April Is Financial Literacy Month, and We’re Here to Help

April is an exciting time—the first buds of spring appear, acceptance letters go out to many students, and we in the financial aid community observe Financial Literacy Month.

We talk a lot about the concept of financial literacy in this blog. But what actually are the pillars of financial literacy? Below, I’ve listed the top financial literacy issues for students—and how you and ASA can work together to address them.

• Budgeting. As you see every day, students don’t always know how to handle money—whether buying lattes or paying for tuition and books. From their perspective, it may seem impossible to reduce their expenses or avoid accruing credit card debt. But by teaching them to examine their expenses realistically and create and stick to a budget, you can truly help them to afford their education dreams—and stay out of unnecessary debt. ASA’s budget worksheet can help you help them to get started.
• Choosing between private and federal loans. More students than ever are taking out private loans to finance their educations. You know the benefits of federal loans—but do your students? Help ensure they borrow the maximum in federal loans before seeking private loans by giving them the straight facts.
• Understanding the repayment process. Whether it’s six months before repayment begins or 10 years into it, there’s a lot you can teach borrowers about repaying their loans. You can start by providing thorough and student-friendly exit interviews. While guarantors like ASA can no longer conduct exit interviews, according to federal law, we can provide useful handouts and background information.

Borrowers well into the repayment process may need your help, too, even though they’re no longer on campus. They may want to learn about the pros and cons of consolidating their loans or what to do after they consolidate. They may need to switch to a more manageable repayment plan. Or, they may need guidance on avoiding default—especially in our current shaky economy. You can give them the straight facts of forbearance and deferment or walk them through their options using the deferment and forbearance calculators in the ASA Toolbox.

• Weathering the credit crunch. Students, graduates, and their families feel more confused than ever, and they’ll look to you to steer them back into safe waters. Take a look at my blog devoted to this topic for some practical suggestions.
• Knowing where to go for help. It’s important for borrowers in all stages, and their families, to know where to go with their questions and concerns. This month, ASA will be conducting on-campus financial literacy training sessions for students. We’ll also be increasing the presence of the ASA Mammoth, the symbol of mammoth but manageable student debt, on select campuses, to remind students that ASA is a resource for their debt management. If you’d like to learn more about ASA’s campus visits or how to increase the presence of the ASA Mammoth at your school, contact your client manager.

Remember, ASA is here to help you and your students at every turn. So let’s make Financial Literacy Month meaningful—and equip borrowers with the tools for long-term financial success.

What other financial aid topics do you plan to address this month? How has ASA helped your campus convey good principles to your students? And what areas of financial literacy do you think need more attention? We want to hear from you!

Posted by Susan Nathan on April 25, 2008 at 02:23 AM EST

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