MASFAA 2013

October 6th – 9th, 2013

Indianapolis, Indiana

Fine-Tune Your Focus: Using Grade-Level Financial Literacy

Strategies

Educate Students from the Beginning

“A recent study sponsored by Higher One, Money Matters on Campus, found that young adults entering college were already exhibiting troubling and risky financial behaviors, with 20% having more than $1,000 in credit card debt and nearly 25% admitting that others would be horrified if they knew about their spending habits.”

Source: http://www.huffingtonpost.com/mary-johnson/thoughts-during-national-_b_3117050.html (April 2013)

Today’s Objectives

Benefits to the students Benefits to the institution Different strokes for different folks Activity Ohio Northern University’s Program:

Money Matters Wrap Up

Benefits to Students

Acquire grade-level appropriate knowledge and skills related to basic financial concepts

Educate first-year students on the value of lower indebtedness

Help first-year students avoid making financial mistakes while in school

Prepare graduating seniors for loan repayment and financial success

Benefits to the Institution

Minimize loan default◊ Financially educated students

are less likely to default Improve retention

◊ Students without financial concerns are more likely to stay in school

Benefits to the Institution

Increase alumni giving◊ Students with loan repayment or other

financial struggles are less likely to give back

Lower average student loan debt to report ◊ Shopping sheet

DIFFERENT STROKES FOR DIFFERENT FOLKS

Freshmen

A recent study of first-year students revealed:◊ Four in ten students did not know what

the definition of “Net Pay” was◊ Too many students could not correctly

identify the kinds of items that appear on a paycheck stub

Source: https://www.inceptia.org/about/news/jan-22-2013/

Freshmen

A recent study of first-year students revealed:◊ Only 45 percent of students said they

understood that their credit score may have an impact on their ability to get a job

◊ Most students knew that the credit card companies are not the source of credit reports, but only half or less could correctly identify the credit reporting agencies

Source: https://www.inceptia.org/about/news/jan-22-2013/

Freshmen

Illustrate the basics of budgeting Teach them to balance a checkbook Coach them on needs vs. wants Encourage living like a student Remind them to pay attention to

deadlines

Freshmen

Explain the importance of applying for scholarships

Instruct them to use NSLDS Prepare them to understand financial

aid award letters◊ Help them know the difference between

gift aid and loans◊ Advise students on criteria for

maintaining scholarships

Sophomores

Stress the importance of staying in school

Cultivate an understanding of credit basics

Educate on identity theft prevention Advocate the use of career

assessment tools to facilitate choosing a major

Share the benefits of using NSLDS prior to borrowing again

Juniors

Promote successful steps to graduating on time◊ Recommend staying with chosen major◊ Encourage regular meetings with their

academic advisor Support the consideration of co-op

and internship opportunities Remind them to use NSLDS before

they borrow again

Seniors

Explain the expenses associated with graduation◊ Graduation expenses at school◊ Interviews ◊ Relocation

Guide them on what to do during their grace period◊ Use servicer websites to help manage

their student loan debt

Seniors

Review ways to use NSLDS and annualcreditreport.com to facilitate student loan repayment

Cover financial basics associated with their first job◊ Paycheck basics◊ Taxes◊ Insurance◊ Investing

Seniors

Share tips for those going on to graduate school

Explain the role of financial planners and other organizations that manage money for others

ACTIVITY

Things to Consider

What additional needs might your students have?

Which offices on campus would you involve?

How frequently would you provide interaction with your students?

Things to Consider

What are some unique activities you could implement?

How might you encourage attendance?

How could you do it with little to no budget?

MONEY MATTERSOhio Northern University’s Program:

About ONU

Private institution in west central Ohio

Mix of professional and arts/sciences◊ College of Business Administration◊ College of Pharmacy◊ College of Engineering◊ College of Arts and Sciences ◊ College of Law

About ONU

Approximately 3,300 students◊ Mostly undergraduates◊ About 300 law students

About ONU

Average student loan debt for a bachelor’s degree is about $50,000 (does not include Parent PLUS)

Average JD debt almost $100,000 Average PharmD debt is about

$120,000 2 yr CDR 1 percent

Facts

Officially launched Money Matters in August 2012◊ Had been doing much of this on campus

prior to the launch Partnership with Career Services and

Financial Aid No budget!

◊ Did get a couple donations from other departments on campus

Program Launch

Officially launched at student Welcome Fest Welcome Fest is a fair held each year

for students to get to know clubs, organizations, community entities, etc. Lots of freebies and prizes

Program Launch

Officially launched at student Welcome Fest We set up a booth and used a money

machine for students to grab tickets◊ Freebies for students

• Bear paw banks w/logo• Cookies w/logo

◊ Tickets students grabbed entered them for prize drawings

Programming

Online learning Classroom sessions Special interest sessions Residence halls, clubs, and

organizations Financial aid counseling

Online Learning

We chose a set of online modules to offer students for independent learning Offered a log-in for students

and for parents Have not required this on campus

◊ Students choose to participate

Classroom Sessions

Trained students, known as our Peer Career Assistants, to provide financial literacy programming◊ These students are upperclassmen who

are carefully selected for this position◊ Peer Career Assistants already existed in

Career Services before Money Matters

Classroom Sessions

Used a “you call we’ll haul” approach◊ Advertised to faculty as an alternative to

cancelling class

Special Interest Sessions

Sessions have covered credit, budgeting, loan repayment, etc.

Loan repayment session is held most frequently◊ Separate sessions held for undergrad and

law students◊ Request students sign up and then provide

them with their NSLDS reports at the session◊ Law college turnout has been successful by

offering a lunch with the programming

Residence Halls, Clubs, and Organizations

Successful in getting student organizations to sponsor events or invite presenters on Money Matters topics

Programming provided to resident assistants to hold in the residence halls

Financial Aid Counseling

Last spring we targeted counseling towards students we knew had financially struggled that academic year

Our goals were to encourage:◊ Early preparation and planning

to avoid issues◊ Thinking about planning the next four

years More than 100 students came in to

see us

CONCLUSION

Fine Tune Your Focus

Students have various developmental needs depending on class level – one size does not fit all

Financial aid information can be tailored to each class level to improve both student engagement and financial literacy results

Your student affairs colleagues can help you to provide grade-level specific programs to your campus

Resources

Feedthepig.org 360financialliteracy.org/

Life-Stages/College-Students Practicalmoneyskills.com Nefe.org Jumpstart.org Mint.com Moneymattersoncampus.org

Thank you for joining us!

Melanie Weaver

Director of Financial Aid

Ohio Northern University

m-weaver.2@onu.edu

Michiale Schneider

Training Specialist

Great Lakes Higher Education Guaranty Corporation

mmschneider@glhec.org