To proactively address the student loan debt crisis, the National Financial Educators Council proposes a simple solution – provide college bound students a financial education before signing loan documents.
Los Angeles, CA (PRWEB) January 16, 2013
To proactively address the student loan debt crisis, the National Financial Educators Council proposes a simple solution – provide college bound students a financial education before signing loan documents. The NFEC encourages those that are concerned about the future of our youth and the financial strength for the country to sign the college personal finance petition.
To promote this mission the NFEC has created a three step plan to attack this problem on several levels: through legislation, free market influence and a high-profile awareness campaign. The end goal of this initiative is to require college bound students under 21 years old to take a financial wellenss program prior to committing to federally backed student loan debt.
Studies from the National Financial Educators Council and the Jump$tart Coalition for Personal Financial Literacy have demonstrated that high school students lack the financial competency needed to understand debt, interest rates, loan terms and even basic budget skill sets. These financially illiterate students are making decisions that will impact them well beyond their graduation date.
The NFEC developed this solution based on other legislation and what college bound students are doing already. High school students are already taking a variety of test for college like the GMAT and ACT. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 require people to take a financial education course after they file. “Simply combining current bankruptcy legislation and a system students are use to provides a workable solution that can be implemented immediately,” states Vince Shorb of the NFEC.
The petition is part of the NFEC’s ‘free market’ solution to implementing change. This will be leveraged to influence parents, students, colleges, politicians and lenders. The NFEC drafted a “win-win-win” document so all parties involved will experience some benefits that outweigh what they need to give.
The NFEC is a leader in college money management programs and has served over thirty universities. The NFEC is on their 3rd year of statewide promotions with Penn State Erie, the Behrend College and have developed a comprehensive peer-to-peer training program that is being taught campus-wide at Arizona State University. From simple products to comprehensive college financial literacy campaigns, the NFEC offers turnkey solutions that improve the financial capabilities of current or future students.