Sep 14, 2016 03:59 AM EDT
Raising Financial Literate Students: The Key to Solving Student Debt Crisis
Student debt has grown exponentially over the years and become a national crisis. It has become very noticeable that the voting public wants to hear how presidential candidates view it and plan to solve it. Experts, however, suggest that the key to solving this is to create financial literate students.
A MarketWatch report said that seventy percent of students are weighed by huge student loans after they graduate. These loans are also the reason why the United States economy is at a standstill. With a total of $1.2 trillion on student debts, Americans are very careful or even afraid to make the much-needed purchases that would drive the economy forward. Moreover, one out four students who has a student loan has defaulted or become delinquent in their payment according to the Consumer Financial Protection Bureau.
Experts pointed out that there are lots of factors why the student loan problem has become so bloated. One of the reasons, according to them, is that a great number of incoming university students have no idea how these student loans can impact their future.
"What a lot of students don't understand is that student debt is an investment in your future. A perfect example of what I think is missing at a lot of high schools is one of the key topics in financial literacy, understanding the connection between career and income," said John Petellier, head of the Center for Financial Literacy.
Petellier's statement is similar to what Education Secretary John King called as "shared responsibility" during his speech at a Cuyahoga County Community College event where he encouraged financial literacy among students while schools and universities provide support for the students.
In a recent survey among 18 to 24-year-old students, fifty percent of those who were surveyed agreed that they need a financial management course in high school more than science or social studies.
Currently, there are initiatives, like CollegeNow, that promote financial literacy. The organization educates students regarding refinancing and repayment as well as helping them decide which way to go when seeking financial assistance in College.
However, the responsibility of educating students financially does not rest in the hands of schools alone. To apply King's "shared responsibility" principles, education should start at home while these students are still kids.
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