"According to a 2023 Bankrate survey, a third of U.S. adults still consider a college degree as an essential part of the American Dream. But with the cost of college more than doubling over the last two decades, many have had to resort to student loans to cope with the higher costs," Bankrate reports.

..."Being financially literate and fully understanding the financial implications of their financial actions can potentially help people save money by making better financial decisions. This, in turn, can alleviate stress and improve their overall quality of life. That’s why it’s important to help both borrowers and students understand all of their options when it comes to student loans, so they can make decisions that will benefit them in the future, instead of hindering their growth.

That said, financial literacy is just a piece of the puzzle when it comes to higher education and student loans.

'The issues with the student loan system evolved over a number of years and surfaced due to several factors, such as the number of repayment plans available, federal student aid not keeping pace with the cost of college, and a lack of education around borrowing to pay for school,' Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators (NASFAA), says.

'It would be far too optimistic to think that there is a silver bullet in this situation. This is going to take change from all stakeholders, from the federal government and their contracted loan servicers, to institutions of higher education and financial aid offices, to student borrowers and their families,' he adds."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 8/31/2023