Incorporating Financial Literacy into College Goal Sunday Deb Barry Financial Literacy Specialist Iowa College Access

1. Incorporating Financial Literacy into College Goal Sunday Deb Barry Financial Literacy Specialist Iowa College Access Network ----------------------------------- College Goal Sunday Best Practices Forum Minneapolis, Minnesota 2010

2. Overview Attitudes about debt Student loan borrowing Credit card use Budgeting Incorporating financial literacy Materials and resources

3. Attitudes About Debt Unprecedented technological advances�belief they cannot live without these advances 68% of baby boomers with kids are supporting an adult child financially Age of instant gratification

4. Attitudes About Debt College students do not always understand their aim should be to establish credit and not be forced to repair it when they get out of school They believe perpetual debt is normal and not something to be avoided They believe that credit cards and student loans are their money and do not see it as borrowed money

5. Student Loan Borrowing Average debt for graduating seniors with loans rose from $18,650 in 2004 to $23,200 in 2008 62% of those who graduated from a public 4-year institution had an average of $20,200 loan debt 72% of those who graduated from a private nonprofit 4-year institution had an average of $27,650 loan debt Between 2006 and 2007 Average student debt at graduation rose 6% Earnings for 18- to 24-year-olds with BAs rose only 3% � Project on Student Debt, December 2009

6. Credit Card Use

7. Credit Card Use 92% have charged textbooks and school supplies 60% were surprised at how high their bill was 40% charged items they knew they didn�t have money to pay off 82% carry balances (incurring finance charges) 50% have four or more cards � Source: �How Undergraduate Students Use Credit Cards: Sallie Mae�s National Study of Usage Rates and Trends, 2009�

8. What are students spending their money on? 40% Discretionary (entertainment, apparel, travel, other) 26% Room and Board 19% Tuition and fees 8% Other Expenses 4% Books and supplies 3% Transportation --O�Donnell & Associates, LLC: College Student Spending Behavior

9. Incorporating Financial Literacy Review the Award Letter What are the schools offering? Direct costs vs. indirect costs What are your options?

10. Incorporating Financial Literacy Budget for College What are needs vs. wants Look at the entire semester Consider every year in college

11. Incorporating Financial Literacy Borrow wisely Understand the difference between federal and private Understand subsidized vs. unsubsidized Interest rates Consider entire college career

12. Materials After You File the FAFSA handout In-school budget brochure Types of Financial Aid Federal Loan Programs Student Loan Facts Scholarships

13. Resources Iowa College Access Network: www.icansucceed.org/Resources/Downloads.aspx Institute for Financial Literacy: www.financiallit.org Jumpstart Coalition: www.jumpstart.org

14. Financial Literacy and CGS QUESTIONS