ECFFM: A Theological School Initiative to Address Economic Challenges Facing Future Ministers

Transcription

1 ECFFM: A Theological School Initiative to Address Economic Challenges Facing Future Ministers

2 ECFFM Goals Conduct Research into financial assumptions/practices that result in student debt Imagine and Implement New Strategies for lessening financial burdens Create and/or Strengthen Educational Programs that prepare future financial leaders Initiate or Enhance Partnerships with those who can address these circumstances

3 Overview of the Initiative 67 participating schools Reaching 17,670 students Representing 27 denominations

4 Questions for Reflection Give a very brief overview of your project. If the ECFFM Initiative is a journey, where are you on that journey individually and as an institution?

5 ECFFM Peer Groups 1. Issues facing Catholic Seminaries 2. Financial Literacy Programs 3. Theology of Debt and Finances 4. New Institutional Financial Models 5. New Funding Models for Students 6. Partnering with Congregations 7. Debt Strategies for Black Students 8. Research Forum 9. Simplicity (April 2016)

6 Questions for Reflection What have been the most significant aha moments in your project?

7 During the first year of the project: Financial Counseling One-on-One: 1,606 hours with 985 students Small Group: 3,415 hours 960 students Mentors: Almost 200 faculty, administrators, clergy, and financial experts

8 During the first year of the project: Financial Literacy Programs Workshops: 141 reaching 2,947 students Courses: 847 students enrolled in 41 courses

9 ECFFM Aha! Moments Financial Literacy programs can have an immediate impact on individual students. The are most effective when: They are required They involve one-on-one financial counseling They are connected to a students vocation and calling Source: Grand Rapids Theological Seminary Source: Winebrenner Theological Seminary

10 ECFFM Aha! Moments Setting up borrowing roadblocks helps, especially when: Students receive clear information about projected loan payments and potential salaries Source: Western Seminary s You Can Do It Booklet

11 ECFFM Aha! Moments Addressing financial challenges for students requires institutional/cultural change A connection to mission A common message from faculty, staff, and administration

12 ECFFM Aha! Moments Almost ½ of students in ATS schools graduate without incurring any additional educational debt 13% ALL STUDENTS 11% 14% 46% None Less than $20K Incurred $20K to $39.9K $40K to $59.9K More than $60K 16% Source: ATS Graduating Student Questionnaire

13 ECFFM Aha! Moments Decreasing financial debt and increasing financial literacy for future pastors increases their ability to lead well

14 ECFFM Aha! Moments Partnering on financial issues is strengthening relationships between seminaries, local congregations, denominational entities and other resource organizations

15 ECFFM Aha! Moments 1. Impact of financial literacy programs 2. Effectiveness of borrowing roadblocks 3. Need for institutional/cultural change 4. Recognizing students not incurring debt 5. Increases in ability to lead well in ministry 6. Strengthening of relationships with constituents

16 Questions for Reflection What have been some of the oh dear moments?

17 ECFFM Oh Dear! Moments Students cannot follow the same financial pathways as previous generations and still graduate with manageable debt

18 ECFFM Oh Dear! Moments The impact of debt varies by: Gender Marital status # of dependents Race/ethnicity Age though not in the same way

19 Educational Debt Brought to and Incurred in Seminary by Gender, All Students Educational Debt Brought Educational Debt Incurred 100% 100% 90% 90% 80% 80% 70% 70% 60% 50% More than $60K $40K to $59.9K $20K to $39.9K 60% 50% More than $60K $40K to $59.9K $20K to $39.9K 40% Less than $20K 40% Less than $20K 30% None 30% None 20% 20% 10% 10% 0% Female Male 0% Female Male Source: ATS Graduating Student Questionnaire

20 Educational Debt Incurred in Seminary by Race/Ethnicity, All Students 100% 90% 80% 70% 60% 50% 40% 30% More than $60K $40K to $59.9K $20K to $39.9K Less than $20K None 20% 10% 0% Asian or Pacific Islander Black/Non-Hispanic Hispanic/Latino(a) Native North American/First Nation White Non-Hispanic Visa or Nonresident Alien Source: ATS Graduating Student Questionnaire

21 Educational Debt Incurred in Seminary by Age, All Students 100% 90% 80% 70% 60% 50% 40% 30% More than $60K $40K to $59.9K $20K to $39.9K Less than $20K None 20% 10% 0% 20s 30s 40s 50 and Older Source: ATS Graduating Student Questionnaire

22 ECFFM Oh Dear! Moments One-size-fits all stewardship training does not work

23 ECFFM Oh Dear! Moments Students don t feel the potential impact of debt while in seminary "I HAVE BEEN ABLE TO MANAGE FINANCIALLY" 8% 4% 22% 31% Strongly Agree Agree Neutral Disagree Strongly Disagree 35% Source: ATS Graduating Student Questionnaire

24 100% I have been able to manage financially. M.Div. Students 2009 to 2013 Graduates 100% 2015 Graduates 90% 90% 80% 70% Stongly Disagree 80% 70% 60% Disagree 60% 50% 50% 40% Neutral 40% 30% 30% 20% Agree 20% 10% 10% 0% None <$10K $10K-$20K $20K-$30K $30K-$40K >$40K Strongly Agree 0% None < $10K $10K-$20K $20K-$30K $30K-$40K >$40K Source: ATS Graduating Student Questionnaire Source: 2014 ATS Graduating Student Questionnaire

25 ECFFM Oh Dear! Moments There are significant psychological and cultural barriers that prevent students, seminaries, and congregations from addressing financial issues

26 ECFFM Oh Dear! Moments Educational debt is about far more than tuition

27 Estimated Average Student Debt per Student Incurred in Seminary vs. Net Tuition Cost, All Participating ATS Schools All Masters Students $30,000 $25,000 Annual Net Tuition Cost $20,000 $15,000 $10,000 $5,000 $0 -$5,000 -$10,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Est. Avg. Student Debt per Student Source: ATS Graduating Student Questionnaire and Annual Report Forms of the Commission on Accrediting

28 ECFFM Oh Dear! Moments 1. Inadequacy of old pathways 2. Differing impact of debt by demographics 3. Ineffectiveness of one-size fits all programming 4. Lack of urgency among students 5. Resistances to addressing debt 6. Disconnect between tuition and debt levels

29 Current ECFFM Questions 1. Full-time vs. Part-time?

30 100% 90% 80% Educational Debt Incurred in Seminary Masters Students, 1-4 Years to Complete Degree 100% 90% 80% Educational Debt Incurred in Seminary Masters Students, >4 Years to Complete Degree 70% 60% >$60K $40K-$60K 70% 60% >$60K $40K-$60K 50% 40% $30K-$40K $20K-$30K $10K-$20K 50% 40% $30K-$40K $20K-$30K $10K-$20K 30% <$10K 30% <$10K 20% None 20% None 10% 10% 0% 0% Source: ATS Graduating Student Questionnaire

31 Current ECFFM Questions 1. Full-time vs. Part-time? 2. How are students spending their money and time? 3. Are their institutional characteristics that significantly impact student borrowing habits? 4. Are our projects having an impact? On whom?

32 100% 90% 80% Educational Debt Incurred in Seminary Masters Students, All ATS Schools 100% 90% 80% Educational Debt Incurred in Seminary Masters Students, ECFFM Schools 70% >$60K 70% >$60K 60% $40K-$60K 60% $40K-$60K 50% 40% 30% $30K-$40K $20K-$30K $10K-$20K <$10K 50% 40% 30% $30K-$40K $20K-$30K $10K-$20K <$10K 20% None 20% None 10% 10% 0% 0% Source: ATS Graduating Student Questionnaire

33 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 Est. Avg. Educational Debt Incurred in Seminary Masters Students, All ATS Schools $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 Est. Avg. Educational Debt Incurred in Seminary Masters Students, ECFFM Schools $ $ Borrowers Only ALL Borrowers Only ALL Source: ATS Graduating Student Questionnaire. 50 of the ECFMM 66 Schools participate.

34 The ECFFM Initiative is about far more than student debt Lowering educational debt Creating more sustainable financial models for theological education Preparing ministers to serve in financially stressed institutions Preparing ministers to create financially health congregations and communities