Administrator Workshop on Financial Literacy Scott D. Lewis, Account Executive Lucy Manzo, Account Executive The College Board Education Loan Program Mike

Administrator Workshop on Financial Literacy

Scott D. Lewis, Account ExecutiveLucy Manzo, Account Executive

The College Board Education Loan Program

Mike Bennett, Director of Financial Aid Brookdale Community College

John View, Director of Financial Aid SUNY College of Environmental Science and Forestry

Linda Bell, Director of Financial Aid Lehigh University

2 Administrator Workshop on Financial Literacy

Let the Record Show…

American children, teens and young adults (ages 8-21) earned about $211 billion in 2003. This group spends at a rate of approximately $172 billion per year and is saving at a rate of $38 billion per year.

[Harris Interactive, Generation Y Earns $211 Billion and Spends $172 Billion Annually, September 3, 2003]

On average, 65.5% of students who participated in a 2004 Jump$tart Coalition survey on Personal Financial Literacy failed the exam!

[Jump$tart Coalition, Personal Financial Survey, April, 2004]

The average undergraduate student loan debt was $18,900 in 2003. Up 66% from 1997.

[Nellie Mae, College on Credit: How Borrowers Perceive their Education Debt Results of the 2002 National Student Loan Survey, February 6, 2003]


Let the Record Show…

55% of college students acquire their first credit card during the first year of college, and 83% of college students have at least one credit card. 45% of college students are in credit card debt, with the average debt over $3,000.

[Senator Akaka, Credit Card Minimum Payment Warning Act, May 21, 2004]

Bankruptcy filings for those in the 18 to 25 age bracket numbered 150,000 in 2000. A ten-fold increase in just five years.

[Testimony of Dara Duguay, Executive Director Jump$art Coalition for Personal Financial Literacy, for the Senate Governmental Affairs Subcommittee on Financial Management, the Budget, and International Security, March 30, 2004]

Consumer debt is now equal to 110% of disposable income. Ten years ago it was 85%, and 20 years ago, it was 65%.

[Daily Bankruptcy News as excerpted from Senator Akaka, Credit Card Minimum Payment Warning Act, May 21, 2004]


Why Financial Literacy?

The Four R’s• Recruitment

• Retention

• Revenue

• Reputation

Visibility

The Goal• To enhance the R’s and address the need

• Help students before it is too late

Establish a strong academic and credit record


Financial Literacy

Areas of Deficiency:

• Basic Debt Management• Credit card debt

• Student loan debt

• Other consumer debt

• Budgeting

• Spending Habits


Tell Me About It…


What Am I To Do?

1. Assess Need

2. Set Your Goal

3. Create a Strategy

4. Measure & Evaluate Your Success


Assess Need

• Student Financial Literacy Needs May Be Different Depending on:• Region of the country• Education sector

• Secondary school• Proprietary school• Community college• State college/university• Private college/university

• Socio-economic background


Assess Need

• Ask Students What They Need or Want:• Survey

• Paper

• Online

• Be prepared to guide• Students don’t know what they don’t know!


Group Breakout

Group #1 – Four Year Private Institution

Group #2 – Four Year Public Institution

Group #3 – Community College

Group #4 – Proprietary College

In your group, assess the financial literacy needs of students

from your assigned sector. Record your thoughts on your flip

chart and be prepared to discuss.


Group Recant





Provide a rationale and background for the student

needs identified for your education sector.

Determine your dominant need.


Set Your Goal

• Start small• Begin with most obvious need

• Build from this point over time

• Determine your goal• S.M.A.R.T Goals

• Specific: Ask 6 “W” questions

• Measurable: How much? How many? How will you know when…?

• Attainable: Plan steps wisely. Establish a time frame.

• Realistic: Willing and able to work toward.

• Tangible: Can experience it with one of the senses.


Large Group Goal Setting

Remember, start small and begin with most obvious need






Time forLunch!


Best Practices: Testimonials of success

John View, Director of Financial AidSUNY College of Environmental Science and

Forestry

Linda Bell, Director of Financial AidLehigh University

Mike Bennett, Director of Financial AidBrookdale Community College


Solutions: See What’s Already Out There

You don’t have to reinvent the wheel! There are a significant number of tools and resources already available to you.

Where to start:• Education partners - lenders, guarantors, servicers,

professional associations

• State and federal initiatives - state councils on economic education, Federal Trade Commission

• Education and non-profit organizations - College Board, Jump Start Coalition


Solutions: Types of resources available

Simple

• Good for “quick hits”• Web sites

• Brochures, printed materials

Moderate

• Good for keeping the topic on students’ minds

• E-mail newsletters

Involved

• Good for deeper, long-term training• Scheduled

sessions

• Curriculum for credit

A resource document for your use.


Creating a Strategy

• Start small and build need with students

• Take into account institutional resources

• Involve others on campus

Institutional buy-in is a key to success!


Group Breakout Strategy CreationGroup #1 – Four Year Private Institution




In your group, create a strategy based on the needs and goals

previously determined for your assigned sector. Record your

strategy and be prepared to discuss.


Group Strategy Recant





Share the strategy you created for your education

sector.


Large Group Strategy Discussion & Brainstorm• Collect as many ideas as possible with no

criticisms or judgments.

• All ideas are welcome no matter how silly or far out they seem. Be creative.

• The more ideas the better because you don’t know what might work.

• No discussion during the brainstorming activity.

• Do not criticize or judge. Don't even groan, frown, or laugh. All ideas are equally valid at this point.

• Do build on others' ideas.


Solutions: Measure Success

• Measure your success

• Constantly assess• Continue surveying

• Evaluations

• Testimonials

• Year to year retention rates

• Cohort default rate


Reprise

• Assess need

• Set goal

• Determine tools/resources

• Measure your success

• Promote your success


Final Thoughts

• What is success?

• Institutional buy-in is key

• Patience


A Word to the Wise

“If you build it, they will come”

The R’s will thank you and so will your

students!


Questions

• Scott D. Lewis, Account Executive, [email protected]

• Lucy Manzo, Account Executive, [email protected]

• Mike Bennett, Director of Financial Aid, [email protected]

• John View, Director of Financial Aid, [email protected]

• Linda Bell, Director of Financial Aid, [email protected]

Documents

Administrator Workshop on Financial Literacy Scott D. Lewis, Account Executive Lucy Manzo, Account Executive The College Board Education Loan Program Mike