Featured Research

from universities, journals, and other organizations

Student debt growing, number of university financial education programs still deficient

Date:
August 27, 2014
Source:
Kansas State University
Summary:
A financial planner finds most universities are lacking a financial education program, and outlines in a new article the different types of successful programs and how to get started.

As student debt load grows -- its doubled since 2007 -- most universities aren't offering sufficient financial education programs to help students understand this financial burden, according to a new report whose authors include two Kansas State University professors.

"Financial issues are one of the top reasons, if not the No. 1 reason, that students drop out of college," said Sonya Britt, associate professor of family studies and human services and program director of personal financial planning at the university's College of Human Ecology. "Thirty percent of students who have student loans drop out of college, which is a pretty alarming percentage."

Britt and Dottie Durband, the new director of Kansas State University's School of Family Studies and Human Services, are among the co-authors of the white paper "Financial Literacy in Higher Education: The Most Successful Models and Methods for Gaining Traction." The purpose of the paper was to identify some of the programs universities might be able to use to integrate financial education into their campuses. The paper also identified a need for financial education at universities, noting that many universities do not have a program.

"Most of the students who enter college don't get financial literacy courses when they're in high school, so many students aren't familiar with basic money management skills such as making payments and the awareness of how fast credit card debt accumulates," Britt said. "There's a lot of need but not a lot of resources for college students currently."

At Kansas State University, Powercat Financial Counseling provides free information and education to students, as well as access to the financial literacy website Salt. The university's also offers a personal financial planning program focuses on research and education in the areas of financial counseling and financial therapy.

The report outlines a variety of models of successful programs in higher education including, interactive online programs, classroom-based programs, game-based education, event-based programs and individual counseling.

Different programs work for different institutions, but no matter which you choose, Britt says to start small.

"Universities could offer one-time events or monthly events where they bring in professionals that could give pro bono advice to students," Britt said. "The university also could promote a number of free resources already available to students."

The Consumer Financial Protection Bureau estimates student loan debt is about $1 trillion, surpassing credit card debt and comprising the second largest form of consumer debt behind mortgages. For students entering college, Britt suggests doing your homework before borrowing.

"Use the U.S. Bureau of Labor Statistics website to determine the salary of your desired job after college," Britt said. "Then use the online calculator to estimate what your monthly payments will be based on the amount of student loans borrowed. This will give you a better idea of how much those students loans will cost you in the long run."

The full paper can be found online at: http://www.coheao.com/wp-content/uploads/2014/03/2014-COHEAO-Financial-Literacy-Whitepaper.pdf


Story Source:

The above story is based on materials provided by Kansas State University. Note: Materials may be edited for content and length.


Cite This Page:

Kansas State University. "Student debt growing, number of university financial education programs still deficient." ScienceDaily. ScienceDaily, 27 August 2014. <www.sciencedaily.com/releases/2014/08/140827111817.htm>.
Kansas State University. (2014, August 27). Student debt growing, number of university financial education programs still deficient. ScienceDaily. Retrieved September 15, 2014 from www.sciencedaily.com/releases/2014/08/140827111817.htm
Kansas State University. "Student debt growing, number of university financial education programs still deficient." ScienceDaily. www.sciencedaily.com/releases/2014/08/140827111817.htm (accessed September 15, 2014).

Share This



More Science & Society News

Monday, September 15, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Frustration As Drone Industry Outpaces Regulation In U.S.

Frustration As Drone Industry Outpaces Regulation In U.S.

Newsy (Sep. 14, 2014) U.S. firms worry they’re falling behind in the marketplace as the FAA considers how to regulate commercial drones. Video provided by Newsy
Powered by NewsLook.com
Smart Gun Innovators Fear Backlash From Gun Rights Advocates

Smart Gun Innovators Fear Backlash From Gun Rights Advocates

Newsy (Sep. 14, 2014) Winners of a contest for smart gun design are asking not to be named after others in the industry received threats for marketing similar products. Video provided by Newsy
Powered by NewsLook.com
Conservationists Face Uphill PR Battle With New Shark Rules

Conservationists Face Uphill PR Battle With New Shark Rules

Newsy (Sep. 14, 2014) New conservation measures for shark fishing face an uphill PR battle in the fight to slow shark extinction. Video provided by Newsy
Powered by NewsLook.com
Shocker: Journalists Are Utterly Addicted To Coffee

Shocker: Journalists Are Utterly Addicted To Coffee

Newsy (Sep. 13, 2014) A U.K. survey found that journalists consumed the most amount of coffee, but that's only the tip of the coffee-related statistics iceberg. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

    Technology News



    Save/Print:
    Share:

    Free Subscriptions


    Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

    Get Social & Mobile


    Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

    Have Feedback?


    Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
    Mobile: iPhone Android Web
    Follow: Facebook Twitter Google+
    Subscribe: RSS Feeds Email Newsletters
    Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins