Financial Wellness Work Group - Full Recommendations, May 2017 - Kim Wagester, Alex Kappus, Daniel Odykirk, Julie Wilson, Jeffry Hyames, Deborah ...
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Financial Wellness Work Group Full Recommendations, May 2017 Kim Wagester, Alex Kappus, Daniel Odykirk, Julie Wilson, Jeffry Hyames, Deborah Starr-Alderink, Jessie Barber, and Amber Loomis Acknowledgement: Bryan Ashton
Financial Wellness Collaborative May 2017
Executive Summary
Background
In response to growing concern about the financial wellness of students, campus
partners began to discuss financial literacy at Central Michigan University.
• The Student Service Court developed a presentation in the Fall of 2016.
• Growing interest in financial education led the Office of Scholarship and
Financial Aid to explore third-party resources.
• In March of 2017, Mary Hill and Shaun Holtgreive convened invested staff
members on campus, asking the group to explore financial literacy on campus.
The following two-page executive summary provides a snapshot of the full report.
Defining the Challenges
College costs continue to rise, borrowing has increased, and so too does the stress
students carry. Due to growing public concern, student financial wellness has become an
increasingly targeted area of research and intervention on college campuses. CMU
students reference finances as one of the top reasons for departure. Recognizing that
financial education and wellness is not currently written into any one staff member’s
position description or departmental mission, CMU needs to take action. Financial
wellness is a shared responsibility of all at the university.
Operational Recommendation
Financial wellness is more than financial education, but rather, it also includes
removing barriers to student success. The work group proposes a plan to share guidance
and move the Financial Wellness Initiative forward beyond this report:
• Phase 1: Formally establish the “Financial Wellness Collaborative”
• Phase 2: Evaluate stability, consistency, and effectiveness of Phase 1
• Phase 3: Operate as Collaborative or establish more permanent structures
Financial Wellness Collaborative Vision
We envision a campus culture where all students are able to pursue their degree with a
financial plan and feel supported through graduation.
Mission Statement
Inspire confidence through student-centered financial education using resources that
contribute to positive educational experiences and informed financial decisions, leading
to graduation and a lifetime of financial well-being.
Guiding Values
Various themes emerged throughout the work group conversations. These themes were
later articulated in a formal way to guide the initiative’s decision-making:
• Integrity: The Collaborative serves as an educational resource for students. We do
not provide investment, legal, or tax advice. References to third-party financial
resources are provided as a convenience for informational purposes only.
• Inclusion: The Collaborative attempts to reach all degree-seeking students,
graduate and undergraduate, and to deliver culturally competent material in
person and virtually.
Work Group Recommendations • Central Michigan University 2
Financial Wellness Collaborative May 2017
• Intentionality: The Collaborative aligns all program outcomes with the Central
Michigan University Mission and utilizes assessment to remain improvement-
oriented.
• Transparency: The Collaborative provides clarity to often complex processes and
procedures to ensure students are aware of their financial resources.
• Resourcefulness: The Collaborative acts as the voice and programming arm of
existing campus resources and will refer students to appropriate campus
departments as needed.
Goals
The Financial Wellness Collaborative assists CMU students in developing:
• Fundamental personal finance skills
• An understanding of how to conduct University business
• Knowledge of how to finance a college education
• A plan for paying back any loans beyond college
• Confidence and understanding to alleviate stress around finances
• Tools, resources, and a plan to persist and graduate in a timely manner
2017-2018 Strategic Priorities
1. Understand Student Financial Wellness: Continue to develop an understanding
of best practices in higher education. Use existing data and a campus needs
assessment to gather greater clarity of the current campus culture.
2. Cultivate, Refine, and Scale Educational Efforts: Continue initiated efforts and
implement recommendations.
3. Build Awareness & Campus Support: Identify opportunities to build and
strengthen campus relationships and support of financial education efforts.
Areas of Focus
This report details recommendations in the following focus-areas-
• Student Recruitment: Help students understand the cost and value of a CMU
degree, and assist in devising a four-year financial plan.
• Student Transition: Acculturate students to navigating the billing process,
financial aid, registration, and other core University functions.
• Student Retention: Reduce student financial holds and barriers to registration.
Ongoing contact and education to ease stress around costs.
• Timely graduation: Encourage 15-credit semesters to achieve timely graduation,
resulting in increased financial health during the college years and beyond.
• Baseline Personal Finance Skills: Assist students in developing foundational
financial literacy skills around personal finance.
• Mental Health: Alleviate overall student stress levels around finances.
• Post-Graduation: Understand options and establish a plan upon graduation to
tackle loan repayment.
Work Group Recommendations • Central Michigan University 3
Financial Wellness Collaborative May 2017 Table of Contents Executive Summary ........................................................................................................ 2 Background ................................................................................................................................. 2 Defining the Challenges ........................................................................................................... 2 Areas of Focus ............................................................................................................................ 3 Table of Contents ............................................................................................................. 4 Introduction ...................................................................................................................... 5 Background ................................................................................................................................. 5 Work Group Charge.................................................................................................................. 5 Work Group Membership ....................................................................................................... 6 Acknowledgement ..................................................................................................................... 6 Timetable ..................................................................................................................................... 6 Program Design ......................................................................................................................... 7 Defining the Issue............................................................................................................ 8 Theoretical Framework ......................................................................................................... 11 Financial Wellness Strategic Plan .............................................................................13 Vision, Mission, Values ......................................................................................................... 13 2017-2018 Strategic Priorities ............................................................................................. 14 Identifying Pathways & Projects ................................................................................16 Mapping Student Life Cycle .................................................................................................. 16 Metrics & Outcomes .......................................................................................................19 Establishing a Baseline .......................................................................................................... 19 Measuring Effectiveness ....................................................................................................... 20 SWOT Analysis ................................................................................................................21 Operational Recommendation ...................................................................................22 Three-Phase Process .............................................................................................................. 22 Suggested Organizational Structure .................................................................................. 23 Operational Consideration: ................................................................................................. 24 Resource Planning: ................................................................................................................. 24 Professional Standards ......................................................................................................... 25 Third-Party Resources ........................................................................................................... 29 Benchmarking .................................................................................................................34 Benchmark Spotlights............................................................................................................ 34 Complete Benchmark Listing- Peer Institutions (according to CMU IR) ............... 39 Closing Remarks .............................................................................................................46 Appendix ...........................................................................................................................47 A: Student Service Court Partnership Documents ........................................................ 47 B: Student Service Court Presentation ............................................................................. 50 C: Work Group Meeting Minutes ........................................................................................ 64 D: ACPA: “Identifying & Mitigating Student Financial Stressors” ........................... 78 E: Higher Education Financial Wellness Summit Webinars ...................................... 82 Work Group Recommendations • Central Michigan University 4
Financial Wellness Collaborative May 2017 Introduction Background In response to growing concern about the financial wellness of students, various campus partners discussed the importance of financial literacy at Central Michigan University. The Office of Scholarships and Financial Aid (OSFA) was asked to explore their role in educating students about financial literacy. Spring of 2016, the Student Service Court specifically recruited staff with prior skills presenting and facilitating, seeking to expand the role of the Student Service Advisor. With new staff on board, leadership within the Student Service Court began to alter content from summer orientation presentations, to produce student-friendly programs. Relationships were fostered between FYE 101, IMPACT, Pathways, Student Activities and Involvement, and Residence Life. Financial literacy presentations were conducted for FYE 101 and Pathways classes for first year students (Appendix A & B). Feedback from students was positive. One student said, “This should be presented to freshman because it is important that they know what is going on with their finances so they can be more prepared for the future.” Campus partners quickly learned about the Student Service Court presentation and the requests for workshops increased. By Fall 2016, OSFA convened a team to look at various financial literacy tools available and arranged virtual presentations by various third-party vendors. Staff around the table appreciated the presentations, but began to question what CMU’s priorities were around financial literacy. Associate Vice President of Financial Services and Reporting and Controller, Mary Hill, as well as the Executive Director for Student Affairs, Shaun Holtgreive connected in winter of 2016 to discuss convening cross-divisional stakeholders to assess need and develop recommendations. Work Group Charge March 2017, Mary Hill and Shaun Holtgreive convened invested staff members on campus, asking the group to explore financial literacy on campus. Mary and Shaun articulated a two-phase process by which the work group would frame the charge: Phase 1 - Goal: Introduce students to financial literacy • Develop recommendations for programs to meet literacy needs • Identify existing resources that can implement the programs • Formalize the delivery pathways and what will be delivered via these paths • Develop an assessment program to measure outcomes • Benchmark our peers and utilize CAS/other standards • Identify long-term assessment group to sustain what is developed Phase 2 • Implementation Work Group Recommendations • Central Michigan University 5
Financial Wellness Collaborative May 2017
Work Group Membership
- Kim Wagester, Director, Student Account Services and University Billing (Chair)
- Alex Kappus, Assistant Director, Leadership Institute (Chair)
- Daniel Odykirk, Manager, Student Service Court
- Jessie Barber, Assistant Manager, Student Service Court
- Julie Wilson, Associate Director, Office of Scholarships and Financial Aid
- Jeffry Hyames, Assistant Director, Office of Student Success
- Deborah Starr-Alderink, Associate Director, Financial Aid Global Campus
- Amber Loomis, Associate Director, Financial Planning & Budgets, Instructor
Acknowledgement
The work group would like to formally acknowledge Bryan Ashton for his feedback and
guidance in developing this report. Bryan serves as Director of Student and Institutional
Success for TG, as well as Co-Founder and Co-Chair for the Higher Education Financial
Wellness Summit. Bryan previously served as a principal investigator for the National
Student Financial Wellness Study. Bryan connected with work group member Alex
Kappus through-out the month of April, both via phone and email. Thank you, Bryan!
Timetable
• Work Group Convened by Mary Hill and Shaun Holtgreive: March 22nd
• Planning Meeting*: April 5th
o Explore research and literature
o Decide upon common working definitions
o Review professional standards
o Develop program mission
o Establish program goals
o Identify assessment measures
• Planning Meeting*: April 12th
o Revisit definitions, mission, goals
o Identify all stakeholders
o Produce pathways for involvement
o Select key benchmarked programs
o Brainstorm recommendations
• Planning Meeting*: April 19th
o Report out about benchmarked programs
o Resources needed
o Needs assessment development
• Planning Meeting*: April 26th
o Finalize recommendations
o Establish proposed timeline for execution
o Initiate “next steps” proposal
• Materials synthesized, edited, and submitted by May 1st
*(For meeting minutes, see Appendix C)
Work Group Recommendations • Central Michigan University 6
Financial Wellness Collaborative May 2017
Program Design
Tackling complex, nuanced, and pervasive topics like financial wellness require
intentional program design. The work group selected the following framework for the
Financial Wellness Initiative.
I. Agree Upon Common Definitions and Language
II. Review Research & Literature
III. Needs Assessment
a. Gathering information
b. Understanding campus culture and gaps in learning
c. Using existing data
i. Recent Diversity and Inclusion report data
ii. National Survey for Student Engagement (NSSE)
d. Focus groups
e. Student leader involvement
f. Benchmarking
i. An effort that works at one place, may or may not work at CMU
IV. Select Theoretical Frameworks and Curricular Resources
Following the steps above, then using the following process to guide the
implementation of various interventions:
Adapted From: Schuh, J. H., & Upcraft, M. L. (2001). Needs assessment and program evaluation. In R.
B. Winston, D. G. Creamer, & T. K. Miller (Eds.), The professional student affairs administrator:
Educator, leader, and manager (pp. 341-356). Philadelphia, PA: Psychology Press.
Work Group Recommendations • Central Michigan University 7
Financial Wellness Collaborative May 2017 Defining the Issue Financial Wellness Definition Originally convened as the “Financial Literacy” Work Group, a shift occurred early on. After investigating research literature and current trends in higher education, members of the work group wished to re-define the central drive of this initiative. The President's Advisory Council on Financial Literacy defined personal financial literacy as, "the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being (2008 Annual Report to the President1).” The key term, “well-being,” describes the importance of not just understanding and integrating knowledge of finances into decision-making, but also gaining the confidence and mediating stress around these difficult topics. The Consumer Financial Protection Bureau defines financial well-being as, “a state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in his or her financial future, and is able to make choices that allow enjoyment of life2.” As a result, the terminology and framework from which this initiative is guided rests in a wellness perspective. National and Local Issue The financial burden of college on this generation of students is increasingly at the center of both scholarly research and popular media. As costs for higher education continue to rise, borrowing increases, and subsequently so does stress around finances. A study supported by the Bill & Melinda Gates Foundation found that the number one reason students leave college is financial in nature3. The Office of Student Success at Central Michigan University indicates that following academic suspension and dismissal, the top reason students indicate departure is “finances.” The National Student Financial Wellness study4, which included 18,795 undergraduate students at 52 colleges and universities across the country, found that 7 out of 10 college students feel stressed about their finances. According to the same study, “Nearly 60 percent said they worry about having enough money to pay for school, while half are concerned about paying their monthly expenses.” Not surprisingly, the study found that 32% of students reported neglecting their studies at least sometimes because of the money they owed. While the recommendations of this work group cannot control cost and borrowing issues, education centered upon increasing confidence, knowledge of resources, and easing stress around these topics remains the top findings from emerging literature. 1 President’s Advisory Council on Financial Literacy (http://jumpstart.org/assets/files/PACFL_ANNUAL_REPORT_1-16-09.pdf) 2 Financial Well-Being: The Goal of Financial Education, ( January 27, 2015) 3 “With Their Whole Lives Ahead of Them” https://www.publicagenda.org/files/theirwholelivesaheadofthem.pdf 4 National Student Financial Wellness Study: http://cfw.osu.edu/posts/documents/nsfws-key-findings-report-2.pdf Work Group Recommendations • Central Michigan University 8
Financial Wellness Collaborative May 2017
Trends at CMU
The work group prioritized gathering data to establish baselines and provide a broad
picture of various measures at Central Michigan related to financial wellness.
Student Account Services & University Billing Data:
Scholarships and Financial Aid Data:
Undergraduate Financial Aid Analytics
2014-2015 Center for Education Statistics Report: Central Michigan University
All Undergraduate Students
NUMBE TOTAL AVERAGE
PERCENT
R AMOUNT AMOUNT
TYPE OF AID RECEIVIN
RECEIVI OF AID OF AID
G AID
NG AID RECEIVED RECEIVED
Grant or
scholarship 14,941 74% $14,688
$219,453,258
aid1
$27,996,51
Pell grants 7,116 35% $3,934
9
Federal
14,556 72% $112,149,192 $7,705
student loans
1Grant or scholarship aid includes aid received, from the federal government, state or local government, the institution, and
other sources known by the institution.
Work Group Recommendations • Central Michigan University 9
Financial Wellness Collaborative May 2017
Undergraduate Students – Full-time, first time
TOTAL AVERAGE
NUMBER PERCENT
AMOUNT OF AMOUNT
TYPE OF AID RECEIVING RECEIVING
AID OF AID
AID AID
RECEIVED RECEIVED
Any student
3,537 94% —— ——
financial aid1
Grant or
scholarship 3,031 81% $24,702,612 $8,150
aid
Federal
1,288 34% $5,335,719 $4,143
grants
Pell grants 1,288 34% $5,325,607 $4,135
Other
federal 8 0% $10,112 $1,264
grants
State/local
government
523 14% $368,596 $705
grant or
scholarships
Institutional
grants or 2,964 79% $18,998,297 $6,410
scholarships
Student loan
3,008 80% $21,140,986 $7,028
aid
Federal
student 2,971 79% $18,834,389 $6,339
loans
Other
student 288 8% $2,306,597 $8,009
loans
1 Includes students receiving Federal work study aid and aid from other sources not listed above.
2013-2014 National Center for Education Statistics Report: Central Michigan University
Work Group Recommendations • Central Michigan University 10Financial Wellness Collaborative May 2017
THREE-YEAR OFFICIAL COHORT DEFAULT RATES: Central Michigan University
FISCAL
2013 2012 2011 2010
YEAR
Default
4.4% 5.5% 6.2% 5.9%
rate
Number
301 371 368 330
in default
Number
in 6,814 6,739 5,919 5,559
repayment
*2013FY National cohort default rate is 11.3%
A cohort default rate is the percentage of school’s borrowers who enter repayment on federal direct loans
during a particular federal fiscal year, October 1 to September 30, and default or meet other specified
conditions to the end of the second following fiscal year.
Theoretical Framework
In addition to gathering research and scholarship to inform the Financial Wellness
Initiative, the work group recognizes the importance of developing a theoretical
framework from which to think about Financial Wellness.
Completion by Design’s Loss-Momentum Framework
Originally developed for the Community College System, this framework has begun to
be applied to four-year degree completion.
Work Group Recommendations • Central Michigan University 11Financial Wellness Collaborative May 2017
- What are causing students to maintain momentum, or lose momentum
throughout the experience.
- Although there is a strong focus within higher education upon transition and first
year experience, the model recognizes that departure occurs not just after first
year, but throughout the experience.
- This framework puts the onus on the University to identify and address barriers
and points that slow student momentum toward a degree and to develop
meaningful interventions to encourage momentum throughout the experience.
For more information about this framework, visit: http://completionbydesign.org/our-approach/step-3-
diagnose-the-issues/pathway-analyses-toolkit/pathway-analyses/lossmomentum-framework
Hierarchy of Needs
Abraham Maslow’s Hierarchy of Needs model is frequently referenced in conversations
about financial wellness. If students maintain stress about their needs being met during
college, it detracts from the ability for students to focus on their classes and experience.
Work Group Recommendations • Central Michigan University 12Financial Wellness Collaborative May 2017
Financial Wellness Strategic Plan
Vision, Mission, Values
Vision Statement
We envision a campus culture where all students are able to pursue their degree with a
financial plan and feel supported through graduation.
Mission Statement
Inspire confidence through student-centered financial education using resources that
contribute to positive educational experiences and informed financial decisions, leading
to graduation and a lifetime of financial well-being.
Guiding Values
Various themes emerged throughout the work group conversations. These themes were
later articulated in a formal way to guide the initiative’s decision-making:
• Integrity: The Collaborative serves as an educational resource for students. We do
not provide investment, legal, or tax advice. References to third-party financial
resources are provided as a convenience for informational purposes only.
• Inclusion: The Collaborative attempts to reach all degree-seeking students,
graduate and undergraduate, and to deliver culturally competent material in
person and virtually.
• Intentionality: The Collaborative aligns all program outcomes with the Central
Michigan University Mission and utilizes assessment to remain improvement-
oriented.
• Transparency: The Collaborative provides clarity to often complex processes and
procedures to ensure students are aware of their financial resources.
• Resourcefulness: The Collaborative acts as the voice and programming arm of
existing campus resources and will refer students to appropriate campus
departments as needed.
Mantra: Inspire Confidence
Tagline: Equal partners with students in the pursuit of financial wellness.
Goals
The Financial Wellness Collaborative assists CMU students in developing:
• Fundamental personal finance skills
• An understanding of how to conduct University business on campus
• Knowledge of how to finance a college education
• A plan for paying back any loans beyond college
• Confidence and understanding to alleviate stress around finances
• Tools, resources, and a plan to persist and graduate in a timely manner
Work Group Recommendations • Central Michigan University 13Financial Wellness Collaborative May 2017
2017-2018 Strategic Priorities
1. Understand Student Financial Wellness: Continue to develop an understanding of
best practices in higher education. Use existing data and a campus needs assessment to
gather greater clarity of the current campus culture.
2. Cultivate, Refine, & Scale Educational Efforts: Continue initiated efforts and
implement recommendations.
3. Build Awareness & Campus Support: Identify opportunities to build and
strengthen campus relationships and support of financial education efforts.
Strategic Priority 1: Understanding Financial Wellness
Continue to develop an understanding of best practices in higher education. Use
existing data and a campus needs assessment to gather greater clarity of the current
campus culture.
I. Benchmarking Identified Programs
a. Conduct phone interviews with identified programs of interest
b. Plan site visit to identified campus if deemed helpful
II. Professional Development
a. Expand stakeholder connection to field: conferences, journals, etc.
b. Identify on-going learning opportunities
III. Needs Assessment
a. Existing campus data from NSSE and other data sources
b. Focus groups
c. On-going measurement methods in current processes
IV. Curriculum Development
a. Use benchmarking, professional guidance, and needs assessment to build
both passing and active curriculum and resources
V. Assess Current Educational Efforts
a. Develop protocols for gathering data through educational efforts
b. Use assessment to improve programmatic outreach efforts
Strategic Priority 2: Cultivate, Refine, & Scale Educational Efforts
Continue initiated efforts and implement recommendations.
I. Current Efforts
a. Transition program touch-points
i. Orientation
ii. Safari
iii. IMPACT
b. Student Service Court Outreach
Work Group Recommendations • Central Michigan University 14Financial Wellness Collaborative May 2017
II. Identified Pathways
a. Outlined in pathway delivery document
i. Student Recruitment
ii. Student Transition
iii. Student Retention & Timely Graduation
iv. Post-Graduation
III. Peer Ambassador Program
IV. Website & Resource Development
V. Others identified by committee
Strategic Priority 3: Build Awareness & Campus Support
Identify opportunities to build and strengthen campus relationships and support of
financial education efforts.
I. Stakeholder Engagement
a. Create stakeholder awareness of Financial Wellness Collaborative
i. Inform upper-level administrators
1. Share ways staff and faculty can get involved in efforts
2. Encourage support for involvement in efforts
b. Further develop opportunities for stakeholder engagement
II. Focus on Removing Barriers
a. A major focus of the Financial Wellness Collaborative is not only educating
students, but also looking for ways to remove barriers to student success.
b. The Collaborative will work hard to ensure that suggested improvements
are identified in conjunction with campus partners, avoiding the feeling of
critique, but instead partnership.
III. General Awareness Building
a. Develop the “brand” and connection to students
i. Encourage utilization of a Financial Wellness Collaborative logo
ii. Establish a social media presence
b. Generate campus awareness of initiatives, services, and resources
i. Use various communication channels to inform the campus
community
ii. Illustrate collaborative nature of the partnership
c. Market to general University Community
i. “Road show” presentation about the various initiatives, services and
resources.
Work Group Recommendations • Central Michigan University 15Financial Wellness Collaborative May 2017
Identifying Pathways & Projects
Mapping Student Life Cycle
The work group spent significant time discussing various points during the student
journey where information, education, and resources could be better communicated.
The theoretical framework of this effort is articulated below from QILT (Quality
Indicators for Teaching and Learning).
Model Above From Quality Indicators for Teaching & Learning: https://www.qilt.edu.au/for-institutions/data-request/data-protocols
The following section outlines various pathways and efforts that the Financial Wellness
Collaborative identified for this report:
Student Recruitment: Help students understand the cost and value of a
CMU degree, and assist in devising a four-year financial plan.
Proposed Pathways & Actions:
• Clearly articulate CMU costs, as well as value of degree
o All information easy to find, in one location
Work Group Recommendations • Central Michigan University 16Financial Wellness Collaborative May 2017
o Comparison sheet (comprehensive costs) – also include housing costs
and cost of living in Mount pleasant vs. other cities. Recruitment tool.
Apartments and living expenses
• Integrate financial education into recruitment programming such as:
o Next Steps
o CMU and You Day
o College Days
o Campus Visits
• Communications planning:
o Work with the Melt Offensive to integrate financial education efforts.
o Timing of alerts and communication about billing, financial aid,
registration, and other important functions
• Admissions Representative training
o Develop training for admissions representatives on financial education
and efforts to clearly articulate CMU costs and value of degree
• Explore communications and partnerships with high schools
o Information provided to high school counselors
o Training for high school counselors
• Identify existing pre-college pathways
o Gear Up
o Leadership Camp
o Others not listed here
Student Transition: Acculturate students to navigating the billing process,
financial aid, registration, and other core University functions.
Proposed Pathways & Actions:
• Continue on-going education efforts
o Shift conversation from parent to student. You’re an adult now and need
to understand how to do these things. This year’s incoming class will be
the first to have finances discussed at orientation, Safari, and IMPACT.
o Registration – interactive billing system goes live May 1st, 2017. Additional
point of contact when students register – information/resources.
• Develop and Implement Transition webinar/modules
o Various phases while progressing through school:
§ Targeted toward me
• “We know you’re a sophomore now…”
• Offer workshops and efforts for first year specific programs
o Advising: Student Service Court, Academic Advising and Assistance, Office
of Student Success
o Student Veterans
o Pathways and other transition programs
o STEP
o MAC Scholars
o RSOs (new member and organizational meetings)
• Residence Life outreach
o Information during hall meetings
Work Group Recommendations • Central Michigan University 17Financial Wellness Collaborative May 2017
o Residential colleges
o RA/MA/RHD training
§ How to refer students to resources
• Admission protocols for various academic colleges/majors
o Require intervention to get into college/major. Adding these to checklists
o Introduce thoughts- 56 credits
Student Retention & Timely Graduation: Reduce student financial holds
and barriers to registration. On-going contact and education to ease stress
around costs. Encourage 15-credit semesters to achieve timely graduation,
resulting in increased financial health during the college years and beyond.
Proposed Pathways & Actions:
• Gather team of student support to discuss barriers and make recommendations
o Student Service Court Advisors
o Success Coaches
o Academic Advisors
• Develop a peer-ambassador program for workshops and 1-1 meetings
• Identify measures of success for financial education efforts
• Develop protocol around student departure and assistance with financial
pressures
• Communication plan to encourage 4-year graduation, 15 credits/semester
• Develop materials around “Cost” of staying in school longer
• Establish benchmark, class-specific branding:
o Sophomore summit
o Junior initiative
o Countdown to graduation program
• Major authorization form – adding a piece about financial education
• Introduce the Collaborative throughout the experience
o Here is who we are. Reminders that we are here for them
• Recommendation to tie in with faculty – define financial wellness; please assist in
engaging and referring in the classroom
• Marketing and specific outreach to families as top partners in the process.
• Education to all the staff on campus
• Career advising
o Assist students in developing a financial plan post-graduation
• Countdown to graduation
o Encourage students to learn about loan repayment options, loan
forgiveness, assisting students with financial planning
Post-Graduation: Understand options and establish a plan upon
graduation to tackle loan repayment.
Proposed Pathways & Actions:
• Alumni resources and on-going access to online education
Work Group Recommendations • Central Michigan University 18Financial Wellness Collaborative May 2017
Metrics & Outcomes
Establishing a Baseline
Outcomes
The Financial Wellness Collaborative assists CMU students in developing:
• Fundamental personal finance skills
• An understanding of how to conduct University business
• Knowledge of how to finance a college education
• A plan for paying back any loans beyond college
• Confidence and understanding to alleviate stress around finances
• Tools, resources, and a plan to persist and graduate in a timely manner
Measuring Outcomes:
• Establish baselines through needs assessment effort
• Develop instruments for various interventions that measure effectiveness
Campus Metrics
Central Michigan University should understand baseline numbers and measure
progress over time in the following areas:
• Student Account Services and University Billing:
o Existing data to gather and track over time:
§ “Registered, but not Paid” (RNP) Numbers
§ Student collections
§ Outstanding balances
§ Past due payment plans
§ Full drops
§ Students enrolled in automatic payment plans
§ Refund check amounts (off campus vs. on campus students)
o Possible new area of measurement:
§ Tracking appointments with references to financial stress
• Scholarships & Financial Aid
o Existing data to gather and track over time:
§ Borrowing rates
§ Refund check amounts
§ Unmet need
§ Emergency fund requests
§ Loan limits reached
§ Parent PLUS metrics
§ Default rates
§ Private loan requests
§ Grad Plus loans
§ Transfer student debt burden
o Possible new area of measurement:
§ Tracking appointments with references to financial stress
• Student Success Measurements:
Work Group Recommendations • Central Michigan University 19Financial Wellness Collaborative May 2017
o Existing data to gather and track over time:
§ Number of students who reference “finances” as reason for
departure
§ Retention rates
§ Graduation rates
o Possible new area of measurement:
§ Financial stress mentioned in meetings
• Counseling and Mental Health
o Possible areas of measurement:
§ Number of students referencing finances as a metric of stress
§ Confidence around seeking assistance
Measuring Effectiveness
The work group recognizes that many of the numbers above are not solely tied to
financial education, literacy, and wellness. Tracking the above metrics will assist the
direction and priorities of the Financial Wellness Collaborative.
Assessment of Educational Interventions
The Collaborative will work to develop consistent assessment instruments that measure
meaningful outcomes, especially items such as:
• Increased confidence
• Knowledge of resources
• Mitigated stress
Qualitative Data
Following Denison University’s model of applying qualitative interviewing to identify
stressor points, the work group recommends that CMU work with Educational
Leadership faculty to design a qualitative model to discover barriers to student success
related to finances.
Work Group Recommendations • Central Michigan University 20Financial Wellness Collaborative May 2017
SWOT Analysis
The work group took time to explore strengths, weaknesses, opportunities, and threats
to the success of the Financial Wellness Collaborative and recommendations.
Positive Factors Negative Factors
STRENGTHS WEAKNESSES
Internal
Work group identified important Weaknesses as they relate to the
strengths of Collaborative: proposed recommendations:
• Broad knowledge base • We are late in the game and
• Institutional knowledge playing catch up
• Partners are invested and care • Benchmark numbers --- do we
about this topic represent that – how do we
• Strong relationships: in-roads measure success?
with other groups on campus – • Lack of analytics and data
already doing some good work • Mechanisms for student buy-in
• Connection to field of college and participation.
student financial wellness • Cannot change borrowing or
• We are addressing educational cost of education problems
and institutional factors • Little faculty support –low
• Excellent momentum with the campus buy-in
work group • No historical perspective
• Creating a more cohesive CMU (ground up)
culture • No formal experience in this
• Low cost, high impact specific area
recommendations on student • Online/off-site --- pathways
experience need to include aspect aimed
specifically at this population
Positive Factors Negative Factors
External OPPORTUNITIES THREATS
What potential do we possess? What can threaten success of project?
• Third-party resources • Buy-in from some not all
• Partnerships with other schools • Power struggle – “Who owns
• Build upon relationships with this project”
field • Trying to be something to
• Continue to build everyone
• Take the show on the road • There will be gaps, smaller
• Recruitment and retention groups to reach
• Wide open slate --- whatever we • Lack of permanent funding
do is going to be better than • “Fad” mentality vs.
nothing incorporating into culture
• Truly be transparent who we are • The “personal responsibility”
as an institution approach threatens success by
not acknowledging
institutional barriers
Work Group Recommendations • Central Michigan University 21Financial Wellness Collaborative May 2017
Operational Recommendation
The following recommendation is intended to provide guidance and a plan to move the
Financial Wellness Initiative forward beyond the May 2017 Report.
Three-Phase Process
Phase 1: Summer 2017 – Summer 2018
Formally Establish the “Student Financial Wellness Collaborative”
• Operate as a collaborative group (suggested organizational structure outlined below)
• Develop area-specific work-groups
o Recruitment, Transition, Retention, Graduating/Alumni
• Hire a graduate assistant for programmatic efforts
o Develop programming
o Recruit, train, hire student ambassadors
• Empower Success Coaches, Student Service Advisors, and Academic Advisors to
assist in various programmatic efforts
• Conduct full campus needs assessment
o Use existing data, focus groups and other information-seeking to better
understand student financial wellness
• Develop a Strategic Plan for Financial Wellness
• Steer recommendations produced by May 2017 report
Phase 2: Summer 2018
Assess stability, consistency, and effectiveness of Phase 1.
• Determine if the initiative has moved forward effectively by reviewing processes and
progress on various recommendations
• On-going evaluation of structure and efforts
Phase 3: Summer 2018 & Beyond
Operate as Collaborative or Establish Formal Center for Student Financial Wellness
If permanent funding is deemed necessary, consider the following:
• Hire a director/coordinator of the program
• Identify space on campus
• Establish permanent funding structures
Work Group Recommendations • Central Michigan University 22Financial Wellness Collaborative May 2017
Suggested Organizational Structure
Financial Wellness Collaborative
Work Group would phase into the Financial Wellness Collaborative Executive Board
Executive Board:
• Co-Directors
• Programming Coordinator (Graduate Assistant)
• Assessment Coordinator
• Communications Coordinator
The following representatives may assume specialist roles articulated above.
• Online & Off-Site Representative
• Student Service Court Representative
• Success Coach Representative
• Office of Scholarships & Financial Aid Representative
• Office of Admissions Representative
• Academic Advising Representative
• Residence Life Representative
• Counseling Representative
• Undergraduate Student Representative
• Graduate Student Representative
Executive Board members would chair efforts in the following workgroup areas.
Work Groups:
• Recruitment
• Transition
• Retention & Success
• Graduation & Alumni
• Non-Traditional Student
• Curriculum Development
• Others determined by the Executive Board
Work Group Recommendations • Central Michigan University 23Financial Wellness Collaborative May 2017
Operational Consideration:
The operational recommendation recognizes that “Financial Wellness” is not explicitly
stated in position descriptions on campus. Moving forward, we hope the administrators
involved in this initiative will recognize the importance of formally recognizing these
efforts, specifically by embedding language and responsibilities into the position
descriptions. The following areas maintain staff in crucial areas that may consider
incorporating language and responsibilities around financial wellness into office
structure:
• Office of Student Success: Success Coaches
• Student Account Services & University Billing: Student Service Advisors
• Office of Scholarships & Financial Aid: Financial Aid Specialists
• Academic Advising: Orientation & Academic Advisors
Resource Planning:
Numerous stakeholders at Central Michigan University have a vested interest in the
financial wellness of students. The Financial Wellness Collaborative would leverage
existing funding structures in strategic units to collaborate on funding for various
projects. Executive Committee members will explore funding sources from within and
external to CMU, including one-time funding requests, grants, or other money set aside
to fund special projects.
Start-Up Budget: not to exceed $10,000 (excluding graduate assistantship funding)
Proposed “start-up” expenditures (2017-2018) developed below:
• Graduate Assistant position funding
o Cost: Pending funding availability through ESS.
• Development funding for committee members:
o Campus visit funding
o Conference funding
o Journal/publication funding
• Printing Costs
o Logo development: One-time expense
o Print Collateral (Pull-up banners, Table-cloth, etc.)
• Programming Budget
o Polos for ambassadors
o Training budget for student ambassadors
o Programming funds
• Website Costs
• Third party curricular costs TBD
The Financial Wellness Collaborative would use the first year to recommend and
identify permanent funding for annual expenses. A cross-divisional initiative,
expenditures should be split as equally as possible across units.
Work Group Recommendations • Central Michigan University 24Financial Wellness Collaborative May 2017
Professional Standards
In addition to gathering research and scholarship to inform the Financial Wellness
Initiative, the work group sought relevant guidance from various professional
organizations. The following list of formal efforts were identified:
American College Personnel Association(ACPA) Guidance
As one of the leading national organizations in the field of student affairs, ACPA has
published a few reports which relate to financial wellness.
• “The Higher Education Reauthorization Bill (Higher Education Opportunity Act
of 2008), has more than 400 new reporting requirements and 64 new
programs.” - http://www.myacpa.org/article/after-5-years%E2%80%A6higher-
education-reauthorization-0#sthash.mFW2gjTJ.dpuf
• Consumer Education Information – “The Bill requires guaranty agencies to work
with institutions to develop and make available high quality educational
programs and materials to provide training for students in budgeting and
financial management, debt management, and financial literacy.”
http://www.myacpa.org/article/after-5-years%E2%80%A6higher-education-
reauthorization-0#sthash.mFW2gjTJ.dpuf
One work group member, Alex Kappus, attended the National Convention this spring
and attended relevant sessions. The most impactful session was “Identifying and
Mitigating Students’ Financial Stressors” by Laurel Kennedy and Julie Tucker
from Denison University. Full session notes: Appendix D
Coalition of Higher Education Assistance Organizations (COHEAO)
The reports and guidance produced by the Coalition of Higher Education Assistance
Organizations provides invaluable guidance for the financial wellness initiative.
• Financial Literacy in Higher Education: The Most Successful Models and
Methods for Gaining Traction from the Coalition of Higher Education Assistance
Organizations (COHEAO): http://www.coheao.com/wp-
content/uploads/2014/03/2014-COHEAO-Financial-Literacy-Whitepaper.pdf
• Financial Literacy on Campus: Raising Awareness, Creating and Developing
Programs, and Improving Effectiveness from
COHEAO: http://www.coheao.com/wp-content/uploads/2011/04/COHEAO-
Whitepaper-Financial-Literacy-on-Campus-.pdf
Consumer Financial Protection Bureau (CFPB)
The Consumer Financial Protection Bureau offers some guidance and resources for
“enhancing financial education” in the United States.
• Website: https://www.consumerfinance.gov/adult-financial-education/
• “The CFB was created to provide a single point of accountability for enforcing
federal consumer financial laws and protecting consumers in the financial
marketplace. Before, that responsibility was divided among several agencies.
Today, that is our primary focus.”
Work Group Recommendations • Central Michigan University 25Financial Wellness Collaborative May 2017
Council for Economic Education
The Council for Economic Education is designed as a framework for teaching k-12
personal finance. This resource may assist CMU in determining curriculum and
resources.
• Website: http://councilforeconed.org/resource/national-standards-for-financial-
literacy/
• “The National Standards for Financial Literacy provide a framework for teaching
personal finance in kindergarten through 12th grade. A student who masters the
knowledge embodied in the standards should be able to avoid making poor
financial decisions, understand the economic reasons behind the trade-offs
between financial choices, and know the basis for their own decisions.”
• The standards contain the areas of knowledge and understanding that are
fundamental to personal finance:
o Earning Income
o Buying Goods and Services
o Using Credit
o Saving
o Financial Investing
o Protecting and Insuring
Council for the Advancement of Standards in Higher Education (CAS)
The Council for the Advancement of Standards in Higher Education (CAS) provides
functional-area guidance in various administrative areas in higher education. The work
group may wish to consider utilizing CAS resources to collaborate with areas, such as
financial aid, orientation, and parent/family program.
• Financial Aid Self Review- available upon purchase:
http://standards.cas.edu/getpdf.cfm?PDF=C94FF7B0-B198-020F-
628B8BCCE2E6FA43
• Parent & Family Programs:
http://www.usu.edu/finaid/assessment/pdf/CAS08.pdf
o “Parent & Family Programs should provide a parents and family resource
guide or handbook to address student-life topics of priority to the
institution (e.g., drug and alcohol abuse, service-learning and study
abroad opportunities, research opportunities, financial literacy, health and
wellness), resources and benefits available to parents and families,
institutional policies and procedures, the academic calendar, and support
services for students and their families.”
Financial Literacy and Education Commission (FLEC)
The Financial Literacy and Education Commission offers excellent resources and
guidance around financial education, including reports geared toward higher education.
• Homepage: https://www.treasury.gov/resource-center/financial-
education/Pages/commission-index.aspx
Work Group Recommendations • Central Michigan University 26Financial Wellness Collaborative May 2017
o “The Financial Literacy and Education Commission was established under
the Fair and Accurate Credit Transactions Act of 2003. The Commission
was tasked to develop a national financial education web site
(MyMoney.gov) and a national strategy on financial education.”
• Many resources available for educators and planners:
o https://www.treasury.gov/resource-center/financial-
education/Documents/Opportunities%20to%20Improve%20the%20Fina
ncial%20Capability%20and%20Financial%20Wellbeing%20of%20Postsec
ondary%20Students.pdf
Financial Therapy Association
A relatively new area of study and practice, the Financial Therapy Association advocates
for a holistic model of financial wellness.
• Website: https://www.financialtherapyassociation.org/
• “Financial therapy involves the integration of cognitive, emotional, behavioral,
relational, and economic aspects that influence financial well-being, and
ultimately, quality of life.”
Gallup
The “Five Essential Elements of Well-Being” articulated by Gallup offers a wellness
model which includes the importance of financial wellness.
• Website: http://www.gallup.com/businessjournal/126884/Five-Essential-
Elements-Wellbeing.aspx
• “Purpose (academic, career), social (inclusion), financial, community, physical.”
Higher Education Financial Wellness Summit
The Higher Education Financial Wellness (HEFW) Summit “unites educators with a
passion for student financial wellness and connects those who value the significance in
students’ understanding of how to manage their personal finances.”
• Website: www.hefwa.org
• Annual Conference: This year, July 30-August 1st, 2017
• Webinars: www.hefwa.org/webinar-series
Work group member, Alex Kappus participated in two webinars during the month of
April and took notes from those presentations Alex connected later on the phone and via
email with a leader in the field, Bryan Ashton. (Webinar notes: Appendix E).
National Association of Student Personnel Administrators (NASPA)
Along with ACPA, NASPA provides professional guidance and education to student
affairs administrators. Recognizing the need and interest in assisting professional
collaboration and learning, NASPA has partnered with The Ohio State University to
offer a symposium to address the complexities of college student financial well-being.
• Website: https://www.naspa.org/events/2017scfwb
Work Group Recommendations • Central Michigan University 27Financial Wellness Collaborative May 2017
• 2017 Symposium on Collegiate Financial Well-Being, June 15-17, 2017 in
Washington, D.C.
National Endowment for Financial Education
“The National Endowment for Financial Education (NEFE) is the leading private
nonprofit 501(c)(3) national foundation dedicated to inspiring empowered financial
decision making for individuals and families through every stage of life.”
• Website: http://www.nefe.org/
• CashCourse: Signature educational program, free resource.
• Grant for $1,000- http://info.cashcourse.org/put-it-to-work/reimbursement-
program.aspx
National Orientation Director’s Association (Association for Orientation, Transition,
Retention) NODA – OTR
The leading organization for Orientation, Transition, and Retention (NODA) offers
guidance and competencies around identifying and assessing institutional barriers as it
impacts populations of students.
• Website: https://c.ymcdn.com/sites/noda.site-
ym.com/resource/resmgr/docs/CompetenciesBooklet.pdf
• “Assess institution’s access barriers/pathways as it impacts orientation,
transition, and retention within populations with diverse needs (e.g. financial aid
practices/ programs). Understand processes affecting enrollment, including
financial aid and admissions related procedures and support.”
Work Group Recommendations • Central Michigan University 28You can also read
