ISFAA Spring Conference
April 28, 2009
TODAY’S PANEL
 Sue Allmon, Account Executive, USA Funds Services
 Delores 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 Blocks
 Four major stumbling blocks to building a successful
financial literacy program
 Don’t know how to get started
 Limited time
 Limited resources
 Difficulty reaching students
How to Begin Building Your
Program
 Needs 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 Need
 Needs assessment methods
 Observations
 Interviews
 Focus groups
 Surveys
 Research
Turn Needs into Goals
 Your purpose and goals should be revealed from your
needs assessment
 Did you determine that students:
 Spend frivolously = Budgeting
 Borrow excessively = Debt management
 Owe high credit balances = Credit management
Limited Time
 Solicit assistance from other offices
 Utilize student group leaders to help you plan,
promote, and organize your program
 Seek help from your guarantor partners and other
agencies
 Consider online courses
Limited Resources
 Partner with grant-funded programs on your campus
 Partner with student organizations
 Seek assistance from outside organizations
 Ask for donations for giveaways, food, etc.
Difficulty Reaching Students
 Timing
 Schedule date and time most convenient for your
students
 Determine the frequency of your program
 Plan program with or around major event
 Target audience
 Identify which audience needs your proactive prevention
most
 Ask instructors to give extra credit for attendance
Difficulty Reaching Students
 Location
 Schedule location most convenient for your student
 Consider audience size before booking facility
 Promotion
 Determine the most effective way to reach your target
audience
 Identify a campus champion to help promote your
program
 Ask faculty to promote your program in their classes
 Utilize student leaders as co-presenters and to invite
other students
Make smart choices about
spending and saving
 Develop 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 plan
 Needs: 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
school
 Financial 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.com
 Credit 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 Orientation
Part 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 Support
Assistant Director of Default Management
Default Management Advisory Committee
Retention Advisory Committee
Academic Status Committee
Financial Literacy Programs
Annual Finance, Fitness and Fun Fest
Money Mondays
Annual Financial Literacy Dinner and Workshop
Continuous FAFSA workshops
Students who are Parents Club
Evidence-based outcomes
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
Return of Title IV Funds
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.