Yesterday, Citi Community Development and Clarifi joined Philadelphia Mayor Michael A. Nutter to announce the launch of Education Financing Services (EFS), a new initiative that will help families better assess the financial costs and benefits of financing higher education before their children attend a post-secondary school and begin accumulating student loan debt. EFS will pilot a program developed to make it easier for low-income high school students and their families to make more informed decisions about student debt before attending college.
While most college financial planning is geared toward understanding and applying for aid, this innovative initiative is designed to help families understand the costs not normally covered by aid and to develop a realistic portrait of the total future debt burden, income prospects for particular fields of study, and feasibility of repaying the debt. The program’s goal is for students and their families to have clear expectations so they can develop a practical plan for financing college.
“Increasing the education attainment rate for Philadelphia is the best thing we can do as a city to ensure our long-term success,” said Mayor Michael A. Nutter. “We want to make sure every Philadelphian – whether they are applying for or are already in college – knows what funding is available to reduce the burden. Post-secondary education is critical to success in the 21st Century economy and we are working to make it easier to get the information you need to achieve your goals.”
EFS, a new venture of Clarifi (formerly Consumer Credit Counseling Service of Delaware Valley), will work with participating students to understand their interests, career opportunities and wages related to a degree in their field of interest, and the cost of college programs that offer this field of study. EFS will then provide a financial plan that includes options to pay for college based on current family resources and potential aid. They will also provide an estimate of total post-graduation debt.
“This program will make it possible for low income students to better understand their educational goals and interests, understand their family’s resources and capacity, and help them make informed choices,” said Bob Annibale, Citi Global Director of Community Development. “Many of the participating students are the first in their families to attend college, and we want to make sure they begin their adulthood with sound financial expectations.”
“A lack of planning and clarity regarding career interests in high school is one of the root causes of the national increase in student loan debt,” said John Roche, EFS Vice President, for Clarifi. “Even in these early stages of the program, we have seen a positive impact on the lives of students and families wrestling with this issue.”
The pilot phase of the program, which is supported by a $150,000 grant from Citi Community Development, will extend to 200 families in Philadelphia and an additional 50 families in Wilmington, Delaware in partnership with the Metropolitan Wilmington Urban League. EFS will track a range of participant data to inform a thorough evaluation of the program and opportunities for replication beyond the pilot markets.
Media Contact
Shawn Needham
sneedham@clarifi.org
267-765-2728