Universities of Iowa and South Florida-Tampa Rejuvenate Financial Health
Making an impact on the financial literacy of a generation is no small task. As evidence continues to mount that Americans, and particularly young people, lack the tools they need when it comes to financial literacy, institutions at every level debate ways to "fix" the problem and help the next generation navigate everything from home budgets to retirement savings to college costs. Some say parents are to blame, others say it's the schools, others point a finger at society in general.
Meanwhile, the federal government continues to debate everything from student loan relief to interest rates on federal loans to no avail, and our own iGrad survey has found that concepts as simple as interest rates and loan defaults profoundly confuse many young people.
Luckily, there are other institutions taking matters into their own hands, so to speak, and educating students themselves. By creating financial literacy programs and requiring students, particularly students taking loans, to participate in these programs, they create a culture of education and communication that tackles these issues head-on. Indeed, the Universities of Iowa and South Florida-Tampa are rejuvenating the financial health of our country, one student at a time. Let's take a look at how…
University of Iowa: In-Depth Counseling
UI's program began as a pilot for first-year students only in 2012, but expanded to all undergrads in June 2014. Three full-time financial literacy specialists provide private loan counseling for students, which includes a spreadsheet of personalized information that gives them an in-depth look at the realities of their student loans. Information includes:
- Amount of money borrowed to-date
- Future repayment estimation
- Recommendations for total debt reduction
During their sessions, counselors also discuss repayment options and alternative funding sources with students. Though this program is open to all undergrads at UI, counseling is required for anyone seeking private loans or additional unsubsidized loans, especially if their parents did not qualify for Parent PLUS loans. Sessions may include parents as well, but students are the focus of this counseling since, ultimately, debt repayment is their responsibility. ("UI helping students become good money managers, reduce loan borrowing" -Iowa Now)
University of South Florida-Tampa: Bull2Bull Peer Mentoring and Self-Guided Learning
USF-T takes a comprehensive approach to financial literacy education, which begins with a required online financial literacy module (Financial Literacy 101) that all freshmen take in their first semester. Through that, they offer online self-help resources that address common financial topics such as identity theft, debt management, budgeting and saving, and credit reports. The Office of Financial Aid also sponsors a series of finance-based events each semester that cover topics such as money management, understanding credit, and life after graduation.
More significant, perhaps, is USF-T's Bull2Bull (B2B) peer-to-peer financial mentoring program. This program, based out of the Office of Financial Aid employs two full-time staff members and up to 10 seniors who serve as peer counselors and provide one-to-one loan consultation services.
USF-T places a particular focus on outreach to at-risk populations in the B2B program. This includes undergrads considering grad school; students funding their own education without scholarships; students whose academic progress is affecting their federal loan status; and Graduate Assistants (GAs) with a stipend, tuition waivers, and insurance who still carry debt. (USF- Financial Education Program)
Want to know who else took matters into their own hands?
The Future of Financial Literacy in America
Judging by the breadth of these programs, the future for financial literacy in America looks bright, but other needs to follow suit. Financial topics need to become an essential element of K-12 education in order to reach non-college goers and those without loans. Adults, too, need to take it upon themselves to manage rather than ignore finances. However, the fact that major universities recognize the incredible burden of student loan debt, which reached over $1 trillion this year, is a start. The importance of lifetime financial savvy and conscious money management is a fact none of us can "afford" to ignore.
For more examples of forward-thinking schools that have established financial literacy courses, read:
Law Schools at Yale and Fordham put Financial Literacy on the Docket
University of Michigan-Flint and Portland State Pump-Up Financial Fitness
Image Courtesy of: 401KCalculators
