Download Financial Literacy Initiatives: Two Case Studies

Reinventing Debt Management
Regina Garner, Monterey Institute of
International Studies
Carlos Perez, Graduate Theological
Union
What We Will Cover Today
1. Description of our schools and the context
that we work in with our students.
2. Identification of the issues we faced that led
us to do more with debt management.
3. A description of the measures originally
taken with regard to debt management.
4. A description of the measures we each take
now with debt management.
5. Samples of forms and worksheets we use.
6. Input from you (the audience)!
MIIS and Its Students
A description of the Monterey Institute of International Studies and its students
• Approximately 800 students, almost all
graduate students, with about 500 receiving
financial aid. 2.75 FTE in FAO.
• Programs primarily focusing on advanced
language study and international studies.
• Private school in high cost area = high COA.
• Average age of students in the late 20’s.
• Job placement primarily in non-profit and
government, with modest salaries.
GTU and its Students
A description of the Graduate Theological Union and its students
• Consortium of nine graduate theological
schools with centralized FAO for processing.
• Approximately 1200 students with about 600
receiving financial aid. 2.5 FTE FAO staff.
• Private schools in high cost area = high COA.
• Average age of students in the late 30’s.
• Job placement primarily in churches, nonprofits and academia, with modest salaries.
Identifying the Main Issues
Why did we each decide to expand our debt management activities? What were
the issues that we faced on our campuses? What are the issues you face?
1. Ignorance regarding lender(s).
2. Inaccurate estimates of current loan debt.
3. Short term view on borrowing with lack of perspective on
eventual total borrowing.
4. Lack of understanding regarding repayment (lender, when).
5. Borrowing decisions often made haphazardly.
6. Students often shocked at ending debt totals.
7. Longer duration in program = greater debt.
8. Students feel overwhelmed by their debt, feel helpless.
9. Reluctance of students to engage in counseling due to
personal nature of financial situation.
The Original Measures
What were we doing at first and why those weren’t satisfactory
1. Entrance Interviews: occur only once and at
the beginning of the process. Standardized.
2. Exit Interviews: occur only once at the end of
the process, too late to impact borrowing
decisions. Standardized.
3. Occasional workshops: workshops often
poorly attended, especially by those who
could probably benefit the most.
4. One-on-one counseling: only when
requested, often sought at a point of crisis.
Raising the Bar at MIIS and GTU
What additional measures did we introduce to address the identified issues?
MIIS
• Instituted Mid-Year Loan
Worksheet
• Expanded Entrance and Exit
Interview materials, with
individual Loan Summaries
• Refer students to ELM and
NSLDS
• Created monthly
newsletters
• Workshops each term
GTU
• Required budget and loan
information worksheets
• Push students to NSLDS
• Required workshop once
student reaches $50,000
• Special mailing (formerly
counseling) when student
reaches $75,000
• Encourage timely
completion of program
• Scholarship services
Assessing The New Initiatives
• How have the new measures worked? What
challenges were faced in implementation and
what challenges remain?
• How can the debt management process be
improved further? What ideas are there for
the future?
Questions and Comments?
Contact information:
Regina Garner: [email protected]
Carlos Perez: [email protected]