Post on 26-Dec-2015
WASFAA Conference 2013
Create Successful Financial Literacy on Campus
Presented by:Dianne Fulmer, USA Funds
Colleen MacDonald, SimpleTuitionPat Robles-Friebert, Inceptia
CLFE Mission
As a diverse coalition of industry participants, CLFE shall engage in activities that improve and preserve the quality and integrity of education financing products and services delivered to California students, parents and schools.
WASFAA Conference 2013
WASFAA Conference 2013
What is financial literacy?• Aptitude for understanding finance• Ability to make informed, effective decisions
about finances• Knowledge of personal finances
Budgeting ▪ Banking basics Managing credit cards ▪ Student loan Understanding a paycheck
WASFAA Conference 2013
Delivery Methods
Website Links Email Group Workshops One-on-one Sessions Online Education/Gaming
Publications Inserts Articles Flyers Other
WASFAA Conference 2013
Making the Case – Rise in COA & Student Debt
• 19% of full-time students at public four-year colleges and universities attend institutions that increased their published prices by 12% or more.
• Average debt per borrower was $22,000 from the public 4-year colleges and $28,100 from private 4-year colleges
Source: 2011 College Board Trends in Student Aid
Source: 2009 Decision Partners Financial Literacy 101 webinar
WASFAA Conference 2013
Making the Case – Lack of Financial Skills2010 State-by-State Financial Capability Survey
Spend more than household income
Engage in non-bank borrowing - pawn shops, rent-to-own stores, advance on tax return
No money set aside to cover expenses for 3 months
0 10 20 30 40 50 60 70 80
23 percent
75 percent
34 percent
18- to 34-year-olds
Source: 2010 State-by-State Financial Capability Survey conducted by FINRA Investor Education Foundation
WASFAA Conference 2013
Making the Case – Legislative Environment
Changes to Cohort Default Rates (CDR) Initiatives by Consumer Financial Protection
Bureau (CFPB) Gainful Employment Regulations
WASFAA Conference 2013
Making the Case – Stress and Money
Source: 2007 DUCK = Deep Underground Credit Knowledge
WASFAA Conference 2013
Making the Case – Students Want Help 84% of college students want more
information on financial education topics.
24% of college students say they are well prepared for the financial challenges that await them after graduation
Source: 2007 Hartford Financial Services
Source: 2009 Sallie Mae survey
WASFAA Conference 2013
Identify Your Students’ Needs
• Survey students– Topics– Delivery
methods
• Review results
• Draft a curriculum
Survey Topics• Banking Basics• Buying a home or car• Credit reports and scores • Debt and Borrowing• Financial Goal-Setting• Health and life insurance • Identity theft • Investment basics • Making a budget • Making major purchases • Paycheck and taxes• Paying for College • Rebuilding credit • Renter’s and auto insurance • Setting and saving for goals • Understanding credit
WASFAA Conference 2013
Create a Success Team Look at your organization chart to identify
potential departments to partner with Create a proposal
Define the purpose Identify benefits to school and students Propose delivery methods and potential content Note success measurements Outline costs, resources, and potential personnel Confirm buy-in
WASFAA Conference 2013
Public/Private College Organizational Chart
WASFAA Conference 2013
Career School Organizational Chart
WASFAA Conference 2013
Why They’ll Buy In
Full chart available at: http://apps.Inceptia.org/PDF/Inceptia_FinancialCapability_Whitepaper.pdf
WASFAA Conference 2013
Implementing Financial Literacy on Campus
WASFAA Conference 2013
Planning Timeline
WASFAA Conference 2013
The Proposal
WASFAA Conference 2013
Marketing - Getting Students to Attend What is the topic/name of the workshop? What time does the workshop begin and end? Where is the workshop? Which methods will be used to promote the workshop?
flyers /posters e-mail newsletter/newspaper word of mouth/social media other
How will the attendee benefit?
WASFAA Conference 2013
Marketing and Promotion
Utilize social media
Build in to existing services (FYE, Greek Life, Housing, etc.)
Educate your colleagues
Word-of-mouth
WASFAA Conference 2013
Example Flyer
WASFAA Conference 2013
Paying for a Financial Education Program
External Internal dollars In-kind
Leverage existing resources Certify your staff
Students Free resources
WASFAA Conference 2013
Student Participation
Innovators – Seek new opportunities and ideas
Early adopters – Grasp and apply some ideas
Early majority – Gathering ideas
Late majority – Aware of ideas
Laggards – Unconcerned
WASFAA Conference 2013
Case Study: Corinthian Colleges, Inc.
A Campus Student Loan Specialist at Every Everest and WyoTech campus: Creating and Fostering Rapport
Mandatory Financial Literacy Mandatory In-Person Exit Counseling for
Graduates On-going workshops and outreach events
WASFAA Conference 2013
Case Study: Monterey Institute of International Studies
Summer Debt Letters with Current and Projected Repayment
Mandatory Exit Loan Counseling Post Enrollment Budgeting Assistance
MIIS Summer Debt Breakdown
Loan Type
Total Outstanding Debt
Current est. monthly payment
Total Paid over life of loan (includes interest)
Amount paid in interest only
Prior Borrowing History
Perkins Loan $0 $0 $0 $0
Stafford Loans $41,000 $472 $56,620 $15,620
Grad PLUS $48,214 $598 $71,734 $23,520
Private $0 $0 $0 $0
Totals to date $89,214 $1,070 $128,354 $39,140
2010-11 Anticipated Loan Debt
Perkins Loan $0 $0 $0 $0
Stafford Loans $20,500 $271 $32,481 $11,981
Grad PLUS/Private $13,970 $169 $20,251 $6,281Anticipated Totals for 10-11 $34,470 $440 $52,732 $18,262
New Total Repayment $123,684 $1,510 $181,086 $57,402
Debt Management for the Real World
IncomeIncome Source Budgeted
Student Loans 800.00$
Job 1 900.00$
Total income 1,700.00$
ExpensesFinance Payments Budgeted
Credit card 48.00$
Auto loan -$
Total finance payments 48.00$
Fixed Expenses Budgeted
Rent 675.00$
Auto insurance -$
Medical insurance 158.00$
Cable TV 45.00$
Telephone 70.00$
Internet 30.00$
Investments/Savings -$
Utilities 50.00$
Total fixed expenses 1,028.00$
Variable Expenses Budgeted
Household 50.00$
Groceries 400.00$
Auto upkeep and gas -$
Clothing
Medical/prescriptions 25.00$
Entertainment 100.00$
Dining out/Fast Food 50.00$
Total variable expenses 625.00$
Totals Budgeted
Income 1,700.00$
Expenses 1,701.00$
Income less Expenses (1.00)$
Budget assumes the following:
Student has no undergraduate student loan debt
Student creates a budget based on actual expenses of $1700/month
Student has one roommate
Student does not own a car
#REF!
Student Creates Personal Budget and Borrows Only What She Needs
Notes
Average Grad Student Credit Card Debt was $2200*
#REF!
Notes
Student works 15 hours per week @ $15/hour
20400
Notes
MIIS Personal Budget
IncomeIncome Source Budgeted
Job 1 8,333.00$
Total income 8,333.00$
ExpensesIncome Tax Withholdings Budgeted
Federal income tax 1,676.00$
State income tax 626.50$
FICA 637.48$
Medical See FICA
Social Security See FICA
SDI 91.66$
Total withholdings 3,031.64$
Finance Payments Budgeted
Credit card 200.00$
Auto loan 479.00$
Student Loans 1,060.00$
Total finance payments 1,739.00$
Fixed Expenses Budgeted
Rent 1,860.00$
Auto insurance 108.83$
Medical insurance 68.00$
Cable TV 45.00$
Telephone 75.00$
Internet 30.00$
Investments/Savings 250.00$
Utilities 50.00$
Total fixed expenses 2,486.83$
Variable Expenses Budgeted
Household 50.00$
Groceries 600.00$
Auto upkeep and gas 130.00$
Other travel expenses -$
Clothing 100.00$
Medical/prescriptions 25.00$
Entertainment 200.00$
Dining out/Fast Food 160.00$
Total variable expenses 1,265.00$
Totals Budgeted
Income 8,333.00$
Expenses 8,522.47$
Income less Expenses (189.47)$
Budget Assumes the following: Student graduated and earns $100K per year Student moves to SF after graduation and opts to no longer have a roommate Students rewards her hard work by buying a new car Student was relatively responsible with her credit as a Grad student, total balances total $2500 Total Loans borrowed come to $80,724 (does not account for interest accumulated in school.)
0-$4,750=0%, $4,751-$7,000=10%, >$7,000=15%
0-$3,070=0%, $3,071-$5,960=1%, >$5,960=2%
Notes
1.18 % of Gross Wages
Monthly Budget at Graduation
$17K Sub, $24K Unsub, $39,724Grad PLUS
Notes
Student's outstanding credit card debt is $2500*
1.45% of Gross Wages
Notes
6.2 % of Gross Wages
#REF!
#REF!
Notes
MIIS Post Grad Budgeting
WASFAA Conference 2013
Case Study – Stanford Graduate School of Business
Workshop Series
Autumn Financial Aid At the
GSB “Why Didn’t Any One
Tell Me This While I Was in Business School?”
Monitoring Spending, Determining Needs and Wants, and Creating a Spending Plan
Spring Financing 101:
Mortgage The Path to Home
Ownership Foreclosures and Short
Sales Mandatory
In-Person Exit Counseling for Graduating Students
Loan Repayment Strategies
Winter Deducting Your
GSB Expenses International Tax
Workshop Knowing Your
Credit Score Identity Theft:
Protect Yourself
WASFAA Conference 2013
Training Created by
Colleen MacDonald cmacdonald@simpletuition.com
Dennis Zanchi/Ruby Nietodzanchi@ecmc.org/rnieto@ecmc.org
Pat Robles-Friebert & Kate TrombitasPatF@inceptia.org / katet@inceptia.org
Dianne FulmerDianne.Fulmer@usafunds.org