A View of Financial Literacy on Campuses Kelly Savoie and David Haygood Sallie Mae

Agenda Review 2014 Survey Results Define Financial Literacy Program How to Develop a Program

Survey Overview Purpose: survey higher education institutions with a goal of understanding if they offer financial literacy tools and resources to their families and, if so, what their priorities are in developing and deploying them Survey Respondents: 305 Note: survey conducted by Sallie Mae April 2014

Respondent Demographic

Financial Literacy Topics of Most Interest

Institutions Offering a Financial Literacy Program Overall: Yes =48% No =48% Don’t know = 5%

Obstacles to Having a Financial Literacy Program

Delivery Methods Note: respondents selected all that applied

Who on Campus is Primarily Responsible

Tools Utilized

Factors in Selecting a Program

Additional Survey Questions What types of validation, tools, data or other support would be required to motivate your campus to invest in a financial literacy initiative? Response summary: Supporting data or evidence of what a literacy event can do for the school (lower default rates, better prepared graduates, retention); ROI for senior administration; federal mandates; more money or staff dedicated to managing a program. What do you value most about your current financial literacy program? Typical responses: Its effectiveness; impact to CDR; the teamwork required but which also produces great accountability and interdepartmental relationships across campus

Additional Survey Questions, cont. ► How do you engage your students so that they take advantage of the financial literacy program? –Response summary: bribe students with incentives (bookstore gift cards, scholarships, course credit); peer marketing; gaining access through academics ► How do you measure the outcomes/success of your financial literacy program? –Typical responses: we do not measure success; we measure participant rates and default rates; we survey participants Pre and Post tests *UNG Financial Literacy Workshop ► What is not currently available that you would like to see brought to the market? –Response summary: A system that both incentivizes participation and encourages competition among students in financial literacy

What is a Financial Literacy Program ?

Components to be Considered for a Financial Literacy Program ► Borrowing –Borrowing Basics –Institutional, Federal & Private Options available –Borrow what you need, use of Estimated Payment Charts –Role of Interest, capitalization ► Repayment –Grace, Deferment and Forbearance –Repayment Strategies –Public Service Loan Forgiveness (SAL & SALT too) ► Budgeting –Creating a Budget –Banking, balancing a checking account –Income versus Expenses

How the typical family pays for college, funding source share

Frequency of use of sources, by region

Components to be Considered for a Financial Literacy Program ► Scholarship workshop –Essay writing –Keeping Hope Eligibility ► Credit Management –What is a Credit Score and why important –Know your portfolio ► Insurance Needs –Renters, Homeowners, Auto and Life ► Retirement Planning

The Right Information at the Right Time ► August –Factors to consider when selecting a bank, setting up a budget for the year ► September –Building an emergency fund, understanding credit ► October –Tracking student loan borrowing, Time Management ► November –National scholarships month, Healthy eating on a budget ► December –Sticking to a budget during the holiday season, identity theft ► January –Applying for financial aid, revisiting the spring semester budget ► February –Spring break on a budget, smart borrowing tips ► March –Searching for summer internship, workshop for anybody with Prior balance ► April –Tax basics, Financial Literacy month ► May –Summer savings, planning for repayment

How to Get Started ► Simple and Focused –Start small and build from there Find your Advocates, Focus Groups, Parent Organizations –Get data on your school, UNT pulled $220m in Federal Loans disb annually Grants for Funding –Leverage existing resources Collaborate – Student Accounts, Residence Life, Library, TRIO “don’t reinvent the wheel, when you can steal others success” ► Determine your priorities –Begin with the end in mind –Identify how to best demonstrate results Pre & Post Tests –Realize Measurable outcomes can take time ► Scalable and sustainable –Don’t take on more then you can handle –“Failure is not final, learn from it”

Ideas

Resources ► FSA - New Guide and Twitter page ► Banks – Community Reinvestment Act ► Peers ► Lender Partners ► Guarantee Agencies ► Servicers

“Q&A” Thank you for watching this presentation! Financial Literacy is a long term commitment, changing life skills.