Administrator Workshop on Financial Literacy Scott D. Lewis, Account Executive Lucy Manzo, Account Executive The College Board Education Loan Program Mike Bennett, Director of Financial Aid Brookdale Community College John View, Director of Financial Aid SUNY College of Environmental Science and Forestry Linda Bell, Director of Financial Aid Lehigh University

2Administrator Workshop on Financial Literacy Let the Record Show… American children, teens and young adults (ages 8-21) earned about $211 billion in This group spends at a rate of approximately $172 billion per year and is saving at a rate of $38 billion per year. [Harris Interactive, Generation Y Earns $211 Billion and Spends $172 Billion Annually, September 3, 2003] On average, 65.5% of students who participated in a 2004 Jump$tart Coalition survey on Personal Financial Literacy failed the exam! [Jump$tart Coalition, Personal Financial Survey, April, 2004] The average undergraduate student loan debt was $18,900 in Up 66% from [Nellie Mae, College on Credit: How Borrowers Perceive their Education Debt Results of the 2002 National Student Loan Survey, February 6, 2003]

3Administrator Workshop on Financial Literacy Let the Record Show… 55% of college students acquire their first credit card during the first year of college, and 83% of college students have at least one credit card. 45% of college students are in credit card debt, with the average debt over $3,000. [Senator Akaka, Credit Card Minimum Payment Warning Act, May 21, 2004] Bankruptcy filings for those in the 18 to 25 age bracket numbered 150,000 in A ten-fold increase in just five years. [Testimony of Dara Duguay, Executive Director Jump$art Coalition for Personal Financial Literacy, for the Senate Governmental Affairs Subcommittee on Financial Management, the Budget, and International Security, March 30, 2004] Consumer debt is now equal to 110% of disposable income. Ten years ago it was 85%, and 20 years ago, it was 65%. [Daily Bankruptcy News as excerpted from Senator Akaka, Credit Card Minimum Payment Warning Act, May 21, 2004]

4Administrator Workshop on Financial Literacy Why Financial Literacy? The Four R’s Recruitment Retention Revenue Reputation Visibility The Goal To enhance the R’s and address the need Help students before it is too late Establish a strong academic and credit record

5Administrator Workshop on Financial Literacy Financial Literacy Areas of Deficiency: Basic Debt Management Credit card debt Student loan debt Other consumer debt Budgeting Spending Habits

6Administrator Workshop on Financial Literacy Tell Me About It…

7Administrator Workshop on Financial Literacy What Am I To Do? 1. Assess Need 2. Set Your Goal 3. Create a Strategy 4. Measure & Evaluate Your Success

8Administrator Workshop on Financial Literacy Assess Need Student Financial Literacy Needs May Be Different Depending on: Region of the country Education sector Secondary school Proprietary school Community college State college/university Private college/university Socio-economic background

9Administrator Workshop on Financial Literacy Assess Need Ask Students What They Need or Want: Survey Paper Online Be prepared to guide Students don’t know what they don’t know!

10Administrator Workshop on Financial Literacy Group Breakout Group #1 – Four Year Private Institution Group #2 – Four Year Public Institution Group #3 – Community College Group #4 – Proprietary College In your group, assess the financial literacy needs of students from your assigned sector. Record your thoughts on your flip chart and be prepared to discuss.

11Administrator Workshop on Financial Literacy Group Recant Group #1 – Four Year Private Institution Group #2 – Four Year Public Institution Group #3 – Community College Group #4 – Proprietary College Provide a rationale and background for the student needs identified for your education sector. Determine your dominant need.

12Administrator Workshop on Financial Literacy Set Your Goal Start small Begin with most obvious need Build from this point over time Determine your goal S.M.A.R.T Goals Specific: Ask 6 “W” questions Measurable: How much? How many? How will you know when…? Attainable: Plan steps wisely. Establish a time frame. Realistic: Willing and able to work toward. Tangible: Can experience it with one of the senses.

13Administrator Workshop on Financial Literacy Large Group Goal Setting Remember, start small and begin with most obvious need Group #1 – Four Year Private Institution Group #2 – Four Year Public Institution Group #3 – Community College Group #4 – Proprietary College

14Administrator Workshop on Financial Literacy Time for Lunch!

15Administrator Workshop on Financial Literacy Best Practices: Testimonials of success John View, Director of Financial Aid SUNY College of Environmental Science and Forestry Linda Bell, Director of Financial Aid Lehigh University Mike Bennett, Director of Financial Aid Brookdale Community College

16Administrator Workshop on Financial Literacy Solutions: See What’s Already Out There You don’t have to reinvent the wheel! There are a significant number of tools and resources already available to you. Where to start: Education partners - lenders, guarantors, servicers, professional associations State and federal initiatives - state councils on economic education, Federal Trade Commission Education and non-profit organizations - College Board, Jump Start Coalition

17Administrator Workshop on Financial Literacy Solutions: Types of resources available Simple Good for “quick hits” Web sites Brochures, printed materials Moderate Good for keeping the topic on students’ minds newsletters Involved Good for deeper, long- term training Scheduled sessions Curriculum for credit A resource document for your use.

18Administrator Workshop on Financial Literacy Creating a Strategy Start small and build need with students Take into account institutional resources Involve others on campus Institutional buy-in is a key to success!

19Administrator Workshop on Financial Literacy Group Breakout Strategy Creation Group #1 – Four Year Private Institution Group #2 – Four Year Public Institution Group #3 – Community College Group #4 – Proprietary College In your group, create a strategy based on the needs and goals previously determined for your assigned sector. Record your strategy and be prepared to discuss.

20Administrator Workshop on Financial Literacy Group Strategy Recant Group #1 – Four Year Private Institution Group #2 – Four Year Public Institution Group #3 – Community College Group #4 – Proprietary College Share the strategy you created for your education sector.

21Administrator Workshop on Financial Literacy Large Group Strategy Discussion & Brainstorm Collect as many ideas as possible with no criticisms or judgments. All ideas are welcome no matter how silly or far out they seem. Be creative. The more ideas the better because you don’t know what might work. No discussion during the brainstorming activity. Do not criticize or judge. Don't even groan, frown, or laugh. All ideas are equally valid at this point. Do build on others' ideas.

22Administrator Workshop on Financial Literacy Solutions: Measure Success Measure your success Constantly assess Continue surveying Evaluations Testimonials Year to year retention rates Cohort default rate

23Administrator Workshop on Financial Literacy Reprise Assess need Set goal Determine tools/resources Measure your success Promote your success

24Administrator Workshop on Financial Literacy Final Thoughts What is success? Institutional buy-in is key Patience

25Administrator Workshop on Financial Literacy A Word to the Wise “If you build it, they will come” The R’s will thank you and so will your students!

26Administrator Workshop on Financial Literacy Questions Scott D. Lewis, Account Executive, Lucy Manzo, Account Executive, Mike Bennett, Director of Financial Aid, John View, Director of Financial Aid, Linda Bell, Director of Financial Aid,