twitter.com/wvusfss

Counseling Main Campus Health Sciences Center Offer one on one counseling (Entrance follow up & Exit) Loan Servicer, Options for Repayment Earning potential Paycheck Health Sciences Center WVU Wallet Watch Survey 4 year program for the School of Medicine Indebtedness Letters (MD, PharmD, DDS, Law) Social media Financial Literacy Tips On site visits to regional campuses One-on-One Loan Counseling and Debt Management

Additional Outreach Contact less than ½ time and withdrawals Phone calls Follow up communications Identify students in danger academically All F’s mid-term contacts Mid-Year Academic for Freshman on probation

Institutional Support Financial Literacy Committee Create Institutional Initiatives Financial education added to curriculum programs Scholarship opportunities Institutional Outreach Office of Assessment & Student Success Programs Student Life Assessment Student Success Programs Academic Resource Centers/Tutoring Tutor Resources

Student-to-Student Peer Counseling Long term initiatives Utilizing student workers Start with Federal Work Study program Train students to handle student traffic Long term goal - experts in loan counseling Partner with Colleges and local businesses Create Educational Opportunities Work with colleges – credit for students

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