Policy_Brief - Financial Education in TRIO Programs I n s t...

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Unformatted text preview: Financial Education in TRIO Programs I n s t i t u t i o n a l P o l i c y B r i e f | S e p t e m b e r 2 0 0 9 F in a n c ia l A id A ssista n c e C o lleg e A d m issio n s A ssistan ce A c a d e m i c A d v i c e M e n to rin g P ro g ra m s T u t o r i a l S e r v i c e s C a r e e r C o u n s e l i n g F i n a n c i a l E d u c a t i o n By Hannah Yang and Adrianna Kezar | University of Southern California This brief is part of a three-year Lumina Foundation for Education-funded project entitled IDA-PAYS. Lumina Foundation for Education is an Indianapolis- based private foundation dedicated to expanding access to and success in education beyond high school. The views expressed in this publication are those of the author(s) and do not necessarily represent those of Lumina Foundation for Education, its officers or employees. Financial Education in TRIO Programs Introduction College students ask themselves a gamut of financial questions during their college years: Should I take out a loan? If I take out a loan, should I do so with my school or a private lender? Which lenders can I trust? What does an interest rate mean? How much money do I need for tuition? How much money do I need for food? Do I need to work this semester? If so, should I save money for next year? Should I open a credit card account? If so, with which credit card company should I apply? These questions are especially difficult for some low-income students whose average unmet financial need gap is between $3,500-8,000 1 and who display high levels of financial illiteracy. 2 1 Cook, B., & King, J. (2007). 2007 Status report on the Pell grant program. Washington, DC: American Council on Education. 2 Lusardi, A., & Tufano, P. (2009). Debt literacy, finance experience, and overindebtedness. (Working Paper). Boston: Harvard Business School. o address some of the financial challenges facing low-income students, federal policymakers enacted a provision in the 2008 Higher Education Opportunity Act (HEOA) that makes financial literacy 3 a required service of all TRIO programs (or, in the case of McNair, simply makes permissible). Effective August 2008, these programs started offering financial education to the students they serve. The Presidents Advisory Council on Financial Literacy (2008) defines financial education as the process by which people improve their understanding of financial products, services and concepts, so they are empowered to make informed choices, avoid pitfalls, know where to go for help and take other actions to improve their present and long-term financial well-being. 4 Given this new federal mandate, it is critical that TRIO professionals become more knowledgeable about financial education programming. For administrators looking to create or refine their financial education curricula, we believe the information contained in this policy brief may prove useful. Presented below are answers to the following questions concerning financial education in TRIO programs:...
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This note was uploaded on 08/05/2011 for the course ACCT 11212 taught by Professor Davis during the Spring '11 term at York College of Pennsylvania.

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Policy_Brief - Financial Education in TRIO Programs I n s t...

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