Better Borrowing: How State-Mandated Financial Education Drives College Financing Behaviour
As student loan reform continues to dominate national discourse, a NEFE-funded study shows that financial education in states with state-mandated personal finance graduation requirements causes students to make better decisions about how to pay for college. It increases applications for aid, federal aid taken, and grants — all while decreasing credit card balances. Put simply, financial education makes better borrowers.
This study examines positive effects of state-mandated financial education graduation requirements. As of 2017, 25 states have implemented mandates for personal finance education prior to graduation.