Reducing Alternative Loan Debt through Financial Literacy Presenters (Syracuse University): Youlonda...

Reducing Alternative Loan Debt Reducing Alternative Loan Debt through Financial Literacythrough Financial Literacy

Presenters (Syracuse University):Presenters (Syracuse University):

Youlonda Copeland-Morgan, Associate Vice President for Enrollment ManagementYoulonda Copeland-Morgan, Associate Vice President for Enrollment Management

Katrina Delgrosso, Associate Director of Financial AidKatrina Delgrosso, Associate Director of Financial Aid

National Landscape of Financial Literacy

34% or nearly 77 million participants in a 2010 Financial Literacy Survey of adults gave themselves a grade of C, D or F

Over 60% of teachers and prospective teachers said they do not feel qualified to teach their state’s financial education standards

National Landscape of Financial Literacy

23% of 18 to 34-year-olds spend more than their income

An average student left college (in 2009) with $24,000 in student loan debt

Undergraduates have an average of 4.6 credit cards and they carry an average balance of $3,173

National Landscape of Financial Literacy

“The lack of financial knowledge and ability among America’s youth is also a serious problem that is not going to improve on its own. Additional emphasis needs to be placed on teaching personal finance concepts in schools, to prepare young people for their lives as independent consumers rather than waiting to offer remedial financial education after they have begun to make mistakes.” Laura Levine, Executive Director, Jump$tart Coalition for Personal Financial Literacy, 2011

Did You Know?

1. According to the Federal Trade Commission, 31 percent of identity theft victims fall into which age group?

A. 18-29 B. 30-40C. 41-52D. 53+

Rising Student Debt Jeopardizes Retention and Graduation

Appeal funding was high ($3 million)

Alternative loan volume was high ($22 million)

Changing economy

Increasing cost of education requires we provide financial literacy to our students

Too many students making poor decisions

Alternative Loan Volume Back Then…

Year Volume Students Average

2007-08 $22,561,854 1514 $14,902

2008-09 $21,385,135 1361 $15,713

2009-10 $28,807,198 2352 $12,248

Perceived Obstacles to Creating a Financial Literacy Program

Lack of sufficient staff

Not enough time

Lack of interest from staff or other barriers

Lack of institutional support

Shrinking budgets

Money Awareness Program (M.A.P.) Grant Program

Created in Spring 2009

Addressed the need for financial literacy In-person or online session required per semesterSign a simple contractReduces future borrowing

Targeted students with high alternative loan debt

Redistributed funds in existing program to pay for program

Here Are Our M.A.P. Students Learning!

It Feels Good to Help Students

M.A.P. Grants

Spring 2009

2009-10 2010-11 2011-12

# students 62 134 131 92

Average grant

$5,413 $6,003 $5,757 $5,243

Low $1,500 $1,500 $2,000 $1,100

High $10,000 $13,000 $13,000 $13,000

What Are We Teaching Students?

Financial fitness

Brings real-life student pitfalls to light

Identity theft

Preparing a budget

Understanding your credit report and credit score

Where does my paycheck go?

Understanding your student loans

Did You Know?

2. What factor influences credit scores the most?

A. Length of credit historyB. Types of creditC. Amounts owed/available creditD. Payment history

Creating a Financial Literacy Program - Building a Brand

Fall 2009—decision to formalize a financial literacy program beyond the M.A.P. program

Multi-leveled program for all student populations

Year one – no budget (so we got creative!)

Involve the staff Create a committee Contest to create logo/theme

Accomplish with no new staff

Use resources that are already there, especially if you have no seed money

Get buy-in from across the institution

I Otto Know This! Program Components

1. Money Awareness Program (M.A.P.)

2. Life Skills

3. Presentations

4. E-News

5. Federal TEACH Grant

Top 3 Theme Ideas

1. Orange You $mart

2. Financial Cents

3. I Otto Know This!

Then an office vote ensued…

Tie Back to What You’re Already Doing

We realized that our prior program labeled “Retention Grant” fits nicely into our goals for a financial literacy program

Students otherwise withdrawing from university due to money – no other options

Multi-year commitment to students

Get the Word OutBuild awareness – announcements Launch party April 2010Campus buy-inTarget audiences

On campus and beyondCapitalize on National Financial Literacy MonthFreshmen classesUtilize Federal Work Study students for targeted ideasThe easiest way? We all meet with students every day! Teach them now

A Reason to Celebrate

Teaching Real-Life Examples

E-News Samples

Keep the Brand Going Every Day

Email signature of all office staff includes logo:

Katrina M. Delgrosso | Associate Director | Office of Financial Aid & Scholarship ProgramsSyracuse University200 Archbold NorthSyracuse, New York 13244

t: 315.443.1513  f: 315.443.4396  e: kdelgros@syr.edu  w: syr.edu/financialaid

Check out SU’s financial literacy program:

The Chronicle of Higher Ed

USA Funds Case Study and Annual Report

SU Magazine

On-Campus Events

Rotating Tips of the Month on FAO Website

Ads in Campus Newspaper

Create a Video with FAO Staff as Stars (it can be low budget)!

How Did We Do in Inaugural Year?How many students did we reach?

How did we get them to attend sessions?

Pitfalls and struggles

Alternative loan volume drop

M.A.P. program growth

Video

Did You Know? – Rotating tips of the month with suggestions from FWS students

Student Testimonials

M.A.P. has saved me $34,000 in student loans. Enough said!

I think M.A.P. is a great program. It helps me tremendously. I'm so grateful for the extra help. It's nice to know there's a place that is sensitive to my situation during this financially and emotionally taxing college experience.

Student Testimonials

I am very satisfied with the program, I almost transferred to another school because of the financial burden, but M.A.P. has allowed me to stay at Syracuse.

I think this program is great. I've learned a lot of new things about money awareness, reiterated some old concepts, and have a lot of new information to consider with my parents. I think the program is low maintenance and lends well to a college lifestyle, but it still provides a lot of useful information. I feel very lucky to be a part of this program.

Student Testimonials

M.A.P. saved me when I was down and out with almost no way of paying my college debt. It opened the road for a lot of opportunities and ultimately helped me register for classes and avoid a campus eviction.

Constructive Feedback from Students

I think M.A.P. should check in with or make one on one meetings with students to make sure all is going well financially for students. Right now I don't feel that is something I can come into the office and do. I don't even know if I can actually.

Spread the word on campus more! I feel like a lot of seniors don't know what the program is and it should be well-known by everyone because of all the good it does!

Last Chance – Did You Know?

3. If you are offered an annual salary of $35,000, what is a realistic view of your take-home pay (assuming 5% state taxes and single tax-filer)?A. $31,472B. $27,138C. $35,000D. $32,506

Alternative Loan Volume Dropped

Year Volume Students Average

2007-08 $22,561,854 1514 $14,902

2008-09 $21,385,135 1361 $15,713

2009-10 $28,807,198 2352 $12,248

2010-11 $17,297,361 1197 $14,451

M.A.P. Grants

Spring 2009

2009-10 2010-11 2011-12

# students 62 134 131 92

Average grant

$5,413 $6,003 $5,757 $5,243

Low $1,500 $1,500 $2,000 $1,100

High $10,000 $13,000 $13,000 $13,000

Phase 2.0 of I Otto Know This!

Future of M.A.P.—how to sustain the program

Assess growing pains and how to improve

Rotated financial literacy committee for new ideas

Promote brand recognition on campus

Be proactive (e.g. email blasts)—target your audiences

Giveaways in FAO to promote signing up for online financial literacy program

Phase 2.0 of I Otto Know This!

Ask for money

More videos

Peer mentors

Freshmen plan

Contact students who receive refunds (e.g. budget tips)

Entrench in counseling sessions

You Can Do This, Too

Provide incentives to staff to brainstorm ideas and build a formalized program

Make a banner instead of buying one

Staff contest for theme

Reach out to publications area to give you ideas

Reach out to other departments to advertise the program

You Can Do This, Too

Stay upbeat—bring in bagels or fruit to celebrate the idea

Students develop trust of your office

This is good for your students

You can learn new things and spread the word to family and friends