Managing Debt
Total debt per person in the U.S. is approximately $50,000.
This module teaches students how to:
- Define and differentiate between good and bad debt
- Understand how their personal choices determine their accrual of debt, as well as how quickly and efficiently they repay debt
- Differentiate between needs and wants
- Determine their debt-to-income ratio
- Develop a debt-reduction action plan
Obtaining Credit
About half of borrowers in undergraduate programs report that they could have financed their studies while using less credit, estimating that they had over-borrowed by more than $11,000 per student on average.
This module teaches students how to:
- Identify types of financial institutions where credit can be obtained
- Analyze the costs and benefits of various types of credit
- Navigate the credit application process
Managing Student Loans While in School
With borrowers facing an average student loan debt of $30,000 at graduation, planning ahead is more important than ever to student and career success.
This module encourages a proactive approach to managing student loans. It shows students how they can minimize their overall expenses by keeping track of their student loan balances and estimating their future finances. Students will gain knowledge on how to:
- Access their student loan information
- Estimate their student loan borrowing needs
- Calculate their future borrowing capacity based on earnings potential
- To be informed about the key components of smart borrowing
Creating and Maintaining a Budget
The cost of pursuing a postsecondary degree has easily outpaced inflation over the past decade, increasing more than 5 percent each year on average.
This module helps students make the most of their financial resources, including how to:
- Estimate deductions and taxes that are taken out of their paychecks
- Track income and expenses in a chosen budgeting tool
- Monitor and evaluate their budgets
- Adjust spending habits to reduce expenses.
Managing Credit Cards
Credit card debt in the U.S. exceeded $1 trillion at the end of 2016, the most since the previous record amount was reduced by the Great Recession and subsequent bankruptcies. Households that carry credit card debt owe, on average, more than $16,000.
This module helps students make good decisions about a form of payment that has become a way of life. It teaches them:
- How to differentiate between types of debit and credit cards so they can select the one that best fits their personal needs
- The effect credit card usage can have on their credit history and score
- Credit card terminology
- How making minimum payments on credit card balances affects their credit rating and their finances
Paying for College
According to a recent study, roughly half of first-year students have much more student debt than they realize. In fact, about 30 percent wrongly believed they had no federal student loan debt.
This module raises awareness about the challenges and opportunities of paying for college. It teaches students how to:
- Find free sources to finance their higher education
- Examine the costs associated with school
- Analyze the various types and sources of student aid
- Determine affordable levels of student loan debt
Understanding the Basics of Budgeting
By far, the biggest reason students cite for dropping out of college is difficulty with their personal finances. Yet nearly 70 percent of students have not attended personal finance classes or workshops in high school and 77 percent have not done so in college.
This module addresses important financial skills that help students determine the amount of money they really have for their budget by:
- Calculating take-home pay
- Balancing income and spending
- Differentiating between needs and wants
- Researching and selecting a budgeting tool that meets their needs
Achieving Goals
At two- and four-year public institutions, student attrition rates reach their highest levels between terms two and three.
This module can help extend supportive outreach and key retention support beyond the traditional orientation phase. It teaches students how to:
- Research and set realistic goals
- Utilize the SMART goal-setting method
- Create a plan to achieve their goals
- Review their progress
Applying for Financial Aid
A recent survey found that almost half of recent graduates were unclear on the differences between government and private loans while 15 percent didn’t know how much they owed on their student loans.
This module helps students:
- Frame financial aid decisions in both a qualitative and quantitative perspective
- Learn the steps involved in applying for, reviewing and accepting financial aid from both government and private sources
- Understand the importance of evaluating the types of aid available to them and of borrowing only what is needed
Understanding Credit
Consumer debt has become part of the fabric of the national economy. Total household debt reached $12.58 trillion in 2016, less than 1 percent below the all-time high in 2008. With interest rates on an upward trend, consumers are expected to face an additional $1.6 billion in borrowing costs for credit cards alone in 2017.
This module teaches students how to:
- Define credit and interest
- Differentiate among the various types of credit available
- Evaluate which types of credit are better suited for particular purposes
- Comprehend the legal implications of using credit
