Financial
Financial aid and financial wellness are threads that weave through the successful completion of postsecondary credentials, but also influence how Pennsylvania learners live their lives including building a career, a family, whether to buy a home, how they contribute to society, save for retirement, and potentially build intergenerational wealth.
According to the National College Attainment Network (NCAN), Pennsylvania learners in the class of 2023 left $115M of Pell grants unclaimed by not completing a Free Application for Federal Student Aid (FAFSA)1. Pennsylvania has the third largest average amount borrowed for the class of 2020 at $39,375 with 64 percent of learners accruing student debt2.
Multiple sources3 demonstrate there is no shortage of data regarding American's financial situation. Average credit card debt is over $6,000. Around 40 percent of Americans have less than $300 in the bank. Around half of Americans said they were having difficulty paying their bills in 2023, and 49 percent of Americans say their finances have a negative impact on their mental health.
Pennsylvania recently became the 25th state to require Financial Literacy classes for all high school graduates starting with the class of 2027.4 More colleges are offering finance courses to non-finance majors and many have created financial wellness centers on campus, in addition to their financial aid offices. Additionally, Act 35 requires that institutions incorporate credit card debt education and money management skills for students into orientation programs beginning in the 2024-25 academic year.
Institutions should determine what resources are available to learners, but also how they are made available. There is not a one-size-fits-all approach. Your institution can develop strategies to utilize the resources that already exist, like the financial aid office, and determine how they can be more effective and purposeful. Additionally, looking for outside resources from community-based organizations or financial experts can strengthen opportunities for student support. Approaches to promoting financial resources to students can include website information, regularly scheduled seminars, or even classroom presentations to first year students. Think outside the box and let us know what works best for you.
Resources
FAFSA® Application | Federal Student Aid is where students can apply for financial aid to attend any college or university, as well as other postsecondary opportunities within Pennsylvania and around the country. For more information on how it operates and for federal financial aid questions visit the FSA website.
PA FAFSA Go! is the Pennsylvania Department of Education's partnership with the Pennsylvania Higher Education Assistance Agency (PHEAA) and educational partners at the Pennsylvania Association for Student Financial Aid Administrators (PASFAA), the Pennsylvania Association for College Admission Counseling (PACAC), and the Pennsylvania School Counselors Association (PSCA) to promote completion of the FAFSA and offer resources and collaborations to high school counselors, financial aid officers, and community-based organizations in order to assist Pennsylvania learners with the financial aid process.
PHEAA: One of the Nation's Leading Student Aid Organizations is the Pennsylvania Higher Education Assistance Agency and offers a variety of publications, resources, and personnel who help students pay for postsecondary education. The Pennsylvania State Grant is the largest grant program in the state.
Foster Ed, or the PA Fostering Independence Tuition Waiver Program, was implemented to ensure that all tuition and fees are covered for students who were in the Foster Ed system after all other financial aid, including their Chafee Grant eligibility, has been applied to their balance.
Troutwood - A Financial Plan for Life allows students to start budgeting and creating a financial plan for free. There are a variety of educational tools available, including an investment calculator. The company is Pittsburgh-based and one of the creators also wrote The Missing Semester - Award Winning Financial Literacy Books from which many Pennsylvania schools have adapted curriculum for their students.
Higher Education Financial Wellness Alliance (HEFWA) is a network of professionals dedicated to bringing together postsecondary organizations to inform national conversations that impact the financial wellness field, public policy, and educational support services.
Trellis Strategies: Student Financial Wellness Survey - A powerful FREE resource for IHEs designed to illuminate the critical link between student success, finances, and mental health. Access their Student Financial Wellness Survey Fall 2023 Report (PDF).
The Penn State Sokolov-Miller Family Financial and Life Skills Center offers open-access financial resources such as:
Self Study Modules,
Webinars, and Events.
Regulations to Consider
Credit Card Marketing is mandated by Article XXIII-A of the PA Public School Code (Act 35 of 2023). Institutions of higher education must establish a policy that regulates the marketing of credit cards on campus. The policy may prohibit any marketing of credit cards on the campus. In establishing the policy, the institution of higher education shall, for students entering in the 2024-2025 school year, incorporate into orientation programming presentations on credit card debt education and money management skills for students.
Act 121 of 2018 was signed into law requiring Institutions of Higher Education (IHE) to inform their student loan borrowers, on an annual basis, of how much money they have borrowed to date for their education. IHEs may send the notifications on their own or contract with a third-party vendor. They must provide an annual attestation to PA Department of Education.
Thinking Strategically About Financial Supports for Learners
- What is the difference between financial aid and financial wellness?
- What supports do you have in place for emergency funding?
- Do you have a FAFSA completion strategy in place for applicants to your institution as well as for returning students?
- Does your institution offer a finance class for non-finance majors?
- Did you know that new legislation requires high school students, starting with the class of 2027, to complete a financial literacy course before graduation? How can you partner with secondary schools and support this requirement?
- Does your institution provide entrance and exit loan borrower counseling in person or online?
- What is your strategy and is it working for your borrowers?
- What is your institution's policy regarding credit card marketing on campus?
1 Pell Dollars Left on the Table | Tableau Public 2 Interactive Map - The Institute for College Access & Success (ticas.org) 3 20+ Incredible Personal Finance Statistics to Know in 2023 (spendmenot.com)Opens In A New Window;
The State of Personal Finance in America Q2 2023 - Ramsey (ramseysolutions.com) 4 Bill Information - Senate Bill 843; Regular Session 2023-2024 - PA General Assembly