ISFAA Spring Conference

April 28, 2009

TODAYS PANEL
Sue Allmon, Account Executive, USA Funds

Services
Delores Hazzard, Dir. Student Success &
Retention, Ivy Tech Community College-Richmond
Doug Hess, Senior Marketing Associate, Great
Lakes
Tasha McDaniel, School Training Director, Great
Lakes
Jacque Mickel, Asst. Dir. Financial Aid, Butler
University

APRIL IS
FINANCIAL LITERACY
MONTH!
On March 31, 2009, U.S. Senator Daniel K.

Akaka (D-HI) introduced S. Res 94 designating

April 2009 as Financial Literacy Month.
Resolution passed unanimously same day.

FINANCIAL LITERACY-WHAT
IS
IT?

Ability to make informed judgments and to

take effective actions regarding the current
and future use and management of money.
Buying choices.
Life issues: housing, unemployment, medical,

children, etc.

WHY DO STUDENTS NEED TO BE

FINANCIALLY LITERATE?

The average student who enters college lacks

basic skills in the management of personal

financial affairs.
Many are unable to balance a checkbook &
most simply have no insight into the basic
survival principles involved with earning,
spending, saving & investing
source: Jumpstart Coalition

Type
4yearpublic
4yearprivate
4yearforprofit
2yearpublic
2yearprivate
2yearforprofit

%Borrowed
61.7%
72.8%
87.3%
33.2%
69.1%
90%

Source: 2003-04 National Postsecondary Student Aid Study

Cum.Debt
$17,277
$21,957
$28,138
$9,387
$12,326
$12,107

WHAT DO SURVEYS SHOW?

76% of college students wish they had more

help preparing for their financial future.

Hartford Financial Services Group, 2007.

53% of parents agree that their child thinks

money grows on trees.

Building Teen Personal Finance Skills a Top Worry for Parents, Visa.

Only 1 in 5 students claim to have been very

well prepared for managing their money on

campus.
Key Bank and Harris Interactive, August 2006.

Only 59% of 18-29 year olds pay their bills on

time every month.

National Foundation for Credit Counseling and MSN Money, 2008.

63% of Americans acknowledge they dont

save enough, and 36% say they spend more

than they can afford.
Pew Research Center, 2006.

2008 National Freshman Attitudes Report from

Noel-Levitz:
I have financial problems that are very

distracting and troublesome. (28.7%)

I am in a bad financial position, and the
pressure to earn extra money will probably
interfere with my studies. (18.2%)

WHY
SHOULD
I
CARE?

HEOA, Section 402D

to improve the financial literacy and economic

literacy of students, including:

Basic personal income, household money
management, and financial planning skills; and
Basic economic decision making skills

Required services include education or

counseling services designed to improving the

financial literacy and economic literacy of
students.

Stumbling Blocks
Four major stumbling blocks to building a

successful financial literacy program

Dont know how to get started
Limited time
Limited resources
Difficulty reaching students

How to Begin Building Your

Program
Needs assessment
Student needs

What money issues have you and your staff heard

from students?
What reasons have students said for why they need
to withdraw from school?

Institutional needs

Reduce emergency loans

Increase retention

How to Get the Info You

Need
Needs assessment methods
Observations
Interviews
Focus groups
Surveys
Research

Turn Needs into Goals

Your purpose and goals should be revealed

from your needs assessment

Did you determine that students:
Spend frivolously = Budgeting
Borrow excessively = Debt management
Owe high credit balances = Credit

management

Limited Time
Solicit assistance from other offices
Utilize student group leaders to help you plan,

promote, and organize your program

Seek help from your guarantor partners and
other agencies
Consider online courses

Limited Resources
Partner with grant-funded programs on your

campus
Partner with student organizations
Seek assistance from outside organizations
Ask for donations for giveaways, food, etc.

Difficulty Reaching
Students
Timing
Schedule date and time most convenient for

your students
Determine the frequency of your program
Plan program with or around major event

Target audience
Identify which audience needs your proactive
prevention most
Ask instructors to give extra credit for
attendance

Difficulty Reaching
Students
Location
Schedule location most convenient for your student
Consider audience size before booking facility

Promotion
Determine the most effective way to reach your

target audience
Identify a campus champion to help promote your
program
Ask faculty to promote your program in their classes
Utilize student leaders as co-presenters and to invite
other students

Make smart choices about

spending and saving
Develop a financial plan Set realistic goals

for financing and completing your education.

Make a budget and stick to it.
Borrow only what you need.

Develop a financial game

plan
Needs: Necessities for everyday living and
goal attainment.
What are your everyday needs (not wants)?
What are your educational needs?

Wants: Things that are nice to have, things

that gratify some desire or urge.

What things do you want (not need)?

What do you need to survive while in

school versus what might you merely want

or desire?

Borrow only what you need

for school
Financial Fact 1: Getting an education is

expensive.
Financial Fact 2: Know what youre financing.
Estimate your income in your chosen career.
Financial Fact 3: Whatever you borrow, you
have to pay back.
Financial Fact 4: Your credit history stays with
you for a very long time.

How do I establish good

credit?
Pay off your credit balances in full.
If you cant pay your balance in full, make at

least the minimum payment.

Pay your bills on time.
Undercharge. Dont charge as much as your
limit allows.

How do I lose good

credit?
Making late payments.
Exceeding the credit limit on your credit card.
Writing bad checks.
Defaulting on a loan.
Filing for bankruptcy.

How do I access my credit

report?

You may receive a free copy of your credit

report from each of the three major credit
reporting agencies each year.
Visit www.annualcreditreport.com
Credit reports from:

Equifax.
TransUnion.
Experian.

What happens when I have

aYou
bad
credit
report?
may not be able to rent an apartment.
You wont be able to buy a house.
You may not be able to purchase or lease a car.
You may not be able to obtain other forms of

credit.
If you are able to get credit, you will pay very
high interest rates.
You can be turned down for a job.
Its like getting a bad grade it stays on your
permanent record.

Find resources to assist you

in
financing
your
education.

Support from parents.

Grants and scholarships.
Employment.
Part-time employment.
Work-study.
Internships.

Other options.
Student loans.

Academic and Financial Literacy

through
high-impact strategies

Orientation, Retention, and Financial

Literacy programs at Ivy Tech
Community College Richmond

New Student Orientation

Part of research-based Indiana Project on Academic Success
(IPAS)
Began Spring 2006 - Half-day format with lunch and USB
drive

Mandatory for all new students

Presentations by the Offices of Financial Aid, the Registrar,

Student
Life, and Student Success and Retention

Mid-term and Total Withdrawal Referral

System
Multi-level referral system most total withdrawals cite
academic or
financial concerns

Submitted by instructors prior to mid-term and throughout

semester

Life Skills Classes first-year experience

continued
IVYT 101 New Student Seminar
Navigating the college system includes:
Goal-setting
Learning Styles
Study and note-taking

Managing Personal Finances

USA Funds Framework

Students presented with information on goal-setting, budgeting,

credit
reports, identity theft, student loan repayment, and careers
after college
Professionals invited to the classroom to discuss availability and

Continuing Cross-Campus Support

Assistant Director of Default Management
Default Management Advisory Committee
Retention Advisory Committee
Academic Status Committee

Financial Literacy Programs

Annual Finance, Fitness and Fun Fest
Money Mondays
Annual Financial Literacy Dinner and Workshop
Continuous FAFSA workshops
Students who are Parents Club

Evidence-based
Retention Rates
outcomes
At 74% Fall 08-to-Spring 09 Richmond campus is one of the
highest in the IVTCC
system
Highest retention rate in the system for full-time, first-time
degree-seeking
students for Fall 08-to-Spring 09
Fall-to-Fall retention rates have increased since the
implementation of
Orientation, Retention and Financial Literacy programs

Student Loan Default Rates

Have dropped 6% since the implementation of Orientation,
Retention and
Financial Literacy programs

Return of Title IV Funds

Accounts receivables write-off balance is due
primarily to Return of Title IV funds.
The Richmond campus has the 2nd lowest write-off
rate in the IVTCC system. The rate began to
reduce the year mandatory New Student
Orientation was implemented.
Communicating to students the importance of
staying in class or staying through at least 60% of
the semester has a positive impact on R2T4 rates.