ISFAA Spring Conference April 28, 2009. TODAY’S PANEL Sue Allmon, Account Executive, USA Funds Services Delores Hazzard, Dir. Student Success & Retention,

ISFAA Spring ConferenceApril 28, 2009

TODAY’S PANELSue Allmon, Account Executive, USA Funds

ServicesDelores Hazzard, Dir. Student Success &

Retention, Ivy Tech Community College-Richmond

Doug Hess, Senior Marketing Associate, Great Lakes

Tasha McDaniel, School Training Director, Great Lakes

Jacque 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 & investing

source: Jumpstart Coalition

Type % Borrowed Cum. Debt

4-year public 61.7% $17,277

4-year private 72.8% $21,957

4-year for-profit 87.3% $28,138

2-year public 33.2% $9,387

2-year private 69.1% $12,326

2-year for-profit 90% $12,107

Source: 2003-04 National Postsecondary Student Aid Study

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 don’t 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 402D

“to improve the financial literacy and economic literacy of students, including: Basic personal income, household money

management, and financial planning skills; and Basic economic decision making skills”

Required 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 programDon’t know how to get startedLimited timeLimited resourcesDifficulty reaching students

How to Begin Building Your ProgramNeeds assessment

Student 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 needs

Reduce emergency loans Increase retention

How to Get the Info You NeedNeeds assessment methods

ObservationsInterviewsFocus 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 StudentsTiming

Schedule date and time most convenient for your students

Determine the frequency of your programPlan program with or around major event

Target 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 facility

PromotionDetermine 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 you’re

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 can’t pay your balance in full, make at

least the minimum payment.Pay your bills on time.Undercharge. Don’t 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 won’t 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.It’s 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 SupportAssistant Director of Default Management

Default Management Advisory Committee

Retention Advisory Committee

Academic Status Committee

Financial Literacy ProgramsAnnual 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