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TG Updates

Shoptalk Online 501, April 28, 2009

TG Updates

TG Annual Training Conference spotlights dedication of FFELP community

More than 300 financial aid professionals gave an enthusiastic reception to this year's TG Annual Training Conference, held in Austin, Texas, from April 22-24. The 2009 TG Annual Training Conference offered a comprehensive menu of workshops on important financial aid issues, including default prevention strategies, tips for improving financial literacy, and regulatory changes. The conference, which was themed "Stepping Up for Students — The Rhythm of FFELP," considered current developments in the student loan industry and paid particular attention to the dedication and energy that financial aid professionals bring to their work.

Setting the beat
A rousing high school drumline helped kick off events during the opening general session on Wednesday, April 22. Sue McMillin, TG's President and CEO, set the conference tone with an address on the current state of the industry, noting that change brings opportunity. She reiterated TG's commitment to helping students realize their educational dreams through outreach initiatives, financial literacy programs, and training in debt management. She emphasized TG's support of borrower choice and its focus on the future of higher education.

Dora Ann Verde, chair of TG's Board of Directors, agreed, saying that TG strives to broaden access to higher education and remains dedicated to helping students in Texas and across the nation.

TV producer Bill Stainton presents the keynote address

Beatles' formula for success
Following the opening address, attendees were treated to a motivational program titled "The 5 Best Decisions the Beatles Ever Made," led by Bill Stainton, a TV producer and writer. Stainton delivered an energetic program on the Beatles' style of management — a formula that other teams or organizations can adopt. Components of the formula included:

Spread the spotlight (share the success).
Have a single, shared vision.
Play to your strengths.
Shake it up (take some risks).
Carry the weight (go the extra mile).

The audience played a part in Stainton's presentation, literally. Stainton invited attendees to join in various participation activities, including a rendition of the Beatles' "She Loves You" that closed the session.

Conference agenda online
Visit TG Online at www.tgslc.org/tgconference/index.cfm if you'd like to view details about this year's conference agenda. Presentation materials for particular sessions will be available online soon. If you have questions about this year's agenda or future events, contact Judith Cunningham at (800) 252-9743, ext. 2905, or send an e-mail message to judith.cunningham@tgslc.org.

Conference session considers effects of new three-year cohort default rate calculation

A new three-year cohort default rate (CDR) calculation has become the focus of much industry discussion. The change and its impact on school customers was also the subject of a special conference session delivered by Joe Braxton, TG default aversion consultant.

The presentation offered CDR projections by school type, using data volunteered by schools, including two public 4-year universities, a private 4-year university, a public 2-year community college, and a proprietary institution.

Conclusions included the following:

Among all cases, there were increases in the cohort default rate from two years to three years.
When the cohort default rate was calculated for seven years, the rate increase was more dramatic, indicating that the challenge to addressing default may lie further beyond the three-year window.
Trends in rate performance varied, which can be attributed to individual circumstances surrounding each institution, including changes in approach, industry-wide changes in enrollment trends, and other factors.
Similar observations were made when examining delinquency rates for these institutions, in comparison to default rates.

Given the data, the challenge remains similar to what it was — averting default regardless of the situation.

To learn more
Visit TG Online at www.tgslc.org/tgconference/index.cfm if you'd like to view details about this year's conference agenda. Presentation materials for particular sessions will be available online soon. If you have questions about this year's agenda or future events, contact Judith Cunningham at (800) 252-9743, ext. 2905, or send an e-mail message to judith.cunningham@tgslc.org.

Conference spotlight: Financial aid panel focuses on the value of the FFELP

(from right to left) Jim Reed, financial aid director for West Texas A&M University; Julia Benz, assistant vice chancellor of scholarships and financial aid, University of Denver; and Terry Bazán, director of student assistance for Austin Community College

(from left to right) Terry Bazán, director of student assistance for Austin Community College; Julia Benz, assistant vice chancellor of scholarships and financial aid, University of Denver; and Jim Reed, financial aid director for West Texas A&M University

Financial aid professionals from a variety of schools focused on the benefits of the FFELP during a conference session moderated by Kim Alexander, TG vice president for customer focus. The three presenters — Jim Reed, financial aid director for West Texas A&M University; Julia Benz, assistant vice chancellor of scholarships and financial aid, University of Denver; and Terry Bazán, director of student assistance for Austin Community College — offered anecdotal observations about the FFELP and its efforts to broaden access to higher education.

Proactive support, community presence
Reed said that lenders, servicers, and guarantors proactively help in resolving loan issues, including problems that arise with loan identification, processing, and related activities. He added that his students benefit from the "local connection"; that is, borrowers feel supported more effectively when they associate their loan with a lender that has a presence in their community.

Benz shared her unique and diverse experiences in implementing FFELP at three institutions — McAllister College, Rice University, and the University of Denver. She said that it was helpful that lawmakers provided institutions with freedom of choice, especially at a local level. She noted that the FFELP encourages the creation of a local community of people (guarantor, servicers, and lenders) that contribute to the program's success.

Bazán said that applying for a student loan represents the first interaction with a financial institution for many students. She added that this relationship then grows through adulthood. Bazán recalled that, in the days prior to FFELP, students had difficulty understanding that education funds were in fact a loan that they had to repay.

Financial literacy program directors share their expertise during conference panel presentation

More schools are pursuing financial literacy initiatives that help prepare their students for the financial realities of life after college. A session at this year's TG Annual Training Conference described four such campus efforts. TG's financial literacy program manager Margie Harvey hosted a "Best Practices in Financial Literacy" panel presentation featuring directors of financial literacy programs from various college campuses.

Providing a one-stop shop on financial literacy
Four presenters — Paul F. Goebel, director of the Student Money Management Center at the University of North Texas; Lytashia Grove, director of financial aid at the Chicago School of Professional Psychology; Mark Mielke, financial aid advisor at Texas A&M University; and Bill Spiers, director of financial aid at Tallahassee Community College — shared their experience with developing and leading their college's financial literacy initiatives.

Although all four panelists represent colleges that serve vastly different student populations with unique educational and career goals, the mission for all four programs was similar. Each program provides guidance and training to help students make smart personal finance decisions and lay a foundation for financial success throughout life. "We provide a one-stop shop for financial counseling so we don't have to send students elsewhere," said Mielke.

"Judging from the interest in the panel presentation, many schools have made educating their students about finances a priority," said Harvey. "Part of TG's mission is to provide support to help these schools with their financial literacy efforts."

To learn more
You'll also find a wealth of information and resources on financial literacy through the Positive+Balance Community^SM. To sign up for a membership, visit www.PositiveBalance.org.

Visit TG Online at www.tgslc.org/tgconference/index.cfm if you'd like to view details about this year's conference agenda. Presentation materials for particular sessions will be available online soon. If you have questions about this year's agenda or next year's event, contact Judith Cunningham at (800) 252-9743, ext. 2905, or send an e-mail message to judith.cunningham@tgslc.org.

Student retention planning vital to student success according to conference panelists

Many studies show an inverse relationship between the quality of student advising and student attrition. Early warning systems that help pinpoint students who are at risk for dropping out are increasingly effective tools for ensuring student success.

Information like this is important to faculty and staff and formed a large part of a TG conference session titled "Engaging Faculty and Staff for Student Success." Brent D. Cejda, associate professor in Educational Administration at the University of Nebraska-Lincoln, and Elizabeth Stanley, TG's director of student persistence and success, presented the session which, among other things, offered nine recommended steps for personalizing the advising process, including bonding, counseling, and coaching.

Retention is a shared responsibility
While many schools devote specific staff members to retention duties, other faculty, staff, and even other students can have a positive impact on student retention. Cejda and Stanley discussed trends in student retention, and shared information regarding the upcoming 2009 TG Student Success Symposia, a series of workshops for community colleges, independent colleges, and public universities interested in improving student persistence and success. Details about the symposia are available through TG Online.

To learn more
Visit TG Online at www.tgslc.org/tgconference/index.cfm if you'd like to view details about this year's conference agenda. Presentation materials for particular sessions will be available online soon. If you have questions about this year's agenda or next year's event, contact Judith Cunningham at (800) 252-9743, ext. 2905, or send an e-mail message to judith.cunningham@tgslc.org.

Conference spotlight: Measuring the success of financial literacy efforts

This year's TG Annual Training Conference offered attendees a unique training experience on financial literacy effectiveness — the "Financial Literacy Mini-symposium." TG's financial literacy program manager Margie Harvey and TG's integrated marketing manager Don Burns moderated the hour-long session during which participants discussed methods for measuring a program's success.

TG's financial literacy program manager Margie Harvey

"We organized this mini-symposium to share ideas and gather information on how schools can take their financial literacy programs to the next level," said Harvey. "Developing methods to measure a program's effectiveness will help schools strengthen their efforts."

Tools for success
Participants separated into three groups and brainstormed solutions for measuring and tracking success and improving student participation in financial literacy efforts. All three groups agreed that tracking cohort default rates was a good measure for gauging the effectiveness of financial literacy efforts. Tracking attendance at events was also a useful measure.

The groups suggested that surveys were one of the best qualitative methods for measuring success. "Surveys give you a reality check," said Harvey. "You may think that what you're doing is great, but then responses from surveys may tell you otherwise."

One solution for increasing participation is to require that students take a financial literacy course. Students could be tested at the beginning and the end of the course to measure how well they understood the concepts. "If scores increase, you will know your efforts are working and that you're moving in the right direction," said Burns.

Keeping track of the number of students that decline student loans each year may be another way to track effectiveness. The logic is that students with strong budgeting skills will be less likely to take out a loan if it is not absolutely necessary.

Throughout the hour-long mini-symposium, the discussion consistently focused on the importance of keeping in touch with students. "The best way to know if you're helping students and providing the information they need may be the most obvious - just ask them," said Harvey.

To learn more
Visit TG Online at www.tgslc.org/tgconference/index.cfm if you'd like to view details about this year's conference agenda. Presentation materials for particular sessions will be available online soon. If you have questions about this year's agenda or next year's event, contact Judith Cunningham at (800) 252-9743, ext. 2905, or send an e-mail message to judith.cunningham@tgslc.org.

Spotlight on creativity: Conference session offers ways to integrate creativity into work

Many people subscribe to the conventional wisdom that there are two types of people: creative people and everyone else. Others view creativity as a universal trait; for them, it's practically impossible to get through a day without making creative choices. The TG 2009 Annual Training Conference offered a variation of this debate with a thought-provoking "Creativity Workshop."

University of Iowa professor Shelley Berc helped lead a workshop on creativity

Shelley Berc, a University of Iowa writing program professor, and Alejandro Fogel, a visual artist with work in galleries and museums around the world, presented key concepts of a creative approach to life. Berc and Fogel's philosophy encourages 15-minute daily creativity breaks, teaches the hows and whys of daily self-nurturing, and provides an alternative to traditional thinking about creativity.

Creativity in the office
Using various real-life examples, including artist Joan Míro and author Herman Melville, Fogel illustrated the unique nature of human thought — humans are considered to be the only creatures who think in metaphor — and how failing can be a critical component of success. Berc discussed the unique ability of humans to empathize with others, or "put ourselves in another creature's shoes." In the financial aid office, this important skill can be key for providing creative responses to problems and designing customer service approaches that work.

To learn more
Visit TG Online at www.tgslc.org/tgconference/index.cfm if you'd like to view details about this year's conference agenda. Presentation materials for particular sessions will be available online soon. If you have questions about this year's agenda or next year's event, contact Judith Cunningham at (800) 252-9743, ext. 2905, or send an e-mail message to judith.cunningham@tgslc.org.

TG offers new training to help financial aid rookies knock it out of the ballpark

If you've ever wished for a resource to get your office's financial aid rookies ready for the big leagues, check out TG's new training series, "Financial Aid for Rookies." TG understands that schools face multiple challenges in constructing a training plan for staff who are new to financial aid. Timing, cost, and staffing issues seem to present the greatest issues. "Financial Aid for Rookies," with its Web-based, on-demand modules, has been developed to address those concerns by providing schools with a flexible way to access and use financial aid training.

Timing
"Financial Aid for Rookies" is available by your schedule. Oftentimes, new financial aid staff have to hit the ground running, acquiring skills and knowledge while on the job. This can lead to inconsistent training or even gaps in knowledge. TG's new training offers comprehensive training available any time. Even better, the session isn't just for beginners — it's also a great way to provide refresher training to staff on a particular topic. Online modules can also help staff member struggling with a particular topic or concept.

Saving costs and staff
With shrinking travel and training budgets, it may be more difficult than ever to find the funds to participate in certain types of financial aid training. TG is pleased to offer "Financial Aid for Rookies" as a freely accessible resource at no charge.

TG's program also saves you time and minimizes any staff loss because of training. The session doesn't require you to send team members to off-site training, or dedicate another staff member to serve as a trainer for others.

What's covered?
The Rookies series includes fundamental financial aid topics that are crucial to new staff. The following modules are currently available:

History and philosophy of financial aid
Financial aid application process
Student eligibility
Verification
Cost of attendance
Need analysis and EFC calculation
Financial aid packaging
Satisfactory academic progress

The information provided in TG's session is based directly on guidance from multiple sources, including the Higher Education Act of 1965, as amended; federal regulations; Dear Colleague Letters (DCLs); the Federal Student Aid Handbook; the Common Manual; and the FSA COACH.

Schools are in the best position to provide training to staff about policies and procedures, so "Financial Aid for Rookies" doesn't attempt to cover topics in that level of detail. TG encourages schools to provide additional information to staff about how a particular process works on your campus.

How can I use it?
Although schools can use TG's session as individual self-paced training, they may also use it to facilitate discussion and questions during group training. Every module has built-in pop quizzes, as well as quizzes that may be downloaded and printed for those who desire additional testing.

The modules generally last less than an hour; some of them, depending on the topic, are shorter. In order to access "Financial Aid for Rookies," users will need a computer with Internet access, media software, speakers, and, optionally, headphones.

More information
Visit the "Financial Aid for Rookies" page on TG Online at www.tgslc.org/training/rookies/index.cfm to access the modules and download the PDF quizzes. Shoptalk Online will announce additional training modules as they are developed.