Financial Education Can Help Students with Pesky Loans
On Monday, June 11, President Obama signed an executive order that will help up to five million student loan borrowers, signaling a need to address the $1.2 trillion problem. However, one area that the administration did not address was financial literacy. Improving young adults understanding of financial, credit, and debt management topics will help them better understand and apply for the proper student loan.
Young Adults Lack Financial Education
According to national surveys, almost half (49 percent) of young adults believe that they do not have proper financial management skills, but recognize the need to take a financial education course and would likely take one if offered. Young adults primarily rely on their parents to teach them about managing their money since many high schools and colleges do not require or offer financial literacy courses. Compounding the need for financial education is the fact that college graduates are leaving with large amounts of student loans and are having a difficult time finding full-time, career jobs.