Create a free Diverse: Issues In Higher Education account to continue reading. Already have an account? Enter your email to access the article.

New Survey Finds College Students Lack Financial Literacy

Today’s college students are feeling unprepared to manage their finances and have already accumulated high amounts of debt, according to a recent survey by EVERFI.

The report, titled “Money Matters on Campus” which was sponsored by AIG Retirement Services, focused on students’ financial experience and knowledge. It included 30,000 college student participants from 440 institutions in 45 states.

The survey found that six in 10 students have taken or intend to take loans out to cover their tuition bills. However, only 65 percent actually plan to pay off those loans on time and in full.

Ray Martinez, co-founder and president of EVERFI’s Financial Education and Conduct and Culture divisions, believes that many families remain unaware of the full cost of attending college. This results in students needing to take out loans because they were unprepared financially.

“One of the most important investments you’re going to make in your life is around where you’re going to attend college,” said Martinez. “And I don’t believe as a country we’ve done a great job of preparing students and families before they’re making that decision. A lot of these decisions are emotional decisions for students and I think there needs to be much more of a financial lens as you’re making these decisions.”

Not only do students struggle with student loans, they also face problems with paying off their credit card bills.

According to the survey, 36 percent of participants already have more than $1,000 in credit card debt. And many students do not have enough money to pay off their debts or are not fully aware of the consequences of leaving bills unpaid.

The trusted source for all job seekers
We have an extensive variety of listings for both academic and non-academic positions at postsecondary institutions.
Read More
The trusted source for all job seekers