Financial Literacy and College Student Retention

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Financial Literacy
and College
Student Retention
OCTOBER 21, 2013
UNIVERSITY OF MARYLAND, COLLEGE PARK
Talking Points
What do we know already --Connections points
What have we done? - Actions Taken
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Financial Literacy Webpage
One on one counseling
8% rule for loans
Default Study
UNIVERSITY OF MARYLAND, COLLEGE PARK
Connection- Financial Literacy
and Retention
What do we know?
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Most decisions revolve around money
Conversation is difficult
Students learn differently
High correlation -- graduation rates and defaults
A little action goes a long way
UNIVERSITY OF MARYLAND, COLLEGE PARK
Actions
What did we do?
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Financial Aid Website
One on one counseling
Chat Lines
8% rule for loans
Default Study
UNIVERSITY OF MARYLAND, COLLEGE PARK
Financial Literacy and Defaults
UNIVERSITY OF MARYLAND, COLLEGE PARK
Default Study
Two Year Cohort Default Rate History for University of Maryland, College Park
4.5%
3.9%
4.0%
3.5%
3.0%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
2.5%
2.7%
2.3%
2.3%
2.0%
1.7%
1.8%
1.2%
1.3%
0.0%
Cohort Year
UNIVERSITY OF MARYLAND, COLLEGE PARK
2.3%
2.2%
Default Study
Graduation is related to loan defaults: 10% of students who take a loan
and never graduate ultimately default on their loans, compared to 3%
of loan takers who do graduate
UNIVERSITY OF MARYLAND, COLLEGE PARK
Default Study
Default Rates by Risk Factors and Graduation Outcome
Any Academic Probation
Undergraduate Studies Major
High School GPA between 1.4 and 2.3
Last Cumulative GPA between 1.4 and 2.3
Black/Afr. American
30+ Years Old
Any Alternative Loan
Unmet Need between $7,001 and $10,500
Average EFC <=$2,500
Independent
Enrolled 13+ Terms
Cumulative Loan Amount > $20,000
Males
Total
Graduated
Didn't Graduate
% of Cohort
8%
6%
9%
7%
7%
6%
3%
5%
5%
5%
4%
4%
3%
3%
19%
22%
19%
13%
17%
12%
18%
14%
14%
12%
16%
20%
11%
10%
14%
12%
12%
10%
9%
8%
7%
7%
7%
7%
6%
6%
5%
4%
UNIVERSITY OF MARYLAND, COLLEGE PARK
Q and A
Sarah Bauder
Asst. Vice President
Office of Student Financial Aid and Enrollment Services
University of Maryland
[email protected]
UNIVERSITY OF MARYLAND, COLLEGE PARK
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