Aaron M talks about college affordability and consumer awareness

I take pride in supporting groups like Got Tuition and the College Affordability Concerns Me campaign because they focus on the real issues of student debt. The companies offering loans to college students are largely at fault for the increasing trend of students in financial ruin and must continue to be vetted. These major financial institutions initially had the freedom to ask for a frighteningly high interest rate on their loans, which the students could not turn down as they relied on the funds to continue attending college. And of course there was the student loan kickback scandal.

These banks and private lenders are not the only folks to be involved with the lack of student financial assistance. We must continue urging the U.S. Congress to renew worthy legislation like the College Cost Reduction and Access Act and ensure that our representatives know the reality of student debt in society today. Such laws can limit interest rates and rate hikes as well as increase amounts of Pell grant funding. The College Opportunity and Affordability Act has now been passed, a bill that will offer cheaper textbooks and adjust the FAFSA form for easier use. Laws like this will only help the obvious need for legitimate financial aid opportunities available to students today.

Another underlying theme in the world of student debt is the general lack of financial knowledge among college students. Maybe one consumer education course in high school is simply not enough to properly inform young adults of the importance of their credit score, the need to be diversified, and the effects of overdrawing a bank account or submitting a late payment on a student loan or automobile lease.

So please continue to be aware of fraudulent financial aid proposals, unfairly high interest rates, congressional action on behalf of college students (and prospective college students) and check out sites that inform consumers about finances, like the NEA’s Financial Services and Investment programs for educators. Groups like Got Tuition must continue to fight for increased access to financial aid for all qualified students despite their ability to pay.

Aaron M.