By Monika Edlis
In an evolving economic climate, determining how to fund a college education may seem complicated and out of reach for families. We know, however, that opportunities and lifelong earning potential increase significantly for college degree-holders.
A recent Georgetown University Center on Education and the Workforce (CEW) report shows that adults with a bachelor's degree earn an average of $2.8 million during their careers, $1.2 million more than the median for workers with a high school diploma. Credit unions have a unique opportunity to help bridge the gap between a family's financial concerns and positive life outcomes for degree-holders by supplementing this educational investment.
What's needed is a benefit designed to help families prepare and build their futures while lessening the stress of the college investment. Such a program has the potential to strengthen members' commitment to the credit union that works for their family and their future.
Partnership Formed
To aid this issue, we have partnered with SAGE Scholars, 30-year-old Philadelphia company whose mission paves the way for those who understand the importance of a college degree but believe this educational investment is beyond their reach. The company’s history of research, community partnerships, and educational innovation has helped them to identify barriers to affording, enrolling, and completing a college degree.
By developing scholarships, educational resources, partnerships with colleges, and customized support for families, their program has made navigating the college admissions and enrollment process streamlined and accessible. We believe an important element of the financial services sector includes programs tailored to the needs of all families with students interested in pursuing a college degree.
Our partnership is a timely breakthrough for various audiences and reasons. As the price of a college education continues to rise, it's no surprise that prospective students and families must become more cost and value conscious—especially for "big ticket expenses."
Leveraging Loyalty
The credit union industry continues to curate a niche when it comes to member loyalty. While most banks have largely become impersonal institutions where the customer is processed through the system, credit unions, even the biggest, build a personal bond with their members as co-owners of the non-profit entity. This means these institutions have a unique opportunity to not only diversify their clientele by meeting diverse needs but also address how finances directly impact holistic wellness, life outcomes, and member satisfaction.
At our association, we believe this partnership proves to be a promising new solution to our core commitment of continually strengthening relationships with members while also attracting new ones. This educational rewards program is a simple and effective way to help credit union members send a child or loved one—immediate or extended family—to a consortium of 460 private colleges and universities with significant savings.
Saving for college is one of the biggest challenges facing American families, and this program seeks to not only transform the admissions process, but also enhance its relationality. With this in mind, the structure and advantages of a credit union parallel these goals.
What Families Receive
Families enrolling in this program earn a guaranteed minimum scholarship that eases the financial burdens of a four-year undergraduate degree. Their consortium of private colleges and universities offer personalized education with a smaller student-to-professor ratio and more customized and robust career-planning networks.
Importantly, maximizing the college investment does not stop at students' admission to college. Our partnership has incentivized student retention with resources supporting their transition and continued success on campus. The program educates younger family members about financial wellness through both career professionals and professors, with results transparent and visible to all.
Daniel Sulpizio, executive vice president and chief operating officer at First Harvest Credit Union, is one of the industry's most visionary leaders. First Harvest has offered its members the SAGE Scholars program for three years.
A Clear Philosophy
"Our credit union's philosophy is clear—provide financial literacy resources to our members," Sulpizio says. "College scholarships reinforce our goal of looking to the future for our members, their children, and generations beyond. We get good feedback on this platform of education. In fact, we are taking it to the next step and giving Tuition Rewards Points for loan account balances as well as deposit savings account balances.”
Like Sulpizio, we, as an association, believe deeply that credit unions are powerful forces for transformation and good. With this ethos in mind, we ask: what's more gratifying than helping families and their children, grandchildren, nieces, and nephews embolden their futures with a more affordable undergraduate degree from a private college or university?
Monika Edlis is director, Solution Engagement, CrossState Solutions with the CrossState Credit Union Association, which serves credit unions in Pennsylvania and New Jersey. For info: www.crossstate.org