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Financial education key to reducing student loan stress

Financial education key to reducing student loan stress

6 years ago
Anonymous $oIHRkISgaL

https://phys.org/news/2018-10-financial-key-student-loan-stress.html

"A majority of borrowers, 55 percent, reported being worried about their student loans; however, only 30 percent of borrowers said that they had received financial education about paying off their student loans," Fan said. "Moreover, only 40 percent of borrowers reported having financial influence from their parents. Given the number of people who need student loans to attend college, we need to do better at educating borrowers."

Using the 2015 National Financial Capability Study dataset, Fan and Swarn Chatterjee, professor at the University of Georgia, found that having student loan debt caused mental stress for borrowers. The researchers looked at more than 2,600 responses from the dataset, focusing on respondents who had a student loan, were between the ages of 24 and 65, were no longer a student, were employed, and were the primary decision makers in their household.

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