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Borrowers Anonymous 12+ Ways to Reduce BorrowingPresented By: Tracy N. Drechsler
AVP, College MarketsThrivent Student Resources
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• What does College Cost and How did we get here?
• How does America Pays for College?
• The Journey to College with Less debt…
12+ Steps to Reduce Borrowing
• Best Practices
• Questions
Agenda
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College Costs Have Skyrocketed
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College Costs Have Increased 300%-1100% Since Today’s Parents Were Undergraduates
http://college-tuition.startclass.com/l/1803/Harvard-University
Harvard University Tuition
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For Most Students, “Working Their Way Through College” Is No Longer an Option
https://www.dol.gov/whd/minwage/chart.htmhttps://trends.collegeboard.org/college-pricing/figures-tables/tuition-and-fees-and-room-and-board-over-time-1975-76-2015-16-selected-yearshttp://www.bloomberg.com/news/articles/2012-08-15/cost-of-college-degree-in-u-s-soars-12-fold-chart-of-the-day
Student Wage
Tuition
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In 2017, four years of college = $90,000 - $190,000+
http://trends.collegeboard.org/sites/default/files/2015-trends-college-pricing-final-508.pdf
average 4 year in-state public
average 4 year non-profit private
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In 2018, College is a Significant Family Investment
Talk Early, Talk Often, Make a Family Plan
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Family Plan
1. Budget2. Student Action Steps3. Pre-college investments4. Student Savings
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Don’t Be That Parent
http://corporate.troweprice.com/Money-Confident-Kids/images/emk/2015-PKM-Report-2015-FINAL.pdf
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Be the family that has a plan
https://www.salliemae.com/research/how-america-pays-for-college/
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60% of students complete 4-year programs in 6 years.
Pay attention to graduation rates, budget for 6 years, or seek out 4-year assurance agreements
https://collegescorecard.ed.gov/
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Student Loan Debt in the USA
http://www.consumerreports.org/student-loan-debt-crisis/student-loans-vs-mortgages-what-makes-student-debt-different/
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The Good News: College = Great Investment
0%
5%
10%
15%
20%
Bachelor'sDegree
Stock Market AAACorporate
Bonds
Gold Long TermTreasury Bills
Housing
Inte
rnal
Rat
e of
Ret
urn
College Compared to Alternative Investments
http://www.hamiltonproject.org/charts/career_earnings_by_college_major
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Sallie Mae “How America Pays for College 2017”https://www.salliemae.com/research/how-america-pays-for-college/
How Families Pay for College
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Interesting 2017 FactsAttitudes Vary Across the Country
• Northeast: Most Likely to attend a private 4 year college
• South: Most likely to attend a college in their home state
• Midwest: Most likely to work more hours to make college affordable
• West: Most likely to attend college part-time
• 84% of students with loans expect to be solely responsible for paying them back
• 87% of families who use scholarships get them from the college
Sallie Mae Study “How America Pays for College 2017”
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Typically, 61% of college costs are covered by family income & savings + borrowing
Make college selection a family decision. Pick a school the family can afford.
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How to Reduce the Need for Loans1. Apply for Scholarships
scholarships.comfastweb.combigfuture.collegeboard.org/scholarship-searchcareerinfonet.org/scholarshipsearchwww.ncaa.orgeducationplanner.orgthriventstudentresources.com
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How to Reduce the Need for Loans2. Accumulate college credits BEFORE entering college
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How to Reduce the Need for Loans3. Use a tuition payment plan
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How to Reduce the Need for Loans4. Look for Student employment
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How to Reduce the Need for Loans5. Consider ROTC & US Military
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How to Reduce the Need for Loans6. Choose an in-state school
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How to Reduce the Need for Loans7. Check out legacy offerings
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How to Reduce the Need for Loans8. Commute vs live on campus
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How to Reduce the Need for Loans9. Attend 2 years at Community College then
transfer to State University
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How to Reduce the Need for Loans10. RENT books
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How to Reduce the Need for Loans11. Invest in SAT/ACT Prep
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How to Reduce the Need for Loans12. Graduate in 4 years!
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The journey to college with less debt…What else?
• What other ideas do you have on how students can cut down on borrowing?
• How to Reduce the Need for Loans -What else do you counsel students and families about?
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Questions?
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