How Much Do College Kids Really Know About Student Loans?
Didn’t they teach you anything in school?
That’s the first question that comes to mind when examining the financial literacy of college students. Before the ink is even dry on their diplomas, high school graduates are expected to make smart money decisions about college that will affect their finances for decades. Yet they receive little formal education on personal finance. The result: college campuses filled with debt and ignorance.
The total amount of student loan debt stands at about $1.2 trillion, more than every other kind of household debt, with the exception of mortgages. To find out how much college students know about student loans and the financial aid process, LendEDU decided to survey college students at a nearby campus. About 90% of current borrowers surveyed do not know the difference between subsidized and unsubsidized loans, while 90% do not know the risks of a cosigner.
Let’s check out the funniest – perhaps depressing – survey responses in the video below:
LendEDU is an Iowa-based company offering a marketplace for student loans and student loan refinancing. It helps students, graduates, and parents find the lowest quotes from lenders, and offers tools and resources for borrowers.