College students are stressed, and the biggest cause is not coursework and exams – it's finances.
The Financial Anxiety and Stress1 report found that two-thirds of those surveyed under the age of 30 had stress when thinking about their personal finances.
Another study looking exclusively at graduate students2 found that eight in 10 were stressed about their financial situation.
Two-thirds were worried about paying monthly expenses and paying for school, and almost half could not come up with $1,000 in case of an emergency.
Financial stress negatively affects both the students and the schools they attend.
Students with financial stress report more health problems, mental health issues, and poor habits such as overeating and abusing alcohol or drugs.
Additionally, two out of five neglect their academic work and consider dropping out of school.
To combat their financial woes, one-quarter work part-time jobs that conflict with their coursework.
What is the solution? Financial literacy.
The Financial Anxiety and Stress report found that those who were financially literate were less anxious about their finances than those who were not – even when considering other demographic factors.
Here are four schools that are making a difference in their students’ lives by offering innovative financial wellness programs to help them navigate their financial decisions.
#1: Grand Valley State University
Grand Valley State University uses an online interactive and customized financial wellness program to help their TRIO and STEM-Health students gain stronger financial knowledge, skills, and habits.
These students are from disadvantaged backgrounds and are more likely to drop out of school.
One of the main reasons for dropping is finances, and Grand Valley State University wants to do what they can to help these students be successful.
The National Center for Education Statistics shows that degree achievement for all students is just 62%.
However, those eligible for the TRIO programs only have a one in five chance of earning a degree in six years3.
Financial literacy can help.
By providing students with a holistic financial wellness program, Grand Valley State University expects to see the same results that other schools have realized:
- Lower student loan defaults
- Decreased financial stress
- Improved academic performance
- Higher graduation rates
- Higher literacy rates that last a lifetime
The goal is to help these vulnerable populations understand financial topics – including financial aid and student loans, budgeting, credit scores, etc.
To do so, they chose iGrad, a program that personalizes the experience for each student, providing them with information and tools specific to each student’s needs.
#2: Johnson and Wales University
Johnson & Wales has offered a financial wellness program to its students, alumni, and staff for the past 10 years, educating over 25,000 participants.
In 2017, JWU was recognized by LendEDU for their efforts.
JWU has many different components to their program. Here are just a few:
- First-Year Student Seminar offered to incoming freshmen and transfers into the College of Hospitality
- Introduction to their financial wellness program (iGrad) during New Student Orientation sessions
- Freshman Financial Fundamentals module
- Personal financial planning counselor to help with student loans and avoiding excessive student loan debt
- Student loan exit counseling for graduating students
JWU has seen an increase in their students’ understanding of student loans and a decrease in default rates.
They realize that by offering this education to their students, they are helping them now and in the future.
#3: University of the Incarnate Word
The University of the Incarnate Word has a large non-traditional student population.
Because of this, their students need a wide variety of financial education that differs from that of traditional students.
Almost all the students at the private Catholic institution receive financial aid.
Additionally, the school boasts a large population of Hispanics, active-duty military, veterans, and adults – many of whom go to school while working another job.
Because of this, their online, evening, and weekend programs are extensive.
The original goal was to help reduce default rates on student loans. The iGrad platform helps them by educating students on student loans and repayment.
They also have a student loan tracking tool that aggregates student loan balances and estimates student loan payments.
The University also hopes to help non-traditional students with other financial needs, including retirement planning and mortgages.
The iGrad platform makes this possible by offering courses, tools, quizzes, videos, articles, and a library of multimedia content.
#4: University of North Texas
At the University of North Texas, the heart of their financial wellness program lies in personal coaching.
Any UNT student, prospective student, or alumni can request a coaching session to help them understand their financial situations.
Coaches help students:
- Understand their financial situations
- Explore options
- Know where to find resources
The goal of their program is to help their students be successful in all areas of their life – now and in the future.
To accomplish this goal, UNT also offers resources on budgeting and saving, paying for school, student loans, money management, credit and debt, studying abroad, campus resources, and life after graduation.
To learn how iGrad can help you improve your student’s lives through financial wellness, schedule a demo today.
1 - https://gflec.org/wp-content/uploads/2021/04/Anxiety-and-Stress-Report-GFLEC-FINRA-FINAL.pdf?x85507
2 - https://grad.arizona.edu/gradcouncil/sites/default/files/minutes/financialstressreport.pdf
3 - https://nces.ed.gov/programs/coe/indicator_ctr.asp