On Wednesday, January 23, we believe the Senate Insurance and Financial Institutions Committee will hold a hearing on SB 104, a bill that would cap small dollar, short term loans at 36 percent APR.As a valued member of the Indiana Assets and Opportunity Network, you understand just how vital this hearing is to our ongoing efforts to stop the debt trap in the Hoosier State.

We hope you will join and lift your voice as to why this is critical for consumers and communities in two ways:

• Signing up to attend - and, if you're able, testify - at the SB 104 hearing on Wednesday, January 23. Click here to sign up.

• Expressing your support for a 36 percent APR cap on small dollar, short term loans in Indiana. Click here to sign our letter.

To learn more about SB 104, the hearing, or the projected 36 percent APR cap, contact Logan Charlesworth, Network Manager, Kathleen Lara, Prosperity Indiana Policy Director, or Erin Macey, Indiana Institute for Working Families Senior Policy Analyst. 

During the Indiana Assets & Opportunity Network Breakfast on January 30, attendees will be the first to learn of new changes that are coming to the Network. They will also have a chance to hear from multiple A&O Steering Committee members. Meet the breakfast presenters by reading their bios below:

NAOMI BECHTOLD
FAMILY RESOURCE MANAGEMENT EDUCATOR
PURDUE EXTENSION - MARION COUNTY

In her role as an Extension Educator, Naomi provides the link between land grant university research and Indiana residents by creating innovative learning opportunities that address local issues. She works with community partners to create and develop educational programs centered on personal financial management and healthy living.

Naomi has an AB in Public Policy from Duke University and an MBA from Lehigh University. She is in the process of completing her Accredited Financial Counselor certification.

DAVID DALTON
GOODWILL TALENTSOURCE EMPLOYMENT SPECIALIST
GOODWILL INDUSTRIES OF CENTRAL INDIANA, INC.

David Dalton is an Employment Specialist for Goodwill Industries of Central Indiana. As an Employment Specialist for TalentSource his focus is on developing relationships with employers in a variety of industries, counseling and placing candidates in high wage positions, and offering retention services to ensure the success of the population Goodwill serves. 

Goodwill's mission is to improve the economic self - sufficiency and well -being of adults and the future employability of young people.

BEN JOERGENS
DIRECTOR OF FINANCIAL EMPOWERMENT, VP
OLD NATIONAL BANK

As the Director of Financial Empowerment, Ben Joergens is responsible for enhancing financial literacy initiatives at Old National by partnering with schools, colleges, universities, businesses, non-profits and government agencies. His goal is to address community needs and implement financial empowerment programs based on sound money management skills. Ben joined Old National in 1999 and has served in a variety of roles. He earned the 2011 Old National Wayne Henning Volunteer of the Year Award and was both the 2010 and 2012 Henderson, Kentucky Chamber Ambassador of the Year. In 2015, Ben received the George Bailey Distinguished Service Award, sponsored by the ABA Foundation. This national award is given to a non-CEO bank employee who demonstrates outstanding initiative, commitment to the bank’s customers and the communities they serve, and inspires others. In 2017, Ben was recognized by the National Financial Educators Council (NFEC) with its coveted Financial Education Instructor of the Year Award for his commitment and contributions to bringing financial education to the at-risk and underserved.

In addition to his extensive volunteer work, Ben also serves as a certified advanced VITA tax preparer with his local United Way Agency.

AMBRE MARR
STATE LEGISLATIVE DIRECTOR
AARP INDIANA

Over the past five years, Ambre has served as the State Legislative Director for AARP Indiana, where she has built an innovative advocacy strategy focusing on increasing engagement, impact, and relevance for the state’s growing 50-plus population. During this time, she has worked alongside volunteers in various capacities expanding awareness around AARP’s issues, programs, and activities. She focuses on building relationships with community and policy leaders on a regular basis, and organizes and maintains effective statewide coalitions to benefit the members of AARP. Prior to joining AARP Indiana, she worked in advocacy for the Indiana State Medical Association and as a legislative assistant in the Indiana General Assembly. Additionally, Ambre serves as a board member of the Indiana Debate Commission, which remains the oldest independent and non-partisan commission of its kind in the nation putting voters first, by hosting free debates statewide. Ambre graduated from Saint Joseph’s College in Rensselaer, IN with a degree in Social Work. She calls Indianapolis home and when she isn’t at the Statehouse, you can either find her running or spending time with her maltipoo, Fannie May. 

To register for the free event,click here.

To meet all of the A&O Steering Committee members,click here.

Welcome to the start of a new semester…one ripe with opportunity, learning, social awkwardness - if you’re anything like I was in college – and, of course, all of the costs associated with it.

If you’re like a lot of people in the United States, you’ve probably thought a lot about having to pay for you, your child, your grandchild, and/or anyone else close to you, to go to school.  I’ll admit that it’s a pretty daunting thing to deal with, especially when you look at how it will affect your financial life.  While I’m not going to attempt to write something that will make all of your worries go away, I wanted to take this opportunity to talk about various ways you can pay for school and mention a few things you should not do.

Student Loans:

The discussion of paying for college and the cost of college is not complete without talking about student loans.  Student loans provide many with the opportunity to get a college education that they couldn’t afford out-of-pocket.  While there are certainly horror stories of people being trapped under thousands and hundreds of thousands of dollars of student debt, student loans – on the whole – are not a bad thing.

One way to look at them as they are one of the few – if not the only – types of debt where the borrower controls a good portion of the value of the investment.  This is not to say that other factors don’t play a part in the return on investment, but rather that by making the most of their college experience, the borrower can increase the likelihood that the investment will turn into a positive trajectory post-graduation.

When it comes to student loans, the most important conversation that needs to take place is between the student and parent/guardian about how much actually needs to be borrowed.  The important thing when taking out student loans is to only borrow what you need and not what is offered.  Doing so will increase the likelihood of not being saddled with an unbearable amount of debt post-graduation.

College Savings:

Before student loans even become a part of the college funding decision, a household needs to take stock of how much in personal savings they have that can go toward funding the education.  In many cases families open up specific college-savings accounts - such as a 529 account - to help fund educational costs.  In my cases, these types of college-savings vehicles have tax advantages attached them.  For example, Indiana residents are eligible for a 20% tax credit – up to a $1,000 credit – every year for contributions made to a 529 account.  Essentially, this means that you could get $6,000 of college for $5,000…or $1,200 for $1,000…or $120 for $100.  Regardless of how much you put in, the fact remains that these accounts are easy ways to get a little bit of extra money to go toward college.

Beyond that, what’s most important is that research shows that students who have accounts opened specifically for college savings are more likely to attend, and graduate, college.  This should not be glossed over.  By opening an account for a student, they are more likely to succeed.  That’s not a bad incentive in of itself.

What Not to Do:

This is pretty simple.  If you’re a parent of a student, don’t financially strain yourself in order to pay for your child’s college education.  Essentially, this means to not do anything that could jeopardize your ability to retire: don’t withdraw money from your retirement savings to pay for college, avoid taking out a second mortgage, and avoid Parent PLUS loans. 

While I would prefer the PLUS loans to taking out private student loans, the fact remains that you should avoid taking out loans that you are responsible for, in order to pay for your child’s college.  While it is noble that you want to help prevent your children from feeling financially stressed, things will be even worse later on when your retirement is in trouble and you have to rely on your child to get you through those times, potentially stressing them out.

The bottom line is that you should avoid doing anything that hurts your financial future.  While it may be difficult because you want to help you child avoid student debt, don’t do it. 

There’s a lot more to funding college than what is written here.  At the very least, have an open conversation with your child about what the plan is for funding their education.  If you need additional assistance, feel free to reach out to theIU Office of Financial Literacy (moneysmarts.iu.edu)to get your questions answered. 

Written Phil Schuman, Director of Financial Literacy at Indiana University - Bloomington. Phil is an Indiana Assets & Opportunity Network Steering Committee Member.

The Consumer Financial Protection Bureau is expected to gut the existing payday rule by removing the Ability-to-Repay provision, which required short term, small dollar lenders to take a borrower’s ability to repay a loan into account before issuing it. According to Prosperity Now, this revision would be a huge blow to advocacy efforts to stop the debt trap.

To read more about this update,click here.

The New Year is an opportunity to dream, reflecting on what has been and setting one’s sights on what could be. On an individual level, this may take the form of health, career, or financial goals. But we can and should think on a policy level, too. Where have we been, and what can and should the future hold?

The vision of the Network is that all Hoosiers are financially secure and can pursue economic opportunity. Just imagine! How incredible would it be to live in a future in which all Hoosiers financially secure and able to pursue economic opportunity? We know we have work to do to get there. We know that far too many Hoosiers lack the assets – rainy day savings, home equity, and retirement accounts – that serves as both a buffer against unexpected daily events and a platform that enables them to plan on a brighter tomorrow. According to the Prosperity Now Scorecard for Indiana, one in five households has zero net worth or below, nearly one third lack a savings account, and more than one in four have a debt in collections.

This Network set three big goals on the table to move toward its vision. First, the Network wants to see small loans capped at 36 percent APR – the rate established for military families and residents of 16 states and D.C. – to stop the cycle of debt that leaves borrowers in or on the verge of bankruptcy. Already, state lawmakers have filed not one, but two bills establishing 36 percent rate caps. It’s up to us now to ensure that these proposals receive a hearing. Senator Bassler, the new chair of the Insurance and Financial Institutions Committee in the Senate, will soon make a decision about which bills to hear. Network members can and should contact Senator Bassler to voice their support for SB 104 and SB 84,asking that they receive a hearing.

We also know that Hoosiers – like consumers across the country – frequently lack the financial literacy to effectively evaluate the options they encounter. In the National Financial Capability Study, study participants were asked five questions covering aspects of economics and finance encountered in everyday life. Only 35 percent of Hoosiers (and 37 percent of U.S. adults) could correctly answer at least four out of five questions correctly. This year, we will ask our state lawmakers to set aside time to study the issue of financial literacy and how best to achieve better results so that Hoosiers are more prepared to navigate the financial marketplace.Senator Raatz is the new chair of the Education Committee in the Senate. Network members can let Senator Raatz know they support an interim study of financial literacy education best practices in K-12 systems and beyond.  

One of the ultimate goals of asset development is the ability to age – and, if desired, retire from the world of work – with dignity. According to the 2018 Employee Benefit Research Institute survey, only 17 percent of workers are very confident about having enough for a comfortable retirement. However, confidence is higher among workers who have access to a defined contribution plan through their workplace. The Network supports increasing access to retirement savings vehicles. We will send an update as we learn more about proposals on the table to either study this issue or expand access to savings options. In the meantime, Network members can let their House or Senate member know that they want to see expanded access to retirement savings vehicles.

A bold vision can feel simultaneously exciting and distant – a focal point far off on the horizon. Once established, it takes effort to get there, carefully setting one foot in front of the other to make progress. Today, we invite Network members to refocus on the vision and take steps forward. Together, we can make incredible progress in 2019.  

The Indianapolis Business Journal’s analysis of the latest U.S. Census Bureau data that tracked children born from 1978 - 1983 found that even when born into households of similar income levels, black children earn considerably less as adults than their white counterparts.

To read the full IBJ report, including an in-depth analysis of the Opportunity Atlas data in Marion County,click here.

According to a new brief from the Asset Funders Network, women age 45 - 65 represent the first generation to benefit from expanded access to higher education, credit, and other asset building opportunities. The opportunities stem from policy changes that came about as part of the civil rights and women’s movements in the 1960s and 1970s.

However, although record-breaking numbers of women are graduating from college and starting businesses, 15 million single women - namely Black and Latin women - have experienced substantial wealth loss in the past 20 years.

To view a slide deck on this topic created by the Asset Funders Network,click here.

As members of the Indiana Assets & Opportunity Network, you are likely already aware of the negative effects that high-cost loan products have had on our communities and our neighbors.

A large body of research demonstrates that high-cost loans create a long-term debt trap that drains consumers' bank accounts and causes significant financial harm, including delinquency and default, overdraft and non-sufficient funds fees, increased difficulty paying mortgages, rent, and other bills, loss of checking accounts and bankruptcy. Indiana currently has one of the highest bankruptcy rates in the country. A new report from the National Consumer Law Center found that in states that have implemented a rate cap, former payday borrowers feel they are better off without these loans. 

Our goal for the 2019 new year is to stop the debt trap once and for all, but that goal isn't possible without your help. As we venture into the 2019 legislative session, we plan to present the Indiana General Assembly with a sign-on letter demonstrating statewide support for a 36 percent APR cap on small loans in Indiana. Click here to sign onto the letter and to make your voice heard in the Statehouse. 

If passed, legislation enacting a 36 percent APR cap on payday loans would make Indiana the 17th state to offer consumers a strong rate cap – the most effective protection possible against both storefront and online predatory lending.

Want to do more?

• Call or write your state lawmakers today and ask them to be co-authors of legislation to enact a 36 percent rate cap. Find your lawmaker here.

• Share a story about payday loans. You can do so here.

For more information, please contact Erin Macey, Policy Analyst at Indiana Institute for Working Families, Kathleen Lara, Policy Director at Prosperity Indiana, or Logan Charlesworth, Indiana Assets and Opportunity Network Manager.

With a projected million middle skills jobs opening up in Indiana by 2024, skills-based/work-based learning is changing the way educators and employers are training, recruiting, and retaining talent to fill future workforce needs.

Work-based learning (WBL) offers a unique opportunity for individuals from diverse backgrounds to develop first-hand knowledge and skills beyond the classroom environment through industry exposure and on the job training. It provides employers with a platform to align their training needs with the actual skills necessary to be successful on the job.

Here are a few guidelines to use when building successful work based learning experiences:

Find a partner
Perhaps the most critical piece in developing WBL is having an employer partner that is interested in participating and willing to take a non-traditional approach to recruiting talent. Whatever the industry, it is often times best to start with smaller businesses. There tend to be fewer roadblocks and it is less of a challenge to get the right people capable of making decisions in the room.  With the right level of support, everyone has a sense of ownership.

Identify the Need
Every employer shares they need employees that will show up on time, work hard, and work well with others. Time-and-time again, it boils down to possessing soft skills. These are essential qualities for all candidates to possess. However, WBL is about identifying and targeting specific skill sets and needs within an industry. When working with a new employer, identify what their biggest hiring need is and what technical skills are not met by their current talent pool. Technical training through WBL by one employer has the ability to impact an entire industry by producing properly trained and skilled candidates.  

Create Structure
Communication is essential when structuring a WBL experience. For it to be worthwhile, it has to check a few boxes. First, understand the employer’s capacity to bring on students and how many students at a time. A big part of the investment for the employer is time so be aware of any limitations they may have to dedicate to training. Have a duration in mind with a set amount of hours that offer the participant a meaningful experience while also providing the employer with a potential hire.

Appropriately vetting and recruiting students based on what the employer is seeking is critical. While gaining industry exposure is important it is equally important to be certain the potential interns have basic qualifications related to the opportunity and a genuine interest in the career field. With structure and the right interns, the experience can be meaningful for both the student and the employer.

Define Outcomes
Define outcomes and metrics to track.  Identify a few key metrics of what makes it a successful WBL for the student and the employer. There are several ways to track efforts including weekly progress reports, learned skills, successful completion, and whether or not the internship results in a hire for the employer. There is also Indiana Department of Workforce Development (DWD)’sEmployability Skills Benchmarks that can be used to create a rubric to track what the students learn during their experience.

Win-Win
Like any successful partnership, it should be a win-win. This is especially the case of WBL. Employers have the opportunity to diversify their talent pool, align training with actual needs and skills, engage the community, and develop a pipeline of talent for not just their business, but for the industry as a whole. For the participant it serves to build their resume, develop critical skills, and potentially earn while they learn. With the right partner, program structure, and candidate, work based learning can impact our current and future workforce needs.

Needless to say, there is a lot more to establishing, implementing, and sustaining an opportunity. Hopefully, this serves as a great starting point when identifying and building work based learning experiences for an employer partner and program participants.

David Dalton is the Goodwill Talentsource, Work Based Learning Manager at Goodwill of Central and Southern Indiana and a member of the Indiana Assets & Opportunity Network Steering Committee.

U.S. Senator Sherrod Brown (D-OH) – ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs – released ‘Pushing the Envelope: The Consumer Financial Protection Bureau Under the Trump Administration’ report to Congress.

The minority staff report criticizes the direction of the bureau under the leadership of Acting Director Mick Mulvaney and questions the selection of Kathleen Kraninger, President Trump’s choice for Mulvaney’s successor. To read the full report,click here.