1. A Collaborative Approach To Financial Education 4.11.16 NCASFAA Conference – Intermediate Aid Officers Workshop

2. 2 Session Overview Defining financial literacy The importance of financial education Developing and implementing a plan Examples and best practices Resources and materials

3. 3 Financial Literacy “The ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being.” −The President’s Advisory Council on Financial Literacy, 2008 Annual Report to the President

4. The Importance Of Financial Education

5. 5 Increasing Tuition & Fees 2015-16 Two-Year Public: $3,435 Four-Year Public: $9,410 Out of state = $23,893 Four-Year Private:$32,405 For-Profit:$15,610 Source: Trends in College Pricing 2015, The College Board

6. 6 Student Loan Debt For Undergrads Class of 2014: 69% of graduates had debt; average of $28,950 Up from $28,400 for class of 2013 Increase of 56% in a 10 year period ($18,550 in 2004 - $28,950 in 2014) About 1/6 th of debt was private loans Source: The Project on Student Debt, 2015 69%

7. 7 Credit Card Usage In 2012, 35% of undergraduates had a credit card Down from 42% in 2010 Average outstanding balance: $755 3% charged tuition 4% of parents charged tuition 80% of students carry debit cards Source: How America Pays for College 2012, Sallie Mae/IPSOS

8. 8 Student Loans vs. Credit Cards Source: Federal Reserve Bank of New York, August 2011 Outstanding Student Loan Debt > $1 Trillion Student Loans Borrowed Last Year > $100 Billion Student Loan Debt > Credit Card Debt

9. 9 3 Year CDR (Cohort Default Rate) FY2010FY2011FY2012 # of Borrowers in Repayment 4,082,5704,732,7935,143,918 # of Borrowers Defaulted 600,545650,727610,956 Default Rate14.7%13.7%11.8 Source: U.S. Department of Education

10. 10 Repayment Is Proving Challenging For Many Of all respondents in active repayment say it’s difficult for them to do each month From ASA’s 2015 Life Delayed Study: Q. How easy or difficult is it for you to make your monthly loan payments? 51% Even more so for those making less than 70K 53% And for those who had debt greater than 30K N= 901 N= 808 N= 1461 * This question was only asked only of those who indicated some degree of active repayment

11. 11 Student Loan Impact On Long-term, Healthy Financial Habits Q Have you put off saving for retirement, or other major investments, because of student loan debt? Q. Do you have an emergency fund?

12. Developing And Implementing A Plan

13. 13 Key Elements Perceived need/purpose Goals and objectives Format of program Audience Partners and resources Measuring success

14. 14 SALT CREATED BY AMERICAN STUDENT ASSISTANCE Reduce Student Loan Debt and/or CDR Improve Retention Increase Annual Giving & Alumni Engagement Increase Student Engagement Position Students and Alumni for Financial success Financial Aid Office & Media/Public Relations Admissions, First Year Experience, and Academic Outreach Alumni Relations & Development Student Activities, Residential Life, Career Services Everyone! Perceived Need/Purpose

15. 15 TRIO Requirement 2008 Higher Education Opportunity Act Passed (2008) Sec 646.1 (d) Improve the financial literacy and economic literacy of students in areas such as – (1) Basic personal income, household money management, and financial planning skills; and (2) Basic economic decision-making skills

16. 16 Possibility For Alumni Office Melior Group & American Student Assistance, 2011 Appeal of Having College/University Offer Programs on Financial Literacy or Wellness to Graduates of the College

17. 17 Struggle Impacts Ability And Willingness To Donate Q. To what extent do you agree or disagree with the following statements when thinking about your alma mater? Student loan debt hinders my actual ability to donate to my alma mater(s) The amount of student loan debt I incurred impacts my willingness to donate to my alma mater(s) 62%64%

18. 18 Many Would Like To See Their Schools Help Them More My alma mater(s) should play a larger role in helping me manage my student loans Q. To what extent do you agree or disagree with the following statements when thinking about your alma mater? 49 % Agree Only 21% Disagree

19. 19 Goals And Objectives Learn good financial decision making Get students to attend Get students to pay attention Lower borrowing levels Lower Cohort Default Rate Collaborate with other offices

20. 20 Format Of Program In-person Course Orientation Workshop series Online Written material Counseling Certified professionals Peer-to-peer

21. 21 Audience TRIO students All entering freshmen All graduating seniors College 101 class Greek life/residence hall groups Commuter students Campus organization/major Young alumni

22. 22 Partners And Resources Campus partners Find some champions: staff, faculty, students Community resources Local credit unions, banks, insurance professionals, etc. National resources Not-for-profit agencies Blogs and websites blog.saltmoney.org, studentlendinganalytics.com, todayscampus.com, academic-impressions.com

23. 23 Measuring Success Reduce loan debt Reduce credit card debt Increase alumni giving Increase # of offerings Improve student interaction Increase # of attendees Outcomes

24. Examples And Best Practices

25. 25 University of Missouri Source: http://pfp.missouri.edu/financial/index.html

26. 26 Virginia Tech Source: http://www.finaid.vt.edu/financial_literacy/

27. 27 Kansas State University Source: http://www.k-state.edu/pfc/

28. 28 Principles Of Effective Programs Teachable moments Active, experiential, and problem-based learning Evaluation Financial Education in TRiO Programs, Institutional Policy Brief, The Pell Institute, September 2009

29. 29 Most Important Start somewhere Anything can help! Find campus champions to help Partner with community and national resources

30. 30 Make It Simple! School Newspaper Write a regular article on money management and/or student loan basics Pay for advertisements in the newspaper School radio or TV station Social media tools

31. 31 Quick Money Leakage Examples Dinner Out Every Saturday Night $32/week $1664/year One Starbucks Grande Latte Every Weekday $3.80/drink $988/year Wendy’s #2 Combo Twice a Week $5.64/combo $587/year

32. Resources

33. 33 Web Resources www.myfico.com www.annualcreditreport.com www.bankrate.com www.jumpstart.org www.afcpe.org

34. 34 SALT CREATED BY AMERICAN STUDENT ASSISTANCE SALT (saltmoney.org)

35. 35 SALT Resources For Instructors SALT curriculum with PowerPoint slides, speaker notes and Instructor’s Manual Instructor’s Manual includes discussion questions, classroom activities and energizers Training opportunities

36. 36 Your Plan Short Term Identify three actions you would like to take when you return to campus that will get you started on your road to a financial education program. Long Term Consider the ideal state. What resources do you need to make this happen? Who do you need to partner with? What does the roadmap look like?

37. 37 Thank You SALT: Money knowledge for college and beyond CONTACT SALT 000.000.0000 first.last@asa.org schools.saltmoney.org