Background

The average college student in America graduates with $4,300 in accumulated consumer debt, most of which is in the form of credit cards. This amount does not include student loan balances. Easy credit offers, such as "18 months - same as cash," or "0.0% interest" are very alluring for college students... and very dangerous. Our focus group sessions with students show that very few students understand the rules governing their credit cards and worse yet, 80% of students in our groups have never used a simple budget.

College students are one of the most heavily targeted advertising and marketing demographics in America, particularly in the upscale college arena, because young adults are forming buying patterns and financial habits which they will follow for the rest of their lives. This situation presents institutions with both a very large problem and also, a very real opportunity. The problem is that uninformed decisions by students about consumer debt can spoil their chances at the better life they sought by going to college in the first place, and even spoil their chances of finishing college. According to a variety of recent studies, the number one reason students drop out of post-secondary schools is an inability to manage money, debt and credit.

The good news is that colleges are provided with an incredibly important opportunity to provide their students with a quality, easily accessible program that can dramatically improve their student's chances to improve their financial management skills and keep them in school. This very real retention tool, The Student Financial Lab, is being provided to colleges by Financial Coaching and Counseling and OneSource Educational Development Corporation.