Program Overview

1. Enhancing Financial Education of U.S. Graduate and Undergraduate Students A CGS/TIAA-CREF Collaboration Daniel Denecke, PhD, Associate Vice President, Programs and Best Practices, Council of Graduate Schools Betsy Palmer, Senior Vice President, Communications and Marketing, TIAA-CREF

2. Program Overview

3. Enhancing Student Financial Education Best Practice Program Overview • A major intervention into the #1 issue in U.S. higher education and the economy: Student Debt • Graduate schools at 15 U.S. Research Partner institutions and 19 Affiliate institutions part of the solution called for by: • Students, legislators, CAO’s, society, and the public • Graduate schools ensure innovation and impact through: • Relevance • Student Engagement • Evidence • Funded by a three‐year grant from TIAA‐CREF

4. Participating Institutions Research Partners/Awardees Affiliate Partners

5. Why now for a national program and the TIAA-CREF/CGS collaboration? • Today’s students lack the basic financial education and skills necessary to manage debt • Without national momentum behind a solution, the losses that will result are significant: • - Personal • - Social (knowledge and service sectors) • - National (jobs, and a lost generation of future investors) • Program provides an opportunity for academic institutions to show they are part of the solution; the Higher Education community can take good ideas and make them larger, better, and repeatable • With deep roots in education, TIAA-CREF is committed to improving the level of financial literacy in the U.S. • CGS has the proven ability align institutions to collectively tackle this challenge

6. Develop and deliver high-quality, innovative financial literacy programs for graduate and undergraduate students • Assess the impact of those programs • Integrate financial literacy and debt management skills into graduate professional development program • Document best practices in that skills integration • Promote the broader integration of financial literacy into higher education programs, including undergraduate programs Program goals and objectives

7. Student debt at a glance $29,400 2000 • 7 out of 10 students with bachelor’s had federal loan debt • Average undergraduate student loan debt owed = $29,400 • Up from $18,900 in 2002 • From 2008 to 2012, debt at graduation (federal and private loans combined) increased an average of six percent each year • First‐year graduate students in 2011‐12 owed = $20,749 (federal) • Over 1/3 of these students carry credit card debt • Over 1/3 carry outstanding federal loan balances • Outstanding student loan balances reported on credit reports increased to $1.1 trillion as of April 30, 2013, a $31 billion increase from the previous quarter 2004 2008 2010 2012 average student debt Sources, U.S. Dept. of Education, NPSAS 2013 (for 20112-12 year); Project on Student Debt, Federal Reserve Bank of New York, 2014

8. Student Debt Now Carries the Highest Delinquency Rate

9. Student Debt Second Only to Mortgage Debt

10. Student Debt Crisis in the News Obama’s plan to address the $1.2 trillion student debt problem How Today's Student Loan Debt Is Failing Future Generations Student Debt Relief for Adjuncts Bill How The $1.2 Trillion College Debt Crisis Is Crippling Students, Parents And The Economy Many Millennials Expect To Spend Decades Paying For College Kirsten Gillibrand Aims To Jumpstart Student Loan Refinancings With New Bill Record Student-Loan Debt Prompts Treasury Push to Stem Defaults Don't call it 'student' debt

11. Who is the real Gen Y?

12. Understanding Gen Y

13. Understanding Gen Y

14. Understanding Gen Y Timemagazine – 2013 “The Me, Me, Me Generation” On Gen Y: “lazy, entitled, selfish, and shallow… narcissistic personality disorder is nearly three times as high for people in their 20s”

15. Understanding Gen Y Time| 1990 “twentysomething” New York | 1976 “The Me Decade” The Atlantic Monthly | 1907 “Why American Marriages Fail” On Gen X: “They would rather hike in the Himalayas than climb a corporate ladder… the 18-to-29 group scornfully rejects the habits and values of the baby boomers.” On Boomers: “They begin with . . . “Let’s talk about Me.” They begin with the most delicious look inward; with considerable narcissism” On the Lost Generation: “The latter-day cult of individualism; the worship of the brazen calf of the Self." 15

16. Understanding Gen Y Gen Y Financial Realities and Decision-Making

17. Understanding Gen Y • Many Gen Ys are financially cautious— • saving what they can, delaying life milestones 30% Average Gen Y credit card debt is down 30% since 2007 (FICO analysis, Jan 2013) • 37% • Home ownership rate for 25-34 year olds, down from 47% pre-recession • (US Census Bureau, 2011) • Average age of first home purchase: 31 • (Nat’l Association of Realtors, 2011) 86% 86% of Gen Y feels that savings are part of their “definition of success.” (The Futures Company, 2012) 45% 45% of recent college grads moving back home for stronger financial footing; up from 31% ten years ago. (Pew Research, 2013)

18. Understanding Gen Y Job opportunities are limited 53% underemployment 10.9% unemployment Source: The Atlantic, 2012

19. 58% Of Gen Ys default into retirement plans • 46% • Say they’ll never trust the stock market Understanding Gen Y In early retirement decisions, Gen Y chooses the path of least resistance Sources: TIAA-CREF Institute analysis, Richardson, 2013; MFS Investor Sentiment Survey, 2013

20. Starting Your Financial Life – TIAA-CREF Website for New Employees

21. M Enhancing Student Financial Education Financial Perspectives Student Survey Preliminary Findings Source: U.N., Department of Economic and Social Affairs

22. Roughly 13,500 responses from 15 institutions. • More than half (54%) of respondents were enrolled in a master’s. • About one-third (36%) of respondents were enrolled in a PhD. • Nine percent of survey respondents were enrolled in neither a master’s nor a PhD program. Student Financial Perspectives Survey, Pre-intervention (Fall 2013) Preliminary findings, CGS Survey of Financial Perspectives, Fall 2013 Preliminary findings, CGS Survey of Financial Perspectives, Fall 2013

23. General Financial Issues • One-third go to parents/family and spouses/partners first. • About one in five use media, such as the internet, books, and news. • About one in ten have not sought information on these topics. • Managing Student Debt • Roughly two-in-five respondents indicated that they reach out first to parents/family or partner/spouse. • About one-third of respondents have not sought answers to questions about student debt. Where do graduate students go for answers to financial questions? Preliminary findings, CGS Survey of Financial Perspectives, Fall 2013 Preliminary findings, CGS Survey of Financial Perspectives, Fall 2013

24. Less than half had attended a course/workshop/speaker series, etc. on managing personal finances. • Only about one-third were aware of counseling/consultation, programs, seminars, and/or courses in general personal financial education available to them at their institution. • Only a very small percentage have participated in these kinds of financial education offerings. • Only one-in-five are aware of courses, workshops, webinars, brown bag lunches, etc. that specifically address graduate student personal finance issues. • Only a very small percentage of respondents have participated in these activities. Do Students Already Participate in University Financial Education Activities? Preliminary findings, CGS Survey of Financial Perspectives, Fall 2013 Preliminary findings, CGS Survey of Financial Perspectives, Fall 2013

25. Student Engagement and Sample Programs

26. “App”-like menu navigation for easy access

27. The future you envision is within your reach. Planning ahead can help get you there. Three user selections

28. Debt data (NPSAS, U.S. Dept. of Ed) Salary data (NSCG, National Science Foundation)

29. Bureau of Labor Statistics Data (BLS), May 2012 Link to O*Net tool to explore BLS data

31. Infographics

32. Social media promotion Facebookfacebook.com/gradsense Twitter@GradSense

33. GradSense embedded in existing university programs and channels

34. Testing and evaluating a variety of programs, with common goals, to develop best practices A few examples: Financial ed website launched; Integrating fined with freshman year experience program; Peer-led workshops working with Phi Beta Lambda Future Business Leaders of America Developing video series for YouTube; Integrating with Freshman Experience Program Held campus-wide improv comedy show with Second-City Alumna: What’s so Funny About Money; Collaborating on a financial literacy video game; Multiple student workshops on education funding and financing conducted Online gaming tool in development Expanding undergraduate programs to graduate level; Increasing peer-to-peer and online resources; Established Graduate Student Financial Ambassadors program Establishing the Literacy in Financial Education (LIFE) Center; Freshman capture course now includes financial education; RAs bringing conversations to the dorms Special emphasis on first-generation higher ed students, online modules for incoming freshman and their parents, training TA’s Developing “Go Live” program, taking print content to live mini workshops on financial matters

35. Questions?