The College Finance Resource Most Families Don’t Know About

For decades, K-12 education has treated financial literacy as optional, and students have paid the price long after high school graduation. The good news is that colleges are now stepping in to fill that gap.

Recognizing this lack of adequate financial understanding, the U.S. Department of Education implemented the Higher Education Opportunity Act of 2008 (HEOA). Colleges were tasked with informing students on how interest builds on loans, what monthly payments may look like, and consequences if borrowers default. Lenders had to be upfront about repayment options. Also, for the first time, institutions were required to publish a net price so families could make comparisons between institutions. While the HEOA did not solve the student debt crisis, it was an acknowledgement at the highest level of government that families had been left in the dark for far too long. 

The HEOA gave rise to financial literacy programs on campuses across the country. These programs are typically run by financial aid offices, which hold sessions that expose students to real-world financial scenarios and offer practical tips on how to be an informed borrower. But these programs can easily be overlooked when students are juggling academics, extracurriculars, and a social life. Parents should encourage their students to take advantage of every campus resource at their disposal. 

Financial literacy programs at colleges are typically anchored in three core areas: 

Budgeting and Money Management 

Budgeting workshops are tailored toward covering college expenses, but more schools are creatively shifting the focus onto other pieces of the college experience, like how to save for studying abroad.   

Student Loan Repayment and Counseling 

Understanding the responsibilities of a first-time borrower prior to taking on debt is entirely different than understanding the results of your actions once repayment begins. Sessions on loan repayment walk students through interest accrual, distinctions between federal and private loan terms, income-driven repayment options, and what default means for their financial future. Loan repayment counseling, sought out early and revisited often, is one of the most direct ways to improve financial preparedness.  

Credit Building and Debt Management 

Credit is one of the most consequential and least understood tools a college student will encounter. Credit-building and debt-management sessions guide students through how credit scores are built, what responsible card usage looks like, and how to avoid compounding debt traps that derail post-graduation financial stability.  

Now that we know what these programs consist of, here's our advice on how to make the most out of what your institution offers: 

Start in the First Semester 

The easiest way to find your school’s program is to visit your institution’s financial aid webpage or search online for your institution’s name followed by “financial literacy program.” 

Take Advantage of One-on-One Coaching 

Some institutions offer individual financial counseling sessions tailored to the student’s unique situation. If this option isn’t listed on the financial aid webpage, consider visiting the financial aid office in person to see if counseling is available.  

Go Beyond the Minimum 

Entrance counseling is federally required, but it is a floor, not a ceiling. Attend multiple sessions, ask questions, and take notes. Parents: Stay in the conversation. Encourage your student to share what they have learned from these sessions with you, and contribute your own concerns and questions to future session ideas.