FINANCIAL LITERACY REQUIREMENTS

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FINANCIAL LITERACY REQUIREMENTS

• Chris Conway - NELA Services
• Tim Fitzgibbon - NCHELP

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Requirements for Outreach and Financial Literacy

• College Access Initiative (HERA)
• Consumer Education Information (HEOA 433A)
• Financial and Economic Literacy (HEOA 428F)
• Coordinated Education Efforts (HEOA Title X)

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SEC 485D - COLLEGE ACCESS INITIATIVE

• (a) STATE-BY-STATE INFORMATION.The Secretary
  shall direct each guaranty agency with which the
  Secretary has an agreement under section 428(c)
  to provide to the Secretary the information
  necessary for the development of Internet web
  links and access for students and families to a
  comprehensive listing of the postsecondary
  education opportunities, programs, publications,
  Internet web sites, and other services available
  in the States for which such agency serves as the
  designated guarantor.

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SEC 485D - COLLEGE ACCESS INITIATIVE

• Promote access to college through college
  planning, career preparation and how to finance a
  higher education.
  
• Special emphasis on ensuring that populations
  that are traditionally underrepresented receive
  the information.

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SEC. 433A. CONSUMER EDUCATION INFORMATION

• (a) IN GENERAL.Each guaranty agency shall
  develop and make available high-quality
  educational programs and materials to provide
  training for students and families in budgeting
  and financial management, including debt
  management and other aspects of financial
  literacy The activities described in this
  section shall be considered default reduction
  activities for the purposes of section 422.

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SEC. 433A. CONSUMER EDUCATION INFORMATION

• (b) RULE OF CONSTRUCTION.Nothing in this section
  shall be construed to prohibit
  
• (1) a guaranty agency from using existing
  activities, programs, and materials in meeting
  the requirements of this section
  
• (2) a guaranty agency from providing programs or
  materials similar to the programs or materials
  described in subsection (a) to an institution of
  higher education that provides loans exclusively
  through part D or

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SEC. 433A. CONSUMER EDUCATION INFORMATION

• (b) RULE OF CONSTRUCTION.Nothing in this section
  shall be construed to prohibit
  
• (3) a lender or loan servicer from providing
  outreach or financial aid literacy information in
  accordance with subsection (a).

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SEC 428F. DEFAULT REDUCTION PROGRAM

• (c) FINANCIAL AND ECONOMIC LITERACY.Each program
  described in subsection (b) shall include making
  available financial and economic education
  materials for a borrower who has rehabilitated a
  loan.

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SEC. 487. PROGRAM PARTICIPATION AGREEMENTS

• SEC. 487(e)(2)(B)(ii)(I) (ii) EXCEPTIONS.The
  term gift shall not include any of the
  following
  
• (I) Standard material, activities, or programs on
  issues related to a loan, default aversion,
  default prevention, or financial literacy, such
  as a brochure, a workshop, or training.

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SECTION 140 OF TRUTH IN LENDING ACT

• SEC 140A(a)
• (B) does not include
• (i) standard informational material related to a
  loan, default aversion, default prevention, or
  financial literacy

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Subtitle DFinancial Literacy Studies and Reports

• SEC. 1042. COORDINATED EDUCATION EFFORTS.
• (a) IN GENERAL.The Secretary of the Treasury, in
  coordination with the Secretary of Education, the
  Secretary of Agriculture and any other
  appropriate agency that is a member of the
  Financial Literacy and Education Commission shall
  seek to enhance financial literacy among students
  at covered educational institutions

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COORDINATED EDUCATION EFFORTS

• Identify programs that promote or enhance
  financial literacy for college students.
  
• Partnerships between non-profits, colleges and
  universities, state governments and students.
  
• Evaluate, promote and encourage use of best
  programs.
  

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WHATS HAPPENING?

• All guarantors have or do something that
  qualifies as financial education.
  
• Online curriculum.
• Web sites devoted to money management.
• Guarantor site content.
• In-person sessions.
• Publications.

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WHATS HAPPENING?

• How do we reach a larger audience with fewer
  resources?
  
• How do you define
• Financial and economic educational materials?
• High-quality educational programs and materials?

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WHATS AVAILABLE?

• Free Resources
• NEFE Cash Course
• Jumptart Coalition for Personal Financial
  Literacy (Clearinghouse)
  
• Mapping Your Future
• Celebrity Calamity
• Practical Money Skills for Life

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WHATS AVAILABLE?

• Proprietary Resources
• MoneyU
• GradReady
• What else have you seen or heard about?
• What is your agency doing?

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WHATS AVAILABLE?

• MoneyU
• Self-directed learning
• Appealing to Digital Learners
• Ten hours of content
• Measurable effectiveness

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WHATS AVAILABLE?

• Grad Ready
• Incremental approach based on year in school
• Speaks to YouTube generation

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WHATS AVAILABLE?

• Grad Ready
• Real-world tools budgets, calculators,
  repayment modelers to make smart money
  decisions
  
• Health assessment with 24 questions half
  knowledge, half behavioral
  

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Access Ready

• Pre-enrollment instruction on how to fund an
  education

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My Money Manager

• In-school financial literacy lessons delivered
  from a students My Account Page
  

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Repayment Ready

• Tools and Resources to help borrowers understand
  their repayment options and prevent default

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WHATS AVAILABLE?

• What do you look for in an online program?
• What do your students expect?
• Can you create it on your own? Or would you
  partner with or purchase from another?
  

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FINANCIAL LITERACY REQUIREMENTS

• Chris Conway - NELA Services
• Tim Fitzgibbon - NCHELP