Why Universities Should Make Financial Education Mandatory for Students
College is an exciting time for students – new friends, new experiences, and new opportunities. However, one thing that is not so exciting is the financial burden that comes with being a student. The cost of tuition, textbooks, and living expenses can quickly add up, leaving many students struggling to make ends meet. Most universities offer voluntary debt and financial support programs, but unfortunately, many students do not take advantage of them. In this blog post, we will explore the reasons why universities should make financial education mandatory for students and why this is particularly important for first-generation and low-income students. ScholarShot graded Texas colleges who participated in our Report Card Survey on several different categories including, Financial Management. We're summarizing how these schools performed in this post but we've included a link below if you'd like to read the full report.
Currently, the only Texas schools that require students to meet with a financial advisor before beginning school is:
In a survey conducted by the National Association of Student Financial Aid Administrators, only 25% of colleges and universities had a debt management program that was mandatory for all students. Requiring students to take part in a financial education program would ensure that they have the knowledge and tools to make informed decisions about their finances in college and beyond.
While most of the Texas schools have an optional or no debt education program, five schools have mandatory programs for students taking out loans including:
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In addition to debt management, many students are not aware of the grants and scholarships that are available to them. Unfortunately, this lack of knowledge often leads to students not taking advantage of these opportunities. For example, federal and state grants are often automatically awarded to students who meet certain criteria, but many students are not even aware that they exist. Requiring students to meet with a financial aid advisor to plan out their financial path through college would ensure that they are aware of all the grants and scholarships available to them.
Along with the financial burden of paying for college, many FGLI students also face the added pressure of not having a support system of family members who have gone through the college experience before. This lack of guidance often leads to students making decisions that have long-term financial consequences. By making financial education mandatory, universities can provide these students with the necessary tools to make informed decisions about their finances, which can lead to better financial outcomes in the long run.
Mandatory financial education can help to reduce the number of student dropouts and the amount of student loan debt that students carry after graduation. Studies have shown that students who drop out of college often do so due to financial reasons. By providing students with the necessary financial education and resources, universities can help ensure that students are able to successfully complete their degree programs and find well-paying jobs after graduation.
Financial education should be made mandatory for all students, especially FGLI students. By providing students with the necessary tools and resources to make informed decisions about their finances, universities can help to reduce the financial burden that comes with being a college student. By lowering the barriers to financial support, students can focus on their studies and graduate with the knowledge and confidence to make good financial decisions throughout their lives. For future college students and parents, it’s important to advocate for mandatory financial education in order to ensure that every student has the opportunity to achieve academic and financial success.
The following Texas universities scored best overall in the Financial Management Category: