A recent survey reveals startling news about financial literacy among college students which was run by College Ave, one of the new and upcoming private student loan providers. Typically, college students are plagued with student loan debt; it is only normal given the cost of higher education. This recent survey attempts to determine the actual financial knowledge of these young borrowers as nationwide student loan debt increases each year.
First off, over half of college students say they made their decision based off of tuition pricing, so it is undeniable that the cost of higher education affects our life decisions. About 80% claim to understand the cost of financing higher education. Despite these financial considerations, 80% of students admit to not having a plan to pay for their debt following graduation. Even though a resounding majority believe that a college degree is necessary for a good career, half of college students today are clearly concerned about their financial situation.
Taking all of this at face value, it is clear to many that the issue requires more education. Not higher education, student loan education. College Ave has designed a website with this objective in mind.
Since the major problem is financial literacy, College Ave provides vast resources and tools that educate the user in the student loan system.
One such tool is a pre-qualification application that will determine eligibility for a loan after just a few minutes of entering information. Another tool is the student loan calculator which literally just totals out the overall complete payment of a loan before it is borrowed.
These are only two examples of how this new startup is attempting to educate the masses on financial literacy and how it applies to financing higher education. The online interface outlines what types of loans can be applied for; there are multiple options available to customize each of these student loans. Since the outline is easy to understand, it serves as an educational tool on its own which is yet another way College Ave is educating of financial literacy.