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RESOURCES &

RESOURCES &

TOOLSTOOLS

FOR FINANCIAL PLANNING &

FOR FINANCIAL PLANNING &

DEBT MANAGEMENT

DEBT MANAGEMENT

In a review of member websites of the Association of Theological Schools, it is clear that recommendations from prior studies of theological student indebtedness have been taken to heart by several schools.

STRATEG

IES

STRATEG

IES

Financial aid offices now

warn against the accumulation of too much debt, or encourage prospective

students to keep educational debt at a

minimum. Others encourage the elimination of consumer

debt prior to enrollment.

PR

INC

IPLE

S A

ND

PR

INC

IPLE

S A

ND

PO

LICIE

SPO

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SSchools also state clearly the principles

Schools also state clearly the principles

and policies related to its aid

and policies related to its aid

programs, with handbooks readily

programs, with handbooks readily

available on institutional websites.

available on institutional websites.

Others have developed instructional

Others have developed instructional

videos that share the philosophical or

videos that share the philosophical or

theological underpinnings of financial

theological underpinnings of financial

aid processes and awards, mounting

aid processes and awards, mounting

links to supporting resources such as

links to supporting resources such as

repayment calculators, information on

repayment calculators, information on

repayment options, personal finance

repayment options, personal finance

tools and financial planning websites.

tools and financial planning websites.

RESOURCESRESOURCES

Curricular initiatives have also positively impacted the debt burden of theological students, as have direct financial incentives to complete the degree program in a prescribed shorter length of time. These vary from institution to institution, but include:

Advanced standing for significant work in related disciplines during undergraduate or prior graduate and professional training;

CURRICULAR INITIATIVES

Hybrid courses combining intensive in-classroom and online education to allow for greater flexibility to engage in remunerative work;

Accelerated degree programs with full-time summer, weekend, or evening course offerings;

Scholarship programs that reward completion of degree requirements in a timely fashion.

CURRICULAR INITIATIVES

PARTIC

ULA

R

PARTIC

ULA

R

CO

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UEN

CIE

S

CO

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S

Some schools are offering preferential treatment in the awarding of financial aid or tuition discounts for spouses, alumni/ae, international and domestic missionaries, campus ministers, persons pursuing particular forms of ministry, persons from particular religious traditions, and emerging populations of prospective students.

It will be important to track the impact of these plans on recruitment and student indebtedness.

SETT

ING

DEB

T

SETT

ING

DEB

T

LIMIT

SLIM

ITS

In rare cases, some schools have

established a specific debt limit, requiring

a review of plans for further borrowing

and repayment prior to any relaxation of

the limit.

Other loan-avoidance or loan-reduction

strategies include the use of institutional

emergency loan funds in small amounts for

occasional needs, discouraging students from

taking out larger amounts at less preferable

rates from the federal government or private

lenders. EMERGENCY LOAN

EMERGENCY LOAN

FUNDSFUNDS

In a relatively recent development, schools that do not participate in the federal student loan programs or others who declined to resume direct lending have turned to private lending plans that are developed internally, in collaboration with similar institutions, or are available in the marketplace for graduate and professional students.

Some of these plans have reduced origination fees, opportunities to repay interest during education, or other features that place them in competition with the federal loan requirements.

PRIVATE LENDING PLANS

LOAN FORGIVENESS PROGRAMS

Loan forgiveness programs developed by denominations, often in exchange for commitments to serve in congregational leadership for a period of time or to work in underserved areas, are early in their operation.

Evaluation of the effects of programs such as these on debt reduction and persistence in ministry will determine their futures.

Efforts to slow down the easy access to student loans are on display in schools requiring that students complete budget and loan worksheets and meet with financial aid officers prior to the first disbursement of the loan.

This approach is in addition to the on-line entering student interview that is required in federal student loan processing.

SLOW DOWN THE PROCESS!

A SA

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LS

A SA

MPLI

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Specific tools and resources for

prospective and continuing

students to use in making

financial decisions appear with

some regularity, and

occasionally are required to be

completed prior to the

awarding of aid.

Any tool must be individualized

for the institution, its history

and theology, its student body,

and its locale. Here are some

samples.

STUDENT BUDGET WORKSHEETS

www.UPSEM.Edu/Admissions/Financial_Aid1

www.LancasterSeminary.Edu/Site/Default.aspx?PageID=92

www.LPTS.Edu/Admissions/Financial-Matters/Tuition-Grants/Income-and-Expense-Worksheet

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w.A

nder

son.E

du/S

OT/

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nder

son.E

du/S

OT/

Adm

issi

ons/

Adm

issi

ons/

Cou

ntingth

eCos

t.htm

l

Cou

ntingth

eCos

t.htm

l Instructional Video Pastors’ Resources Pastoral Compensation

101 Essential Resources for

Retirement, Compensation

Planning and other Worksheets

www.CPG.ORG/Seminarians/Retirement/

www.CPG.ORG/Seminarians/Retirement/

Planning-For-Retirement/

Planning-For-Retirement/

Retirement-Tools-Resources/

Retirement-Tools-Resources/

PlanAhead-Online

PlanAhead-Online

Financial Planning Tool for Postulants

Financial Planning Tool for Postulants

and Candidates for Holy Orders in the

and Candidates for Holy Orders in the Episcopal Church

Episcopal Church

www. GordonConwell.Edu/

www. GordonConwell.Edu/

Financial-Aid/Financial-

Financial-Aid/Financial-

AidBrochure.cfm

AidBrochure.cfm

Brochure on

Affordability Featuring

Student Narratives

 Financial Wellness and Stewardship Tools for Students and Their Families 

www.WartburgSeminary.Edu/Template_FutureStudents.asp?id=495

Financial Coaching Handbook With a

Template for “Money Autobiographies”www.LTSG.Edu/files/ce/ce0e0deb-

14e3-42b8-8ee0-9529e5f4c353.pdf

www.KnoxSeminary.Edu/Getting-

www.KnoxSeminary.Edu/Getting-

Started/Flexible-Payment-Plans

Started/Flexible-Payment-Plans

Flexible Payment

Flexible Payment

Plans to Deter Loans

Plans to Deter Loans

www.PTSEM.Edu/Student_Life/

Admissions_and_Financial_

Aid/Admissions/finaid/index.aspx?

id=7880

Workshops to Address

Workshops to Address

Financial Matters

Financial Matters

Blogs about Financial Aid

Blogs about Financial Aid

and “Living Like a

and “Living Like a

StudentStudent””

• www.DenverSeminary.Edu/Managing-

www.DenverSeminary.Edu/Managing-

Your-MoolahYour-Moolah

• Http://Http://

FrugalCommunity.Wordpress.com

FrugalCommunity.Wordpress.com

Finally, effective outreach to students does not always require sophisticated financial expertise or technological innovation.

At the end of the day, attention and creativity also do the trick.

Here is a link to photographs of how Garrett-Evangelical Theological Seminary highlighted its financial aid orientation through notices on a bulletin board--

www.Garrett.Edu/Admissions-Financial-Aid#Fiscally-Fit-Tips

www.AuburnSeminary.org/CSTE