Ozarks Technical Community College Financial Aid Office Debt Management and Financial Literacy Plan

Transcription

1 Ozarks Technical Community College Financial Aid Office Debt Management and Financial Literacy Plan A. Executive Summary To date, Ozarks Technical Community College has focused default prevention activities on first-time and returning student loan borrowers at the College. However, diverse student schedules, dramatic increases in enrollment in both seated and online classes, and increasing demand for student loans and loan counseling resources has prompted the College to move all entrance loan counseling online, beginning with the award year. This new proposal is designed to help streamline the student loan process and broaden the student population to which financial literacy activities will be available. The staff of OTC s Financial Aid Office proposes to focus efforts on two areas: 1) financial literacy education, and 2) enhanced exit counseling sessions. It is anticipated that the financial literacy program will help students be better prepared to handle their own financial futures. Enhanced exit counseling sessions are designed to make students more aware of their student loan repayment obligation and related responsibilities as they leave the College. It is anticipated that this enhancement will allow non-traditional students to attend with respect to their diverse schedules. Implementation of evening counseling sessions are one way we are trying to accommodate this population. B. Project Design Goal: Support academic and financial success of all OTC students by offering a holistic view of credit rather than focusing solely on student loans. Objective 1: In partnership with Consumer Credit Counseling of the Ozarks, offer six (6), hour-long financial literacy sessions to all OTC students during the academic year. OTC s Financial Aid Office currently offers five (5) different Paying for College and financial aid information sessions, with a steady growth in attendance being reported. Because of the importance of a broader view of financial literacy, OTC will add financial

2 literacy sessions to its offerings. Consumer Credit Counseling Service of the Ozarks has agreed to collaborate by sending a financial literacy educator to facilitate once-per-month financial literacy sessions. During the fall semester, sessions will be offered in September, October and November. Sessions will again be offered in the spring semester in February, March, and April. Sessions will be promoted by staff, student contact via , web resources, and in cooperation with OTC s Public Relations Office. Public Relations will broadcast announcements about sessions through the use of closed-circuit televisions positioned in common areas throughout the College. A pre- and post-test will be developed by the director of Financial Aid and the director of Research and Planning. A financial aid representative will track attendance at these sessions and solicit feedback from attendees for evaluation. Although OTC aims to reach all students with project activities, two specific populations of students will be targeted: Students who are living at or below poverty level and first-generation college students. Thirty-five percent (35%) of OTC s students are Pell-eligible, while 61% receive some type of student financial aid. Nearly 25% are firstgeneration college students. It is believed that these two groups in particular will benefit from this project. A special effort will be made to reach these populations through lists targeted to those populations. The Career Employment Services Office coordinates services provided to OTC s first-generation college students and has agreed to participate in this effort. The task timeline on the next page outlines implementation steps, responsible personnel, and when these steps will occur.

3 Task Timeline for Financial Literacy Sessions Action Steps Who s Responsible When Develop and revise content of financial literacy sessions Consumer Credit Counseling of the Ozarks Staff; Budget & Finance Office Staff; Financial Aid Staff July August, then as needed Schedule sessions Financial Aid Representative July April Promote sessions via and Web announcements, and established Collegewide information dissemination channels Student Services Staff; Public Relations Office Staff; Career Employment Services Staff August April Develop pre- and post-tests for sessions Director of Financial Aid; Director of Research and Planning August Order food for sessions Financial Aid Representative As required Administer pre- and posttests Evaluate and track data from pre- and post-tests Objective 2: Reinforce students awareness of their rights and responsibilities related to their student loan obligation at enhanced exit counseling, thereby decreasing the default rate. The College will utilize grant funds to hire and train two (2) financial aid representatives (see appendix C for job description). These representatives will utilize a media-rich default prevention, small group information session and will provide these sessions on an established schedule to students at the College s main campus in Springfield, the Richwood Valley Campus in Christian County and to the three regional education centers located in Lebanon, Waynesville and Branson. As with financial literacy sessions, a pre- and post-test will be developed to measure the level of student knowledge about their repayment obligations before and after the session. Financial aid representatives will collaborate with the staff of the Registrar s Office to identify those students who will be graduating each semester. Sessions will be geared to provide graduating students with information on repayment of their student loans. For those students who have withdrawn from the college, an will be sent to promote the exit counseling session. Exit counseling sessions will center on the Exit Assessment Exam that graduating students are required to attend. Students will already be on the campus and will be more

4 likely to attend. Free food will be offered to students who have completed the Exit Assessment Exam and are participating in an exit counseling session. This session will allow the financial aid representatives to validate current address and phone numbers for all students. This process is designed to educate students more thoroughly and provide them the opportunity to ask repayment questions. For online students or those unable to attend a group session, the College will utilize the Mapping Your Future website for students. Students completing the session online will receive personal contact by and/or phone so that any questions they have can be answered. The task timeline below shows steps needed for implementation, responsible staff, and when actions will be completed. Task Timeline for Exit Counseling Sessions Action Steps Who s Responsible When Schedule sessions Financial Aid Representative July April Promote sessions via and Web announcements, and established Collegewide information dissemination channels Student Services Staff; Public Relations Office Staff; Registrar s Office August April Develop pre- and post-tests for sessions Director of Financial Aid; Director of Research and Planning August Order food for sessions Financial Aid Representative As required Administer pre- and posttests Evaluate and track data from pre- and post-tests

5 C. Collaboration OTC s initiative features a robust College-wide partnership and support from the community as well: Director of Financial Aid, Mr. Jeff Ford (see resume in appendix D), will lead the implementation of this project. His responsibilities include the establishment and management of the grant budget, and the hiring, training and supervision of the financial aid representatives. Financial aid representatives will work with Mr. Ford and other designated financial aid personnel to develop the small group session presentation. Materials will be made available to the students regarding repayment options, amortization schedules, and rights and responsibilities of the borrower. OTC s Budget and Finance Office will assist with the content of the financial literacy sessions. Beginning with the summer 2010 semester, this office will disburse student loan refunds using the OTC SmartCard debit card. This will result in faster delivery of refunds to students. Because the OTC SmartCard is new to students, information about it will be included in financial literacy sessions as a component of using credit responsibly. The Public Relations Office at OTC will support this project by coordinating information dissemination to students. OTC s Career Employment Services Office will provide assistance in targeting firstgeneration college students. OTC s Research and Planning Office will assist with pre- and post-test design, as well as data tracking and evaluation. On-site financial literacy and exit counseling sessions at Richwood Valley, Branson, Lebanon, and Waynesville will be offered through a coordinated effort between staff at those locations and at the main campus. Consumer Credit Counseling Services of the Ozarks will serve as financial literacy experts and provide up-to-date information about the responsible use of credit during monthly sessions for students. Revised May 11, 2010