Financial aid 101

New FSUS financial literacy segment a good idea

On March 13, Ferris State University Director of Financial Aid Sara Dew addressed a room of university members at President Eisler‘s Debt Forum. The forum tackled the issue of federal loan debt and student knowledge in regards to loan borrowing.

Passing two separate student debt charts to each attendee, Dew suggested the “just give me the money” attitude regarding family loan borrowing was a significant contributing factor in increased student debt.

Dew proposed possibly incorporating a financial literacy segment within FSUS to assist in educating students on the post-graduation effects of loan borrowing.

Educating students on efficient money management through FSUS is an effective way to raise awareness and knowledge on an important issue.

An FSUS financial literacy segment would let students develop necessary financial principles early in their college career before burying themselves deeper in debt as sophomores, juniors and seniors.

Unfortunately, the limited financial knowledge we enter college with perpetuates a trend of students borrowing beyond their means unaware of the effects of their decision until becoming unable to afford their education.

A discrepancy in our financial aid award, past due balance or dropped class registration shouldn’t be our only motivation for visiting the financial aid office to educate ourselves on tuition fees and college costs. However, disputes in our financial aid award are often our only purpose for speaking with financial aid advisors.

Therefore, it’s important we change the tradition of how students financially educate themselves by taking federal loan knowledge outside the Timme Center and into the classroom.

Though tuition costs are a part of the issue of increased student debt, so is our ignorance toward college-level money management. A financial literacy segment incorporated into FSUS may not be the only solution for increasing tuition debt, but it is a step in the right direction.