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Financial Literacy

Financial Literacy. Ashley Ann Reich VASFAA 2013 Annual Conference Tuesday, May 14, 2013. CDR Figures Nationwide. Communication. Delinquency: letters sent to students at the 60 day point Servicer Information: created a “How to Locate Servicer” step-by-step page for students

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Financial Literacy

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  1. Financial Literacy Ashley Ann Reich VASFAA 2013 Annual Conference Tuesday, May 14, 2013

  2. CDR Figures Nationwide

  3. Communication • Delinquency: letters sent to students at the 60 day point • Servicer Information: created a “How to Locate Servicer” step-by-step page for students Step-by-Step Directions Locating a Loan Servicer 1) Please visit: www.nslds.ed.gov 2) Select “Financial Aid Review” 3) Select “Accept” after you have read and understood the information presented on the screen 4) Enter your Social Security Number, first two letters of last name, Date of Birth and Federal PIN Number to log-in 5) Under the Loans and the “Type of Loan” category, please click on each number in the first column to view details

  4. What is Financial Literacy? According to Wikipedia, “Financial literacy is the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/she invests it (turn it into more) and how that person donates it to help others. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources.”

  5. Financial Literacy Background The Consumer Financial Protection Bureau (CFPB) was tasked with financial literacy education among various other mandates in July of 2010. Many schools, organizations, lenders, etc. saw the importance of providing financial education to students, teens, and the community in order to develop more financially-responsible citizens. There are hundreds of options available for financial literacy programs and they are growing by the day.

  6. Examples of Financial Literacy in the News On February 1, 2013, an article was released on HLN regarding NFL stars that were promoting financial literacy among youth in the form of a video game (Thomas, 2013). The Council for Economic Education has implemented a dollar-for-dollar match towards contributions made up to $175,000 in order to provide education to teachers and students on financial literacy (Lrasimas, 2013). Forbes released an article discussing the importance of financial literacy and explained how at least 13 states require some sort of financial education as a high school graduation requirement (Scott, 2013).

  7. Where Do I Begin? • Assess the situation • Number of students • Population • Consider the time • Implementation • Maintenance • Consider the cost • Purchase materials • Pay staff members • Purchase a product • Many free options available

  8. What Information Should We Teach? Paying for college with more than student loans Banking Savings Investing College Skills Interviewing/Resume Skills

  9. Why Do We Care About Financial Literacy? Lower the National Debt-student loan debt has far-surpassed credit card debt and is rising by the day Financial Literacy is one of the most talked about topics in NASFAA News and other educational articles that come out daily and is a “hot topic” Lower a school’s CDR Creating fiscally-responsible citizens of the United States

  10. What Products are Available? • Lender Products • TG (Adventures in Education-AIE and Integrated Default Assistance-IDA) • Great Lakes (Financial IQ) • Sallie Mae (Managing Your Money) • ECMC (Financial Awareness Basics and Interactive Tools) • Bank Products • 5/3rd Bank in conjunction with Dave Ramsey • Federal Reserve Bank • Etc. • Other Products • EverFi (Buttonwood/Transit Financial Wellness) • Dave Ramsey (Foundations in Personal Finance College Edition) • Department of Education Financial Awareness Counseling • Mymoney.gov • Etc.

  11. How To Get Buy-In Financial literacy is an up-hill battle and you need to get buy-in from upper administration in order to make progress in this area As CDR increases, upper administration will begin to pay attention Make a point to provide facts and numbers to upper administration in meetings and various off-handed discussions They want to see the “why” and “how”

  12. Common Myths I don’t have enough staff We are on budget restrictions I don’t have the time to meet with students face-to-face or to implement the program My administration does not care about financial literacy Our CDR is very low so we don’t need financial literacy

  13. Liberty University’s Financial Literacy Plan Liberty University implemented a financial literacy program in June 2012 utilizing the Buttonwood product by EverFi Over 2,000 students have gone through the various modules in Buttonwood and we have seen great success In June 2013, we plan to utilize Dave Ramsey’s Foundations materials in the form of a class for a select group of students Population Selected: Defaulted and Close, At, or Over Aggregate Limits; product will be available for all students, if interested

  14. Discussion What programs are you wanting to implement? What programs have already been implemented? What products are you using? Are there multiple being used or just one? What issues are you dealing with at your school in regards to financial literacy? What is working well in regards to financial literacy? What is not? What student populations are you selecting? Is it all-encompassing or a certain group?

  15. Questions?Please feel free to email me at aareich@liberty.edu

  16. References Thomas, A. (2013, February 1). Retrieved from http://www.hlntv.com/article/2013/02/01/super-bowl-financial-football-game-nfl-visa on May 2, 2013. Scott, R. (2013, March 12). Retrieved from http://www.forbes.com/sites/causeintegration/2013/03/12/priceless-volunteers-bring-financial-literacy-to-the-masses/ on May 2, 2013. Lrasimas (2013, May 1). Retrieved from http://www.councilforeconed.org/2013/05/01/cees-175000-matching-challenge-grant-through-june-30/ on May 2, 2013.

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