ISFAA Spring ConferenceApril 28, 2009

TODAYS PANELSue Allmon, Account Executive, USA Funds ServicesDelores Hazzard, Dir. Student Success & Retention, Ivy Tech Community College-RichmondDoug Hess, Senior Marketing Associate, Great LakesTasha McDaniel, School Training Director, Great LakesJacque Mickel, Asst. Dir. Financial Aid, Butler University

APRIL IS FINANCIAL LITERACY MONTH!On March 31, 2009, U.S. Senator Daniel K. Akaka (D-HI) introduced S. Res 94 designating April 2009 as Financial Literacy Month.

Resolution passed unanimously same day.

FINANCIAL LITERACY-WHAT IS IT?Ability to make informed judgments and to take effective actions regarding the current and future use and management of money.Buying choices.Life issues: housing, unemployment, medical, children, etc.

WHY DO STUDENTS NEED TO BE FINANCIALLY LITERATE?

The average student who enters college lacks basic skills in the management of personal financial affairs.Many are unable to balance a checkbook & most simply have no insight into the basic survival principles involved with earning, spending, saving & investingsource: Jumpstart Coalition

Source: 2003-04 National Postsecondary Student Aid Study

Type% BorrowedCum. Debt4-year public61.7%$17,2774-year private72.8%$21,9574-year for-profit87.3%$28,1382-year public33.2%$9,3872-year private69.1%$12,3262-year for-profit90%$12,107

WHAT DO SURVEYS SHOW?

76% of college students wish they had more help preparing for their financial future.Hartford Financial Services Group, 2007.53% of parents agree that their child thinks money grows on trees.Building Teen Personal Finance Skills a Top Worry for Parents, Visa.Only 1 in 5 students claim to have been very well prepared for managing their money on campus.Key Bank and Harris Interactive, August 2006.

Only 59% of 18-29 year olds pay their bills on time every month.National Foundation for Credit Counseling and MSN Money, 2008.63% of Americans acknowledge they dont save enough, and 36% say they spend more than they can afford.Pew Research Center, 2006.

2008 National Freshman Attitudes Report from Noel-Levitz:I have financial problems that are very distracting and troublesome. (28.7%)I am in a bad financial position, and the pressure to earn extra money will probably interfere with my studies. (18.2%)

WHY SHOULD I CARE?HEOA, Section 402Dto improve the financial literacy and economic literacy of students, including:Basic personal income, household money management, and financial planning skills; andBasic economic decision making skillsRequired services include education or counseling services designed to improving the financial literacy and economic literacy of students.

Stumbling BlocksFour major stumbling blocks to building a successful financial literacy programDont know how to get startedLimited timeLimited resourcesDifficulty reaching students

How to Begin Building Your ProgramNeeds assessmentStudent needs What money issues have you and your staff heard from students?What reasons have students said for why they need to withdraw from school?Institutional needsReduce emergency loansIncrease retention

How to Get the Info You NeedNeeds assessment methodsObservationsInterviewsFocus groupsSurveysResearch

Turn Needs into GoalsYour purpose and goals should be revealed from your needs assessmentDid you determine that students:Spend frivolously = BudgetingBorrow excessively = Debt managementOwe high credit balances = Credit management

Limited TimeSolicit assistance from other officesUtilize student group leaders to help you plan, promote, and organize your programSeek help from your guarantor partners and other agenciesConsider online courses

Limited ResourcesPartner with grant-funded programs on your campusPartner with student organizations Seek assistance from outside organizationsAsk for donations for giveaways, food, etc.

Difficulty Reaching StudentsTimingSchedule date and time most convenient for your studentsDetermine the frequency of your programPlan program with or around major eventTarget audienceIdentify which audience needs your proactive prevention mostAsk instructors to give extra credit for attendance

Difficulty Reaching StudentsLocation Schedule location most convenient for your studentConsider audience size before booking facilityPromotionDetermine the most effective way to reach your target audienceIdentify a campus champion to help promote your programAsk faculty to promote your program in their classesUtilize student leaders as co-presenters and to invite other students

Make smart choices about spending and savingDevelop a financial plan Set realistic goals for financing and completing your education.Make a budget and stick to it.Borrow only what you need.

Develop a financial game planNeeds: Necessities for everyday living and goal attainment.What are your everyday needs (not wants)?What are your educational needs?Wants: Things that are nice to have, things that gratify some desire or urge.What things do you want (not need)?What do you need to survive while in school versus what might you merely want or desire?

Borrow only what you need for schoolFinancial Fact 1: Getting an education is expensive.Financial Fact 2: Know what youre financing. Estimate your income in your chosen career.Financial Fact 3: Whatever you borrow, you have to pay back.Financial Fact 4: Your credit history stays with you for a very long time.

How do I establish good credit?Pay off your credit balances in full.If you cant pay your balance in full, make at least the minimum payment.Pay your bills on time.Undercharge. Dont charge as much as your limit allows.

How do I lose good credit?Making late payments.Exceeding the credit limit on your credit card.Writing bad checks.Defaulting on a loan.Filing for bankruptcy.

How do I access my credit report?You may receive a free copy of your credit report from each of the three major credit reporting agencies each year.Visit www.annualcreditreport.comCredit reports from:Equifax.TransUnion.Experian.

What happens when I have a bad credit report?You may not be able to rent an apartment.You wont be able to buy a house.You may not be able to purchase or lease a car.You may not be able to obtain other forms of credit. If you are able to get credit, you will pay very high interest rates.You can be turned down for a job.Its like getting a bad grade it stays on your permanent record.

Find resources to assist you in financing your education.Support from parents.Grants and scholarships.Employment.Part-time employment.Work-study.Internships.Other options.Student loans.

Academic and Financial Literacy through high-impact strategies

Orientation, Retention, and Financial Literacy programs at Ivy Tech Community College Richmond

New Student OrientationPart of research-based Indiana Project on Academic Success (IPAS)

Began Spring 2006 - Half-day format with lunch and USB drive

Mandatory for all new students

Presentations by the Offices of Financial Aid, the Registrar, Student Life, and Student Success and Retention

Mid-term and Total Withdrawal Referral System Multi-level referral system most total withdrawals cite academic or financial concerns

Submitted by instructors prior to mid-term and throughout semester

Students referred to campus or community support programs

Students are encouraged to remain in class to at least the last week to withdraw with a grade of W ( beyond the 60% point )

Life Skills Classes first-year experience continued

IVYT 101 New Student Seminar Navigating the college system includes: Goal-setting

Learning Styles

Study and note-taking

Managing Personal Finances USA Funds Framework

Students presented with information on goal-setting, budgeting, credit reports, identity theft, student loan repayment, and careers after college

Professionals invited to the classroom to discuss availability and use of community resources

Continuing Cross-Campus Support

Assistant Director of Default Management

Default Management Advisory Committee

Retention Advisory Committee

Academic Status Committee

Financial Literacy Programs

Annual Finance, Fitness and Fun Fest

Money Mondays

Annual Financial Literacy Dinner and Workshop

Continuous FAFSA workshops

Students who are Parents Club

Retention Rates

At 74% Fall 08-to-Spring 09 Richmond campus is one of the highest in the IVTCC system

Highest retention rate in the system for full-time, first-time degree-seeking students for Fall 08-to-Spring 09

Fall-to-Fall retention rates have increased since the implementation of Orientation, Retention and Financial Literacy programs

Student Loan Default Rates

Have dropped 6% since the implementation of Orientation, Retention and Financial Literacy programs

Remain more than 2% below the IVTCC system-wide average

Evidence-based outcomes

Accounts receivables write-off balance is due primarily to Return of Title IV funds.

The Richmond campus has the 2nd lowest write-off rate in the IVTCC system. The rate began to reduce the year mandatory New Student Orientation was implemented.

Communicating to students the importance of staying in class or staying through at least 60% of the semester has a positive impact on R2T4 rates.

Return of Title IV Funds

Families believe their child will obtain this knowledge or skill at college. Colleges and universities, in the past have assumed students were learning this within the family setting or via a high school course.How many here today received this knowledge/skill from your family? How many took a high school course? How many just muddled along as best you could?*Enough said. And this will only grow as tuition goes up and grant funding lags so very far behind.*And these are probably the students who will not return to your institution or worse, continue on this path and leave under such a burden that repayment is not an option. Here is a real retention issue.*Higher Education Opportunity Act now has language strongly encouraging schools to take on this task and teach. Although, this is recorded in the HEOA, this is NOT strictly a financial aid office issue. As with most of Title IV, other offices can and should take some responsibility for the financial literacy of your student body. We know and understand there are all sorts of stumbling blocks in the way and Tasha will be addressing a few of those in her remarks. Also, in a few moments, we will hear from a couple of our school colleagues who have created a financial literacy program and how it works for them.*