A recent article entitled Financial Wellness Programs Help Create Successful Students, written by nonprofit Inceptia which “educates students on how to pay for college, guides borrowers through loan repayment counseling, and provides default prevention strategies and services”, found that those institutions introducing financial wellness programs as part of their curriculum are seeing, “big results.” Inceptia noted that debt letters and loan summaries, without proper financial education, are not enough for students.
Citing a 2017 study*, Inceptia found some interesting facts:
- 94% of students had no understating of their own loan payment terms
- 65% found those terms confusing.
- Only 23% say they’ve actively sought out further education on the subject.
Inceptia looks to the success of the University of Nebraska at Kearney’s “Financial Avenue” program which was designed to educate students on personal finance basics and help them use the basics in the real world. It has been noted that the program both improved retention and overall graduation rates.
To learn more about this program, as well as results that include:
- Students savings
- Reduction of credit card debt
- More on time payments
*2017 Whitepaper created by Inceptia, “Loan Summaries: Nudging Students Towards Smart Borrowing”