Sam Allen of Sullivan University Admissions attended USA Funds' Financial Literacy Seminar and distilled the key findings into a PowerPoint presentation for the benefit of his colleagues who did not attend.
2. USA FUNDS
• NON-PROFIT, EST. 1960, CLAIMING 22 MILLION STUDENTS & PARENTS SERVED *
• PARTNER OF SULLIVAN UNIVERSITY AS OF MARCH 1, 2016
• GOAL OF PARTNERSHIP:
• LOWER SU’S DEFAULT RATE
• EDUCATE STUDENTS TO BORROW WISELY
• BASIC PHILOSOPHY: REPEATED EXPOSURE TO FINANCIAL LITERACY TOPICS OVER TIME CAUSES POSITIVE
CHANGES IN BEHAVIOR
* SOURCE: HTTP://WWW.USAFUNDS.ORG/PAGES/ABOUT.ASPX
3. AFFORDABILITY & DEBT ARE BIG ISSUES
• 47% OF AMERICANS CANNOT HANDLE A $400 EMERGENCY WITHOUT BORROWING *
• ONLY 38% OF FIRST-YEAR STUDENTS ARE NOT WORRIED ABOUT MONEY **
* SOURCE: HTTP://WWW.POLITIFACT.COM/PUNDITFACT/STATEMENTS/2015/JUN/09/HUNTER-SCHWARZ/47-SAY-THEY-LACK-READY-CASH-PAY-SURPRISE-400-BILL/
** SOURCE: HTTPS://WWW.RUFFALONL.COM/PAPERS-RESEARCH-HIGHER-EDUCATION-FUNDRAISING/2015/2015-FRESHMAN-ATTITUDES-REPORT
4. INTRODUCING THE COLLEGE SCORE CARD
• NEW FOR 2016
• PRODUCED BY THE US DEPARTMENT OF EDUCATION
• AGGREGATES IPEDS DATA
• EXPECT SMART SHOPPERS TO USE IT AND ASK YOU ABOUT IT
5. SU SCORE CARD: THE GOOD
• SU’S GRADUATION RATE IS 6% ABOVE THE NATIONAL AVERAGE *
• POSSIBLE DRIVERS OF SUCCESS:
• MENTORS
• RE-ENTRY COORDINATORS
• ENROLLMENT SERVICES PROACTIVELY MONITORS TROUBLED STUDENTS
• PER USA FUNDS, REPORTS SAY USUALLY DROPOUT DUE TO MONEY ISSUES
* SOURCE: HTTPS://COLLEGESCORECARD.ED.GOV/SCHOOL/?157793-SULLIVAN-UNIVERSITY
6. SU’S SCORE CARD: THE BAD
• SU IS RELATIVELY EXPENSIVE *
• PROBLEMATIC BECAUSE:
• 62% FY STUDENTS HAVE MONEY WORRIES
• 47% OF AMERICANS CAN’T HANDLE $400 EMERGENCY
* SOURCE: HTTPS://COLLEGESCORECARD.ED.GOV/SCHOOL/?157793-SULLIVAN-UNIVERSITY
7. SU’S SCORE CARD: THE BAD (CONTINUED)• SU GRADUATES’ SALARIES ARE EARNING $4,000/YEAR BELOW THE NATIONAL AVERAGE *
• POSSIBLE EXPLANATIONS:
• US DOE ONLY TRACKS FIRST YEAR OUT EARNINGS
• 21% OF THE STUDENT BODY IS NCHS (#2 PROGRAM)
• CULINARY MKT: HOSTILE, EMPLOYER-FRIENDLY
• POSSIBLE SOLUTION:
• ADJUST CURRICULA TO EMPHASIZE INTERNSHIPS
* SOURCE: HTTPS://COLLEGESCORECARD.ED.GOV/SCHOOL/?157793-SULLIVAN-UNIVERSITY
8. SU SCORE CARD: THE UGLY
• SU ALUMNI HAVE 17% FEWER PAYING DOWN DEBT VS NATIONAL AVERAGE *
• POSSIBLE EXPLANATION: OVERLY BURDENSOME MONTHLY REPAYMENT PLANS
• SU IS WORKING TO REVERSE THE TREND
• COHORT DEFAULT RATE: PERCENTAGE OF SU’S BORROWERS WHO ENTER REPAYMENT AND DEFAULT WITHIN 1-2
YEARS AFTER ENTERING REPAYMENT
• POSITIVE CDR TREND AT SU: 26.6% -> 24.3% -> 19.8 % -> 16.4% (AS OF FEB 2016)
* SOURCE: HTTPS://COLLEGESCORECARD.ED.GOV/SCHOOL/?157793-SULLIVAN-UNIVERSITY
9. A USEFUL TOOL FROM USA FUNDS
• REPAYMYLOANS.ORG HELPS STUDENTS FORECAST/COMPARE/CONTRAST REPAYMENT PLANS
• EX) US DOE TRACKS SU’S GRADUATES INTO A $273/MO BASIC REPAYMENT PLAN, ASSUMING THAT THEY WANT
THE CHEAPEST LONG-TERM BILL. THE BILL DOESN’T HAVE TO BE “ONE SIZE FITS ALL”.
• REPAYMYLOANS.ORG OFFERS OPTIONS
• REPAYMYLOANS.ORG HAS TO BE UPDATED EVERY YEAR
10. FINAL THOUGHTS FROM USA FUNDS
• IDENTIFY TEACHABLE MOMENTS AS A FRIEND/MENTOR, NOT A PREACHER
• ASK YOUR STUDENTS WHAT THEY WANT TO KNOW (HELPS BOOST ENGAGEMENT)
• USE RESOURCES THAT ARE AT YOUR DISPOSAL
• INVOLVE OTHERS – SHARE YOUR KNOWLEDGE
• KEEP IT REAL – TRY TO BE AUTHENTIC AND SELF-AWARE AS A PRESENTER OF INFORMATION
• KEEP UP THE GOOD WORK – KEEP MOVING THE SCORE CARD NEEDLES IN THE RIGHT DIRECTION,
REMEMBERING THAT IT TRANSLATES TO REAL PEOPLE BEING SUCCESSFUL
