How one community college launched a peer-to-peer financial advising program

Steps to create a financial learning ambassadors program

1. First, Valencia recruits student ambassadors, employing work-study and part-time students. Community colleges interested in copying this model should interview and hire part-time students who may be seeking engagement opportunities with the college and who could themselves benefit from financial literacy education.
2. Valencia then provides student training to equip students with essential financial literacy knowledge. Valencia conducts summer training using GradReady and in-house training materials and educates ambassadors on college finance options, budget- and goal setting, and long-term student loan repayment.
3. Finally, Valencia deploys ambassadors as peer mentors, ensuring part-time access by utilizing required courses. Specifically, Valencia designates time in required classes for student ambassadors to present on financial literacy. Ambassadors then lead a student Q&A and discussion during first-year experience class meetings.

Comprehensive training builds expertise

Valencia’s financial literacy student ambassadors use GradReady training to grow their knowledge and expertise about finances. Ambassadors learn the ins and outs of finance and how it impacts students’ long-term goals.

In GradReady’s first module, students learn how to pay for college and cover educational funding options, the FAFSA process, federal versus private loans, and budgeting tips. They also practice budgeting, using an editable calculator to assess personal finances and weigh the costs of college tuition, fees, and living expenses against aid and income.

The second module covers money management, including banking, building credit, managing debt, and identity theft. A debt-o-meter tool helps students evaluate future debt in comparison to projected income and reveals estimated monthly repayments.

In GradReady’s third module, ambassadors dive into real-world finances: savings and future planning, careers and income, mortgages, and loan repayment and interest. GradReady also features an electronic loan counselor, which is a responsive template that weighs financial options, such as loan deferment and forbearance, and suggests manageable payment amounts.

Financial literacy improves monetary management

Valencia’s peer-led initiative makes financial learning accessible for all. The initiative is a low-cost, scalable solution to the need for financial literacy training. Delegating training to student ambassadors creates greater advising capacity and takes some of the pressure off the financial aid office so that they can spend more time on other priorities.

The ambassador program also increases access for part-time students. For part-time students who are hired as ambassadors, their financial learning occurs during required classes, so they don’t have to attend trainings outside of normal class hours. Financial literacy activities are hosted on evenings and weekends, at times when part-time students are able to attend.

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Percentage-point decrease in Valencia’s cohort default rate since program launch

Valencia’s financial literacy initiative improves student engagement in a number of ways. Interactive social and recreational programming (e.g., 5k races, haunted houses, and fashion shows) embeds financial learning into campus culture. Also, outreach about financial literacy from peers is more likely to capture students’ attention than perhaps a more formal message from an office on campus.

Ultimately, Valencia’s financial literacy interventions support better student decisions. Since the program launch in 2009, Valencia’s cohort default rate dropped from 19% to 13%.

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Many community college students start classes without a clear idea of how to finance their education. Learn how Valencia College implemented a financial learning ambassadors program to provide financial literacy education to students who need it.

June 02, 2020 3 min read