Financial Literacy Essay

This report examines the increasing trends in the amount of debt students are graduating with. The purpose of this report is to prove why these trends need to be stopped, and how they can be stopped. After viewing the statistics from 1993 to the present it will be obvious that student debt is not rising at a steady pace, but that its growth is leading to large financial burdens by many students. Recommendations are given about the actions that can be taken by not only students, but everyone to help improve this dire situation. The changes that student loans have been through over the last couple of years will have a lasting effect on current students, prospective students, parents, and those who have graduated and

Student loan forgiveness remains such a vital topic to many individuals because the exorbitant costs of post-secondary education require a majority of students to take on debt in order to simply improve themselves and advance intellectually. Thousands of students are graduating college every year, each with several thousands of dollars in debt. This area is important to research because it will provide insight into the futures of all college students immersed in the deep debt that appears to consistently accompany a quality education. Finances are important to many college students, especially when it is hard to receive scholarships to cover schooling expenses. When going through college, students stress about the amount of debt that they acquire throughout their post-secondary schooling and learning about the potential to have these debts forgiven is monumental.

Student loan debt is the second leading component of American consumer debt. Student loans can be seen as a challenge that has to be overcome, on top of college itself. This is an opportunity for college students or former college students to show their responsibility. It is the responsibility of the student to find some way to pay this debt. This situation should not be the taxpayers’ problem. Student loan debt is a problem that does not always have an easy solution for the debtor.

It is impertinent that the government and colleges spend time keeping track of the amount of debt that college students are going to be faced with when they leave the college. “This information can then be used to improve student loan counseling” (Kantrowitz). By having these statistics, the goverment can

Student debt is an increasing problem in the American education system. As the times keep changing one thing becomes clearer and clearer: going to college is becoming less and less of a choice for recently graduated high school students. Unfortunately for us students that also means by the time we graduate we will have thousands of dollars in student loans to pay off when we are trying to start fresh in our new jobs. According to a story reported by the Daily News, approximately 70 percent of college students owe around 30,000 dollars by the time they graduate. This number

A financial aid website Edvisors reported that the class of 2015 left school with the highest debt level in history. The average student started their careers with $35,051 in student debt. The debt level is clearly on the rise, as the average student in 2012, left school with outstanding debt of $24,301. According to XX, over 10% of borrowers have over $58,000 in debt. Furthermore, the worrying fact is that one in four borrowers end up either in delinquency or default on the

Financial aid is helping students all over the world attend college to seek the education for the job of their dreams. This financial relief can be the difference between a student being able to go to college or to not go to college. However, there is often not enough rising awareness on the negative effects student debt can have on a person, and how they can effect a student’s career choice. Students are searching everywhere for a revival from student debt. If there were only one solution for student debt, I wouldn’t be writing this because it would probably already have been resolved. There are multiple different problems students endure from debt which varies from student to student, and many solutions have been proposed yet never have been met.

What sets 2016’s graduating class apart that they are more indebted than any other class of students before (Sullivan and Towell). Student loans lead some graduates to obtain jobs lucrative jobs in specialized fields and lead others to suicide. Lack of understanding creates an air of mystery surrounding student loans that can have detrimental consequences. Being informed and investigating all available sources of aid are crucial components of managing debt. In this essay, I will argue that although student debt is often a necessity, students should be informed and aware of how to responsibly manage their debts.

It is no secret that the financial system in The United States of America is incredibly complex and difficult to fully understand. As more and more people go into debt each year, it becomes clear that every American needs some help when it comes to financial literacy. However, the implementation of a financial literacy course is not a good solution. A course in financial literacy would end up being a waste of time and money because the class would cost the school board a large sum of money that it already does not have, and the students would not actually acquire much benefit from the class. Schools are getting less funding from the government every year and most school budget are pushed to their max.

Due to rising tuition rates, a student’s first assumption when planning to attend college is to take out a loan to pay the tuition. However, students are not aware of the different types of loans. The financial loan system is very complicated to where students are unsure about the types of loans they would need. A way to solve this problem is for students to educate themselves about the variety of loans. Students have resources like counselors and financial advisors at high schools and colleges to provide information about the financial aid programs. King’s study argues, “no students should miss the opportunity for vital financial assistance because he or she lacks necessary information, is misinformed about the nature of student aid programs,

Sujatha, A., describes financial literacy as the ability to grow, monitor, and effectively use financial resources to enhance the well-being and economic security of oneself, one’s family, and one’s business. Financial literacy is a process of making meaning of, and understanding, financial issues and situations. Lack of financial literacy is often tied to lack of access to financial products or failure to use them even when they are available (Sujatha, 2016).

President Clinton said, “We have tracked down defaulters and made them pay” (17). The partnership between President Clinton, the US Department of Education, different Universities, and college students, can educate other students through different programs. They can teach students how they can budget their student loans into their finances and show them what the penalties are for not doing so. It makes sense for students to budget their finances in the first place, so that they will not fall into a pit of defaulting on their student loans. There are ways that students can budget their finances.

A very warm welcome to the final issue of the Financial Services Newsletter for 2017. It is hard to believe the year is already drawing to a close!

The definition of finance is rather complex but Merriam Webster seems to provide the most comprehensive explanation, stating, “the management of revenues; the conduct or transaction of money matters generally, especially those affecting the public, as in the fields of banking and investment” (Merriam Webster). The management of revenues is essentially the core of what separates the jobs of finance majors, compared to other business-related majors such as accounting and economics. While accountants identify where the money comes from, the finance people identify how to best use that money. While economic majors study how to grow the entire economy of a country, finance majors study how to value a company. The reason behind my decision to pursue a major in finance is because I want to study how to manage money in a company and the role companies play in affecting the banking system. Also, I am convinced that majoring in finance is one of the most effective and efficient ways in becoming a successful entrepreneur. As a finance major, I can only study; as a successful entrepreneur, I will be equipped with the resources to improve the lives of hundreds if not thousands of people.

Nothing in life is ever totally free. Mint has to make their money somewhere, and they do that by recommend products and services. Most of these services is to help save money or reduce debt. Mint might make recommendations for services from their partners such as Fidelity and Chase.