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Reducing Alternative Loan Debt through Financial Literacy Presenters (Syracuse University): Youlonda Copeland-Morgan, Associate Vice President for Enrollment Management Katrina Delgrosso, Associate Director of Financial Aid. National Landscape of Financial Literacy.
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Reducing Alternative Loan Debt through Financial Literacy Presenters (Syracuse University): Youlonda Copeland-Morgan, Associate Vice President for Enrollment Management Katrina Delgrosso, Associate Director of Financial Aid
National Landscape of Financial Literacy • 34% or nearly 77 million participants in a 2010 Financial Literacy Survey of adults gave themselves a grade of C, D or F • Over 60% of teachers and prospective teachers said they do not feel qualified to teach their state’s financial education standards
National Landscape of Financial Literacy • 23% of 18 to 34-year-olds spend more than their income • An average student left college (in 2009) with $24,000 in student loan debt • Undergraduates have an average of 4.6 credit cards and they carry an average balance of $3,173
National Landscape of Financial Literacy “The lack of financial knowledge and ability among America’s youth is also a serious problem that is not going to improve on its own. Additional emphasis needs to be placed on teaching personal finance concepts in schools, to prepare young people for their lives as independent consumers rather than waiting to offer remedial financial education after they have begun to make mistakes.”Laura Levine, Executive Director, Jump$tart Coalition for Personal Financial Literacy, 2011
Did You Know? • According to the Federal Trade Commission, 31 percent of identity theft victims fall into which age group? • 18-29 • 30-40 • 41-52 • 53+
Rising Student Debt Jeopardizes Retention and Graduation • Appeal funding was high ($3 million) • Alternative loan volume was high ($22 million) • Changing economy • Increasing cost of education requires we provide financial literacy to our students • Too many students making poor decisions
Perceived Obstacles to Creating a Financial Literacy Program • Lack of sufficient staff • Not enough time • Lack of interest from staff or other barriers • Lack of institutional support • Shrinking budgets
Money Awareness Program (M.A.P.) Grant Program • Created in Spring 2009 • Addressed the need for financial literacy • In-person or online session required per semester • Sign a simple contract • Reduces future borrowing • Targeted students with high alternative loan debt • Redistributed funds in existing program to pay for program
What Are We Teaching Students? • Financial fitness • Brings real-life student pitfalls to light • Identity theft • Preparing a budget • Understanding your credit report and credit score • Where does my paycheck go? • Understanding your student loans
Did You Know? • What factor influences credit scores the most? • Length of credit history • Types of credit • Amounts owed/available credit • Payment history
Creating a Financial Literacy Program - Building a Brand • Fall 2009—decision to formalize a financial literacy program beyond the M.A.P. program • Multi-leveled program for all student populations • Year one – no budget (so we got creative!) • Involve the staff • Create a committee • Contest to create logo/theme • Accomplish with no new staff • Use resources that are already there, especially if you have no seed money • Get buy-in from across the institution
I Otto Know This! Program Components • Money Awareness Program (M.A.P.) • Life Skills • Presentations • E-News • Federal TEACH Grant
Top 3 Theme Ideas • Orange You $mart • Financial Cents • I Otto Know This! Then an office vote ensued…
Tie Back to What You’re Already Doing • We realized that our prior program labeled “Retention Grant” fits nicely into our goals for a financial literacy program • Students otherwise withdrawing from university due to money – no other options • Multi-year commitment to students
Get the Word Out • Build awareness – announcements • Launch party April 2010 • Campus buy-in • Target audiences • On campus and beyond • Capitalize on National Financial Literacy Month • Freshmen classes • Utilize Federal Work Study students for targeted ideas • The easiest way? We all meet with students every day! • Teach them now
Keep the Brand Going Every Day Email signature of all office staff includes logo: Katrina M. Delgrosso | Associate Director | Office of Financial Aid & Scholarship ProgramsSyracuse University200 Archbold NorthSyracuse, New York 13244 t: 315.443.1513 f: 315.443.4396 e:kdelgros@syr.edu w:syr.edu/financialaid Check out SU’s financial literacy program:
Create a Video with FAO Staff as Stars (it can be low budget)!
How Did We Do in Inaugural Year? • How many students did we reach? • How did we get them to attend sessions? • Pitfalls and struggles • Alternative loan volume drop • M.A.P. program growth • Video • Did You Know? – Rotating tips of the month with suggestions from FWS students
Student Testimonials • M.A.P. has saved me $34,000 in student loans. Enough said! • I think M.A.P. is a great program. It helps me tremendously. I'm so grateful for the extra help. It's nice to know there's a place that is sensitive to my situation during this financially and emotionally taxing college experience.
Student Testimonials • I am very satisfied with the program, I almost transferred to another school because of the financial burden, but M.A.P. has allowed me to stay at Syracuse. • I think this program is great. I've learned a lot of new things about money awareness, reiterated some old concepts, and have a lot of new information to consider with my parents. I think the program is low maintenance and lends well to a college lifestyle, but it still provides a lot of useful information. I feel very lucky to be a part of this program.
Student Testimonials • M.A.P. saved me when I was down and out with almost no way of paying my college debt. It opened the road for a lot of opportunities and ultimately helped me register for classes and avoid a campus eviction.
Constructive Feedback from Students • I think M.A.P. should check in with or make one on one meetings with students to make sure all is going well financially for students. Right now I don't feel that is something I can come into the office and do. I don't even know if I can actually. • Spread the word on campus more! I feel like a lot of seniors don't know what the program is and it should be well-known by everyone because of all the good it does!
Last Chance – Did You Know? 3. If you are offered an annual salary of $35,000, what is a realistic view of your take-home pay (assuming 5% state taxes and single tax-filer)? • $31,472 • $27,138 • $35,000 • $32,506
Phase 2.0 of I Otto Know This! • Future of M.A.P.—how to sustain the program • Assess growing pains and how to improve • Rotated financial literacy committee for new ideas • Promote brand recognition on campus • Be proactive (e.g. email blasts)—target your audiences • Giveaways in FAO to promote signing up for online financial literacy program
Phase 2.0 of I Otto Know This! • Ask for money • More videos • Peer mentors • Freshmen plan • Contact students who receive refunds (e.g. budget tips) • Entrench in counseling sessions
You Can Do This, Too • Provide incentives to staff to brainstorm ideas and build a formalized program • Make a banner instead of buying one • Staff contest for theme • Reach out to publications area to give you ideas • Reach out to other departments to advertise the program
You Can Do This, Too • Stay upbeat—bring in bagels or fruit to celebrate the idea • Students develop trust of your office • This is good for your students • You can learn new things and spread the word to family and friends
