Financial Literacy and Student Loan Debt

Myo Kyaw, and Dr. Laura Gonzalez, Department of Finance, California State University Long Beach, 1250 Bellflower Blvd, Long Beach, CA 90840

Student loan debt in the United States amounts to over $1.5 trillion. Beyond the cost of education, it is arguably imperative to discuss how financial literacy and experience, as well as demographic factors, can affect consumer credit and debt, as well as decisions relative to student loans, financial aid, and scholarship options. We survey finance students in California State University Long Beach and find that previous financial trauma is associated with credit card financial inclusion later in life, longer working hours, postponed educational goals, and a lower likelihood of applying for scholarships. We observe in Hispanic Serving Institutions that students in English-only speaking homes are less likely to have the obligation to contribute financially to the family,  and less likely to keep budgets than minority students. Overall, minority student commitment and efforts could be supported through more proactive institutional involvement in the form of information about grants and scholarships, besides financial aid, as well as estimations of monthly payments, timeline to repay debts, and C-19 changes and accommodation options.

Additional Abstract Information

Presenters: Myo Kyaw, Laura Gonzalez

Institution: California State University - Long Beach

Type: Oral

Subject: Business

Status: Approved

Time and Location

Session: Oral 1
Date/Time: Mon 1:30pm-2:30pm
Session Number: 108
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