Credit and debit management among UW-Stout students: practices and implications
Date
2015-04Author
Sam, Katie A.
Publisher
University of Wisconsin--Stout. Research Services
Advisor(s)
Fanta, Fassil
Metadata
Show full item recordAbstract
For many Americans today, debt has become a part of life; this is
especially true for college students because of the rising costs of higher
education. Student loan debt was held by 70% of 2012 graduates according
to Reed and Cochrane (2013), averaging $29,400 worth of debt per graduate.
But student loan debt isn’t the only form of debt that graduates hold; credit
card debt is also growing. The average undergraduate credit card balance
according to the 2009 Sallie Mae study was $3,171. With student loans,
credit cards, and other loans, students are graduating with more debt than
ever before. The cause of this problem is twofold; higher education costs are
rising, but students are also engaging in poor credit management practices.
These practices are worrisome because they impact the entire economy’s
health. Korkki (2014) cited a Federal Reserve Bank study indicating that since
the recession, overall homeownership among 30-year-olds has decreased, but
most significantly among those with student loan debt history. Not only did
Korkki report that the high debt levels impact the housing market, but there
appears to be a negative correlation between small business startups and student
loan debt. In this study conducted among students at the UW-Stout, we
analyzed current credit and debt management practices among students, as
well as their understanding of basic credit terms and applications. Compared
to national studies, students at UW-Stout don’t engage in as risky of credit
practices, but still lack the fundamental knowledge to engage in wise credit
practices.
Subject
student debt
credit card
loans
Permanent Link
http://digital.library.wisc.edu/1793/77524Description
Research article with graphs and tables.
Citation
Sam, K. A. (2015). Credit and debit management among UW-Stout students: practices and implications. University of Wisconsin-Stout Journal of Student Research, 14, 81-96.