SCC steps up, delivers financial support to students

Published: 09/02/2015

As the country emerges from years of financial crisis and mounting student debt, it is more important than ever for college students to learn how to manage their money, according to the American Association of Community Colleges.

Leading the way in educating students like Galadriel, SCC implemented SALT, an educational program created by American Student Assistance that is free to SCC students and alumni.

SALT empowers students to become financially savvy by managing student loans, handling financial decisions, searching for scholarships and more. 

“Offering the tools to help students make smart financial decisions is an important part of college the process,” said Abby Vernon, SCC loan coordinator. It can help students avoid becoming a victim of identity theft or scams, going into debt or defaulting on their student loans.

“Our financial aid counselors conduct formal financial literacy presentations for first-time freshman, which is when the SALT Program is introduced,” Vernon said.

Students receive continued exposure to SALT and its offerings through free training sessions and learning modules during their time at SCC. Loan borrowers are also given the opportunity to receive one-on-one counseling, providing a chance to ask questions and clarify repayment obligations. 

“The prospect of loan default can be stressful and emotional for students,” Vernon said. Defaulting on a loan can mean withheld tax refunds, loss of financial aid eligibility, negative credit history and more.

SCC fairs well with a 14.2 percent cohort default rate, 6 points better than the 2011 CDR national average at two- to three-year public institutions. “The default rate indicates how successful students are at repaying their student loans – a lower rate corresponding to greater success,” Vernon said. 

With new default rates for the 2012 cohort expected around September, draft reporting of 13.3 percent for the 2012 student cohort shows ongoing signs of improvements, highlighting the continued value of SCC’s financial aid services.

“Our default rate impacts many facets of the college,” Vernon said. “For one, it is rated by the Department of Education, and our financial aid funding depends on good metrics.”

Low default rates can indicate graduate employability, enhance recruiting and reputation, and demonstrate a solid investment opportunity. 

The Missouri Department of Higher Education encourages schools to improve financial literacy and default prevention by offering a competitive grant. SCC was awarded $13,800 by MDHE’s Default Prevention Grant Program to continue boosting its efforts for the 2015-16 academic year.

“Obtaining a degree is important, but we want to make sure students are graduating without setting themselves up to face financial burdens for years to come,” said Marilyn Landrum, student assistance associate of Default Prevention.

Financial literacy services continue after graduation for SCC alumni through free loan counseling and lifetime access to SALT resources. In addition to financial basics, SCC SALT users are able to search jobs and internships or sharpen skills like resume writing and interview question preparation.