On Friday, June 14 2019, the U.S. Financial Literacy and Education Commission, headed by the Department of the Treasury, released a report with guidelines for institutions to improve financial literacy among their students. The report was released in an attempt by the Department to address to the $1.5 trillion in student debt nationwide. Some of the practices suggested include institutions providing information in a clearer and more transparent fashion so that potential students can properly understand the costs involved in their higher education. As the report states: “Unfortunately, award letters are sometimes unclear, leaving students with inadequate information to make financial decisions.”
Another recommendation is that institutions should be “effectively engaging students in financial literacy and education”, so as to improve their financial literacy. In addition, the report advised that institutions use various types of data (such as national, institutional, and individual) to apply in their efforts to increase financial literacy among their students, especially among groups such as older students, minority students, first generation college students, etc. Other suggested practices include communicating the importance of graduation (due to the correlation between failing to graduate and failing to repay student loans) and helping students understand their options and obligations with regard to repaying loans.
Sources: NASFAA, Best Practices for Financial Literacy and Education at Institutions of Higher Education