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It’s Never Too Late for Financial Education

Learn about the importance of financial education in colleges, the impact of financial concerns on student persistence, and strategies for improving financial literacy. Join us at the 2013 Knowledge Symposium in St. Pete, Florida.

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It’s Never Too Late for Financial Education

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  1. It’s Never Too Late for Financial Education Chris Conway, University of Phoenix Brett Frazier, EverFi Sara Wilson, USA Funds

  2. Financial Education: A College’s Perspective- Why? • Colleges currently measured on default rates • It can’t only be about a school’s default rate • The end goal is student success • Reduced delinquency • Reduced default • Lower student loan debt • More non-loan resources used to pay tuition 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  3. Financial Education: A College’s Perspective- How? • Student lifecycle: • Enrollment • Student • Withdrawal/Graduate • Repayment 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  4. Financial Education: A Guarantor’s Perspective • Financial education resources initially provided to support default prevention efforts. • An evolution of offerings —paper and presentations to online courses. • Measurement? Who needs measurement?!? • Biggest lesson learned: If you build it, they probably won't come. 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  5. The BIG Question: How Do You Know it Works? “Doing no harm” does not equal “doing good.” Attribution vs. Contribution. 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  6. What’s Coming? • Financial education throughout the student lifecycle. • Schools are on board with this idea. • What can we do to support their efforts? *Projected total – 188,722 through 10/20/13 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  7. “The number one reason for students leaving college is debt and financial stress, followed by poor academic performance and poor social fit” The Impact of Financial Concerns on College Student Persistence — Hoffman, Mckenzie, & Paris, 2008; Chiang, 2007 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  8. Two Research Reports • “Money Matters on Campus: How Early Attitudes & Behaviors Affect Financial Decisions of First-Year College Students.” • www.moneymattersoncampus.org • 40,000 first-year college students from across the U.S. in 2012 • Conducted by EverFi and sponsored by Higher One • Financial Literacy & Higher Education: 2012 Survey • 30,165 Incoming college students • Knowledge, Attitudes & Behaviors • Leveraging the EverFi education platform 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  9. School Loans in context 73% • of students report that they already have or plan to take out college loans before they leave college Only ~24% • report “likely to consolidate” and other issues (e.g. knowing interest rate, only taking out what they need) but 68% • estimate their final school loan total will be between $10,000 and $40,000 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  10. The State of College Student Financial Behavior 28% of students reported that they plan to buy something even though they can’t afford it 32% of students report frequently making only the minimum payments on their credit card 11% of students reported at least a moderate likelihood of going to a payday lender 13% of students reported writing a check even though they knew they didn’t have enough money in their bank account to cover it 19% of students reported at least a moderate likelihood of using a credit card for a cash loan 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  11. Alarming Financial Attitudes Contributing factors to financial stress

  12. What’s Needed? 1 2 3 4 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  13. QUESTIONS FOR PANELISTS 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  14. What have you had the most success with? • How do you define success? • What statistics do you have to show this success? 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  15. What are you hearing from your university customers about these offerings? What are you hearing from students about these offerings? 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  16. QUESTIONS FOR ATTENDEES 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  17. Are you doing anything to improve the financial literacy of your student customers? • If not, do you have plans to do so? • How do you currently follow up on rehabilitations in process? • How could financial education be used to reduce rehab drop-out rates? 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

  18. More and more schools have roles focused on the First Year Sequence, retention and financial literacy. How does that impact the work you do? What do you hear from students about why they can’t pay? What your sense of their financial capability? 2013 Knowledge Symposium November 5-7, 2013 ● St. Pete, Florida

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