Pre-Conference Sessions at the 2019 Annual Conference

Submitted by the Conference Program Committee

Greetings!

The MASFAA Conference Program committee is looking forward to a great MASFAA Conference in October 2019 at the Westin Lombard Yorktown Center. Our committee has worked hard to build a conference program that offers the training you need to keep up on financial aid regulations and more.

This year we have a couple of great pre-conference sessions that we know you will enjoy.

“Financial Wellness Programs” is one of our sessions. This session is presented by our MASFAA Financial Literacy Task Force and will provide not only resources and advice for those looking to start a financial literacy program on their campus but will also discuss current research that can be used to solicit support for this initiative on your campus.

The other pre-conference session is “Women Leadership in the Financial Aid Profession: Success in the Face of Resistance and Challenge.” Come to this session to hear a panel of female Chief Financial Aid Officers from diverse backgrounds and institutions talk about how they have worked toward overcoming obstacles and used their leadership and management styles to succeed.

Registration will be open soon! Please check your email and the MASFAA website for updates on registration.

We hope that each of you will attend the conference and walk away with newly acquired knowledge to perform your jobs. But more importantly, we hope that each of you will meet a new MASFAA colleague.


MASFAA Conference Program Committee:

Betsy Johnson (Chair),  Bowling Green State University
Susan Teerink (Chair), Marquette University
Terri Hare, Western Illinois
Donette Cassman, Sallie Mae
Renae Armentrout, Southeastern Community College
Antonio Junior-Robins, University of Michigan
Anne Dahlen, Mayo Clinic College of Medicine and Science
Charles "Buddy" Mayfield, Northwest Missouri State
Melissa Van Meter, Ohio University
James Buchanan, West Virginia State
Sue Minzlaff, University of Wisconsin-Milwaukee

Nudging Students Toward Smart Borrowing: Using loan summaries to help borrowers better understand their loans

By Matt Nettleton, Inceptia Strategic Business Director

As students increasingly rely on loans to finance part or all of their college education the need for relevant, timely information to help make informed borrowing choices has become more critical than ever.

Students themselves are indicating a need for such initiatives, as demonstrated through a number of surveys that uncover numerous confusing concepts for loan borrowers. Consider the following:

·         48% of borrowers either don’t know or incorrectly estimate the amount they have borrowed.1

·         28% incorrectly believe they have no federal loans at all.1

·         94% of student borrowers do not understand their loan repayment terms.2

The ramifications for borrower confusion can be significant. When students do not invest in or avail themselves of existing loan counseling resources, those students, as well as schools and society at large, suffer from the effects of over borrowing, lower degree attainment, increased attrition, and student loan default.

A number of schools and states, however, are using a simple yet innovative approach to help students actively manage loan debt as they progress toward degree completion. These institutions use loan summaries, sometimes called “debt letters,” to supplement loan counseling practices and expand on financial education outreach—keeping students apprised of their individual borrowing levels and allowing them to make informed choices about future repayment scenarios.

Loan summaries/debt letters are a simple, low-touch effort to keep student borrowers engaged in the active management of their loans while in school. While letters can vary among institutions, commonalities include a summary of current aggregate borrowing, estimated monthly repayment amounts, and resources for learning more or obtaining help. These summaries are strategically scheduled to be delivered at times when students are making financial aid and/or course registration decisions, thus providing a highly-effective, just-in-time intervention for borrowers.

Inceptia’s newest research brief, Loan Summaries: Nudging Students Toward Smart Borrowing, examines how three different universities administered their loan summary initiatives and the corresponding results on student behavior. The results offer support that this simple, lost-cost practice can impact not only borrowing behaviors, but also academic performance and enrollment persistence. Furthermore, the brief offers best practice considerations for schools looking at implementing loan summaries as to support student success.

The research brief and a recorded webinar diving deeper into the brief’s findings and offering insight and strategies on how loan summaries help borrowers better understand their loans can be viewed at https://www.inceptia.org/smart-borrowers/.

1. Akers, E. and Chingos, M. (2014, December). Are College Students Borrowing Blindly? Brookings Institution. Retrieved from: https://www.brookings.edu/wp-content/uploads/2016/06/Are-College-Students-Borrowing-Blindly_Dec-2014.pdf

2. Rathmanner, D. (2016, January). January 2016 Student Loan Borrower Survey. LendEDU. Retrieved from https://lendedu.com/blog/January-student-loan-survey.

ILASFAA Gives Back!

Submitted by Laura Carrillo, St. Xavier University

ILASFAA Diversity Issues Chair 

 

This year, ILASFAA's hosted our annual Reality Store at John L. Marsh Elementary (on the southeast side of Chicago); the event took place on Friday, February 17^th. There was approximately 90 students in 7th grade who participated. The Reality Store, similar to MASFAA's Access Committee annual event, engaged the students and they were able to gain a better understanding of financial literacy, debt management and overall life skills through role playing. At each station the students learned the importance of budgeting, dealing with unexpected expenses, and the importance of education. ILASFAA members donated items for the students to take with them that each of the students were excited to receive and wear! We had over 10 institutions represented, and a few of our lending and servicing partners also showed up in order to support this awesome way to give back! We were also fortunate enough to have representatives from the office of Alderwoman Susan Sadlowski Garza of Chicago's 10^th Ward for the first group of students, each manning a station; neither of them had been to a Reality Store before but said they had a great time.

While the ILASFAA board generously provides some funding for the event, there will also be a wine raffle at the Illinois conference next month, the proceeds of which will also help defray the cost of putting on the reality store. Bottles will be available for viewing in the exhibition area, where you can also purchase your raffle tickets. Last year's wine raffle was a huge success! If you'll be attending the conference this year, members of the Facilities, Program, Registration and Diversity Committees will be available during the conference to collect your wine bottle donations as well as selling raffle tickets.

The Reality Store was a great experience. We learned that some of the kids want to be lawyers, electricians, narcotics cops, and many are still weighing their options. Seeing the reactions and hearing the students comments, it was reassuring that the students had fun but most importantly they were learning.

MSFAA Early Awareness and Multicultural Outreach Activites

Michigan’s Early Awareness and Multicultural Outreach (EAMO) Committee –

Our Financial Literacy Warriors

Submitted on behalf of and with special thanks to:

Julia Delagarza and Ingrid Clover

MSFAA EAMO Committee Co-Chairs

Submitted by:

Krissy Bhaumik

MSFAA President

This is just a short note to update you on the Spring 2016 EAMO workshops at the Ojibwe Charter School (OCS).  Monday, April 11 was the kick-off day for the five workshop series that ran through May 20.  The series of workshops, conducted in partnership with Lake Superior State University (LSSU) GEAR UP program, addressed college financing and college success strategies as well as incorporating a science, technology, engineering, and mathematics (STEM) component.  The workshops also included The Tiny Warrior: A Path to Personal Discovery, by DJ Eagle Bear Vanas.  The OCS students were familiar with Mr. Vanas and his work, as he has previously conducted workshops at their school.   The students were very excited to hear that Mr. Vanas would be evaluating their scholarship essays.  The Guardian of the Fire Scholarship recipient, Kara Pennington, was invited to MSFAA’s Summer Training Conference on beautiful Mackinac Island and recognized at a lunch session.

During the kick-off, students participated in a new, STEM-specific version of Extreme Reality, a financial literacy activity in which students are assigned a profession (in a STEM field), and then challenged to create budget strategies and balance a checkbook.  This activity was a great lead into an activity a few weeks later at LSSU’s  Exploration Sensation featuring the Michigan Technological University (MTU) STEM roadshow, Mind Trekkers (for more information, see http://mindtrekkers.mtu.edu/index.php)

While a commute up to Sault Ste Marie in Michigan’s Upper Peninsula did pose challenges for some volunteers, MSFAA members from around the state were encouraged to attend the OCS workshops.   This is the first outreach initiative where MSFAA has partnered with our tribal communities in Michigan.  We are hopeful that what was started this year will grow thrive like a a “Three Sisters Garden serving our tribal students and families for years to come.  (Hint: If you don’t know about the Three Sisters Garden, look it up! It’s a transformative metaphor for us all!)

Access Committee recognizes University of Michigan: College Wallet Workshop Third Place Access Award Recipient – 2015

Written by Virginia Washington

The Access Committee would like to recognize one of the MASFAA 2015 Award winners in today’s blog. We are featuring the University of Michigan – Ann Arbor and their program “College Wallet Workshop”!

Overview: The “College Wallet Workshop” was successful because the program allowed students to have the opportunity to connect the dots and see in black & white, on paper, a visual reviewing all the expenses they will incur as a college student. Adding to the experience of the event, students could view their college financial aid budget and pay for all their various required college expenses.

Target Group served:  The event targeted students who were admitted as freshman for the fall and came to campus to participate in a summer student support service initiative called “Bridge”. This program helps these students make the transition from high school to higher education.  More often than not, these students are the first in their families to attend college. Participating in the “College Wallet Workshop” provided them with the hands on experience to learn how to manage their finances.

Financial education content covered: The “College Wallet Workshop” taught students the basics of spending money wisely and to make good budgeting choice during their college career.  Students participated in real life college experiences like:

- Purchasing books                                - How to select housing

- Transportation                                     - Getting a job

- Paying Tuition                                     - Covering personal expenses

- Learning to balance your checking account

The event also included life’s “Temptations Station” for the lesson on “wants” vs. “needs” like:

- Starbucks                                - M-Den (apparel)

- Latest/greatest iPhone            - Cable TV –Internet

Interesting highlight:  Students gave some feedback saying the experience was “eye-opening” for them and it really helped.  Some also commented how they should not live the life of luxury now, but spend less and have money for other things that are important for the future. The idea of being frugal is not just to survive college, but it’s also being financially prepared for the road ahead. 

So as the saying goes:  What’s in your “College Wallet”?

Other Ideas:   While the students learned a lot from the event, so did the staff. Session leaders and experts came away with suggestions for working with the Comprehensive Studies program and plan to continue encouraging students to work with the financial aid staff to develop a college budget, talk through wise borrowing habits and persuade students to consider taking a one credit hour financial literacy course to further enhance their knowledge.  

Congratulations to the University of Michigan on winning the Third Place Access Award for 2015. U of Michigan won $250 to continue to grow and develop the College Wallet program.

To learn more about the College Wallet – Check the U of Michigan webpage at

www.finaid.umich.edu.

Interested in nominating your financial education program for the 2016 Access Award?

Check out the Access Award application at MASFAA website http://masfaaweb.org/docs/forms/pdf/2016MASFAAAccessAwardApplication.pdf and apply by September 9, 2016. Winners will for the 2016 Access Award will be announced at the MASFAA Conference in Kansas City, MO – October 2-5, 2016. 

If you have questions, contact Angela Johnson, Access Chair at angela.johnson@tri-c.edu or (216) 987-4213.

Congratulations to the 2016 CashCourse Educator of the Year: Kristin Bhaumik

The CashCourse Financial Educator of the Year award honors an educator going above and beyond to promote financial literacy on their campus. This year’s inaugural award goes to Kristin Bhaumik, the assistant director for special programs at the University of Michigan – Ann Arbor. Bhaumik leads the charge on financial literacy at Michigan. She developed a for-credit financial literacy course called “The Financial Savvy Student.” Her course syllabus uses expert resources from the campus, local community, NEFE and CashCourse. A leader beyond her own campus, she serves as the Michigan Student Financial Aid Association President and on the Executive Board for the Midwest Association of Financial Aid Administrators. The CashCourse team is thrilled to honor Bhaumik’s work as the 2016 CashCourse Financial Educator of the Year. Kristin Bhaumik shared her insights and more about her work in a Q&A with the CashCourse Team, which you can read by clicking here.

Four Tips for an Effective Default Prevention RFP

Submitted by: Angela Henry, USA Funds Account Executive

Student loan default prevention experts recommend taking advantage of outside resources to assist in your efforts to keep students on track to successful repayment. If you’re planning to seek proposals from outside organizations for providing default prevention assistance, there are some best practices you’ll want to keep in mind as you develop your Request for Proposal:

1.    Clearly state your institution’s goals and objectives regarding your default management program needs and requirements.

Bidding vendors, RFP bid reviewers and decision-makers should have a clear understanding of your institution’s goals and objectives, outcomes you are seeking, and the proposed services that vendors offer. Is your goal to:

·         Reduce your cohort default rate to a specific target?

·         Generally reduce or maintain a current CDR?

·         Implement a wide-reaching default prevention service to assist your borrowers and improve future borrower repayment rates?

You might even consider cross-campus collaboration to help identify specific goals for your institution. When everyone understands the goal, it’s easier to assess which vendors actually satisfy your requirements.

2.    Build in plenty of specifics about the services you are requesting.

Default prevention vendors provide various types and levels of services. For instance, some focus on direct outreach to borrowers, and some look to borrowers to sign up for services (a self-service approach). Consider these questions:

·         Do you want vendors to focus on one specific cohort year or all three active cohorts?

·         Are you looking for a fully outsourced solution, or will your institution want to play a role in contacting borrowers as part of your default prevention efforts?

·         Will you require skip tracing?

·         Do you need online system access and reporting features?

·         Will you require dedicated technical support from your provider?

·         What technical support is required of you to implement the service?

·         Will you require periodic check-in meetings with your provider, and will you expect results reporting on a regular basis?

·         What metrics will you use to evaluate the provider’s performance?

If you plan to benchmark one provider’s performance against another, be sure you are comparing the same scope of data and results. If the vendor’s proposed services (and prices) match closely the requested services in your RFP, it is a good sign that the vendor has put some effort into really understanding your needs.

3.    Require standard pricing information from all bidding vendors.

Does your institution require an annual, all-inclusive price, or do you prefer to pick and choose from a menu of options? To be sure that the services included in that pricing meet all of your requirements, ask for specific descriptions of the work the vendors will perform — including the number of borrower accounts that will be included — and request an explanation of how costs are built into their models. Be sure vendors also explain clearly the costs associated with any additional services in their proposals. And to keep things clear, provide a pricing matrix for all vendors to complete, so that pricing bids are equal across the spectrum.

4.    Take time to analyze and understand your bids.

When it is time to review your vendor bids, calculate all scoring of proposed services and pricing, using the same criteria for all vendors. Different services offered by vendors could influence their effectiveness in reducing CDRs. Consider these important variables when making a final comparison:

·         The borrower population to be contacted.

·         The method of the contact.

·         The frequency of contact attempts.

·         The length of one-on-one time spent with your borrowers.

If you need assistance with default prevention planning, visit www.borrowerconnect.org.