Financial literacy is defined as, “the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well being” (President’s Advisory Council on Financial Literacy in 2008).
Financial literacy includes skills, including:
Student debt is caused by loans accumulated during college. Due in part to the rising cost of tuition, nearly two thirds of college seniors graduated with loan debt, averaging $28,400 (Project on Student Debt, 2013). During your education, practice responsible borrowing to minimize loan payments after graduation.
Your experience repaying student debt will depend on the type of lending program in which your university participates (i.e. Direct Lending vs. FFEL) and the student aid package you received while in school. When you are near graduation, be sure to talk with your financial aid advisor about the college debt you've accrued and get information about payment options. After graduation there is commonly a grace period (designated by the funding source) where payments are not mandatory. However, once the grace period ends, there are also options to:
Infographic: The Value of Financial Literacy with Illustrations by Jude Buffum taken from Edutopia
Infographic provided by Money Matters on Campus