1. Managing Financial Literacy and Default Prevention in 60 minutes or less!

2. 2 Managing Financial Literacy and Default Prevention in 60 minutes or less!- Overview The Problem Evaluate Strategize Act

3. 3 What is your biggest obstacle to implementing/delivering FL and DP activities? TIME BOTH Not sure what to do

4. FA Office tasked with Financial Literacy and Default Prevention - Not enough time - Limited staffing - No team member assigned to task as main responsibility - Schools supports efforts, yet not resourced The Problem

5. Complicated resources - Resources/ideas take too long to implement Students not engaged - Students don’t see importance - Need engaging resources/methods The Problem

6. What do you think or what have encountered the “Problem” to be?

7. Early Financial Literacy & Default Prevention activities will: - Lower or keep rates low - Decrease loan delinquency - Successful repayment - Create strong financial habits - Responsibility to help students manage debt Two out of five student loan borrowers – or 41%- are delinquent at some point in the first three years of repayment Why it’s Important

8. 8 How much time do you currently devote to FL & DP? 1 hr. a week Not Enough!! 2-5 hrs. a week

9. How much time do you have? How much time do you currently spend in this area? Where are the gaps? For your campus, what will have the greatest impact? Where do you want to be? (the end in mind) www.mymoney.govwww.mymoney.gov Assessments Evaluate

10. Start…no matter how small Set aside 1 hour 3 days a week (increase to 1 hour a day after one month) Stop…plan out the next 6 months Create weekly action sheet for FL & DP/Time Block Engage other departments Be consistent, even with limited resources and time Strategy

11. Time Block

12. Use a 3rd party provider for FL delivery - Less than one hour management a week, exponential results Meet with FL Student Task Force - One hour a month to increase student support/exposure Monthly Lunch & Learn - Easy point of connection-great results Simple email campaign - Group your students and send simple financial tips weekly Action- Financial Literacy

13. Money Question White Board - One money question a week on a white board - Students answer on board - Pic taken and posted on social media Conduct “Man on the street” Interviews - Offer prize/food - Conduct around lunch time FL Scavenger Hunt - One hour a day to prep - One hour to announce - One hour to choose winner Action- Financial Literacy

14. You Tube video - Create a FL channel and post a financial basics video (Get your ducks in a row) Money Matter postcards - Create simple postcards that discuss good financial habits and distribute throughout campus Publish article in school newspaper - Submit an article or events in the school. Simple, fast and great exposure Action- Financial Literacy

15. Money Secrets - Students, staff, faculty air dirty laundry about money mistakes - Card with money secret written - Placed around campus - Followed up with Money Secret one hour workshop In classroom FL presentation - Most effective use of time- captured audience Action- Financial Literacy

16. What can you implement…this month Use a Third Party Money Secrets Man on the Street Meet w/ Task Force You Tube Money Matters Postcard Lunch & Learn Money Question Whiteboard

17. 17 Default Prevention defined: An activity that assists students in understanding and maintaining successful repayment in hopes of averting delinquency and/or default

18. 18 Why Create a Default Prevention Plan ? Establishes default prevention goals Shows the institution’s commitment to default prevention Provides a framework for school-based initiatives Protects the integrity of the loan programs It’s the right thing to do for students!

19. 19 Why Create a Default Prevention Plan? A Default Prevent Plan is required if the institution: 34 CFR 668.14 (b)(15) Participates in the Direct Loan program for the first time Participates in the Direct Loan program and have undergone a change of ownership 34 CFR 668.217 Has a 3-Year Cohort Default Rate of 30% or greater for any one federal fiscal year

20. 20 Default Prevention Plan – Consequences First First year at 30% or more: Create a Default Prevention Plan and task force Submit plan to FSA for review Second Second consecutive year at 30% or more: – Review/revise default prevention plan – Submit revised plan to FSA » FSA may require additional steps to promote student loan repayment Third Third consecutive year at 30% or more  Loss of eligibility: Pell, DL  School has appeal rights

21. Invest in orientation - Spend time in orientation discussing student loans Work with 3 rd party - Their one hour = Your 3 hours Work delinquent borrowers by stage and groups - One hour a day given to delinquency stages: 30-90 91-150 151+ Action- Default Prevention

22. Email triggers - Automatic email/letter triggers to all borrowers Create a simple default prevention page - ibuildapp.com - appmaker.com - Use your IT dept. then take an hour a week to manage it Action- Default Prevention

23. 23 3 Important Take-a-ways from this Session Default prevention is a school-wide effort and not the sole responsibility of the financial aid office. Default Prevention is Everybody's Business! In order to conduct risk analysis and identify your defaulters you need data. You NEED DATA! Your default prevention plan should incorporate the products and services offered by the Federal Loan Servicers and other Third Party agencies. Partner with Third Party Servicers!

24. 24 Resources ECMC www.ecmc.org iGrad www.igrad.com iGrad for administrators www.schools.igrad.com iOme www.iomechallenge.org Jump$tart.org www.jumpstart.org

25. 25

26. Irma Molinares School Relations Director imolinares@ecmc.org Financial Awareness Basics (FAB)