Advancing Student Success Through Financial Aid Literacy

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Advancing Student Success Through Financial Aid Literacy

  1. 1. Advancing Student Success Through Financial Aid Literacy Dwight Horsey, Assistant Vice President for Student Affairs/Director of Financial Aid, Millersville University of Pennsylvania Mary Miller, Senior Vice President, Education Services Group, Pennsylvania Higher Education Assistance Agency (PHEAA)
  2. 2. Definition <ul><li>&quot;Financial literacy&quot; is the understanding of basic concepts of money </li></ul><ul><ul><li>Necessary skills to handle personal finances </li></ul></ul><ul><ul><li>During a lifetime </li></ul></ul><ul><li>Concepts include </li></ul><ul><ul><li>Budgeting </li></ul></ul><ul><ul><li>Saving </li></ul></ul><ul><ul><li>Funding college </li></ul></ul><ul><ul><li>Buying a home or an automobile </li></ul></ul><ul><ul><li>Percentage rates on credit cards </li></ul></ul><ul><ul><li>Planning for retirement </li></ul></ul>
  3. 3. Why is financial aid literacy important? <ul><li>Few students have any money management skills </li></ul><ul><li>Time is money </li></ul><ul><ul><li>Finishing an education and on time </li></ul></ul><ul><li>The economy has changed </li></ul><ul><li>Literacy skills have life long implications </li></ul>
  4. 4. Why is financial aid literacy important? <ul><li>Pennsylvania – Public 4-Year and Private Non-Profit 4-year </li></ul><ul><ul><li>Average Debt: $23,613 </li></ul></ul><ul><ul><li>Ranking for PA: 6 (1 being the highest) </li></ul></ul><ul><li>MU 2007-08 Avg. debt $17,896 </li></ul>
  5. 5. Why is financial aid literacy important?
  6. 6. Millersville Results <ul><li>61% of students surveyed have at least one credit card, with </li></ul><ul><li>some students having as many as six </li></ul><ul><li>• 43% of those surveyed have been late on or missed one or more student loan, credit card, or other loan payments </li></ul><ul><li>• 87% of students surveyed did not know the main difference </li></ul><ul><li>between subsidized and unsubsidized student loans </li></ul><ul><li>• 80% of survey participants did not know their credit score </li></ul><ul><li>• 65% of students with credit cards did not know the interest </li></ul><ul><li>rate(s) on their card(s) </li></ul>
  7. 8. Recent Scenarios <ul><li>I don’t have enough money to pay my rent so I need additional financial aid. </li></ul><ul><li>I didn’t have time to study because I work full time. </li></ul><ul><li>Both my parents lost their jobs so I have to take out another student loan. </li></ul><ul><li>My husband and I raise thoroughbred horses and can’t afford to pay tuition this semester. </li></ul>
  8. 9. MU STUDENTS SPEAK OUT: <ul><li>93% of students surveyed want Millersville to offer personal finance education to students </li></ul><ul><li>• 74% of participants want personal finance education, if offered at MU, to be voluntary for students </li></ul><ul><li>39% of students surveyed preferred an online tutorial format for this personal finance education. </li></ul>
  9. 10. Issues <ul><li>More students are applying for financial aid – 20% increase at MU </li></ul><ul><li>Budget concerns facing states and postsecondary institutions </li></ul><ul><li>Student loan repayments represent the largest financial obligation students face upon graduation </li></ul>
  10. 11. Shared Information <ul><li>A higher education is attainable and affordable </li></ul><ul><li>Remove the fear from the process </li></ul><ul><li>Applications – FAFSA and other </li></ul><ul><li>Apply for all types of financial aid </li></ul><ul><li>Deadline dates </li></ul><ul><li>Scholarship searches </li></ul><ul><li>Payment plans </li></ul><ul><li>Change in financial circumstances </li></ul>
  11. 12. PHEAA’s Role in Financial Aid Literacy <ul><li>Middle School </li></ul><ul><ul><li>Planning, preparing and paying for college </li></ul></ul><ul><ul><li>Middle School Counselors </li></ul></ul><ul><ul><li>Students </li></ul></ul><ul><li>Secondary School </li></ul><ul><ul><li>Counselor Workshops </li></ul></ul><ul><ul><li>Financial Aid presentations </li></ul></ul><ul><ul><li>FAFSA Completion Sessions </li></ul></ul><ul><li>Postsecondary School </li></ul><ul><ul><li>Debt Management </li></ul></ul><ul><ul><li>Default Prevention </li></ul></ul>
  12. 13. PHEAA’s Role in Financial Aid Literacy <ul><li>Financial Aid Community </li></ul><ul><ul><li>Workshops </li></ul></ul><ul><ul><li>On-line resources </li></ul></ul><ul><ul><li>Default Prevention Tools </li></ul></ul><ul><ul><li>Participation in association training events/conferences </li></ul></ul><ul><li>Community organizations </li></ul><ul><ul><li>Workshops </li></ul></ul><ul><ul><li>Training of Trainers </li></ul></ul><ul><ul><li>Financial Aid Presentations </li></ul></ul><ul><ul><li>FAFSA Completion Sessions </li></ul></ul><ul><li>Other Partnerships </li></ul><ul><ul><li>PDE/Project Grad USA – College Access Challenge Grant </li></ul></ul><ul><ul><li>Gear Up </li></ul></ul>
  13. 14. Best Practices <ul><li>Discouraging credit card companies on campus </li></ul><ul><li>Freshmen Year Experience </li></ul><ul><li>Workshops, websites, on-line courses, videos, on-demand media </li></ul><ul><li>Staff dedicated to debt management </li></ul><ul><li>Students actions impact your school </li></ul><ul><ul><li>Retention </li></ul></ul><ul><ul><li>Default </li></ul></ul><ul><li>Integrated part of campus life </li></ul>
  14. 15. Other Populations <ul><li>Graduate Students </li></ul><ul><ul><li>Different set of circumstances </li></ul></ul><ul><ul><li>Less grants/scholarships available </li></ul></ul><ul><ul><li>Larger non-traditional population </li></ul></ul><ul><ul><li>Managing employment, families and education </li></ul></ul>
  15. 16. Resources <ul><li>PHEAA.org </li></ul><ul><li>PASFAA.org </li></ul><ul><li>EducationPlanner.org </li></ul><ul><li>Youcandealwithit.com </li></ul><ul><li>Finaid.org </li></ul><ul><li>http://www.mymoney.gov/education.shtml </li></ul><ul><li>Pennsylvania Jump$tart Coalition (http://www.pajumpstart.org) </li></ul><ul><li>http://www.cashcourse.org/millersville/Default.aspx </li></ul>
  16. 17. References <ul><li>2006 Credit Card Study, Nellie Mae Corp. </li></ul><ul><li>Student Debt and the Class of 2007, The Project on Student Debt </li></ul><ul><li>Credit Card Use by College Students contributors; Frances C. Lawrence, Alumni Professor, and Jennifer J. Burczyk-Brown, Former Research Associate, School of Human Ecology, LSU AgCenter, Baton Rouge, La.; Rebecca C. Christofferson, Former Graduate Student, Department of Experimental Statistics, LSU AgCenter, Baton Rouge, La.; Sheri R. Fair, Extension Agent, LSU AgCenter, Gonzales, La., E. Barry Moser, Professor, Department of Experimental Statistics, LSU AgCenter, Baton Rouge, La.; Jeanette A. Tucker, Associate Professor, School of Human Ecology, LSU AgCenter, Baton Rouge, La </li></ul>

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