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TH
EO
LOG
ICA
L
TH
EO
LOG
ICA
L STU
DEN
T
STU
DEN
T
IND
EB
TED
NESS
IND
EB
TED
NESS
PR
OJE
CT
PR
OJE
CT
RESOURCES &
RESOURCES &
TOOLSTOOLS
FOR FINANCIAL PLANNING &
FOR FINANCIAL PLANNING &
DEBT MANAGEMENT
DEBT MANAGEMENT
In a review of member websites of the Association of Theological Schools, it is clear that recommendations from prior studies of theological student indebtedness have been taken to heart by several schools.
STRATEG
IES
STRATEG
IES
Financial aid offices now
warn against the accumulation of too much debt, or encourage prospective
students to keep educational debt at a
minimum. Others encourage the elimination of consumer
debt prior to enrollment.
PR
INC
IPLE
S A
ND
PR
INC
IPLE
S A
ND
PO
LICIE
SPO
LICIE
SSchools also state clearly the principles
Schools also state clearly the principles
and policies related to its aid
and policies related to its aid
programs, with handbooks readily
programs, with handbooks readily
available on institutional websites.
available on institutional websites.
Others have developed instructional
Others have developed instructional
videos that share the philosophical or
videos that share the philosophical or
theological underpinnings of financial
theological underpinnings of financial
aid processes and awards, mounting
aid processes and awards, mounting
links to supporting resources such as
links to supporting resources such as
repayment calculators, information on
repayment calculators, information on
repayment options, personal finance
repayment options, personal finance
tools and financial planning websites.
tools and financial planning websites.
RESOURCESRESOURCES
Curricular initiatives have also positively impacted the debt burden of theological students, as have direct financial incentives to complete the degree program in a prescribed shorter length of time. These vary from institution to institution, but include:
Advanced standing for significant work in related disciplines during undergraduate or prior graduate and professional training;
CURRICULAR INITIATIVES
Hybrid courses combining intensive in-classroom and online education to allow for greater flexibility to engage in remunerative work;
Accelerated degree programs with full-time summer, weekend, or evening course offerings;
Scholarship programs that reward completion of degree requirements in a timely fashion.
CURRICULAR INITIATIVES
PARTIC
ULA
R
PARTIC
ULA
R
CO
NSTIT
UEN
CIE
S
CO
NSTIT
UEN
CIE
S
Some schools are offering preferential treatment in the awarding of financial aid or tuition discounts for spouses, alumni/ae, international and domestic missionaries, campus ministers, persons pursuing particular forms of ministry, persons from particular religious traditions, and emerging populations of prospective students.
It will be important to track the impact of these plans on recruitment and student indebtedness.
SETT
ING
DEB
T
SETT
ING
DEB
T
LIMIT
SLIM
ITS
In rare cases, some schools have
established a specific debt limit, requiring
a review of plans for further borrowing
and repayment prior to any relaxation of
the limit.
Other loan-avoidance or loan-reduction
strategies include the use of institutional
emergency loan funds in small amounts for
occasional needs, discouraging students from
taking out larger amounts at less preferable
rates from the federal government or private
lenders. EMERGENCY LOAN
EMERGENCY LOAN
FUNDSFUNDS
In a relatively recent development, schools that do not participate in the federal student loan programs or others who declined to resume direct lending have turned to private lending plans that are developed internally, in collaboration with similar institutions, or are available in the marketplace for graduate and professional students.
Some of these plans have reduced origination fees, opportunities to repay interest during education, or other features that place them in competition with the federal loan requirements.
PRIVATE LENDING PLANS
LOAN FORGIVENESS PROGRAMS
Loan forgiveness programs developed by denominations, often in exchange for commitments to serve in congregational leadership for a period of time or to work in underserved areas, are early in their operation.
Evaluation of the effects of programs such as these on debt reduction and persistence in ministry will determine their futures.
Efforts to slow down the easy access to student loans are on display in schools requiring that students complete budget and loan worksheets and meet with financial aid officers prior to the first disbursement of the loan.
This approach is in addition to the on-line entering student interview that is required in federal student loan processing.
SLOW DOWN THE PROCESS!
A SA
MPLI
NG
O
F T
OO
LS
A SA
MPLI
NG
O
F T
OO
LS
Specific tools and resources for
prospective and continuing
students to use in making
financial decisions appear with
some regularity, and
occasionally are required to be
completed prior to the
awarding of aid.
Any tool must be individualized
for the institution, its history
and theology, its student body,
and its locale. Here are some
samples.
STUDENT BUDGET WORKSHEETS
www.UPSEM.Edu/Admissions/Financial_Aid1
www.LancasterSeminary.Edu/Site/Default.aspx?PageID=92
www.LPTS.Edu/Admissions/Financial-Matters/Tuition-Grants/Income-and-Expense-Worksheet
ww
w.A
nder
son.E
du/S
OT/
ww
w.A
nder
son.E
du/S
OT/
Adm
issi
ons/
Adm
issi
ons/
Cou
ntingth
eCos
t.htm
l
Cou
ntingth
eCos
t.htm
l Instructional Video Pastors’ Resources Pastoral Compensation
101 Essential Resources for
Retirement, Compensation
Planning and other Worksheets
www.CPG.ORG/Seminarians/Retirement/
www.CPG.ORG/Seminarians/Retirement/
Planning-For-Retirement/
Planning-For-Retirement/
Retirement-Tools-Resources/
Retirement-Tools-Resources/
PlanAhead-Online
PlanAhead-Online
Financial Planning Tool for Postulants
Financial Planning Tool for Postulants
and Candidates for Holy Orders in the
and Candidates for Holy Orders in the Episcopal Church
Episcopal Church
www. GordonConwell.Edu/
www. GordonConwell.Edu/
Financial-Aid/Financial-
Financial-Aid/Financial-
AidBrochure.cfm
AidBrochure.cfm
Brochure on
Affordability Featuring
Student Narratives
Financial Wellness and Stewardship Tools for Students and Their Families
www.WartburgSeminary.Edu/Template_FutureStudents.asp?id=495
Financial Coaching Handbook With a
Template for “Money Autobiographies”www.LTSG.Edu/files/ce/ce0e0deb-
14e3-42b8-8ee0-9529e5f4c353.pdf
www.KnoxSeminary.Edu/Getting-
www.KnoxSeminary.Edu/Getting-
Started/Flexible-Payment-Plans
Started/Flexible-Payment-Plans
Flexible Payment
Flexible Payment
Plans to Deter Loans
Plans to Deter Loans
www.PTSEM.Edu/Student_Life/
Admissions_and_Financial_
Aid/Admissions/finaid/index.aspx?
id=7880
Workshops to Address
Workshops to Address
Financial Matters
Financial Matters
Blogs about Financial Aid
Blogs about Financial Aid
and “Living Like a
and “Living Like a
StudentStudent””
• www.DenverSeminary.Edu/Managing-
www.DenverSeminary.Edu/Managing-
Your-MoolahYour-Moolah
• Http://Http://
FrugalCommunity.Wordpress.com
FrugalCommunity.Wordpress.com
Finally, effective outreach to students does not always require sophisticated financial expertise or technological innovation.
At the end of the day, attention and creativity also do the trick.
Here is a link to photographs of how Garrett-Evangelical Theological Seminary highlighted its financial aid orientation through notices on a bulletin board--
www.Garrett.Edu/Admissions-Financial-Aid#Fiscally-Fit-Tips