As spring and summer approach, high school seniors get antsy anticipating their future. Some are eagerly finalizing their college housing arrangements for fall semester, while others are not even sure what they will do for a summer job. When students consider furthering their education, many different opportunities come to mind. Some students readily meet with financial counselors to consume the burden of college loans, while other students remain unsure how to pay for their education. One question hauntingly remains… do I take out loans for school? Taking out school loans ensure that six months after college graduation, students are automatically in debt. Take a moment to write a list of advantages and disadvantages of taking out a loan for school. What would it mean to you to be in debt immediately after college graduation? Would this impact people other than yourself? Read the article attached and compose a letter to Ms. J’s oldest son regarding his decision to go to college. Provide at least two reasons why he should further his education and advantages and disadvantages to taking out a college loan.
Extension: Write a letter to Ms. J advising her on steps to help her manage both debt and financial decision making for the monthly family budget.
Financial Literacy Standards
SS.912.FL.2.2 Analyze situations in which when people consume goods and services, their consumption can have positive and negative effects on others.SS.912.FL.4.8 Examine the fact that failure to repay a loan has significant consequences for borrowers such as negative entries on their credit report, repossession of property (collateral), garnishment of wages, and the inability to obtain loans in the future.SS.912.FL.4.9 Explain that consumers who have difficulty repaying debt can seek assistance through credit counseling services and by negotiating directly with creditors.SS.912.FL.4.10 Analyze the fact that, in extreme cases, bankruptcy may be an option for consumers who are unable to repay debt, and although bankruptcy provides some benefits, filing for bankruptcy also entails considerable costs, including having notice of the bankruptcy appear on a consumer’s credit report for up to 10 years.
Created by Deborah Kozdras and Brittany Sampson