Full text of Inside the Vault : Spring 2013

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Volume 18
Issue 1
Spring 2013

A n Ec o n o m i c E d u c at i o n Ne w s l e t t e r f r o m t h e Fe d e r a l Re s e r v e B a n k o f S t. Lo u i s

Student Loan Delinquencies Surge
© Shutterstock

By emily dai1

Economic
Snapshot
Student Loan Debt

What’s Your
Question?
Student Loans

Resources
New This Spring

www.stlouisfed.org/education_resources

In the third quarter of 2012, the share of delinquent student loan balances
exceeded the share of delinquent credit card balances, according to the Federal
Reserve Bank of New York’s Consumer Credit Panel and to Equifax.2 This is the
first such occurrence since 2003, when reliable data became available.3 In the
fourth quarter of 2012, the share of delinquent student loan balances continued
to rise. With U.S. student loan debt estimated at close to $1 trillion, the surge in
delinquent student loan balances has brought increased attention from analysts
and policymakers. In addition, the persistently high U.S. unemployment rate—
now 7.7 percent—fuels growing concern that fewer full-time employment
opportunities could trigger a wave of student loan delinquencies, providing yet
another shock to the U.S. economy. This article explores the reasons behind the
growing student loan debt and delinquency rate in the United States.
The Growing Student Loan Debt
and Delinquency Rate
Student loan debt increased significantly
over the past few years, almost doubling
from half a trillion dollars in 2007 to nearly
$1 trillion today. After mortgage debt, it is
the largest amount of debt held by U.S. consumers. In contrast, the amount of auto loan
and credit card debt held by U.S. consumers
today is approximately $783 billion and $679
billion, respectively. The substantial growth
in student loans is likely due to an increase
in the number of borrowers as well as the
amount of debt incurred per borrower. From
2005 to 2012, the number of borrowers
increased from 24.3 million to 37.5 million (a
54 percent increase) and average debt per
borrower increased from $16,000 to $25,000

(a 56 percent increase). The median debt
per borrower in 2012, however, was much
lower—$14,100. Overall, as shown in Figure 1,
39.1 percent of borrowers in the fourth quarter of 2012 had less than $10,000 in student
debt. In other words, the average debt level
is skewed by a small percentage of borrowers with a large amount of debt: 3.6 percent
borrow more than $100,000, likely for expensive degrees, for example, in medicine or law.
Since the height of the financial crisis, the
delinquency rate for student loans has also
grown. Delinquency rates for other loan
types, however, have either declined or held
steady (see Figure 2). In the fourth quarter
of 2012, 11.7 percent of student loan balances
were delinquent for 90 days or more, up
from 11 percent in the third quarter.4 Due
continued on Page 2

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T h e f e d e r a l r e s e r v e b a n k o f s t. l o u i s : C e n t r a l t o A m e r i c a’ s e c o n o m y ®

Student Loan Delinquencies
continued from Page 1

F i g ur e 1

Student Loan Borrowers by Balance Level (2012:Q4)
2.12% 0.85% 0.60%
2.59%
$1 – $9,999
$10,000 – $24,999

6.63%

$25,000 – $49,999
39.11%

18.11%

$50,000 – $74,999
$75,000 – $99,999
$100,000 – $149,999

to a unique accounting treatment used in calculating
student loan delinquency rates, researchers at the Federal Reserve Bank of New York suggest that the high
delinquency rates may actually be understated.5 They
found that nearly half of all student loan borrowers
are either in a deferral or a forbearance period. By
removing deferred loans from the sample and focusing
on only those loans in an actual repayment cycle, the
researchers were able to show that the delinquency
rate on student loans is actually more than double
what is currently reported.

$150,000 – $199,999
29.98%

$200,000 and above
Total number of borrowers
is 37.5 million.

SOURCE: Federal Reserve Bank of New York Consumer Credit Panel and Equifax.
Percentages do not add to 100 due to rounding.

F i g ur e 2

Percent of Loan Balances Delinquent 90+ Days (by Loan Type)

16

Credit Cards
Student Loans
Auto Loans
Mortgages
Home Equity Loans

14
PERCENT

12
10
8
6
4

While stagnant household income is generally seen
as a significant contributor to recent increases in student loan borrowing, research also suggests that high
levels of student debt are correlated with higher tuition
and fees. From 1993 to 2011, education costs increased
165 percent. In comparison, during the same period,
broad inflation was 56 percent and medical care costs
increased approximately 100 percent. According to
College Board data, the national average for tuition
and fees for the 2012-13 academic year is $8,655 for
(in-state) public four-year universities and $29,056 for
private, not-for-profit, four-year universities, increases
of 4.8 percent and 4.2 percent, respectively, over the
previous academic year. Both increases are consistent
with the rising tuition trend observed over the past
several years, although the current pace is slower.

Why Are Tuition and Fees Rising So Fast?

0

Several factors point to why the percentage
increase in tuition and fees is outpacing the broad
inflation rate. First, years of state funding cuts may
have led public universities to raise tuition.6 As shown
in Figure 3, it appears that when states cut education funding, tuition and fees at public universities
increased more dramatically.
Second, the “Baumol effect,” or “Baumol’s cost disease,” named after economist William Baumol, explains
that some industries, such as education, cannot
easily increase productivity. For example, the average
teacher-to-student ratio in college today is about what
it was 30 years ago. Instructors today, however, while
not necessarily more productive than they were in, say,
1980, are paid higher salaries after adjusting for inflation. Universities, therefore, must either raise prices or
seek more subsidies from the government to cover the
increased costs.
Third, the federal government’s involvement in
providing financial aid to students may have led to

03:Q

1
03:Q
3
04:Q
1
04:Q
3
05:Q
1
05:Q
3
06:Q
1
06:Q
3
07:Q
1
07:Q
3
08:Q
1
08:Q
3
09:Q
1
09:Q
3
10:Q
1
10:Q
3
11:Q
1
11:Q
3
12:Q
1
12:Q
3

2

SOURCE: Federal Reserve Bank of New York Consumer Credit Panel and Equifax.

F i g ur e 3

Annual Percent Changes in College Appropriations and Tuition and Fees
(Inflation Adjusted)

15
10
5
PERCENT

Reasons for High Levels of Student Debt

0
-5
-10

198
1
198 -82
2
198 -83
3
198 -84
4
198 -85
5
198 -86
6
198 -87
7
198 -88
8
198 -89
9
199 -90
0
199 -91
1
199 -92
2
199 -93
3-9
199 4
4
199 -95
5
199 -96
6
199 -97
7
199 -98
8
199 -99
9
200 -00
0
200 -01
1
200 -02
2
200 -03
3
200 -04
4
200 -05
5
200 -06
6
200 -07
7
200 -08
8
200 -09
9
201 -10
0
201 -11
1-1
2

-15

Appropriations per Full-Time Equivalent Student

Public Four-Year Tuition and Fees

SOURCE: College Board.

www.stlouisfed.org/education_resources

2

unchecked growth in college costs. Some critics have
drawn a parallel between student loan debt and subprime mortgage debt. They believe that a college education, like homeownership before the financial crisis,
is increasingly viewed as a social good—but one that
could quickly become a liability. And the maximum
federal loan amount available to students continues to
increase, underpinning fear of the size of the potential
liability: As of 2012, dependent undergraduate students can borrow up to $31,000; independent undergraduate students up to $57,500; graduate students up
to $138,500; and students in certain health-professional
programs up to $224,000.7
Finally, universities compete with each other for students through increased spending on infrastructure,
management, and instructors. Using data provided
by the University of Minnesota, the Wall Street Journal
recently reported that, from 2001 to 2012, the university’s management payroll expenses increased 45.5 percent, outpacing the 15.5 percent increase in its teaching
payroll and 22.4 percent increase in student enrollment.8
This phenomenon is not unique to the University of
Minnesota. As long as students are able to borrow more
each year, universities can continue to increase tuition,
making them less likely to rein in spending.

Reasons Behind the High Delinquency Rate
Research shows a correlation between student loan
delinquency rates and the health of the labor market
and suggests that the former is unlikely to improve
until the latter significantly improves. Research also
highlights that delinquency rates are significantly
higher for students who attend private, for-profit
colleges. Students at private, for-profit colleges
account for about 10 percent of the nation’s college
enrollment, but, according to the Department of Education (DOE), nearly half of all student loan defaults.
This fact has led some to argue that for-profit schools
abuse federal loan programs to increase student enrollment, and thus increase revenue, by using questionable recruitment practices and misleading potential
students about the true costs of their education and
actual graduation and job placement success rates.
In response to concerns about for-profit schools, on
June 2, 2011, the DOE published new “gainful employment” regulations. These regulations stipulate that
in order to receive federal student loans a program
must lead to gainful employment, which is determined
by the program meeting one of the following three
criteria: (i) at least 35 percent of former students are
paying down the principal on their loans, (ii) the annual

loan payment does not exceed 30 percent of a typical
graduate’s discretionary income, or (iii) the annual
loan payment does not exceed 12 percent of a typical
graduate’s total income. The regulations apply
to most career colleges, including the majority of forprofit schools and certificate programs at nonprofit
schools and public schools. On June 30, 2012, however,
a federal judge found that the DOE didn’t provide a
good rationale to support the 35 percent threshold and
the gainful employment regulations were put on hold.

Conclusion
The delinquency rate on student loans has surged
in recent months. Given that the number of student
loans and the overall amount of student loan debt
have ballooned in recent years, student loans represent
a potentially severe problem for the United States.
Because the vast majority of these loans are backed by
the U.S. government, they represent a huge potential
liability for U.S. taxpayers. As household incomes
continue to stagnate and education costs continue to
greatly outpace inflation, the amount of student loan
debt will likely only increase. With high unemployment
and a weak labor market, it is likely that the delinquency
rate on student loans will also continue to increase. In
the absence of a strong economy, students, particularly
those with heavy student loan debt, are more likely to
delay the purchase of a home or car and family formation, thus reducing overall consumption growth in the
U.S. economy. While the overall impact of such a shift is
difficult to determine, it’s likely that another economic
shock to the U.S. economy would further increase the
delinquency rates on student debt nationwide.
1.		 The author thanks Bryan Noeth and James Fuchs for their help.
2.		 “Delinquent” here refers to balances past due for 90 days or more.
3.		 The data were first captured by Equifax in 2003 and first reported in 2010
in the Federal Reserve Bank of New York’s Household Debt and Credit
Report.
4. www.newyorkfed.org/householdcredit/.
5.		 http://libertystreeteconomics.newyorkfed.org/2012/03/grading-studentloans.html.
6. Some challenge the view that state funding cuts cause tuition to rise.
They argue that private university tuition has increased as well, although
at a slower pace.
7.		 The Free Application for Federal Student Aid classifies a student as either
“independent” or “dependent” based on the level of access the student
has to financial resources from his or her parent(s) or guardian(s) and
other criteria. Most traditional college students are classified as dependent. Students in graduate and professional programs are classified as
independent.
8. “Deans List: Hiring Spree Fattens College Bureaucracy—And Tuition,”
Wall Street Journal, December 28, 2012.

3

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Glossary
Deferral – Postponed until a later time.

Liability – Money owed; debt.

Delinquent – Failing to make timely payments under a loan
or other credit agreement.

Median – The value in an ordered set of values below and
above which there is an equal number of values; the number
that divides numerically ordered data into two equal halves;
the middle number of a set of numbers.

Delinquency rate – In general it refers to a percentage determined by dividing the number of loans that have delinquent
payments by the number of total loans. In this article, the term
refers to the percent of the loan balance that is delinquent.
Discretionary income – The portion of personal income
available for spending after taxes and basic essentials
have been deducted.
Federal student loans – Loans provided by the government to
postsecondary students and their parents to assist in paying
for education.
Forbearance – Temporary suspension or reduction of monthly
loan payments, usually up to one year.
Full-time employment – Although defined by the U.S. Bureau
of Labor Statistics as employment of 35 hours or more in
a week, the matter of “full-time employment” is generally
determined by the employer.
Gainful employment – A job, especially those taken after
graduation, that is suited to the ability and potentiality of the
one employed.
Inflation – A general, sustained upward movement of prices for
goods and services in an economy.

Mortgage debt – Debt owed for loans for homes and real estate.
Nonprofit schools – All public schools, including public
colleges, and schools not a part of the public school system
operated with no intention of making a profit.
Private (or nonpublic) schools – Schools owned and operated by an individual; religious institution; partnership; or a
corporation other than the state, a subdivision of the state,
or the federal government and supported primarily with nonpublic funds.
Private, for-profit colleges – Colleges managed and governed
by private organizations or corporations with the goal of
earning profit.
Public schools – Schools that receive monetary support from
public funds.
Student loan defaults – Student loans with no likelihood of
being paid in full by the borrowers.
Unemployment rate – The percentage of the labor force that is
willing and able to work, does not currently have a job, and is
actively looking for employment.

Infrastructure – Basic structures, including buildings and facilities such as roads, bridges, and waste disposal systems.

www.stlouisfed.org/education_resources

4

e cono m ic sn a ps h o t

Student Loan Debt
Current Economic Data

1. Based on the map below, how does average student loan
debt per borrower vary across states?
Average student loan debt varies widely across states. Wyoming has the least, followed by the Dakotas, Nebraska, and
Oklahoma. The highest averages occur mainly in California and
on the East Coast.
Average Student Loan Debt per Borrower Across States (2012:Q3)
Washington

Minnesota
Wisconsin

South Dakota

Oregon

Idaho

Wyoming

Michigan

Iowa

Nebraska
Nevada

Vermont

Illinois Indiana

Utah

Colorado

Kansas

California
Oklahoma
Arizona

New Mexico

Arkansas

Texas

Tennessee

New Hampshire
Massachusetts
Rhode Island
Connecticut
New Jersey
Delaware
Maryland

Virginia

North Carolina

Growth Rate
Real GDP

2.0%

1.3%

3.1%

0.4%*

Inflation Rate
Consumer Price Index

2.3%

1.0%

2.1%

2.2%

Civilian Unemployment Rate

8.3%

8.2%

8.0%

7.8%

Approximately two-thirds of student loan balances are owed by
people under 40, while nearly one-third are owed by people 40
and older.

South
Carolina
Mississippi
Alabama Georgia

$22– $25
>$25

Q4-’12

3.	According to the chart below, how are student loan
balances distributed by age?

Louisiana

<$18
$18 – $20
$20 – $22

Q3-’12

New York

West
Virginia

Kentucky

Maine

Pennsylvania

Ohio

Missouri

Q2-’12

*Third estimate
SOURCE: GDP, Bureau of Economic Analysis; www.bea.gov;
Unemployment and consumer price index, Bureau of Labor Statistics; www.bls.gov.

North Dakota

Montana

Q1-’12

Florida

Student Loan Balance by Age in 2011:Q3
Total Loan Balance: $870 Billion

(in thousands)

1.4%

SOURCE: www.kansascityfed.org/publicat/reswkpap/pdf/rwp%2012-05.pdf?wf=rs082712;
Federal Reserve Bank of New York Consumer Credit Panel and Equifax.

4.2%

30 to 39

Student loan delinquency rates vary widely across states. With
a few exceptions (e.g., the Midwestern states of Michigan and
Indiana), northern states have lower delinquency rates than
southern states.

33.9%

16.4%

Minnesota
South Dakota

Oregon

Idaho

Utah

Colorado

Kansas

California
Oklahoma
Arizona

Age not known
Vermont

Wisconsin

Maine

New Hampshire
New York
Massachusetts
Iowa
Rhode Island
Pennsylvania
Connecticutt
Illinois Indiana Ohio
New Jersey
Delaware
West Virginia
Missouri
Maryland
Kentucky
Virginia
Michigan

Wyoming
Nebraska

Nevada

50 to 59

32.8%

North Dakota

Montana

40 to 49
60 and over

Student Loan Delinquency Rates Across States (2012:Q3)
Washington

Under 30

11.3%

2. Based on the map below, how do student loan delinquency
rates vary across states?

New Mexico
Texas

Tennessee

Arkansas

SOURCE: http://libertystreeteconomics.newyorkfed.org/2012/03/grading-student-loans.html;
Federal Reserve Bank of New York Consumer Credit Panel and Equifax.

North Carolina

Mississippi
Alabama Georgia

South
Carolina

Louisiana

<7%
7% – 10%
10% – 12%

12% – 14%
>14 %

Florida

SOURCE: www.kansascityfed.org/publicat/reswkpap/pdf/rwp%2012-05.pdf?wf=rs082712;
Federal Reserve Bank of New York Consumer Credit Panel and Equifax.

continued on Page 6

5

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e cono m ic sn a ps h o t

Student Loan Debt, cont.
4.	According to the graph below, how are past due student loan balances
distributed by age?
Approximately 60 percent of past due student loan balances are owed by people
under 40 and about 40 percent by people 40 and older.

Past Due Student Loan Balance by Age in 2011:Q3
Total Past Due Loan Balance: $85 Billion

0.8%
4.8%

Under 30

12.1%

30 to 39

25.0%

40 to 49
50 to 59

23.1%

60 and over

34.2%

Age not known

SOURCE: Federal Reserve Bank of New York Consumer Credit Panel and Equifax;
http://libertystreeteconomics.newyorkfed.org/2012/03/grading-student-loans.html.

5. What is the trend in the amount of outstanding student loan debt?
Outstanding student loan debt has steadily increased in recent years—
approaching $1 trillion in 2012.

Outstanding Student Loan Debt
$1.0

TRILLIONS

$0.8
$0.6
$0.4
$0.2
$0.0
2003

2004

2005

SOURCE: Federal Reserve Bank of New York.

www.stlouisfed.org/education_resources

6

2006

2007

2008

2009

2010

2011

2012

what ’ s y our ques t i o n ?

Student Loans
6. When applying for financial aid, why are grants
and scholarships preferred to student loans?

1. Why are federal loans preferred to private loans
for financing college costs?

Grants and scholarships do not have to be repaid;
loans are borrowed money that must be repaid.

Federal student loans offer many benefits not typically offered with private loans, such as low fixed
interest rates, income-based repayment plans, loan
cancellation for certain employment, and deferment
(postponement) options, including when a student
returns to school. Also, private loans, or nonfederal
loans, issued by a lender such as a bank or credit
union usually require a credit check.

7. What consequences might a borrower face when
a student loan becomes delinquent or defaults?
Delinquencies are reported to the major credit
bureaus, so can affect a borrower’s ability to get credit.
When a loan defaults, the entire unpaid amount
becomes due and the borrower may be sued and have
tax refunds intercepted and/or wages garnished. They
may have to pay collection fees, costs, court costs, and
attorney fees. Eligibility for future loan deferments and
other federal student aid is withdrawn. A defaulted
borrower can be denied a professional license. Finally,
an often-overlooked aspect of debt problems is the
psychological burden carried by the borrower.

(SOURCE: http://studentaid.ed.gov/sites/default/files/
federal-loan-programs.pdf.)

2. What is a net price calculator?
A net price calculator estimates the net price (all costs
minus grant and scholarship aid) of attending a particular institution based on what similar students paid in
a previous year. By law, any postsecondary institution
participating in Title IV federal student aid programs
must post a net price calculator on its website.

(Source: www.kansascityfed.org/publicat/reswkpap/pdf/
rwp%2012-05.pdf?wf=rs082712.)

(SOURCE: http://nces.ed.gov/ipeds/resource/net_price_
calculator.asp.)

8. What are typical repayment terms for federal
student loans?

3. How can I estimate how long it will take to
pay off student loans?

The standard repayment term for federal loans is 10
years with fixed payments.

Free online calculators can help you determine the
time it will take to pay off a loan at a given monthly
payment and interest rate. Plus, you can calculate how a higher monthly payment can shorten
the length of the loan and dramatically reduce the
interest paid over the life of the loan. Here is one
calculator to try: https://bigfuture.collegeboard.org/
pay-for-college/loans/student-loan-calculator.

9. What are differences between subsidized and
unsubsidized student loans?
Subsidized loans are awarded based on financial need;
borrowers are not charged interest as long as they are
attending school. With unsubsidized loans, borrows are
charged interest from the time the money is borrowed.

4. Can student loans be discharged in bankruptcy?
Normally, student loans are ineligible for discharge in
bankruptcy unless it can be proven that the payment
is an “undue hardship,” which means the borrower is
physically unable to work and has no chance of
earning money.
(SOURCE: www1.salliemae.com/after_graduation/manage_
your_loans/borrower_responsibility/managing_debt/.)

5. How can I estimate the future cost of college?
Use the calculator at the following link to estimate
the future cost of college:
https://bigfuture.collegeboard.org/pay-for-college/
college-costs/college-costs-calculator.
7

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bulle t in board

Technology, the Common Core,
and Social Studies (K-12)

LITTLE ROC K
Registration: Visit each cooperative’s website.

Integrating Economics in
Social Studies Disciplines (5-12)
June 18, 2013 | 8:00 a.m. – 3:30 p.m.
South Central Service Cooperative, Camden, AR

Liking Economics (K-12)
June 12, 2013 | 8:00 a.m. – 3:30 p.m.
South Central Service Cooperative, Camden, AR

July 8, 2013 | 9:00 a.m. – noon
Southeast Arkansas Educational Cooperative,
Monticello, AR
July 9, 2013 | 8:00 a.m. – 3:30 p.m.
South Central Service Cooperative, Camden, AR
July 12, 2013 |8:00 a.m. – 3:30 p.m.
Wilbur D. Mills Education Service Cooperative,
Beebe, AR

LOUIS V ILLE

June 19, 2013 | 9:00 a.m. – 4:00 p.m.
Southeast Arkansas Educational Cooperative,
Monticello, AR

Registration: Visit each organization’s website.

July 11, 2013 | 8:00 a.m. – 3:30 p.m.
Wilbur D. Mills Education Service Cooperative,
Beebe, AR

The Great Depression: A Curriculum for
High School Students

So Many Books, So Little Time (K-8)

June 10, 2013 |1:00 p.m. – 4:00 p.m.
Archdiocese of Louisville

July 10, 2013 | 8:00 a.m. – 3:30 p.m.
South Central Service Cooperative, Camden, AR

Teaching Economic Concepts in a
Historical Context (9-12)

Symbols (K-5)

July 11, 2012 | Time TBD
Kentucky History Education Conference

June 13, 2013 | 8:00 a.m. – 11:30 a.m.
South Central Service Cooperative, Camden, AR

Faces and Places (3-8)
June 13, 2013 | 12:30 p.m. – 3:30 p.m.
South Central Service Cooperative, Camden, AR

Symbols (K-5)
June 20, 2013 | 9:00 a.m. – noon
Southeast Arkansas Educational Cooperative,
Monticello, AR

Faces and Places (3-8)
June 20, 2013 | 1:00 p.m. – 4:00 p.m.
Southeast Arkansas Educational Cooperative,
Monticello, AR

Teaching Economics through Children’s
Literature
June 10, 2013 (Elementary) | 8:30 a.m. – 11:30 a.m.
Archdiocese of Louisville
June 10, 2013 (Middle School) | 11:30 a.m. – 1:00 p.m.
Archdiocese of Louisville

Teaching Economics through Children’s
Literature (Elementary and Middle
School),
Personal Finance for the Middle School
Classroom, and
Teaching Economics through the
Great Depression (9-12)
July 31, 2013 | Times TBD
Lyon County School District Professional
Development Day

www.stlouisfed.org/education_resources

8

bulle t in board

M E M P H IS

Personal Finance Training for
Secondary Teachers
June 5 – 6, 2013 | 8:30 a.m. – 3:30 p.m.
West Tennessee Research and Education Center,
Jackson, TN
Registration: http://fcs.tennessee.edu/hsfpp/
attendees.asp
July 24 – 25, 2013 | 8:30 a.m. – 3:30 p.m.
Agricenter International, Memphis, TN
Registration: http://fcs.tennessee.edu/hsfpp/
attendees.asp

So Many Books, So Little Time (K-8)
July 10, 2013 | 8:30 a.m. – 3:30 p.m.
Host: Great Rivers Educational Cooperative
Location: East Arkansas Community College,
Forrest City, AR
Registration: www.grsc.k12.ar.us

ST. LOUIS
Location for all: Federal Reserve Bank of St. Louis
Registration for all: www.stlouisfed.org/
education_resources/events/

Get Money Smart! (9-12)
April 24, 2013 | 4:00 p.m. – 7:00 p.m.

Advanced Placement Economics
Conference (9-12)
June 19 – June 21, 2013

Economic Episodes in American History
(8-12)
Thursday, July 11, 2013 | 8:00 a.m. – 4:00 p.m.

Symbols and Faces and Places
July 11, 2013 | 8:30 a.m. – 3:30 p.m.
Host: Great Rivers Educational Cooperative
Location: East Arkansas Community College,
Forrest City, AR
Registration: www.grsc.k12.ar.us

Technology, the Common Core,
and Social Studies (K-12)
July 26, 2013 | 8:30 a.m. – 3:30 p.m.
Host: Great Rivers Educational Cooperative
Location: East Arkansas Community College,
Forrest City, AR
Registration: www.grsc.k12.ar.us

Focus on the Economy (6-12)
July 29 – 30, 2013 | 8:30 a.m. – 3:30 p.m.
Milsaps College, Jackson, MS
Registration: www.mscee.org, click on
“Focus on the Economy”

9

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F e atur e d res o urces

New this Spring!

The Page One Economics Newsletter provides a
simple, short overview of an economic issue. The
Teacher’s Guide includes student questions and a
teacher answer key, plus additional resources and
lesson ideas for classroom, extra credit, or makeup assignments. You can subscribe via RSS feed.

“Investing in Yourself: An Economic
Approach to Education Decisions”
“Human capital” may not be the first thing that
comes to mind when we think about investments,
but investing in education and training is an
important economic decision. Learn about human
capital and the return on such an investment in
the February 2013 Page One Economics Newsletter,
“Investing in Yourself: An Economic Approach to
Education Decisions.”
http://www.stlouisfed.org/education_resources/
investing-in-yourself-an-economic-approach-toeducation-decisions/

“FAFSA, Demystified”
You asked for it! On the heels of our incredibly
popular Personal Finance 101 chats that take a
line-by-line approach to explaining the 1040EZ
and W-4 forms, we’re in the process of developing
the same approach for the FAFSA. Students will
have the opportunity to walk through a simulation of the form with a detailed description of
each field and their required actions in each
section. Keep your eyes peeled for “FAFSA,
Demystified” this summer!

www.stlouisfed.org/education_resources

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Get Credit Cred—Now!
Credit is a powerful consumer tool that can help
establish a firm financial footing when used
wisely. When misused, though, credit can be the
source of financial frustration. In our new online
Credit Cred course, high school students and
consumers alike will get the nitty gritty on how to
build strong credit, avoid common credit pitfalls,
read and monitor credit reports, and repair damaged credit. There’s even a section devoted to
credit scores and how they’re determined. Build
credit cred with this fun, fast-paced online course!

Enhanced to Meet the Common
Core State Standards—Lessons
Using Children’s Literature
Lessons accompanying
popular children’s books
are available on our
website and are being
enhanced to meet Common Core State Standards.
The enhancements include
redesigned SMARTBoard
and ActivInspire files.
Recently revised lessons
include A Chair for My Mother, Beatrice’s Goat, Glo
Goes Shopping, The Pickle Patch Bathtub, Meet Kit,
and Uncle Jed’s Barbershop.

Glossary Additions
The addition of new terms brings our glossary
to more than 325 definitions in economics and
personal finance. Guide your students to our
glossary to define those mystery terms. If you
don’t find a term, let us know and we’ll add it.

F e atur e d res o urces

New Fall Programs
Save the Date for Fall Programs!
Federal Reserve Financial
Education Day: Financial
Fundamentals from the Fed
October 23, 2013

Townhall with Chairman Bernanke:
The History of the Federal Reserve
November 13, 2013
4:00 p.m. – 7:15 p.m.
(St. Louis, Memphis, Little Rock)

If you want to make sure you receive registration
information, please contact the member of the
Federal Reserve Bank of St. Louis listed in the
column to the right at the location nearest you.

Little Rock
Kris Bertelsen
501-324-8368
Kris.A.Bertelsen@stls.frb.org
Louisville
Erin Yetter
502-568-9257
Erin.A.Yetter@stls.frb.org

5:00 p.m. – 8:15 p.m. (Louisville)

Federal Reserve Financial Education Day is an
event being offered by Federal Reserve Banks and
branches around the country. If you want great
personal finance content and materials, plan to
join us—save the date for programs at the Federal
Reserve Bank of St. Louis and its Memphis, Louisville, and Little Rock branches. The program will
include introductory personal finance lessons on
earning income, saving, budgeting, and credit. In
addition, you will have the opportunity to learn
about many other resources available from Federal Reserve Banks that can be used to help high
school students develop financial capabilities.

Bank Contacts

Memphis
Jeannette Bennett
901-579-4104
Jeannette.N.Bennett@stls.frb.org
St. Louis
Mary Suiter
314-444-4662
Mary.C.Suiter@stls.frb.org

Don’t miss this opportunity! Ben S. Bernanke,
Chairman of the Federal Reserve System and
former college professor, will speak to educators around the country via video streaming
about the history of the Federal Reserve System.
The Federal Reserve Bank of St. Louis will host
educators in St. Louis, Memphis, Little Rock, and
Louisville. Each location will serve dinner at the
start of the program and provide an introduction to three new lessons available for teaching
about the history of the Federal Reserve from 1913
through 2012. The Chairman will speak at 6:00
p.m. central time. Those participating at Federal
Reserve locations will have the opportunity to
submit questions via e-mail during the event. The
Chairman will answer questions as time permits.

Barb Flowers
314-444-8421
Barbara.Flowers@stls.frb.org
Scott Wolla
314-444-8624
Scott.A.Wolla@stls.frb.org
Jennifer Bradford
314-444-4608
Jennifer.L.Bradford@stls.frb.org

Please put the date on your calendar. If you want
to make sure you receive registration information, please contact the member of the Federal
Reserve Bank of St. Louis listed in the column to
the right at the location nearest you.

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www.stlouisfed.org/education_resources

Inside the Vault is written
by economic education staff
at the Federal Reserve Bank
of St. Louis, P.O. Box 442,
St. Louis, Mo., 63166.
The views expressed are
those of the authors and are
not necessarily those of the
Federal Reserve Bank of
St. Louis or the Federal
Reserve System.

printed on recycled paper using 50% post-consumer waste

Would you like to receive our
monthly newsletter about
new resources and programs?
Subscribe here:
www.stlouisfed.org/education_resources/
econ-lowdown-newsletter/

www.stlouisfed.org/education_resources

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