Beyond Entrance and Exit Counseling TASFAA October 2010

Hosted by: Debbie Bradford Consultant USA Funds (866) , Ext.0194

Agenda  A Few Questions.  Importance of Communication.  “What I Wish I Knew Then…”  Best Practices.

A Few Questions  What do you wish your students knew about their loans and money?  What are you doing now to help fulfill your own wishes?

Importance of Communication  Adopt a “life of the loan” philosophy.  Communicate and educate. –Again and again and again.

Importance of Communication  Utilize an ongoing communication tool.  How do you communicate? –Phone? – ? –Text messaging? –Social networking? –Others?

Importance of Communication  Integrate financial literacy. –Wherever you can. –In any way you can.  What are you doing on your campus?

“What I Wish I Knew Then…” Source: Get Rich Slowly (getrichslowly.org/blog) “I wish I would have known how destructive living without a budget was. It isn't about how much money you make – it's about how much you spend.” - Seth

“What I Wish I Knew Then…” Source: Get Rich Slowly (getrichslowly.org/blog) “I wish people had hammered home to live within my means. If I can’t afford to pay cash for it, I probably don’t need it.” - Jessica

“What I Wish I Knew Then…” Source: Get Rich Slowly (getrichslowly.org/blog) “The importance of an emergency fund. This is especially important as you transition to living independently, when every random expense is truly unexpected.” - Liz

“What I Wish I Knew Then…” Source: Get Rich Slowly (getrichslowly.org/blog) “Compound interest, compound interest, compound interest. Continue to live like a college student during the first post-college ‘professional’ job and stick the rest of your income into a 401k, 403b or Roth.” - Finally Frugal

Best Practices  Create an institution-wide default prevention plan.  A successful plan: –Starts early and repeats messages often. –Involves peers throughout campus. –Educates and communicates with borrowers. –Offers financial literacy information. –Includes enhanced entrance and exit counseling. –Provides annual loan updates and repayment calculators. –Helps reduce the number of dropouts. –Works to ensure borrowers can repay their education loans.

Best Practices  Create a “money smarts” page or section on the school’s Web site. –Saving for the future. –Managing and reducing debt. –Using credit cards wisely. –Borrowing only what is necessary. –Making smart financial choices.

Best Practices  Prevent or reduce exposure to credit card vendors. –Work with administration to limit or eliminate vendors’ direct access to students. –If allowed, require vendors to provide an interesting and informative credit card management program for students.

Best Practices  Organize a speaker’s bureau. –Volunteer to present at meetings and activities students attend. –Get involved in on-campus groups. –Participate in dorm and residence life activities.

Best Practices  Provide “money smarts” training. –Cross-train others who have frequent contact with students.  Hearing information more than once makes a stronger impact. –Students more receptive hearing information from peers.  Residence assistants.  Work-study students.

Best Practices  Get buy-in from campus advisers.  Keep students informed and up to speed. –Student loan debt total. –Estimated potential monthly payments.

Best Practices  Create a cross-departmental student retention committee. –Involve faculty from various divisions. –Be sure to include students!

Best Practices  Invite recent alumni to attend informal meetings to share “real world” information. –Dorm meetings. –Campus organizations.

Best Practices  Take advantage of your former lenders/guarantor partners – while you can. –Loan counseling.  Higher Education Act technical amendments now allow former lenders and guarantors to perform entrance counseling. –Default prevention assistance. –Expertise of debt management consultants. –Student retention support.

USA Funds ® is the nation’s leading education loan guarantor. A nonprofit corporation, USA Funds works to enhance postsecondary education preparedness, access and success by providing and supporting financial and other valued services.