financial literacy and college student retention
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Financial Literacy and College Student Retention. October 21, 2013. Talking Points. What do we know already --Connections points What have we done? - Actions Taken Financial Literacy Webpage One on one counseling 8% rule for loans Default Study. - PowerPoint PPT PresentationTRANSCRIPT
UNIVERSITY OF MARYLAND, COLLEGE PARK
Financial Literacy and College Student RetentionOCTOBER 21, 2013
UNIVERSITY OF MARYLAND, COLLEGE PARK
Talking Points What do we know already --Connections points
What have we done? - Actions Taken◦ Financial Literacy Webpage◦ One on one counseling◦ 8% rule for loans◦ Default Study
UNIVERSITY OF MARYLAND, COLLEGE PARK
Connection- Financial Literacy and Retention
What do we know?◦ Most decisions revolve around money◦ Conversation is difficult◦ Students learn differently◦ High correlation -- graduation rates and defaults◦ A little action goes a long way
UNIVERSITY OF MARYLAND, COLLEGE PARK
Actions What did we do?
◦ Financial Aid Website◦ One on one counseling◦ Chat Lines◦ 8% rule for loans◦ Default Study
UNIVERSITY OF MARYLAND, COLLEGE PARK
Financial Literacy and Defaults
UNIVERSITY OF MARYLAND, COLLEGE PARK
Default Study
FY1999FY2000
FY2001FY2002
FY2003FY2004
FY2005FY2006
FY2007FY2008
FY2009FY2010
FY20110.0%0.5%1.0%
1.5%2.0%2.5%3.0%3.5%
4.0%4.5%
2.5% 2.7%2.3%
2.0%1.7% 1.8%
1.2% 1.3%
2.3%
3.9%
2.3%
3.0%
2.2%
Two Year Cohort Default Rate History for University of Mary-land, College Park
Cohort Year
UNIVERSITY OF MARYLAND, COLLEGE PARK
Default Study Graduation is related to loan defaults: 10% of students who take a loan and never graduate ultimately default on their loans, compared to 3% of loan takers who do graduate
UNIVERSITY OF MARYLAND, COLLEGE PARK
Default StudyDefault Rates by Risk Factors and Graduation Outcome
Graduated Didn't Graduate % of Cohort
Any Academic Probation 8% 19% 14%Undergraduate Studies Major 6% 22% 12%High School GPA between 1.4 and 2.3 9% 19% 12%Last Cumulative GPA between 1.4 and 2.3 7% 13% 10%Black/Afr. American 7% 17% 9%30+ Years Old 6% 12% 8%Any Alternative Loan 3% 18% 7%Unmet Need between $7,001 and $10,500 5% 14% 7%Average EFC <=$2,500 5% 14% 7%Independent 5% 12% 7%Enrolled 13+ Terms 4% 16% 6%Cumulative Loan Amount > $20,000 4% 20% 6%Males 3% 11% 5%
Total 3% 10% 4%
UNIVERSITY OF MARYLAND, COLLEGE PARK
Q and ASarah Bauder
Asst. Vice PresidentOffice of Student Financial Aid and Enrollment Services
University of [email protected]