The rate of debt among high school and college students is rising at an alarming rate and the trend has many experts worried. A recent report by Sallie Mae, a company that originates, services and collects student loans, shows the average student debt has reached a new record high. In response to this disturbing trend, one school is taking an educational approach to the problem.
Mahanoy area teacher Kathy Loy pushed for a class teaching financial literacy to combat the skyrocketing rate of debt students face. The average student has a balance topping $3000. Loy’s class talks about debt and credit in detail. She spends about 6 to 8 weeks on the subject of credit.
She talks about good and bad credit. Students research rates and fees online. They learn about compound interest and how car and home loans work. Parental response has been overwhelmingly positive. Many parents say they wish they had been offered such a class as kids.
Source: http://republicanherald.com/news/colleges-and-high-schools-offer-some-counseling-for-credit-card-using-students-1.1191511
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Financial aid to students is an integral and necessary part of their educational plan. Over the course of their path to graduation debt will continue to grow causing increasing stress and diverting crucial focus away from their studies. It is extremely important that students establish a sound financial plan as well as an educational plan to guide them to their goals. There are many very practical financial tools to help them manage their debt and repayment strategies. Exploring these early will help students and parents alleviate this stressful aspect of a college education.