Create Successful Financial
Literacy on Campus
Presented by:
Dianne Fulmer, USA Funds
Colleen MacDonald, SimpleTuition
Pat Robles-Friebert, Inceptia
WASFAA Conference
2013
CLFE Mission
As a diverse coalition of industry participants,
CLFE shall engage in activities that improve and
preserve the quality and integrity of education
financing products and services delivered to
California students, parents and schools.
WASFAA Conference
2013
What is financial literacy?
• Aptitude for understanding finance
• Ability to make informed, effective decisions
about finances
• Knowledge of personal finances
 Budgeting
 Managing credit cards
 Understanding a paycheck
WASFAA Conference
▪ Banking basics
▪ Student loan
2013
Delivery Methods
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Website Links
Email
Group Workshops
One-on-one Sessions
Online Education/Gaming
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Publications
Inserts
Articles
Flyers
Other
2013
Making the Case –
Rise in COA & Student Debt
• 19% of full-time students at public four-year
colleges and universities attend institutions
that increased their published prices by 12%
or more.
Source: 2011 College Board Trends in Student Aid
• Average debt per borrower was $22,000 from
the public 4-year colleges and $28,100 from
private 4-year colleges
Source: 2009 Decision Partners Financial Literacy 101 webinar
WASFAA Conference
2013
Making the Case – Lack of Financial Skills
2010 State-by-State Financial Capability Survey
18- to 34-year-olds
No money set aside to cover expenses
for 3 months
75 percent
Engage in non-bank borrowing - pawn
shops, rent-to-own stores, advance on
tax return
34 percent
Spend more than household income
Source: 2010 State-by-State Financial Capability Survey
conducted by FINRA Investor Education Foundation
23 percent
0
10
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2013
30
40
50
60
70
80
Making the Case – Legislative Environment
 Changes to Cohort Default Rates (CDR)
 Initiatives by Consumer Financial Protection
Bureau (CFPB)
 Gainful Employment Regulations
WASFAA Conference
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Making the Case – Stress and Money
Source: 2007 DUCK = Deep Underground Credit Knowledge
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Making the Case – Students Want Help
 84% of college students want more
information on financial education topics.
Source: 2009 Sallie Mae survey
 24% of college students say they are well
prepared for the financial challenges that
await them after graduation
Source: 2007 Hartford Financial Services
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Identify Your Students’ Needs
• Survey students
Survey Topics
– Topics
– Delivery methods
• Review results
• Draft a curriculum
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WASFAA Conference
Banking Basics
Buying a home or car
Credit reports and scores
Debt and Borrowing
Financial Goal-Setting
Health and life insurance
Identity theft
Investment basics
Making a budget
Making major purchases
Paycheck and taxes
Paying for College
Rebuilding credit
Renter’s and auto insurance
Setting and saving for goals
Understanding credit
2013
Create a Success Team
 Look at your organization chart to identify
potential departments to partner with
 Create a proposal
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Define the purpose
Identify benefits to school and students
Propose delivery methods and potential content
Note success measurements
Outline costs, resources, and potential personnel
Confirm buy-in
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2013
Public/Private College
Organizational Chart
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Career School
Organizational Chart
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Why They’ll Buy In
Full chart available at:
http://apps.Inceptia.org/PDF/Inceptia_FinancialCapability_Whitepaper.pdf
WASFAA Conference
2013
Implementing Financial
Literacy on Campus
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Planning Timeline
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The Proposal
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Marketing - Getting Students to Attend
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What is the topic/name of the workshop?
What time does the workshop begin and end?
Where is the workshop?
Which methods will be used to promote the workshop?
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flyers /posters
e-mail
newsletter/newspaper
word of mouth/social media
other
 How will the attendee benefit?
WASFAA Conference
2013
Marketing and Promotion
 Utilize social media
 Build in to existing services (FYE, Greek Life, Housing,
etc.)
 Educate your colleagues
 Word-of-mouth
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Example Flyer
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Paying for a Financial Education Program
 External
 Internal dollars
 In-kind
 Leverage existing resources
 Certify your staff
 Students
 Free resources
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Student Participation
 Innovators – Seek new
opportunities and ideas
 Early adopters – Grasp and
apply some ideas
 Early majority – Gathering
ideas
 Late majority – Aware of
ideas
 Laggards – Unconcerned
WASFAA Conference
2013
Case Study: Corinthian Colleges, Inc.
 A Campus Student Loan Specialist at Every
Everest and WyoTech campus: Creating and
Fostering Rapport
 Mandatory Financial Literacy
 Mandatory In-Person Exit Counseling for
Graduates
 On-going workshops and outreach events
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Case Study: Monterey Institute of
International Studies
 Summer Debt Letters with Current and
Projected Repayment
 Mandatory Exit Loan Counseling
 Post Enrollment Budgeting Assistance
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2013
MIIS Summer Debt Breakdown
Loan Type
Total
Outstanding
Debt
Prior Borrowing
History
Perkins Loan
Total Paid
Amount paid
over life of
in interest
loan (includes interest) only
$0
$0
$0
$0
Stafford Loans
$41,000
$472
$56,620
$15,620
Grad PLUS
$48,214
$598
$71,734
$23,520
$0
$0
$0
$0
$89,214
$1,070
$128,354
$39,140
$0
$0
$0
$0
Stafford Loans
$20,500
$271
$32,481
$11,981
Grad PLUS/Private
Anticipated Totals
for 10-11
$13,970
$169
$20,251
$6,281
$34,470
$440
$52,732
$18,262
$123,684
$1,510
$181,086
$57,402
Private
Totals to date
Perkins Loan
2010-11
Anticipated
Loan Debt
Current est.
monthly
payment
New Total
Repayment
Debt Management for the Real World
MIIS Personal Budget
Student Creates Personal Budget and Borrows Only What She Needs
Income
Income Source
Budgeted
Notes
Student Loans
$
800.00
Job 1
$
900.00
$
1,700.00
Total income
Student works 15 hours per week @ $15/hour
20400
#REF!
Expenses
#REF!
Finance Payments
Budgeted
Notes
48.00 Average Grad Student Credit Card Debt was $2200*
Credit card
$
Auto loan
$
-
$
48.00
Total finance payments
Fixed Expenses
Budgeted
Notes
Rent
$
675.00
Auto insurance
$
-
Medical insurance
$
158.00
Cable TV
$
45.00
Telephone
$
70.00
Internet
$
30.00
Investments/Savings
$
-
Utilities
$
50.00
MIIS Post Grad Budgeting
Monthly Budget at Graduation
Income
Budgeted
Income Source
Job 1
Total income
Notes
$
8,333.00
$
8,333.00
#REF!
Expenses
#REF!
Budgeted
Income Tax Withholdings
Notes
1,676.00 0-$4,750=0%, $4,751-$7,000=10%, >$7,000=15%
Federal income tax
$
State income tax
$
626.50
0-$3,070=0%, $3,071-$5,960=1%, >$5,960=2%
FICA
$
637.48
6.2 % of Gross Wages
Medical
See FICA
Social Security
See FICA
SDI
Total withholdings
1.45% of Gross Wages
$
91.66
$
3,031.64
Budgeted
Finance Payments
Notes
Credit card
$
200.00
Auto loan
$
479.00
Student Loans
$
1,060.00
$
1,739.00
Total finance payments
Budgeted
Fixed Expenses
1.18 % of Gross Wages
Student's outstanding credit card debt is $2500*
$17K Sub, $24K Unsub, $39,724Grad PLUS
Notes
Rent
$
1,860.00
Auto insurance
$
108.83
Medical insurance
$
68.00
Cable TV
$
45.00
Telephone
$
75.00
Case Study –
Stanford Graduate School of Business
Workshop Series
Autumn
 Financial Aid At the
GSB
 “Why Didn’t Any One
Tell Me This While I
Was in Business
School?”
 Monitoring Spending,
Determining Needs
and Wants, and
Creating a Spending
Plan
Winter
 Deducting Your
GSB Expenses
 International Tax
Workshop
 Knowing Your
Credit Score
 Identity Theft:
Protect Yourself
WASFAA Conference
2013
Spring
 Financing 101:
Mortgage
 The Path to Home
Ownership
 Foreclosures and Short
Sales
 Mandatory
In-Person Exit
Counseling for
Graduating Students
 Loan Repayment
Strategies
Training Created by
Colleen MacDonald
cmacdonald@simpletuition.com
Dennis Zanchi/Ruby Nieto
dzanchi@ecmc.org/rnieto@ecmc.org
Pat Robles-Friebert & Kate Trombitas
PatF@inceptia.org / katet@inceptia.org
Dianne Fulmer
Dianne.Fulmer@usafunds.org
WASFAA Conference
2013