With graduation two weeks away, soon-to-be graduates are going to have to start paying back their student loans. The problem is that many do not feel prepared to do so.
“A survey of nearly 90,000 college students across the United States – approximately 85,000 from four-year institutions and 4,300 from two-year institutions – show that 90 percent of students feel they do not have all the information necessary to pay off their college loans,” according to a Higher One press release.
According to the release the survey, which was conducted by EverFi, showed that students who graduated from two-year institutions were better prepared to pay off their loans.
“Students from two-year institutions, for example, reported engaging in more fiscally responsible monitoring behaviors including checking account balances and budgeting—and were more cautious, more averse to debt, more utilitarian, less materialistic and more content overall than their four-year counterparts,” according to the release.
The students who attended a two-year institution made safer financial decisions than those who attended four-year institutions, according to the release.
One reason for this may be because, “as students progress in their college career, we see that many of their financial behaviors deteriorate to a certain degree,” EverFi research director Dan Zapp said in the release.
“Over the past four years, we have seen that developing financial capability is an incredibly important part of educating college students. These survey results highlight that fact, and we must continue to push for more – and better – financial education as well as opportunities to provide students with access to real-world financial experiences,” vice president of financial literacy and student aid policy at Higher One Mary Johnson said in the release.
According to the release, students who take out college loans need to be educated about how to repay their loans and to have a better knowledge of repayment options.
“Empowering students to positively change behaviors and make informed financial decisions is more important today than ever before,” Zapp said in the release.
Annabelle Orlando is a campus correspondent for The Daily Campus. She can be reached via email at firstname.lastname@example.org.