1. Financial Literacy Education for Graduate Students: How to implement a comprehensive program on your campus Kimberly A. Brown, M.Ed. Midwestern University

2. Private, not-for-profit Private, not-for-profit School-as-lender School-as-lender Downers Grove, IL 1989 students Downers Grove, IL 1989 students Glendale, AZ 1471 students; Glendale, AZ 1471 students; Osteopathic Medicine, Pharmacy, Podiatry, PA, PT, OT, BMS, PsyD, CRNA, Cardiovascular science, Dental in 08 Osteopathic Medicine, Pharmacy, Podiatry, PA, PT, OT, BMS, PsyD, CRNA, Cardiovascular science, Dental in 08 Each campus has 9 staff: Each campus has 9 staff: Director, Assist. Director, 4 FAAs, 2 clerks, and one departmental assistant Midwestern University

3. Student loan indebtedness-medical Student loan indebtedness-medical June 2005 graduates avg. $166,477 June 2005 graduates avg. $166,477 June 2006 graduates avg. $169,294 June 2006 graduates avg. $169,294 June 2007 graduates avg. 174,659 June 2007 graduates avg. 174,659 Financial Literacy Initiatives

4. Student loan indebtednessmedical 2007 Student loan indebtednessmedical 2007 295/313 (94%) medical grads borrowed 295/313 (94%) medical grads borrowed 54% of borrowers had debt in excess of $175,000 54% of borrowers had debt in excess of $175,000 $175,000-$199,999 : 43 graduates $175,000-$199,999 : 43 graduates $200,000-$224,299:43 graduates $200,000-$224,299:43 graduates $225,000-$249,999:71 graduates $225,000-$249,999:71 graduates $250,000+: 11 graduates $250,000+: 11 graduates In 2006, 57% had excess of $175,000 In 2006, 57% had excess of $175,000 In 2005, 54% had excess of $175,000 In 2005, 54% had excess of $175,000 Financial Literacy Initiatives

6. Comprehensive program from pre- Comprehensive program from pre- matriculation through graduation and beyond matriculation through graduation and beyond USA Funds® Life Skills® USA Funds® Life Skills® Flexible educational program to teach students to be better consumers of higher education by teaching them basic strategies to manage their finances, time, and relationships. Flexible educational program to teach students to be better consumers of higher education by teaching them basic strategies to manage their finances, time, and relationships. Financial Literacy Initiatives

7. M1: Get a grip on your finances: Smart spending for students. M1: Get a grip on your finances: Smart spending for students. M2: Seek out financial aid: Funding sources and financial obligations. M2: Seek out financial aid: Funding sources and financial obligations. M3: Work hard but smart: How to be successful in school and graduate on time. M3: Work hard but smart: How to be successful in school and graduate on time. M4: Take control of your future: Finishing school and repaying your loans. M5: Now that you are about to graduate: Take control of your life.

8. Research revealed Graduates are similar to undergraduates. Both student groups … Graduates are similar to undergraduates. Both student groups … Borrow a lot of money. Borrow a lot of money. Have problems managing their money. Have problems managing their money. Are more preoccupied with academic (or social) life than with their finances. Are more preoccupied with academic (or social) life than with their finances. Would benefit from more information and counseling on the basics of financial management, borrowing and repayment. Would benefit from more information and counseling on the basics of financial management, borrowing and repayment. Even so, they are more sophisticated about managing money and living with debt. They also accumulate substantially more debt over time. Even so, they are more sophisticated about managing money and living with debt. They also accumulate substantially more debt over time.

9. Research literature revealed Graduate and professional student enrollment is growing and so is their debt. Graduate and professional student enrollment is growing and so is their debt. 2.7 million students enrolled in graduate and first-professional programs. 2.7 million students enrolled in graduate and first-professional programs. Master's programs = 58% Master's programs = 58% First-professional = 12% First-professional = 12% Doctoral = 13% Doctoral = 13% Other = 16% Other = 16%

10. Research literature revealed 60% rely on financial aid (even more for full-time students = 83%). 60% rely on financial aid (even more for full-time students = 83%). 73% of education M.A. and M.B.A. students attend school part time, work full time. 73% of education M.A. and M.B.A. students attend school part time, work full time. 80% of first-professionals attend school full time, do not work. 80% of first-professionals attend school full time, do not work. 43.2% of all graduate/professional students are married. 43.2% of all graduate/professional students are married. 33.9% have dependent children. 33.9% have dependent children. Area of Study MarriedDependents Law24%17% Medicine22%15% Health Science 22%16% Education63%54% Business48%37%

11. Other relevant research indicated Graduate school can have a detrimental effect on marriages and relationships (Houseknecht et al., 1984; King, 1997; Legako et al., 2000; McRoy & Fisher, 1982; Scheinkman, 1988). Graduate school can have a detrimental effect on marriages and relationships (Houseknecht et al., 1984; King, 1997; Legako et al., 2000; McRoy & Fisher, 1982; Scheinkman, 1988). Juggling family and student roles (Gruver & Labadie, 1975; Hollahan, 1979). Juggling family and student roles (Gruver & Labadie, 1975; Hollahan, 1979). Gender role conflicts (Guldner, 1978; Houseknecht et al., 1984; Pearlin & Turner, 1987; Sori et al., 1996). Gender role conflicts (Guldner, 1978; Houseknecht et al., 1984; Pearlin & Turner, 1987; Sori et al., 1996). Financial burdens and relocation (Scheinkman, 1988). Financial burdens and relocation (Scheinkman, 1988). Changes in schedules, recreation and social life (Scheinkman,1988). Changes in schedules, recreation and social life (Scheinkman,1988). Emotional contagion effects that crossover from school to marriage (Katz & Beach, 2000; Rook et al., 1991). Emotional contagion effects that crossover from school to marriage (Katz & Beach, 2000; Rook et al., 1991). Spouses educational hypogamy (Houseknecht et al.,1984; Sokolski,1996). Spouses educational hypogamy (Houseknecht et al.,1984; Sokolski,1996). Presence of children seems to be a negative factor for married graduate students (Gilbert, 1982; Houseknecht et al., 1984; McLaughlin, 1985). Presence of children seems to be a negative factor for married graduate students (Gilbert, 1982; Houseknecht et al., 1984; McLaughlin, 1985). Students/partners have too little emotional energy or time to deal with emerging relational issues (Guldner, 1978; Guy, 1987). Students/partners have too little emotional energy or time to deal with emerging relational issues (Guldner, 1978; Guy, 1987).

12. Why would graduate/professional students want Life Skills? Students realize that they face a whole new set of challenges when they enter into advanced study. Students realize that they face a whole new set of challenges when they enter into advanced study. It's more work. It's more work. It costs them a lot of money. It costs them a lot of money. Chances of program completion are only about 50/50 (Peters, 1997). Chances of program completion are only about 50/50 (Peters, 1997). Investing in Life Skills will help them face these challenges and make their efforts (and money) count. Investing in Life Skills will help them face these challenges and make their efforts (and money) count.

13. USA Funds Life Skills Module 6 - Embrace New Academic Challenges: Drafting Your Professional Plan. Module 6 - Embrace New Academic Challenges: Drafting Your Professional Plan. Module 6 Module 6 Designed to teach students how to determine their financial needs, assess the return on their investment in further education, adjust to the graduate/professional experience and define their program of study. Designed to teach students how to determine their financial needs, assess the return on their investment in further education, adjust to the graduate/professional experience and define their program of study.

14. USA Funds Life Skills Module 7 - Connect as a Couple: Confronting Relationship Challenges Together. Module 7 - Connect as a Couple: Confronting Relationship Challenges Together. Module 7 Module 7 Designed primarily for couples, this module will help partners adjust to their new roles and tasks while in school, negotiate time for each other, anticipate and manage their financial challenges as a couple and engage in decision-making together. Designed primarily for couples, this module will help partners adjust to their new roles and tasks while in school, negotiate time for each other, anticipate and manage their financial challenges as a couple and engage in decision-making together.

15. USA Funds Life Skills Module 8 - Take Stock: Devising a Realistic Financial Plan. Module 8 - Take Stock: Devising a Realistic Financial Plan. Module 8 Module 8 Designed to help students make a budget, live within their means, set their own debt limits and manage their student loans. Designed to help students make a budget, live within their means, set their own debt limits and manage their student loans.

16. USA Funds Life Skills Module 9 - Live Like a Student: Managing Your Funds. Module 9 - Live Like a Student: Managing Your Funds. Designed to help students obtain financial support for their education, locate alternative sources of funding, stretch their resources and make every dollar count. Designed to help students obtain financial support for their education, locate alternative sources of funding, stretch their resources and make every dollar count.

17. USA Funds Life Skills MM1 - Reentering School: How Do I Adjust My Standard of Living? MM1 - Reentering School: How Do I Adjust My Standard of Living? MM1 MM2 - How Do I Survive During My Residency? MM2 - How Do I Survive During My Residency? MM2 MM3 - Couple Talk: How Do We Talk About Money Without Fighting? MM3 - Couple Talk: How Do We Talk About Money Without Fighting? MM3

18. Financial Literacy Initiatives The Participants: National Debt Management Director, USA Funds National Debt Management Director, USA Funds Director, Student Financial Services Director, Student Financial Services Director, Admissions Director, Admissions Campus Counselor Campus Counselor Assistant Director, SFS Assistant Director, SFS Financial Aid Administrators Financial Aid Administrators Student Financial Services Assistant Student Financial Services Assistant

19. Assessing our audience Generally, what are the characteristics of applicants to MWU? What are their needs? What is their state of mind on the interview day?

20. Assessing challenges in reaching our audience Given these characteristics, what challenges do you face in getting them to focus on issues of debt management and financial literacy? Given these characteristics, what challenges do you face in getting them to focus on issues of debt management and financial literacy?

21. The general plan Medical School Applicants Medical School Applicants October through April, 50 – 60 interview days, 8 – 12, two groups of six, 30 minutes with each group. October through April, 50 – 60 interview days, 8 – 12, two groups of six, 30 minutes with each group. Pharmacy Applicants Pharmacy Applicants October through April, 12 sessions, groups of 40 – 50, 30 minutes with each group. October through April, 12 sessions, groups of 40 – 50, 30 minutes with each group.

22. The general plan PA Applicants PA Applicants Same as Pharmacy. Same as Pharmacy. Other Health Sciences Applicants Other Health Sciences Applicants PT, OT, Bio-med. PT, OT, Bio-med. Small group, one-on-one, 10 minutes. Small group, one-on-one, 10 minutes.

23. The general plan Two financial aid staff are assigned to each session. Two financial aid staff are assigned to each session. Presenter: Responsible for presenting entire session. Presenter: Responsible for presenting entire session. Observer: Observer: Responsible for all logistics, ensuring equipment setup, materials distribution, assisting presenter as needed. Providing moral support and appropriate feedback to the presenter. Gathering evaluation forms. Keeping their presentation sharp in their mind by observing others, and gaining possible ideas of items to add to their own presentation. Responsible for all logistics, ensuring equipment setup, materials distribution, assisting presenter as needed. Providing moral support and appropriate feedback to the presenter. Gathering evaluation forms. Keeping their presentation sharp in their mind by observing others, and gaining possible ideas of items to add to their own presentation.

24. What is in Module 6? A page by page review and demo of CDs

25. Identification of objectives: To educate applicants To educate applicants Cost of attendance: determining financial needs. Cost of attendance: determining financial needs. Sources of aid available. Sources of aid available. Financial aid application process. Financial aid application process. Process flowchart. Process flowchart. School-as-lender. School-as-lender. Adjust to the graduate/professional school experience. Adjust to the graduate/professional school experience. Assess their return on investment. Assess their return on investment. Showing a real life story video clip. Showing a real life story video clip. Additional resources. Additional resources.

26. Identification of objectives: To sell the reasons MWU is positively unique in comparison to other institutions. To sell the reasons MWU is positively unique in comparison to other institutions. School as lender model. School as lender model. 0% origination fees. 0% origination fees. Entirely online process. Entirely online process. User-friendly. User-friendly. One on one counseling. One on one counseling. Open door policy: Our job is to help you. Open door policy: Our job is to help you. Friendly, warm, supportive environment. Friendly, warm, supportive environment.

27. Identification of objectives: To engage the audience by using active training techniques. To engage the audience by using active training techniques. To present in a friendly, warm, positive manner to relax the applicants. To present in a friendly, warm, positive manner to relax the applicants. To congratulate them on their successes and acknowledge their hard work to date. To congratulate them on their successes and acknowledge their hard work to date. To encourage them to look to their dreams for the future and set long term goals. To encourage them to look to their dreams for the future and set long term goals.

28. Designing of the session The task – design the 30 minute session outlined. What material will you cover? What activities will you use? How will you overcome the challenges you identified?

29. Engaging the applicants The best way to pre-empt problems and challenges is to be well-prepared to teach. The best way to pre-empt problems and challenges is to be well-prepared to teach. Preparation = prevention. Preparation = prevention. Preventative measures: Preventative measures: Set up a positive, safe, and supportive learning environment. Set up a positive, safe, and supportive learning environment. Learn and use applicants names. Learn and use applicants names. Take a few minutes to personalize your instruction. Take a few minutes to personalize your instruction. Reinforce applicants when they make positive contributions. Reinforce applicants when they make positive contributions.

30. Engaging the applicants Determine how much time you have to teach the module. Determine how much time you have to teach the module. Dont feel you must teach everything in the module. Dont feel you must teach everything in the module. Prioritize what you decide to teach. Prioritize what you decide to teach. Encourage active applicant involvement. Encourage active applicant involvement.

31. Engaging the applicants Provide facili-tainment. Provide facili-tainment. Ask questions. Ask questions. Ask open-ended questions. Ask open-ended questions. Once youve asked a question, wait. Once youve asked a question, wait. Direct questions to particular applicants. Direct questions to particular applicants. Ask why or how questions. Ask why or how questions. Probe for consequences or implications. Probe for consequences or implications. Ask applicants to share their feelings. Ask applicants to share their feelings. Ask applicants to indicate what they gained or lost from their experiences. Ask applicants to indicate what they gained or lost from their experiences.

32. Engaging the applicants Speak with authority. Stay in control. Speak with authority. Stay in control. Use oral footnotes. Use oral footnotes. Admit when you dont know. Admit when you dont know. Respect and listen to your applicants. Respect and listen to your applicants. Make every effort to remain positive and show that you care about them. Make every effort to remain positive and show that you care about them.

33. Review Review the plan to see if any changes are needed. Review the plan to see if any changes are needed. Review of applicants state of mind. Review of applicants state of mind. Review of challenges. Review of challenges. Review of objectives. Review of objectives.

34. The Stars of MWU present the session Positive feedback and suggestions were given by the group on content, presentation skills and non-verbal presentation behaviors. The best advice was to know your material and you will be successful!

35. Further practice sessions Within the next week after our training: Staff practiced together for two half days in a classroom. Staff practiced together for two half days in a classroom. Staff each presented their session to entire department and myself. Staff each presented their session to entire department and myself. The next day staff each presented to the CFO, Admissions, Counselor, and myself. The next day staff each presented to the CFO, Admissions, Counselor, and myself. Finally, they were able to practice in the room they would present in just one day before the session. Finally, they were able to practice in the room they would present in just one day before the session.

36. Challenges to Implementation Rooms Rooms Layout Layout Noise Noise Changing rooms Changing rooms Security Security Technical difficulties Technical difficulties Sound card and Speakers Sound card and Speakers IT staff IT staff

37. Embrace New Academic ChallengesDrafting your professional plan Reentering schoolHow do I adjust my standard of living Types of aid and how to apply Types of aid and how to apply Living within your means Living within your means Return on investment/expected salaries Return on investment/expected salaries Strategies to reduce personal expenses Strategies to reduce personal expenses Admissions Interview Days

38. 10 staff trained to present 10 staff trained to present 5-15 sessions per week 5-15 sessions per week 2004-2005 recruiting cycle-213 sessions conducted with 2615 applicants 2004-2005 recruiting cycle-213 sessions conducted with 2615 applicants 2005-2006 recruiting cycle-244 sessions conducted with 2765 applicants 2005-2006 recruiting cycle-244 sessions conducted with 2765 applicants 2006-2007 recruiting cycle- 187 sessions conducted with 1459 applicants 2006-2007 recruiting cycle- 187 sessions conducted with 1459 applicants

39. Financial Literacy Initiatives Orientation Entrance Interview Department Overview Department Overview Cost of Attendance Cost of Attendance Types of Title IV Aid Types of Title IV Aid Repayment/ Deferment/ Consolidation Repayment/ Deferment/ Consolidation Default Default Accounts Receivable and Billing Accounts Receivable and Billing Taking Care of Businessone on one opportunity to meet with a financial aid administrator Taking Care of Businessone on one opportunity to meet with a financial aid administrator

40. Financial Literacy Initiatives Connect as a CoupleConfronting relationship challenges together Co-hosted by Student Services Co-hosted by Student Services Formal and informal sessions Formal and informal sessions Students come with significant others Students come with significant others Sacrifices families will experience Sacrifices families will experience How to find time for each other How to find time for each other Financial adjustments Financial adjustments How to talk about money without arguing How to talk about money without arguing

41. Financial Literacy Initiatives Take StockDevising a realistic financial plan Core Course Session-mandatory first year Core Course Session-mandatory first year Live within your means Live within your means Set your own debt limits-credit cards, student loans; managing the debt Set your own debt limits-credit cards, student loans; managing the debt Understand costs of education Understand costs of education Maintain good FICO score Maintain good FICO score Consolidation and repayment Consolidation and repayment

42. Financial Literacy Initiatives Embrace financial challenges-drafting a plan for success a luncheon sponsored by SOMA What are the annual and aggregate limits on student loans? What are the annual and aggregate limits on student loans? What will be my total anticipated indebtedness? What will be my total anticipated indebtedness? What is my return on investment? What is my return on investment? What is consolidation and when can I do it? What is consolidation and when can I do it? What repayment options are available to me? What repayment options are available to me? Guest alumni speakers Guest alumni speakers

43. Financial Literacy Initiatives Rotation orientation for all programstime made available by Deans offices How do I survive during my residency How do I survive during my residency Indebtedness to date Indebtedness to date Minimize borrowing Minimize borrowing Financing remaining education Financing remaining education Repayment options; Consolidation Repayment options; Consolidation Overcoming stress Overcoming stress Healthy behavior strategies Healthy behavior strategies Finding a mentor Finding a mentor

44. Financial Literacy Initiatives Graduation Exit Interviews-all borrowers Mandatory session Mandatory session AACOM indebtedness survey AACOM indebtedness survey Personalized indebtedness sheets Personalized indebtedness sheets Repayment options, comparison charts Repayment options, comparison charts Economic Hardship Deferments Economic Hardship Deferments Mandatory Internship/Residency Forbearances Mandatory Internship/Residency Forbearances Loan Consolidation Loan Consolidation

45. Financial Literacy Initiatives We have an open door policy to offer one on one counseling. We have an open door policy to offer one on one counseling. Financial aid programs and eligibility Financial aid programs and eligibility Indebtedness levels Indebtedness levels Total cost of attendance Total cost of attendance Budgeting your money; payment plans Budgeting your money; payment plans Adjusting your financial habits while in school Adjusting your financial habits while in school Repayment options; Loan consolidation Repayment options; Loan consolidation FICO (credit) scores FICO (credit) scores Return on investment calculations Return on investment calculations

46. Results Cohort default rate has decreased each year for the past five years to our current rate of 0%. Cohort default rate has decreased each year for the past five years to our current rate of 0%. Indebtedness levels are not increasing incrementally to match increases in cost of tuition and total cost of attendance. Indebtedness levels are not increasing incrementally to match increases in cost of tuition and total cost of attendance. Students are actually returning excess loan funds after attending our sessions. Students are actually returning excess loan funds after attending our sessions.

47. Results Satisfaction survey results on usefulness of content, knowledge/skill of trainer, enjoyment/value of activities, based on a 7 point scale 2005 2005 843 surveyed: 5.22 – 6.25 843 surveyed: 5.22 – 6.25 2006 2006 1178 surveyed: 5.30 – 6.24 1178 surveyed: 5.30 – 6.24 2007 2007 1124 surveyed: 5.48 -- 6.35 1124 surveyed: 5.48 -- 6.35

48. Results Midwestern University was selected as a model institution for our implementation of the USA Funds® Life Skills® program. Midwestern University was selected as a model institution for our implementation of the USA Funds® Life Skills® program. USA Funds® visited the IL campus to produce a testimonial video and print ads for higher education publications. USA Funds® visited the IL campus to produce a testimonial video and print ads for higher education publications. MWU won the 2006 Excellence in Debt Management Award from USA Funds®. MWU won the 2006 Excellence in Debt Management Award from USA Funds®.

49. Incorporating external speakers Spouses of faculty, staff, or students who are CPAs Spouses of faculty, staff, or students who are CPAs Residents to talk to seniors about contracts Residents to talk to seniors about contracts Alumni to talk about repayment Alumni to talk about repayment Military to talk about full scholarships Military to talk about full scholarships Association of American Medical Colleges Association of American Medical Colleges Real estate agencies Real estate agencies Financial planners Financial planners Insurance agencies Insurance agencies

50. References Complete reference list along with additional resources and readings are available in USA Funds Life Skills ® Connect as a CoupleConfronting relationship challenges together. Module 7

51. Questions? Kim Brown kbrown@midwestern.edu 630-515-6044