Some new programs designed to help students with debt…

Student loan company Sallie Mae recently released a study that shows the prevalence of credit card debt on college campuses and reported record debt levels for students. A whopping 14% increase has been seen in the number of undergraduates who have a credit card - 84% in 2009; 76% in 2004; 67% in 1998, with half having four or more cards. The average credit card debt carried in 2008 was $3,173, the highest since the study began in 1998.

With so much debt, what is a young person to do? Financial experts all agree that the only long-term solution is for young people to become more educated.

Student Debt Alert - PIRG
The Student Public Research Group (PIRG), a national student interest group, is dedicated to making education more affordable through media and political influence and has recently launched its website, www.studentdebtalert.org. Visitors will learn about their campaign to increase grant aid and improve student loan programs. Students are also encouraged to bring Student Debt Alert to their campus, and can borrow campaign materials, such as a large inflatable ball-and-chain prop meant to represent the hindrance placed on students by debt.

Student Loan Borrower Assistance Project - SLBA
The National Consumer Law Center has also launched a website, www.studentloanborrowerassistance.org, to help financially stressed students. The Student Loan Borrower Assistance Project (SLBA) assists students with loan repayment problems and gives them an opportunity to research their options and rights. Read through their extensive Q & A section or contact the organization for questions. Don’t expect to find legal assistance here, but they will provide contact information for qualified legal help.

Ask The Doctor - Dr. Debt
Anyone looking for debt solutions may find what they need at www.askdoctordebt.com, a new financial education online resource introduced by ACA International, a nonprofit credit association. “It’s … essentially an online version of ‘Dear Abby’ for consumers with credit and debt questions,” John Nemo, public relations director for ACA International. Search the database of FAQ or submit your own. Take advantage of interactive tools to learn more.

Teach Children to Save Campaign
The American Banks Association recently introduced the Teach Children to Save Campaign to help give students a leg up on financial literacy. The site, www.aba.com/ABAEF/tcts.htm, is an extension of the ABA financial literacy campaign that has been taught in classrooms since 1997 and offers easy access to advice on creating a budget, starting a savings account, etc.

Million Child Challenge
Another service provided by the American Bank Association is the Million Child Challenge, www.aba.com/ABAEF/MillionChildChallenge.htm. Particpating banks can visit classrooms to teach about budgeting, interest and the importance of prioritizing needs versus wants. Laura Fisher, director of the Foundation, said the Web site is also intended to teach children who may miss out on the Million Child Challenge program. “The new Web site will help educate those students who do not receive an in-person banker lesson,” Fisher said. “It’s one more way to help students get money smarts to go along with their book smarts.”

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This entry was posted on Friday, June 5th, 2009 and is filed under: Credit News, Tips & Advice. Follow through RSS 2.0 Responses are currently closed, but you can trackback from your own site.