student lending analytics flash survey: financial literacy ...inform financial aid offices on...

© Student Lending Analytics, LLC

Student Lending Analytics Flash Survey: Financial Literacy Programs

September 9, 2008

This presentation does not constitute formal policy or legal advice and should not be relied upon as such.


SLA Survey: Financial Literacy Programs Background

Situation– Student indebtedness at graduation has significantly increased over

the past decade – Recent surveys have indicated yawning gap in financial literacy

among college students

Survey Goals– Determine the prevalence of financial literacy programs– Identify topics that most programs cover – Identify resources and program models available to the financial aid

community

http://www.jumpstartcoalition.org/


SLA Survey: Financial Literacy Programs Methodology

Emailed flash survey on September 3, 2008 with due date of September 5, 2008.

In addition to demographic questions, the survey had the following questions

– Does your institution currently offer a financial literacy program beyond standard entrance and exit loan counseling to your students?

– Which department at your institution is responsible for the financial literacy program?

– How does your institution administer the financial literacy program?– Who develops the content for your financial literacy program?– What are the topic(s) covered by your financial literacy training?– What do you estimate is the percentage of students served by your institution's

financial literacy program?– Have you seen an increased interest in financial literacy programs by students at

your school?– What source(s) would you recommend for a financial aid administrator interested

in developing a financial literacy program for his/her institution? Please include any institutions that you are aware of that have stellar programs.


SLA Survey: Financial Literacy Programs Methodology (continued)

Responses were normalized for following reasons– Email addresses that did not correspond with an educational institution were

excluded– Several schools provided multiple responses; only one response was

analyzed

Overall, 200 responses from financial aid administrators were included in the analysis


SLA Survey: Financial Literacy Programs Insights

Overall, 39% of survey respondents indicated that their institution provides a financial literacy program

– 4-year public institutions had the highest prevalence with 59% of these institutions indicating that they had a program currently in place

For those educational institutions that did not have a program, 50% indicated their intent to start one within the next 12-18 monthsThe top five topics covered in financial literacy courses (with percentage of those with a program covering the specific topic)

– Budgeting 88%– Planning for Loan Repayment 74%– Credit Cards 73%– Protecting Your Privacy/Identity Theft 57%– Reading Your Credit Report 53%

15% of schools with a financial literacy program indicated that it was a required or mandated programMost popular method to deliver financial literacy programs are via in-person group workshops (82%) followed by handouts (46%), reference pages on websites (43%) and on-line tutorials (30%).


SLA Survey: Financial Literacy Programs Insights (continued)

The Financial Aid office typically has on-campus responsibility for the financial literacy program (89% of respondents) and also typically conducts the workshops (77%).

The primary source of content for financial literacy programs is through in-house development (73% of respondents) with guarantors (38%) and lenders (16%) serving as secondary sources.

59% of respondents reported that less than 25% of their students were impacted by a financial literacy program– 63% of respondents indicated seeing an increased interest in the topic

Survey participants provided a wide array of resources for literacy programs including peer schools, guarantors and non-profit foundations and associations


SLA Survey: Financial Literacy Programs Profile of Survey Participants

School Type

0%10%20%30%40%50%

4-yearprivate

4-yearpublic

2-yearpublic

Prop. Other

School Ownership

0%10%20%30%40%50%

Public Public Other

School Region

0.0%10.0%20.0%30.0%40.0%50.0%

South Northeast West Midwest

School Size

0.0%10.0%20.0%30.0%40.0%50.0%

501-2,500 2,501-7,500 7,501-15,000 More than15K


SLA Survey: Financial Literacy Programs Prevalence of Programs

39%

59%

33%

26%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Overall 4-year public 4-year private 2-year public

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Survey question #1: Does your institution currently offer a financial literacy program beyond standard entrance and exit loan counseling to your students?


SLA Survey: Financial Literacy Programs Financial Literacy Topics

88%

74% 73%

57%53%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Budgeting Planning forLoan Repayment

Credit Cards Protecting YourPrivacy/Identity

Theft

Reading YourCredit Report

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Survey question #7: What are the topic(s) covered by your financial literacy training? Please select ALL that apply.


SLA Survey: Financial Literacy Programs Financial Literacy Topics (Continued]

51%

41% 38% 35%31%

23%19%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Scholarsh

ips/Gra

nts Avail

ableBala

ncing a

Checkbook

Finding Studen

t Loan

s

Earnings P

otentia

l

Investing

Auto Loan

s

Other

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Survey question #7: What are the topic(s) covered by your financial literacy training? Please select ALL that apply.


SLA Survey: Financial Literacy Programs Program Delivery

82%

46% 43%

30%

18%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

In-person groupworkshops

Handoutsavailable upon

request

Reference pageon financial aid

website

On-line tutorials Other

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Survey question #4: How does your institution administer the financial literacy program?


SLA Survey: Financial Literacy Programs Responsibility for Program

89%

15%8%

4% 4% 3%

12%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

FinancialAid

StudentAffairs

AcademicProgram

BusinessOffice

Students Admissions Other

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Survey question #3: Which department at your institution is responsible for the financial literacy program? Please select ALL that apply.


SLA Survey: Financial Literacy Programs Conducts Financial Literacy Sessions

77%

26%

9%5% 5%

9%

23%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

FinancialAid Office

Guarantor Lender Students NotApplicable

Other OtherDepartment

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Survey question #6: Who is responsible for conducting the financial literacy workshops? Please select ALL that apply.


SLA Survey: Financial Literacy Programs Content Development

73%

38%

16%11%

7%

19%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Developed in-house

Guarantor Lender Students Servicer Other

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Survey question #5: Who develops the content for your financial literacy program? Please select ALL that apply.


SLA Survey: Financial Literacy Programs Number of Students Impacted

27%

32%

13%

18%

10%

0.0%

10.0%

20.0%

30.0%

40.0%

0-10%

11-25

%

26-50

%

51-75

%

Over 7

5%

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Survey question #8: What do you estimate is the percentage of students served by your institution's financial literacy program?


SLA Survey: Financial Literacy Programs Self-Evaluation

17%

38%

30%

15%

0.0%

10.0%

20.0%

30.0%

40.0%

Fair Good Very Good Excellent

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Survey question #10: How would you rate the current financial literacy program at your institution?


SLA Survey: Financial Literacy Programs Increasing Interest from Students?

63%

37%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Yes No

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Survey question #9: Have you seen an increased interest in financial literacy programs by students at your institution?


SLA Flash Survey: Financial Literacy Programs Recommended Sources

Students– Students in Free Enterprise association

Schools– Brigham Young University– James Madison University– Midwestern University– Montgomery College– Texas Tech’s Red to Black Program – University of Georgia – University of Wisconsin-Madison– Virginia Tech

Media– Magazines: Money, Kiplinger– Online: Motley Fool, CNN Money


SLA Flash Survey: Financial Literacy Programs Recommended Sources

Guarantors– TGSLC – Positive Balance– NSLP – Financial Literacy Online– NY HESC– USA Funds Life Skills– EdFund– MGSLP

Non-Profits/Associations– NASFAA– National Endowment for Financial Education (NEFE) – Cashcourse.org– WASFAA Spring Training 2008 – Developing and Delivering Financial

Literacy Program

Visit Student Lending Analytic’s Blog for Additional Resources on Literacy Programs


Thank You

Thank you again for your participation!

Please contact Tim Ranzetta if you have any additional comments or questions regarding this survey– Email: [email protected]– Phone: 650-858-2724 X10

Look for more upcoming SLA Flash Surveys in the future including an upcoming survey on measuring customer service

For more information on Student Lending Analytics, proceed to the final two slides


Student Lending Analytics Background

Founded in 2007

Independent Research and Advisory Service with NO lender affiliations

Mission: Find best lenders for students through an analytically rigorous and comprehensive process

Services– RFI Management of FFEL and Private Loans– Research

Successes to Date– Managed RFI process at institutions with over $600 million in loan volume– Inside Student Lending, our monthly newsletter, reaches over 5,000 financial aid

administrators– Student Lending Analytics Blog has become the go-to source for breaking

developments and analysis on the student lending industry– SLA Flash Surveys have included the insights from over 1,500 financial aid

professionals on a variety of timely topics– Private Loan Options and the SLA’s 2008 Alternative Loan Guide provides

students and financial aid offices with an objective and focused list of private lenders


The Student Lending Analytics Process RFI Management


Student Lending Analytics Research Services

Inform financial aid offices on industry developments (implications for their lender lists and relationships)

– Student Lending Analytics Blog• Timely insights to developments in student lending industry

– Alerts• Legislation, lender exits, earnings calls, industry insight

– Monthly newsletter• August – Tips for Lender Lists

– Webinars• April – Lessons Learned in Trenches of Lender Selection Process• September – HEOA and Lender Lists

– Surveys (summaries available on our website)• FFEL vs. Direct Lending• RFI Practices• Implementing increased Federal Stafford loan limits• Alternative Loans

– Legislative and regulatory updates– White papers– Help Line to answer questions/resolve issues throughout the year

http://studentlendinganalytics.typepad.com/student_lending_analytics/lenders/

http://www.studentlendinganalytics.com/press.html

student lending analytics flash survey: financial literacy ...inform financial aid offices on...

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