College Financial Literacy and Financial Aid: The Perfect Partnership Mark Mielke Financial Aid Advisor Money Wise Aggie Coordinator Texas A&M University

Financial Aid Provides valuable services to help students fund education at virtually all colleges/universities o Financial Aid Counseling o Financial Aid Awards  Scholarships  Grants  Loans  Work Study  Tuition Waivers o Student Employment (Often) o Veterans’ Benefits (Sometimes)

Financial Literacy Relatively New Provides valuable services by helping students make smart personal finance choices o Budgeting o Debt Reduction o Credit Education o Big Ticket Purchases o Wealth Accumulation o Identity Theft o Preparing for Graduation o Other Topics

Financial Literacy on College Campuses Here to stay Some states requiring programs Various financial literacy models Considerations in Selecting Model o Service to students o Personnel costs o Facilities costs o Training costs Combining financial literacy within financial aid office scores well on all of the above

Money Wise Aggie 12 Advisors/Directors AFCPE Accredited One CFP ® Advisor One Graduate Assistant Provide Individual Counseling Provide Workshops (Scheduled and by Request) Brief Budgeting and Credit Cards at Each New Student Conference Student Loan Default Prevention Team Active Facebook and Listserv

Money Wise Aggie Workshops Money Management Taking Out a Student Loan (online) Credit Cards & Scores Saving & Investing Love & Money I’m Graduating: Now What? Repaying Student Loans Eating Smart on a Budget

Money Wise Aggie Workshops (Continued) Car Maintenance 101 Paying for Your Study Abroad Identity Theft Buying a Car Buying a Home Banking, Budgeting and Tipping (International Students) Funding Your Children’s College (faculty, staff and community)

Certified Financial Planner™ Professional Financial Statement Preparation & Analysis Insurance Employee Benefits Investments Income Taxes Retirement Planning Estate Planning

Helping Students Who “Need More Money” No family financial assistance No budget Parents recently divorced Credit card debt Prescription costs Little brother’s medical costs Excessive car payments Parent passed away Impulse buying

Reasons to Consider Financial Aid/Literacy Model Provides a “one-stop shop” Advisors well-informed on cost of attendance Experienced advisors on other money topics Authorized to perform “professional judgment”

Reasons to Consider Financial Aid/Literacy Model (continued) Large number of students seeking assistance Proactively identify and counsel students Educate students to keep loans to a minimum Advisors learn financial literacy quickly Minimal facilities or personnel cost increases

Other Benefits of Using Financial Aid Advisors Diverse knowledge and experience Easily trained o AFCPE o Other Makes Use of Talents Strengthens Teamwork

Motivating Financial Aid Advisors Convey clear vision o Financial literacy is a priority o Future promotions and merit raise decisions o Training and certification costs paid by school o Collaborative training/study during business hours Enroll with advisors Emphasize financial literacy knowledge may help with advisors’ finances Help reduce number of students seeking advisor assistance due to unwise decisions

Motivating Financial Aid Directors Fulfill role as educators Emphasize potential promotion and merit raises Suggest possible staff funding increases Reduce school’s student loan default rate Improve student retention

Case Study Is there a way for Sierra to complete FAFSA without mother’s tax information? What documents would she need to provide for a Dependency Override? What could result if Dependency Override is approved? Would she be eligible for the Engineering Merit Scholarship if she enrolls at ¾ time? Would she be eligible for work study if she enrolls at ¾ time?

Case Study Are there other campus jobs available? What advice would you give about her credit card debt? What advice would you give about her student debt? What advice would you give about her spending? What other advice would you give Sierra?

Summary Integrating Financial Literacy into Financial Aid o Enables Comprehensive Financial Counseling o Provides Excellent Service to Students o Minimal Personnel Cost Increases o Minimal Facilities Cost Increases o Minimal Training Cost Increases

The Money Wise Aggie Mark Mielke Scholarships & Financial Aid 229 Pavilion Web: moneywise.tamu.edu (979)