S089 H1
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Recession- A significant decline in economic activity. In the US, recession is approximately defined as two succssive quarters of falling GDP, as judged by NBER. A recession in one country may be caused by, or may itself cause, recssion in another country with which it trades (Deardoff, A., 2008)
Tuition at private universities is rising at a rate of 40%, 33% at publics. The average household income is, however, only increasing by 12% annually.
64% of students are graduating with debt. Most of that is incurred from federal student loans but credit cards also contribute a large chunk.
Students, particuclarly first years, are being bombareded via facebook and free sub coupons to fill out a credit card application. These students are often not armed with any knowledge about what they are actually signing up for.
Students are often unaware that employers can view their credit report and if it is not in good standing they may be denied a position.
What is the advisors role in all of this?
* Increase personal financial literacy in order to empower students to do the same
* Keep up to date on financial issues that face students
* Advocate insitutional improvements and responses to the need for financial literacy amongst students.
* Maintain an open-door policy as students in financial crisis feel they have no one to turn to
) Become a legitimate resource repository
* Encourage academic advising organizations on campus to offer professional development opportunities on the topic
* Be aware of all available services and direct students to them
* Warn about the availability of biased and or false information on the internet
Insitutional Solutions
* Financial Literacy- Universities must provide adequate financial education that is comprehensive and realistic (Incorporate into first year and other transitional courses)
* Limits on credit card solicitations
* OFfer comprehensive financial counseling services and programs
