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.