Borrowers Anonymous 12+ Ways to Reduce Borrowing Presented ... · 0 Borrowers Anonymous . 12+ Ways to Reduce Borrowing. Presented By: Tracy N. Drechsler. AVP, College Markets. Thrivent

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Borrowers Anonymous 12+ Ways to Reduce BorrowingPresented By: Tracy N. Drechsler

AVP, College MarketsThrivent Student Resources

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• What does College Cost and How did we get here?

• How does America Pays for College?

• The Journey to College with Less debt…

12+ Steps to Reduce Borrowing

• Best Practices

• Questions

Agenda

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College Costs Have Skyrocketed

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College Costs Have Increased 300%-1100% Since Today’s Parents Were Undergraduates

http://college-tuition.startclass.com/l/1803/Harvard-University

Harvard University Tuition

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For Most Students, “Working Their Way Through College” Is No Longer an Option

https://www.dol.gov/whd/minwage/chart.htmhttps://trends.collegeboard.org/college-pricing/figures-tables/tuition-and-fees-and-room-and-board-over-time-1975-76-2015-16-selected-yearshttp://www.bloomberg.com/news/articles/2012-08-15/cost-of-college-degree-in-u-s-soars-12-fold-chart-of-the-day

Student Wage

Tuition

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In 2017, four years of college = $90,000 - $190,000+

http://trends.collegeboard.org/sites/default/files/2015-trends-college-pricing-final-508.pdf

average 4 year in-state public

average 4 year non-profit private

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In 2018, College is a Significant Family Investment

Talk Early, Talk Often, Make a Family Plan

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Family Plan

1. Budget2. Student Action Steps3. Pre-college investments4. Student Savings

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Don’t Be That Parent

http://corporate.troweprice.com/Money-Confident-Kids/images/emk/2015-PKM-Report-2015-FINAL.pdf

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Be the family that has a plan

https://www.salliemae.com/research/how-america-pays-for-college/

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60% of students complete 4-year programs in 6 years.

Pay attention to graduation rates, budget for 6 years, or seek out 4-year assurance agreements

https://collegescorecard.ed.gov/

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Student Loan Debt in the USA

http://www.consumerreports.org/student-loan-debt-crisis/student-loans-vs-mortgages-what-makes-student-debt-different/

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The Good News: College = Great Investment

0%

5%

10%

15%

20%

Bachelor'sDegree

Stock Market AAACorporate

Bonds

Gold Long TermTreasury Bills

Housing

Inte

rnal

Rat

e of

Ret

urn

College Compared to Alternative Investments

http://www.hamiltonproject.org/charts/career_earnings_by_college_major

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Sallie Mae “How America Pays for College 2017”https://www.salliemae.com/research/how-america-pays-for-college/

How Families Pay for College

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Interesting 2017 FactsAttitudes Vary Across the Country

• Northeast: Most Likely to attend a private 4 year college

• South: Most likely to attend a college in their home state

• Midwest: Most likely to work more hours to make college affordable

• West: Most likely to attend college part-time

• 84% of students with loans expect to be solely responsible for paying them back

• 87% of families who use scholarships get them from the college

Sallie Mae Study “How America Pays for College 2017”

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Typically, 61% of college costs are covered by family income & savings + borrowing

Make college selection a family decision. Pick a school the family can afford.

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How to Reduce the Need for Loans1. Apply for Scholarships

scholarships.comfastweb.combigfuture.collegeboard.org/scholarship-searchcareerinfonet.org/scholarshipsearchwww.ncaa.orgeducationplanner.orgthriventstudentresources.com

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How to Reduce the Need for Loans2. Accumulate college credits BEFORE entering college

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How to Reduce the Need for Loans3. Use a tuition payment plan

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How to Reduce the Need for Loans4. Look for Student employment

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How to Reduce the Need for Loans5. Consider ROTC & US Military

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How to Reduce the Need for Loans6. Choose an in-state school

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How to Reduce the Need for Loans7. Check out legacy offerings

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How to Reduce the Need for Loans8. Commute vs live on campus

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How to Reduce the Need for Loans9. Attend 2 years at Community College then

transfer to State University

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How to Reduce the Need for Loans10. RENT books

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How to Reduce the Need for Loans11. Invest in SAT/ACT Prep

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How to Reduce the Need for Loans12. Graduate in 4 years!

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The journey to college with less debt…What else?

• What other ideas do you have on how students can cut down on borrowing?

• How to Reduce the Need for Loans -What else do you counsel students and families about?

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Questions?

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