Five Key Findings from the National Student Financial Wellness Study and How You Can Support Student Financial Wellness

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Spencer Eaton
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1 Five Key Findings from the National Student Financial Wellness Study and How You Can Support Student Financial Wellness Anne McDaniel, PhD Bryan Ashton Catherine P. Montalto, PhD Kirstan Duckett, MPH

2 History 2

3 Background The National Student Financial Wellness study builds on a decade and a half of ongoing research at Ohio State Spending Habits Survey (2000, 2001, 2003) Student Financial Wellness Survey (2005, 2006, 2007, 2008, 2009) Ohio Student Financial Wellness Study (2010) - 19 Ohio colleges and universities, including 2 and 4-year institutions 3

4 4

5 Co-Investigators 5

6 Two-Year Public Asheville-Buncombe Technical CC Belmont College Chippewa Valley Technical College Columbus State CC Cuyahoga CC Sinclair CC Stark State College SUNY Orange County CC Four-Year Private Berry College DePaul University Flagler College Gustavus Adolphus College Husson University Indiana Wesleyan University Lafayette College Oberlin College Ohio Northern University Otterbein University University of Denver Wake Forest University Participating Institutions Four-Year Public Indiana University Iowa State University James Madison University Kansas State University Missouri State University North Dakota State University Northern Kentucky University Ohio State University Ohio University Pennsylvania State University Santa Fe College South Dakota State University Temple University Texas A&M University Texas State University University of Arizona University of California - Berkeley University of Cincinnati University of Idaho University of Missouri - Columbia University of Missouri -St Louis Four-Year Public, continued University of North Carolina - Wilmington University of North Dakota University of North Texas University of Northern Iowa University of Tennessee Chattanooga University of Utah University of Wisconsin La Crosse Utah State University Washington State University Weber State University York University* 6

7 Key Content Areas Financial Management Financial Support Financial Socialization Credit Cards Student Loans Entrance/Exit Counseling Debt Finance-Related Stress Cost of College Academic Plans Financial Knowledge Demographics 7

8 Survey Administration Administered via online survey to random samples of undergraduates during November schools launched January 2015 Students consent to survey and releasing educational records Survey took minutes, on average 8

9 Response Rates Recruited 163,714 students; 18,795 responded for a 11.5% response rate Response rates ranged from 4.0% to 25.7% 9

10 Key Findings 10

11 1. Student loans Preliminary Key Findings Areas 2. Credit cards 3. Financial behaviors and attitudes 4. Financial knowledge and education 5. Financial futures 11

12 Preliminary Key Findings Areas 1. Student loans 2. Credit cards 3. Financial behaviors and attitudes 4. Financial knowledge and education 5. Financial futures 12

13 Student Loans 64% 36% 71% Use student loans to pay for college Use student loans as their primary source of funding tuition Of students with loans take out federal loans; 19% take out federal and private loans 13

14 40% Expected Student Loan Debt at Graduation 30% 23.9% 20% 13.5% 16.5% 18.0% 14.1% 10% 6.9% 7.1% 0% 14

15 Student Loans 15

16 Student Loans 16

17 1. Student loans Preliminary Key Findings Areas 2. Credit cards 3. Financial behaviors and attitudes 4. Financial knowledge and education 5. Financial futures 17

18 Credit Cards 57% 47% 8% Have at least one credit card Pay their entire credit card balance monthly Have a credit card balance of $3,000 or more each month 18

19 1. Student loans Preliminary Key Findings Areas 2. Credit cards 3. Financial behaviors and attitudes 4. Financial knowledge and education 5. Financial futures 19

20 Financial Stress *p<.01, **p<

21 Budgeting **p<

22 1. Student loans Preliminary Key Findings Areas 2. Credit cards 3. Financial behaviors and attitudes 4. Financial knowledge and education 5. Financial futures 22

23 Financial Education **p<

24 Financial Education **p<

25 1. Student loans Preliminary Key Findings Areas 2. Credit cards 3. Financial behaviors and attitudes 4. Financial knowledge and education 5. Financial futures 25

26 Financial Futures 26

27 Financial Optimism **p<

28 How to Support Student Financial Wellness 28

29 1) Assess your student body 2) Understand current initiatives 3) Develop a campus wide team 4) Plan interventions 29

30 Campus interventions: - Develop financial capability - Address financial stress - Anticipate and offer just-in-time education - Support students in financial crisis 30

31 Promising Practices 31

32 Focus on borrowing, default rates and student financial stress Large increase in financial wellness programs Goals and effectiveness are still unknown Ownership is difficult Operating often in silos Counseling/Deficit based approach Promising Practices: Peer to Peer Education Future Focused Education Just in Time Education and Notification 32

33 Discussion Student Financial Concerns and Campus Based Interventions 33

34 Next Steps National findings released on July 1! go.osu.edu/nsfws Continued research 34

35 The Future

Average Loan or Lease Term. Average

Average Loan or Lease Term. Average Auto Credit For many working families and individuals, owning a car or truck is critical to economic success. For most, a car or other vehicle is their primary means of transportation to work. For those