Financial Literacy and College Student Retention
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Literacy and College Student Retention OCTOBER 21, 2013 UNIVERSITY OF MARYLAND, COLLEGE PARK
description
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 Presentation
Transcript of Financial Literacy and College Student Retention
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]
