Student Debt In College

The cost of higher education is increasing in the United States.one of the first things that comes to mind about college is the student dues. Being a broke and in debt college student seems inescapable. Another huge factor of the student debt is the lack of financial knowledge and management. Indiana University’s Bloomington campus has a group of students that help with financial counseling called “Money Smarts Team.” To address the problem students have, they had to create the team, re-structure communication between the universities to students, and reduce loan debt.
Generally, these financial burden immobilizes students, which cause many to drop out. That’s how the “Money Smarts Team” started many university officials had concerns about the amount of graduates walking away from diplomas with notable amounts of debt. That created the group of students to provide basic financial management and borrow money efficiently. It also assembles their reality of how life
is going to be like taking care of themselves and not a dependent anymore. Seems it’s more comprehendible to get advice from a person in the same situation and age. It’s by students for students, to comprehend the aspects of their economic standings and their future.
Furthermore, university have to alter and clearly explain student aids packages.
Many students just accept loans without knowing how much they got. Students need realize the difference of grants and loans. Which traps them in loans that they didn’t really need but still have to pay off. It is more convenient to reduce the loans and just borrow what is really necessary. The “Money Smart Team” and the university is there to answer questions from student that are curious about their loans and payments.
Moving on, there has been a current trend of graduating in 5 years then in 4 year. Many students take that root to delay their entrance to the real world. As well as having an easier time in school. Unfortunately it’s financially a bad idea because it’s adding another year of expenses. “The longer you extend campus life, the more debt you rack up. It’s not just the cost of tuition, there’s rent, food, books and etc.” The “take 5” campaign persuades students to take five courses each semester to graduate on
time.
Lastly, the Indiana Bloomington has taking action and are helping with the struggle of students debt. The “Money Smarts Team” was created to give financial advice and knowledge to students in there campus. The university brakes down students aid situation to inform them what they are being offered. As well as promoting to take five course to reduce the amount of loans. This actions makes students more financially smart and lowers the amount of debt they will need to pay in the future.