STUDENT MONEY ADVICE SERVICE Student Money Advice Service Increasing Students’ Financial Capabilities at Anglia Ruskin University Shannon Lynn Norton Anglia Ruskin University Wright State University 1 STUDENT MONEY ADVICE SERVICE 2 Statement of the Problem As the tuition model in the United Kingdom (UK) is changing, higher education is becoming more expensive for the students. While the government provides tuition loans for all United Kingdom (UK) and European Union (EU) students, the maintenance loans are for UK students and qualifying EU students only and based on financial need. Student Money Advice Service aids students with their finances by making sure they apply for all funding they are eligible to receive, helping with documentation, provides programming, and for extreme cases provides short term loans and food vouchers. Many students are not able to make the money they receive last for the entire academic year. As expenses continue to increase, Student Money Advice Service wants to find ways to increase students’ financial capabilities so they can find ways to make their funding last. This would hopefully increase the students coming to the service as a preventative measure rather than as a last resort when all their funding has been spent. Research Questions This study is to determine how aware students are of Student Money Advice Service and their current funding award and to find ways to increase the students’ financial capabilities. This study will target UK/EU students that are currently registered at Anglia Ruskin University on the Cambridge and Chelmsford campuses. Research Questions This study will address the following research questions: Research Question 1: How aware are students of Student Money Advice Service and their funding? Research Question 2: How do students use their funding? STUDENT MONEY ADVICE SERVICE 3 Research Question 3: How can Student Money Advice increase the students’ financial capabilities? Information Review Information was gathered by reviewing the ARU’s website and the Student Money Advice page under Student Services. Information was also gathered by speaking with Student Services staff at ARU. Currently, tuition at ARU is 8,300 pounds per year for UK or EU students; this can be less for some courses of study or part-time students. Universities in the UK are permitted to charge up to 9,000 pounds. All students that meet the qualifications of British citizenship or EU status prior to the start of their course are eligible for complete tuition funding. They receive funding for 3+1 years. This extra year is for students that change their major or do not successfully complete a year. Some students do qualify for funding for a remedial year prior to the start of their course. Most programs last three years and run from September to June, but nursing and business do offer some accelerated year round courses. Aside from tuition loans, full-time UK students may qualify for maintenance grants and loans for their living expenses. These are based on student need and evaluated based on their parents’ annual income unless they are over the age of 25, deemed independent of their parents, married, or have children. EU students would qualify for these grants and loans only if they have been living in the UK for three years or are a migrant worker. Part-time students may receive funding if they make fewer than 16,500 pounds per year. Nursing students receive monthly funding from the National Health Service. The amount is based on need and evaluated using the parents’ income, unless the student is over twenty-five and can show proof of living independently for at least 36 months. STUDENT MONEY ADVICE SERVICE Students that receive funding from Student Finance England are paid in three installments: first in September at the start of the year; second in January after the holiday break, and the third after Easter. Since this last installment varies it can sometimes cause funding issues for students. The students receive the funds in one sum and no living expenses are taken out prior. Even students living in campus accommodations receive all their funds and they make the monthly payment to ARU. A direct monthly debit from the student’s personal bank account is often set-up, but if the student has spent all the funds, they are then behind on their rent. Some additional ways that students can receive funding are through scholarships and part-time work. Some students qualify for academic success stipends or for book scholarships. Currently, the scholarship information is not in one place at ARU. Students can seek out information from their specific Faculties or areas of interest but no central location. There is an Employment Bureau on campus where students can register for temporary paid work for no longer than twelve weeks. Students are encouraged to sign up as soon as they start at ARU to begin building up their CV. They work with Employability Services in Student Services to help students write and edit their CV’s and prepare for interviews. There are currently no permanent jobs offered through the Employment Bureau for active students. The service does post jobs for graduates. Work study is not an option in the UK. Work study, in the U.S., is government funding given to a student that they earn while working at a university. The departments that employ the student only pay ¼ of the student’s wages; the additional ¾ comes from the government funds. If the funds are depleted, departments can opt to pay the full wages of the students to maintain them as employees. Student Money Advice does receive grant funding from the government through the Access to Learning Fund. This is a means tested grant which is non-repayable. Student Money 4 STUDENT MONEY ADVICE SERVICE 5 Advice review student’s financial situation and determine if they are eligible for this funding and determine an award amount. They also provide students with short term emergency loans that are paid back to ARU. These loans help students that have a delay in funding or who have found themselves in a severe financial situation. Student Money Advice can also offer food vouchers that will supply students with two to three weeks of food. All of these funds are given out after a review of the student’s finances and after a true financial need has been determined. There is a concern of fraud, and the funding is carefully disbursed. If necessary, a repayment plan is established. Students can often find themselves in financial situations due to a number of circumstances in the UK. One is that banks allow students an interest free overdraft. Many students spend more money than they have and then need to find ways to pay this back. Some students also have issues with paying their rent. Many students fall behind because they believe the rent is being taken out of their account when it is not. Also, many students underestimate the cost of living and class expenses. The money that students borrow for tuition and maintenance is paid back based on their individual tax code and their annual income. It begins nine months after graduation (typically April) and only once a student reaches a salary of 21,000 pounds per year. If the student falls below this amount, repayment is stopped until the minimum amount is again reached. Students’ repayments are at a rate determined by their income. The interest rate of the loan is based on the National inflation rate and can be up to an additional 3% based on income. After thirty years, all loans are forgiven. This is all based solely on the individual student, and if married, the spouse’s income is not taken into account. Students that are self employed or EU students who return home and do not report to the UK tax system are often hard to find to enforce repayment. STUDENT MONEY ADVICE SERVICE 6 While there are many UK and EU students at ARU, there are also a growing number of International students. These students are important because they build culture diversity and bring a global perspective to campus while increasing funding for the University. ARU has a cap on the funding they can receive for UK and EU students. There is no cap on International students. These students pay a higher tuition rate and receive no funding from the UK. Prior to their arrival in the UK, they must show proof of funding for tuition and living expenses in their bank account for one month, around 17,000 pounds. Some students qualify for a 2,000 pound scholarship. The students are also required to make a 2,000 pounds deposit prior to their arrival. This amount will be raised to 4,000 pounds in the coming years. The deposit helps to relieve some of the financial burden which helps retain students. While the students are required to show proof of funding, some underestimate living expenses and still have trouble paying. Some are placed on payments plans. If they are unable to pay and must stop their studies, they must return to their home country. International Student Services provides information to students before they arrive and during welcome week which includes information on expenses. Many of these students work with Student Money Advice and Financial Services. Financial Services is mainly located on the Chelmsford campus which can make it challenging for students at the Cambridge campus. They handle all money at the University including student funding and campus accommodations. They also handle sending out credit control letters which can be upsetting to students. At times, they do supply Student Services with deferred rent and late fee lists. This information is not always consistent to Student Services. Financial Services can also make a note on a student’s account that can be viewed by Student Services. Many students when they receive information are reluctant for personal or cultural reasons to ask for help. Any information from Financial Services to Student Services is helpful STUDENT MONEY ADVICE SERVICE 7 and can help Student Services reach students more effectively. Financial Services does refer students to Student Services such as Student Money Advice, but currently, the two areas are completely separate. Student Money Advice Service is under Student Services at ARU, and the staff in this area work to provide students with financial awareness, information on eligibility and help sort out financial situations. They provide information on the webpage and through programs like “Cheap as Chips” and “Money Doctors” to help students with their financial capabilities. They are currently extremely busy so finding time for such programs can be difficult. They work with students and Student Finance England to sort out issues with paperwork and help make students aware of what they are qualified to receive. They also work with students to receive funding from the Access to Learning Fund. The advisers see a large number of students each week especially on the Cambridge campus. There is a central email for the advisers which can provide students with a quicker response, but students tend to prefer face-to-face interactions. Students often return several times to sort out one issue or to get to the source of the problem. The advisers work very hard to follow-up with each student and follow each case to the end even if it requires several months. These advisers are up-to-date on the ever changing rules and regulations of the government. They would like to find ways to increase students’ financial capabilities. Based on information obtained, Anglia Ruskin University is a growing University with two main campuses in Cambridge and Chelmsford and another in Peterborough. They have a number of wonderful resources and programs already in place for students and a great understanding of students’ needs. As student funding continues to change and evolve, Student Money Advice will continue to be a vital resource for students. This project will serve as ways to STUDENT MONEY ADVICE SERVICE 8 continue to strengthen the already solid structure that is in place and help to find ways to increase students’ financial capabilities and interactions across campus. Methods The research for this study will be conducted qualitatively with quantitative measures. Methods The method or tool for collecting the data for this research will be through an email questionnaire and one-on-one questionnaire in the students’ natural setting. Population This study will focus on currently enrolled UK/EU students at the ARU Cambridge and Chelmsford campuses. This study will take place during May 2013. The students are a mix of male and female, traditional and mature students; but no demographic specifics will be collected. Sampling Procedures The sampling strategies employed will be convenience so that data can be accessed and collected easily. This form of sampling is selected due to the time constraints of the study. Data Collection Data will be collected through email questionnaires and one-on-one in person questionnaires. The email questionnaire will be sent to students selected by the supervisor of Student Money Advice at the Cambridge and Chelmsford campus. The one-on-one questionnaire will be given in person by a member of Student Money Advice Service. Students will participate at will, and they can decide to discontinue involvement at any time with no penalties. The identities of the students will be kept confidential. The email questions will be recorded through survey monkey. The one-on-one in person questionnaires will be recorded via paper or using an app for the iPad by a member of Student Money Advice Service. STUDENT MONEY ADVICE SERVICE 9 This is a list of questions that will be used for the email and one-on-one questionnaire: 1. Do you know where to get help with sorting out your funding or managing your finances? Yes/No If Yes, is that within our university? 2. Do you know how much your funding is for this year? Yes/No If Yes: Fees? Maintenance? 3. Are you able to make your money last for the whole year? Yes/No If No, why not? 4. Aside from housing costs, on what do you spend the majority of your money? 5. Would you like to attend a money management workshop to improve your financial awareness? Yes/No If no, why not? 6. Did you know that the Student Money Advice Service had money management workshops both in Chelmsford and Cambridge during National Student Money Week earlier this year? Yes/No If Yes, how? If No, how would you like to be contacted about similar events in the future? 7. Do you think that money management and financial awareness should be taught as part of the curriculum at university? Yes/No 8. How can the Student Money Advice Service help you improve your financial capability/awareness? Data Analysis The data will be compiled into an excel document. The yes and no questions will be tallied. The short answer responses will be broken into themes and tallied. The information will then be displayed in chart format. Goodness of Design The researcher will use a peer review process to make sure the questions are valid. The findings will be reviewed with the Student Money Advice staff to ensure they are reported accurately. STUDENT MONEY ADVICE SERVICE 10 Limitations The current study had some limitations and areas for improvement if repeated in the future. A demographics section should be added to the survey to have a better understand of the types of students that responded. Emails should be sent out to the entire campus population. The survey could be more effective if conducted during a different time in the academic calendar. The current study was conducted during thesis turn-in and final exams. Findings One hundred responses were received. Forty responses were received through the email questionnaire and sixty responses were obtained via the one-on-one in person questionnaire. Table 1 Do you know where to get help with sorting out your funding or managing your finances? 100 90 80 70 60 Maybe 50 No 40 Yes 30 20 10 0 Maybe No Yes The students were asked if they knew were to go to get help sorting out their funding or managing their finances. One person responded maybe, twenty-four responded no and seventyfive responded yes. Students did make remarks to specific room locations. Some responded with STUDENT MONEY ADVICE SERVICE 11 Financial Services and others with Student Money Advice. The majority gave a simple yes or no. The only measure recorded was maybe, no, and yes. Table 2 Do you know how much your funding is for the year? Yes No Yes No 0 10 20 30 40 50 60 70 80 90 100 Students were asked if they knew how much their funding was for the year including fees and maintenance. Seventy-three responded yes and twenty-seven answered no. Of these, twelve responded with the exact amount, seven said roughly but would need to look up the exact amount, five received no funding, and four were sponsored by their employer. STUDENT MONEY ADVICE SERVICE 12 Table 3 Are you able to make your money last the entire year? 100 80 60 Yes w/ other income Yes 40 20 No 0 N/A No N/A Yes Students were asked if they were able to make their money last the entire year. Seven respondents did not receive maintenance funding, thirty-two said no, and sixty-one said yes. Of the sixty-one that said yes, twenty-three of those did list that they received other income from a part-time job, parent, or spouse. Rent, bills, travel, children, and course expenses were listed as the reason that they could not make it last. Some students expressed that their award was based on their parent’s income, but their parents did not help them in any way. STUDENT MONEY ADVICE SERVICE 13 Table 4 Aside from housing costs, on what do you spending the majority of your money? Food Car/Petrol Travel Course Materials Personal Items Social Activities Childcare/Family Bills Phone/Gadgets Students were asked aside from housing on what they spent the majority of their money. The number one answer was food with forty-three responses, followed by car/petrol with twentyfive, and travel with twenty-three. From the in person surveys, the number one answer at Cambridge was food and number one answer at Chelmsford was car/petrol/travel. Many of the students expressed a large amount of money was spent traveling to and parking at their placements. The fourth largest answer was materials needed for courses such as books and specialty equipment. Other answers included personal items, social activities, childcare/family responsibilities, bills, and phone/gadgets. STUDENT MONEY ADVICE SERVICE 14 Table 5a Would you like to attend a money management workshop to improve your financial awareness? 100 90 80 70 60 Maybe 50 No 40 Yes 30 20 10 0 Maybe No Yes Table 5b Why they would not attend a workshop No Money to Travel Took Finance Course Will Not Change Habits Spouse/Parent Handles Graduating No Time Already Aware/Able to Manage 0 10 20 30 40 50 60 70 80 90 100 STUDENT MONEY ADVICE SERVICE 15 Students were asked if they would attend a money management workshop to improve their financial awareness. Three said maybe, seventy-four said no, and twenty-three said yes. Those that responded no were asked why they would not attend. The majority of them responded they felt they were already aware and confident and in handling their finances. The next greatest answer was no time due to classes and other responsibilities. Some responded they were graduating so it was not relevant at this point, but many did follow-up by saying they would have attended if offered early on in their course. Other responses were that parents/spouse handled the finances, and they knew what to do but did not want to change their spending habits. Finally, some were studying finance so had already taken financial courses; or they had no additional money to travel back to campus for these events. Table 6a Did you know about the recent money management workshops? 100 90 80 70 60 N/A (new) 50 No 40 Yes 30 20 10 0 N/A (new) No Yes STUDENT MONEY ADVICE SERVICE 16 Table 6b How do you like to be contacted? Email Leaflets Posters Social Media Website Students were asked if they knew about the recent money management workshops offered at Cambridge and Chelmsford during National Student Money Week. Three students were new students and were not attending classes at that time, seventy-four said no, and twentythree said yes. The students were asked how they did prefer to be contacted about such events. The overwhelming majority preferred to be contacted via their university email; however, some did remark that they received a large number of emails and many things were overlooked. Emails were expressed to be less invasive and could be viewed at will. Some of the other responses were leaflets, posters, social media sites and the university website. STUDENT MONEY ADVICE SERVICE 17 Table 7 Do you think money management and financial awareness should be taught as part of the university curriculum? Yes No Yes No 0 20 40 60 80 100 The next question was if students thought money management and financial awareness should be taught as part of the university curriculum. Forty-three said no and fifty-seven said yes. Some students that wavered during the face-to-face surveys said no to a required course, but they did say that an elective course would be beneficial. Some indicated they already had so many classes for their course that no more could be added, but they would still see value in short workshops. STUDENT MONEY ADVICE SERVICE 18 Table 8 How can the Student Money Advice Service help improve your Advertise Services financial capability/awareness? Course/Workshops Already Help Tips to Make Money Last Make Budgets Pre Arrival/First Day Info Info on Exceptions/Additional Funds Funding/Payment Options Publish Average Yearly Expenses More Office Hours Shock Posters The final question was how Student Money Advice Service could help improve their financial capability/awareness. The number one response, with twelve replies, was make students more aware of the services available. This was followed by offering courses or workshops such as cooking classes, tips for making money stretch, and travel expenses information. The third largest response was that Student Money Advice was already helpful, and students indicated the advisers had made a positive difference to them personally. Other responses included helping students make a budget, pre-arrival and first day information sessions, information on exceptions, for example local taxes, and additional funding that is available such as the Access to Learning Fund. Students also listed funding options such as giving funding each month instead of in three parts or offering payments plans. They also expressed an interest in having accommodation fees removed from their maintenance funding upfront and would like meal plan options. Another request was a list of anticipated living expenses for the year which included STUDENT MONEY ADVICE SERVICE 19 items in addition to general living expenses such as travel to visit family. The students also listed being open more hours. The last request was shock posters in the common areas listing average expenses and showing statistics like what a cup of coffee each day costs over a year. Discussion This study yielded useful information. It showed that many of the services offered by Money Advice Services are valued; however, students are not always aware of what is available. Students did express they know where to go, and they do know what funding they are receiving. In many cases, there just is not enough funding or it needs to be supplemented with a part-time job. Food and travel are the number one expenses aside from housing. Student Money Advice Service could aid students by educating early on the costs of living in Cambridge and Chelmsford, including food and travel expenses. Students would benefit from more cost saving tips and workshops. Students prefer this information early on in their education. The biggest obstacle is making students aware of what is offered and getting them to attend. Students express that programs and workshops are beneficial, but when asked if they would attend, the majority responded no. Emails that go out to students need to have a flashy title and look that will make students want to open them and not just let them get lost in the shuffle. Additional methods of advertisement may also reach more students such as social medial, posters, and leaflets. Offering incentives could also increase attendance. This year money was spent on outside speakers with low attendance. This same money could be put into incentives for students to attend in-house workshops and classes. Also, more than half the students expressed that money advice should be taught as part of their curriculum. While surveying the students, it appears that some students do not distinguish between Financial Services and Student Money Advice Service. These two departments should make a conscious effort to support one another. Financial Services should STUDENT MONEY ADVICE SERVICE 20 provide consistent reports to Student Services including Student Money Advice. Publications by Financial Services should include information on Student Money Advisers. Conclusions/Recommendations In conclusion, Student Money Advice Service is providing excellent service. They are known by the students and many students gave positive feedback about the services. When reviewing the website and programs offered, there is a great deal of useful information. The advisers are knowledgeable, see a great number of students, and have a follow-up system in place. Some of the recommendations I would like to make are short term and should be easily and quickly achievable. There are also long term recommendations that would require more staff and a change in the entire university culture. Though some may be in theory only, they are worth mentioning. Please note that while assessments are important, using the information to make positive changes is what holds the real value in the assessment process. Short Term Recommendations Before the Fall Term Make ARU website easier to navigate to Student Money Advice page o The website for Student Money Advice is engaging Excellent videos and information But hard to navigate to the page (especially from my.anglia page) o Make Student Money Advice a quick link on the my.anglia A-Z page under students Flashy emails o Give emails flashy titles so students read o Email all students not just a selection Provide incentives o Provide incentives for attending programs Advertise the Money Advice Central Mailbox o List benefits of using this form of contact STUDENT MONEY ADVICE SERVICE Shock Posters o Give stats on how much a cup of coffee each day is over a year Show what else this money could buy o Show how many groceries one dinner out would equal Update Facebook/Twitter account more frequently o Another way to touch students In the Next Six Months Continue progress on events calendar on webpage o Will list information o Will highlight important deadlines etc. Hold current programs more often such as Cheap as Chips and Money Doctors o Both Cambridge and Chelmsford campuses o May need help running these programs as advisers are very busy Develop interactive budget worksheet for webpage In the Next Twelve to Eighteen Months Update 2014 Undergraduate Prospectus catalog o Include Student Money Advice Service o Specifically list under Student Services o List in index Update information for new students handout o List out specific Student Services Areas Including Student Money Advice Send information to parents including: o Financial Process o Location of forms o Yearly expense sheet Add yearly expense sheet to the student information handouts o This should include living expenses as well as typical students items like social, clothes and travel home Collaboration with Financial Services o Have information on Student Money Advice added to the handouts o Create measures for consistent information exchange 21 STUDENT MONEY ADVICE SERVICE 22 Develop new workshops o Cooking classes o Travel savings tips o Local discount information o Available funds like Access to Learning Fund Long Term Recommendations In the Next Three Years Compile scholarship information in central location (Student Money Advice) o Scholarships are part of the U.S. equivalent of Student Money Advice Create on-line training that must be completed before money is released o If government will not allow, could do for short term loans o A quiz must be completed at the end with a 75% pass rate Create permanent on-campus student jobs o Through Employment Bureau o Student positions in campus offices Create meal plans and extend dining hours Take accommodation and meal plan fees out of maintenance funds upfront o Students only receive remaining funds o No concerns about rent or food Change disbursement of funding o Change three installments to be on set dates especially last payout which varies with the Easter holiday o Offer monthly payouts Have students deposit funds into ARU account before classes begin o similar to what currently exists for International students Beyond Three Years MyAnglia Card Student ID can be used to pay for food items on campus and at local stores ID can be used to pay for printing and binding ID can be used in vending machines STUDENT MONEY ADVICE SERVICE 23 Create First Year Experience o Office specifically for First Year Student o This includes a first year seminar course (learning community) covers important topics for new students including finances introduces students to all available services One Stop Shop for students o Financial Services and Student Money Advice would be in one location o Students meet one person for all questions o Student Services approach to student interactions o Both areas have separate operations behind the scenes Create “work study” program o Students awarded funding by ARU that is received by working on campus o Work with Employment Bureau Increase number of advisers so more individual time at each session o Allows advisers to prep before and make notes afterwards o May lead to fewer shorter visits o May allow for the source of the problem to be revealed sooner o More time to devote to programming and awareness efforts Resources Budget Worksheets: http://www.balancetrack.org/collegestudents/index.html Example of Estimated Expenses: http://www.sfa.osu.edu/awardguide/index.asp?tab=e Meal plans: http://www.wrightstatedining.com/plans/index.html http://urds.osu.edu/dining/meal-plans/ Student ID card that can be used for multiple options: (Buck ID) : https://buckid.osu.edu/ (Wright1 Card): http://www.wright.edu/wright1-card First Year Experience which Includes First Year Seminar: http://www.sc.edu/fye/ http://www.wright.edu/uc/firstyear/experience/ One Stop for Students (Raider Connect): https://www.wright.edu/raider-connect/loans-scholarships-and-grants Wright Financial Path: http://www.wright.edu/studentorgs/wfp/ Email contact: shannon.norton@wright.edu STUDENT MONEY ADVICE SERVICE 24 References Creswell, J. W. (2007). Qualitative inquiry & research design: Choosing among five approaches (2nd ed.). Thousand Oaks, CA: Sage.