The Five “Qs” of Public Service Loan Forgiveness

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#StudentLoanForgiveness. It’s a hashtag now, so you’ll all pay attention, right? Everyone wants their student loans forgiven. The perception is that very few qualify for any forgiveness programs. But did you know that there is one broad, employment-based forgiveness program for federal student loans? Most people don’t, or misunderstand how it works. Let me break down some key points of the Public Service Loan Forgiveness Program to help you figure out if you could qualify.

Can you check the all the boxes?

[ 1 ] Work in “Qualifying Employment”

First, you need to work in “qualifying” employment; that is, you must work in “public service.” But what does that mean? Everyone seems to have a different definition. Ours is based on who employs you, not what you do for your employer. The following types of employers qualify:

  • Governmental organizations – Federal, state, local, Tribal
  • Not-for-profit organization that is tax-exempt under Section 501(c)(3) of the Internal Revenue Code
  • A not-for-profit organization that provides some specific public services, such as public education, law enforcement, public health, or legal services

The following types of employers do not qualify:

  • Labor unions
  • Partisan political organizations
  • For-profit organizations

[ 2 ] “Qualifying Employment Status”

If you work at one of these types of organizations—great! That’s the most difficult criteria to meet. Next, you need to work there in a “qualifying” employment status, which means that you must be a full-time employee of the organization. Full time, for our purposes, generally means that you meet your employer’s definition of full time or work at least 30 hours per week, whichever is greater.

[ 3 ] Have a “Qualifying Loan”

A “qualifying” loan is a Direct Loan. It’s that simple. Of course, it’s the government, so nothing is actually that simple. You see, there are (or were) three big federal student loan programs:

  • The Direct Loan Program, which is now the biggest program,
  • The Federal Family Education Loan (FFEL) Program, which is what many students borrowed from until mid-2010, and
  • The Federal Perkins Loan Program, which is a relatively small program.

You may have loans from just one of these programs, or you may have borrowed from all three. If you’re not sure which loan program you borrowed from, I can’t blame you—I had 20 separate loans by the time that I finished graduate school! You can use the National Student Loan Data System to determine which program you borrowed from. Here’s a tip from me to you:  basically, if you see “Direct” in the loan type name, it’s a Direct Loan. Otherwise, it’s not.

Don’t have a Direct Loan? Don’t despair! You can consolidate your other federal student loans into a Direct Consolidation Loan and qualify that way. Not having a Direct Loan is the biggest reason that borrowers who are seeking Public Service Loan Forgiveness aren’t on the right track, so be sure that all of your loans that you want forgiven are Direct Loans before you proceed to the next step. If you do need to consolidate, be sure to check the box in the application that says that you’re consolidating for the purposes of loan forgiveness. It will make your life easier, I promise.

[ 4 ] Have a “Qualifying Repayment Plan”

Next, you need a “qualifying” repayment plan. All of the “income-driven repayment plans” are qualifying plans for Public Service Loan Forgiveness. So is the 10-year Standard Repayment Plan, but if you’re on that repayment plan, you should switch to an income-driven repayment plan straight away, or you will have a drastically lower loan balance left to be forgiven after you meet all of the criteria.

If you’re consolidating your loans, you can apply for an income-driven repayment plan in the consolidation application, but if you don’t, you will be placed on the Standard Repayment Plan for Direct Consolidation Loans, which is almost never a qualifying repayment plan for Public Service Loan Forgiveness. If you already have Direct Loans, you can submit an income-driven repayment plan application on StudentLoans.gov.

[ 5 ] Make 120 “Qualifying Payments”

Lastly, you need to make “qualifying” payments—120 of them. A qualifying payment is exactly what you would expect it to be. You get a bill. It has an “amount due” and it has a “due date”. Make the payment in that amount by the due date (or up to 15 days after), and the payment is a “qualifying payment”. If you make a payment when you’re not required to—say, because, you’re in a deferment or you paid your student loan early—then that doesn’t count. But if you reliably make your payment every month for 10 years, you should be okay. The best way to ensure that your payments qualify is to sign up for automatic payments with your loan servicer.

Note that these payments do not need to be consecutive. So, if you had made 10 qualifying payments, and then stop for a period of time (say, you go on a deferment), then start making qualifying payments again, you don’t start over; instead, you pick up where you left off.

And, I’m sorry to have to mention a seemingly arbitrary date, but a payment only qualifies if it was made after October 1, 2007, so nobody can qualify for Public Service Loan Forgiveness until 2017 at the earliest.

Ok, so do I qualify?

Now that you have the details, let me explain how all of the criteria work together. For any payment to count toward Public Service Loan Forgiveness, you need to meet all of the criteria when you make each payment. Stated differently, you need to be working for a qualifying employer on a full-time basis when you make a qualifying payment under a qualifying repayment plan on a Direct Loan. When you break these criteria down separately, it seems simpler. It’s when you try to pack it into one sentence that it seems overwhelming.

As much as I’d like to think that all of you now have a perfect understanding of this program and how it works, I know all of you are thinking—“okay, but do I qualify?” Here’s how you find out. Download this form. Fill it out. Have your employer certify it. Send it to FedLoan Servicing (one of our federal student loan servicers), queue up How I Met Your Mother on Netflix, and wait for an answer. FedLoan Servicing will do the following:

  • Check whether you have any qualifying loans.
  • If you have qualifying loans, validate that your employment qualifies. If none of your loans qualify, they’ll tell you so.
  • If your employment qualifies, they will send you a letter confirming that your employment qualifies. Then, any of your federally held loans that are not serviced by FedLoan Servicing will be transferred to them so that we can keep better track of your loans and payments for Public Service Loan Forgiveness. If your employment doesn’t qualify, they’ll tell you so.
  • After your loans are transferred, they will match up the dates of employment on the form that you submitted to the payments you made during that time and determine how many qualifying payments you made. You’ll receive a letter with a count of qualifying payments and an anticipated forgiveness date (which assumes that all your future payments also qualify).

It’s after you get this payment count back that you’ll know whether you’re on the right track. So, it really is a good idea to submit this form early and often. We recommend that you submit the form once per year or when you change jobs. The beauty of submitting these forms early and on an ongoing basis is that it means that you won’t have to submit 10 years’ worth of them when you ultimately want to apply for forgiveness. It also means that when you apply for forgiveness, that you’ll be able to do so with confidence that you qualify for it.

One more piece of good news: Public Service Loan Forgiveness is not considered income by the IRS. That means that it’s tax-free.

Ian Foss has worked as a program specialist for the Department of Education since 2010. He’s scheduled to be eligible for Public Service Loan Forgiveness on October 6, 2021, if all goes according to plan.

Are You Ready to Pay for College?

On April 1st President Obama announced April as National Financial Capability Month with a focus on ensuring all Americans have the tools they need to navigate the financial world and gain economic freedom. In today’s economy, financial capability is essential for managing through some of life’s biggest transitions, including paying for college. A solid understanding of money management basics makes it easier to avoid scams, spot misleading information, and make sound financial decisions on financing your education and avoiding unmanageable debt when you graduate.

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The first step in paying for college is to complete the FAFSA (Free Application for Federal Student Aid) at www.fafsa.gov. Federal Student Aid has over $150 billion in financial aid available for college and it all starts with the FAFSA. The FAFSA is FREE, so you should never have to pay to have someone submit it for you. In addition, many states also have state aid available to help finance your education. You’ll want to make sure to complete your FAFSA by the priority deadline for your state to be eligible for those additional funds.  You should also spend time looking for scholarships. Many are based on your interests, community service, organization affiliations, etc. and not just your grades. StudentAid.gov has lots of great information and resources on planning and paying for college including how to search for scholarships.

Once you’ve completed your FAFSA, you won’t get a check in the mail from the government. There’s a little more to it than that. Once you’ve been accepted to the school of your choice, they will send you a financial aid award letter listing all the financial aid you are eligible for. The timing of the aid offer varies from school to school, and you could receive an aid offer as early as spring (awarding for the fall). You’ll want to be an informed consumer and make sure to closely review your aid offer. You can also compare offers from different schools to see which might be best for you. And you don’t have to accept everything that’s offered.  The rule is free money first (scholarships and grants), then earned money (work-study), and then borrowed money (federal student loans). Check out this handy chart that illustrates the order in which you should accept financial aid.

If you do have to take out student loans make sure to borrow only what you need and try and limit borrowing to federal student loans. Federal student loans typically have lower interest rates and more flexibility when it comes time to pay them back. Federal Student Aid also has a Repayment Estimator which can help you get an idea of what your monthly student loan payment may be when you graduate. This tool will help you see what impact the loans you are about to get can have on your future finances. Don’t wait until you’re ready to graduate to find out what those student loan payments might be and wonder if you can afford them!

Education is an important step in getting a good paying job and can lay the foundation for your financial future. Plan ahead and make smart decisions about how you finance it.

Susan Thares is the digital engagement lead at the Department of Education’s office of Federal Student Aid

5 Things You Need To Know About Your Student Loans

info-person at computerIf you’re anything like me, you probably neglected to read all the fine print when you first took out your student loans. Now it’s time to start repaying them, and you have no idea where to begin…

Lucky for people like us, many federal student loans have a grace period, which is a set period of time after you graduate, leave school, or drop below half-time enrollment before you must begin repaying your student loans. The grace period gives you time to get financially settled and to select your repayment plan. For those of you who have graduated within the last six months, chances are that time is almost up.

So to get you started, here are five things you should know about your student loans:

  1. Loan Types

You may have federal loans, private loans, state loans, loans from your school, or some combination. Different loan types can have very different terms and conditions, so be sure you know what types of loans you’ve got.

To see all of your federal student loan information in one place, you can visit www.nslds.ed.gov. Once you log in, you can access a list of your federal student loans, including the loan type and information for your loan servicer.  A loan servicer is the company that will handle the billing and payments on your federal student loans.

For all other types of loans, consult your records. If you have questions about the type of a loan, you can try contacting the financial aid office at the school you were attending when you took out the loan.

  1. Loan Balance

Once you’ve tracked down all of your loans, you’ll want to find out what your total loan balance is. This will help you determine a plan for repayment.

For your federal student loans, www.nslds.ed.gov will display your loan balance. For private and other student loans, you’ll want to check with your lender.

  1. Loan Interest

Remember, a student loan is just like any other loan—it’s borrowed money that will have to be repaid with interest. As interest accrues, it may be added to the total balance of your loan if left unpaid. As a recent graduate, you may want to consider making student loan interest payments during your grace period to save money on the total cost of your loan.

  1. Repayment Options

Depending on the types of loans you have, you will have different repayment options.

Federal student loans offer great benefits, including flexible repayment options. Some options include tying your monthly payment to your income, extending your payments over a longer period of time, or combining multiple loans into one.

Want to compare what your monthly payment would be under each of our repayment plans? Try our Repayment Estimator! Once you figure out which repayment option is right for you, contact your loan servicer to enroll in that plan.

For non-federal loans, you’ll want to check with your lender to see what types of repayment options are offered.

  1. Repayment Terms and Benefits

Familiarize yourself with the repayment terms of all your loans. Here are some things to keep an eye out for:

Ok, that’s a lot to take in, but hey, if you could survive the final exams, the all-nighters and even a crazy roommate or two, figuring out a plan for repaying your student loans should be a walk in the park. If any point you have questions or need advice, don’t hesitate to contact your loan servicer. That’s what they’re there for.

Nicole Callahan is a new media analyst at the Department of Education’s office of Federal Student Aid.

5 Things to Consider When Taking Out Student Loans

student loan repaymentFederal student loans can be a great way to help pay for college or career school.  While you shouldn’t be afraid to take out federal student loans, you should be smart about it. Before you take out a loan, it’s important to understand that a loan is a legal obligation that you will be responsible for repaying with interest.

Here are some tips to help you become a responsible borrower.

  1. Keep track of how much you’re borrowing. Think about how the amount of your loans will affect your future finances, and how much you can afford to repay. Your student loan payments should be only a small percentage of your salary after you graduate, so it’s important not to borrow more than you need. To view all of your federal student loan information in one place, go to nslds.ed.gov, select Financial Aid Review, and log in.
  2. Research starting salaries in your field. Ask your school for starting salaries of recent graduates in your field of study to get an idea of how much you are likely to earn after you graduate. You can use the U.S. Department of Labor’s Occupational Outlook Handbook to estimate salaries for different careers or use a career search tool to research careers and view the average annual salary for each career.
  3. Understand the terms of your loan and keep copies of your loan documents. When you sign your promissory note, you are agreeing to repay the loan according to the terms of the note even if you don’t complete your education, can’t get a job after you complete the program, or you didn’t like the education you received.
  4. Make payments on time. You are required to pay the full amount required by your repayment plan, as partial payments do not fulfill your obligation to repay your student loan on time.  Find out more about student loan repayment, including when repayment starts, how to make your payment, repayment plan options, and more!
  5. Keep in touch with your loan servicer. Notify your loan servicer when you graduate; withdraw from school; drop below half-time status; transfer to another school; or change your name, address, or Social Security number. You also should contact your servicer if you’re having trouble making your scheduled loan payments. Your servicer has several options available to help you keep your loan in good standing.

Remember, federal student loans are an investment in your future so invest wisely.

Tara Young is a communication analyst at the Department of Education’s office of Federal Student Aid

What Is a Student Loan Servicer and Why Should I Care?

repayment plan imageSo you took out a federal student loan and now it’s time to pay it back. I was in your exact position 2 years ago and even though I was working at Federal Student Aid, the student loan repayment process had me overwhelmed.

One of my first questions was: Why am I receiving federal student loan bills from a company rather than the U.S. Department of Education? If you have asked yourself a similar question, this may help:

What is a loan servicer?

A loan servicer is a company that handles the billing and other services on your federal student loans. So those bills you get in the mail? There is a good chance they are coming from a loan servicer on behalf of the U.S. Department of Education.

How do I find out who my loan servicer is?

To view information about all of the federal student loans you have received and to find contact information for your loan servicer, visit www.nslds.ed.gov and select “Financial Aid Review.” You will then be prompted to log in using your Federal Student Aid PIN, so make sure you have that handy.

Note: If you have multiple federal student loans, you may have more than one loan servicer, so make sure you click through each loan individually for information specific to that loan.

Why should I care?

There are lots of reasons you should care!  Among many other things, your loan servicer

Moral of the story: Keep in contact with your loan servicer.

The student loan repayment process can be confusing, especially if you’re new at it, but your loan servicer is there to help. Make sure you stay in touch with them and use the resources they have available for you.

Nicole Callahan is a new media analyst at the Department of Education’s office of Federal Student Aid.

Class of 2013: What’s Next for Your Student Loans?

choose a repayment plan imageI’m not afraid to admit that being a college senior is a little frightening (okay, slight understatement-it’s extremely frightening!) As the Class of 2013 prepares to say goodbye to the comforts of our college community and say hello to the real world, we are faced with many realities. Where will I live? How am I going to find a job? Will I make ends meet?  Will I be happy?

And with all these new exciting challenges and responsibilities, one of the last things on most of our minds is repaying our student loans. Yet it’s one of our responsibilities and we should be prepared for when the first bill arrives in the mail.

I will be honest in saying that this repayment process is a little intimidating, and before writing this post I was at a loss of where to begin. Luckily, the Department of Education’s Office of Federal Student Aid (FSA) has tools available to walk soon-to-be grads through the loan repayment process:

  • Exit Counseling: Recently redesigned to be more interactive, Exit Counseling provides important information to student borrowers who are preparing to begin student loan repayment. Exit counseling is required when you graduate, leave school, or drop below half-time enrollment, so talk to the financial aid office at your school about completing it.
  • Federal Loan Repayment Plans: Understanding the details of repayment can save you time and money. Find out when repayment starts, how to make your payment, repayment plan options, what to do if you have trouble making payments, and more!
  • Repayment Estimator: Federal Student Aid recently launched a Repayment Estimator that allows you compare your monthly student loan payment under different repayment plans to help you figure out which option is right for you.  Once you log-in, it will automatically pull in all of your federal student loan information so you can compare repayment plans based on your specific situation.

So with all of these great resources, I’ve found that things are clearer, and not quite as scary. Class of 2013 we are about to embark on a new adventure, best of luck to each and every one of you!

For additional information and tips, visit Federal Student Aid on Twitter , Facebook, and YouTube.

Kelsey Donohue is a senior at Marist College (N.Y.), and an intern in ED’s Office of Communications and Outreach

Finding the Right College For You – Tools & Resources from ED

If you are a high school senior who has yet to decide where you’re going to college this fall, you are most likely not alone. May 1st marks the National College Decision Day where the vast majority of U.S. colleges and universities require students to notify them of their decision to attend.

As you navigate the college decision process, the U.S. Department of Education provides tools for you and your family to make it easy to compare important information such as college costs, average student loan debt, and graduation rates across different institutions.

If you are a student or the parent of a college-bound teen struggling with this decision, here are a few tools that can help:

Federal Student Aid The College Scorecard

The College Scorecard includes essential information about a particular college’s cost, its graduation rates and the average amount its students borrow, all in an easy-to-read format. It is designed to help you compare colleges and choose one that is well-suited to your individual needs.

Net Price Calculator Center

Federal Student Aid

The Net Price Calculator Center provides an easy tool to explore the net price of any given college- that is, the price after subtracting the scholarships and grants you are likely to receive. Then, you can easily compare estimated net prices across the institutions that you are considering.

Financial Aid Shopping Sheet

Many colleges and universities have adapted a Shopping Sheet which will be included in your financial aid package. The Shopping Sheet provides personalized information on financial aid and net costs as well as general information on institutional outcomes- all in a standardized format. This tool provides an easy way to make clear comparisons among financial aid offers that you may receive.

FSA2

College Navigator

College Navigator is an interactive website that allows you to explore and compare features of different institutions, including programs and majors, admissions considerations, campus crime statistics and more.

For additional tips visit Federal Student Aid’s Choosing a School resources and follow @USEDGOV & @FAFSA on Twitter.

Now that you have the resources and the tools to pick the right college, you can let out a sigh of relief and show your campus pride with that coveted university sweatshirt. Congratulations!

Kelsey Donohue is a senior at Marist College (N.Y.), and an intern in ED’s Office of Communications and Outreach

Focus on Financial Empowerment This Month

President Obama has proclaimed April to be Financial Capability Month, and what better time to focus on the range of tools available to students and their families to make smart financial decisions around postsecondary education?

Piggy Bank ImageIn his proclamation, President Obama noted the new tools released by the Department of Education that give students and families clear, transparent information on college costs so they can make good choices when they invest in higher education. One of these tools—the College Scorecard—is part of President Obama’s continued efforts to hold colleges accountable for cost, value and quality. The Scorecard highlights key indicators about the cost and value of institutions across the country, helping students choose a school that is well-suited to meet their needs, is priced affordably, and is consistent with their educational and career goals.

The Obama administration has also simplified the FAFSA, the free application for federal student aid, which is the first step in determining eligibility for federal grants and loans. In addition, ED is empowering high school counselors and local leaders through the FAFSA Completion Project to help ensure that students get all of the aid for which they qualify by giving them a resource to monitor FAFSA completion rates of their students.

Furthermore, ED recently released a suite of new tools to help students and families make informed and wise decisions around college financial decisions.  The Financial Aid Shopping Sheet is an individualized financial aid award letter in a standardized format that helps students understand their costs and compare financial aid packages from different institutions so they can make smart decisions on investing in higher education. ED has also improved the financial education tools available to students, and within the last year we have revamped entrance and exit loan counseling and introduced a financial education tool for students in college.

President Obama has set a goal that the United States will once again lead the world in college completion. We will reach this goal only if we ensure that all students have the opportunity to access and complete postsecondary education—and are equipped to make the important financial decisions that will lead to a strong middle class. The US Department of Education stands committed to providing ladders of opportunity to make this a reality for all students, starting with sound financial knowledge and tools.

Martha Kanter is the Under Secretary of Education

New Tools for Student Loan Borrowers

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Spring is here, college finals are looming, commencement speakers are being announced, and before long, a new group of college graduates will need to start thinking about paying back their student loans. Earlier this week, the Department of Education announced new tools that will help recent college grads better understand their loan debt and stay on track in repayment.

These two new features include a Complete Counseling Web page and a new Repayment Estimator that lets the borrower easily compare monthly payment options under the seven repayment plans available. Both tools are part of the Obama Administration’s ongoing effort to help students and families make informed and sound financial decisions throughout each step as they pursue their higher education goals.

During his State of the Union address in February, President Obama unveiled the new College Scorecard to help empower students and families with more transparent information about college costs and outcomes. The Scorecard provides clear, concise information on cost, graduation rates, loan default rates and the amount families borrowed for every degree-granting institution in the country. The College Scorecard, along with the resources from Federal Student Aid, will help students take the right steps, financially and academically, to achieve their college degree.

As many know, managing loans can often be confusing and overwhelming for college students, and we want to ensure that graduates have access to tools that will help them successfully navigate this process. We encourage federal student loan borrowers to log in at StudentLoans.gov to take advantage of these new resources today!


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Kelsey Donohue is a senior at Marist College (N.Y.), and an intern in ED’s Office of Communications and Outreach

Student Reflections: The National Financial Capability Challenge

This morning, at the U.S. Department of Education headquarters in Washington, DC, Secretary of Education Arne Duncan and Deputy Secretary of the Treasury Neal Wolin joined members of the President’s Advisory Council on Financial Capability to recognize some of the highest-scoring students who participated in this year’s National Financial Capability Challenge.

The Challenge, which includes a voluntary online exam for high school students, helps teach young Americans about important skills critical to a securing a strong financial future, including saving, budgeting, and investing. During the 2010-2011 school year, more than 84,000 high school students and 2,500 educators in all 50 states, as well as in U.S. Department of Defense schools for children of military members around the world, participated in the Challenge. 

A few of the top-scoring students honored at today’s ceremony at the Department of Education wrote to us about their experience taking the Challenge: 

Megan Reichart from Meadowbrook High School in Virginia:
“The National Financial Capability Challenge serves as an excellent tool for the government to gauge the capacity of its youth’s financial literacy, and for individual students to compare themselves to a national standard of competency expectations. For our generation, understanding financial matters will be crucial to our future success. But this challenge is only the first step. The government’s emphasis on financial and basic economic education is crucial because finances will be a part of every student’s future regardless of his or her field of study. I am grateful to have the opportunity to be exposed to a financial education through my marketing class at school. However, not all schools offer such opportunities. Through the National Financial Capability Challenge, the importance of financial competency will receive greater recognition.” 

Anna Martin from Ephrata Area School District in Pennsylvania:
“The Financial Challenge was a great way to test how much students know about real-life financial situations. It also allows teachers to see how prepared students will be for the real world once they graduate high school, since finance is a major part of life. The students will have to deal with financial situations similar to those on the test and need to know how to handle them. Plus, these financial skills will benefit students their entire life and will be constantly used, since finance doesn’t go away with age.” 

Carlos Riveros-Sabogal from Applications and Research Laboratory in Maryland:
“I believe the Financial Capability Challenge is important because it allows students to demonstrate their ability to handle money wisely. In today’s economy, it is vital for young people to learn how to handle their finances properly to avoid financial struggle. This is why I am very thankful for having received the financial education I gained from my Finance instructor.” 

Nicole Falcone from Delaware Military Academy in Delaware:
“I think the Challenge is important because it showed me that I knew more about personal finance and business than I thought I did. I am also very appreciative of my teacher for teaching me about the Challenge because this is such a wonderful opportunity. I’ve never been to Washington, DC and I am also very grateful to possibly earn scholarship money. I would recommend the Challenge to other students because it only takes a short amount of time, but could result in so many amazing opportunities.” 

Sean Maloney from Gonzaga College High School in Washington DC:
“The Financial Capability Challenge was a very interesting experience for me. I learned a lot through the classes we took after school. I think that this class has given me and many of my classmates a head start in the world. I would like to thanks Ms. Tobin and all our guest speakers – Mr. Nico Medina and Mr. Ted Daniels, among others – for taking the time to work with us. I would also like to thank Mrs. Una Daniels-Edwards for coordinating our guest speakers. I am looking forward to participating in the Challenge again next year. It was a very positive experience and was also fun.” 

Cross-posted from Treasury Notes.

ED Hosts Financial Literacy Summits

Photo of ClassroomFor far too many students and families, the lack of financial literacy is a major roadblock on the path to entering college and succeeding once enrolled. Students who leave college early report financial reasons as a major factor, and research shows that something as simple as opening a savings account early makes it much more likely that a student will attend college.  This is why it’s important that we teach students at an early age how to make smart decisions about money.

The Department of Education has partnered with the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) to help families build strong financial futures that include paying for higher education.

The Department has joined NCUA in conducting conferences across the country to encourage partnerships between schools and financial institutions that promote financial education, access, and savings for students and their families.  These conferences were launched in March in Phoenix, Ariz., Richmond, Va., and Philadelphia, Pa., and will continue throughout the year.

The third of these conferences was held on Thursday, March 17 in Philadelphia and brought together education officials, community groups, and financial institutions for a conversation about financial literacy programs currently in place, opportunities for future partnership efforts, and challenges to implementing these programs. I joined NCUA representative Diane Rector in a workshop that facilitated partnership opportunities.

William Garfinkel of the Mobile Notary of Delaware remarked, “The Department’s message of financial literacy is certainly an important one, and one that more people need to hear.” As a result of this conversation, the Department was invited to speak to a Delaware Credit Union conference in April.

Bryan Yasukochi, a University of Pennsylvania Wharton School student and the VP of marketing at the Student Federal Credit Union, was very interested in seeing what resources were available.  He hoped that the Department of Education would be able to speak to Wharton students about financial literacy and forming partnerships.

In addition to ED’s Financial Literacy Summits, high school teachers can bring financial literacy to the classroom by taking part in the 2011 National Financial Capability Challenge, a program designed to improve students’ knowledge of the basics of saving, budgeting, and investing. To register for the Challenge or to download the Educator Toolkit, visit Challenge.Treas.gov.

We have all been challenged by the President to make America once again the leader in college completion by 2020. Providing families and communities opportunities for financial access and education will play an important role in helping students go to college and succeed. Together, with partnership, we can meet the President’s college completion goal and help families gain financial security.

Elizabeth Williamson is an education program specialist in the Department of Education’s Philadelphia office of communications and outreach

National Financial Capability Challenge

Today is the first day of the 2011 National Financial Capability Challenge! Check out this video message from Secretary Duncan encouraging high school teachers to sign up their students to participate. See the press release. Read a blog post by a high school business teacher.

If we teach students about money while they’re young, they’ll be in better financial shape in the future. We’re hoping the Challenge will encourage state and local leaders to weave financial education into schools—starting even earlier than high school—so students are ready to make important financial decisions when they need to.

Phil Martin
Office of the Secretary


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