Better Borrowing: How State-Mandated Financial Education Drives College Financing Behaviour
Author:
Topic: Asset building and saving, Financial literacy
Publisher: NEFE - National Endowment for Financial Education
Location: United States
Format: Report
Content Type: Research
Publication Date: February 4, 2023
Topic: Asset building and saving, Financial literacy
Publisher: NEFE - National Endowment for Financial Education
Location: United States
Format: Report
Content Type: Research
Publication Date: February 4, 2023
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.
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