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Reducing Alternative Loan Debt through Financial Literacy

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Reducing Alternative Loan Debt through Financial Literacy Presenters (Syracuse University): Youlonda Copeland-Morgan, Associate Vice President for Enrollment Management – PowerPoint PPT presentation

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Title: Reducing Alternative Loan Debt through Financial Literacy


1
Reducing Alternative Loan Debt through Financial
Literacy Presenters (Syracuse University) Youlon
da Copeland-Morgan, Associate Vice President for
Enrollment Management Katrina Delgrosso,
Associate Director of Financial Aid
2
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
    states financial education standards

3
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

4
National Landscape of Financial Literacy
  • The lack of financial knowledge and ability
    among Americas 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, Jumptart Coalition for
    Personal Financial Literacy, 2011

5
Did You Know?
  • According to the Federal Trade Commission, 31
    percent of identity theft victims fall into which
    age group?
  • 18-29
  • 30-40
  • 41-52
  • 53

6
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

7
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
8
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

9
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 semester
  • Sign a simple contract
  • Reduces future borrowing
  • Targeted students with high alternative loan debt
  • Redistributed funds in existing program to pay
    for program

10
Here Are Our M.A.P. Students Learning!
11
It Feels Good to Help Students
12
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
13
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

14
Did You Know?
  • What factor influences credit scores the most?
  • Length of credit history
  • Types of credit
  • Amounts owed/available credit
  • Payment history

15
Creating a Financial Literacy Program - Building
a Brand
  • Fall 2009decision 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

16
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

17
Top 3 Theme Ideas
  • Orange You mart
  • Financial Cents
  • I Otto Know This!
  • Then an office vote ensued

18
And the Winner Was!
19
Tie Back to What Youre 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

20
Get the Word Out
  • Build awareness announcements
  • Launch party April 2010
  • Campus buy-in
  • Target audiences
  • On campus and beyond
  • Capitalize on National Financial Literacy Month
  • Freshmen classes
  • Utilize Federal Work Study students for targeted
    ideas
  • The easiest way? We all meet with students every
    day!
  • Teach them now

21
A Reason to Celebrate
22
Teaching Real-Life Examples
23
E-News Samples
24
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_at_syr.edu  w syr.edu/financialaid
  • Check out SUs financial literacy program

25
The Chronicle of Higher Ed
26
USA Funds Case Study and Annual Report
27
SU Magazine
28
On-Campus Events
29
Rotating Tips of the Month on FAO Website
30
Ads in Campus Newspaper
31
Create a Video with FAO Staff as Stars (it can
be low budget)!
32
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

33
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.

34
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.

35
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.

36
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!

37
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)?
  • 31,472
  • 27,138
  • 35,000
  • 32,506

38
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
39
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
40
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

41
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

42
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

43
You Can Do This, Too
  • Stay upbeatbring 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
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