Opportunities to Improve the Financial Capability and Financial Well-being of Postsecondary Students

Oct 15, 2026

Report submitted by the U.S. Financial Literacy and Education Commission, prepared by the U.S. Department of the Treasury with research support from the Urban Institute. Examines how postsecondary education costs, federal and private student loan burdens, and complex in-college and post-college choices affect financial capability and financial well-being of postsecondary students. Highlights key decision points, links education to economic mobility, and provides conclusions and recommendations plus supporting appendices and references.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages48

Reading Time2 h 1 min

AccessFree to download

Introduction

Section I. Choosing Where to Go and How to Finance Postsecondary Education

Section II. Making Sound Financial Decisions While Enrolled in College and Beyond

Section III. Conclusions and Recommendations

Appendix A. Financial Education Programs & Resources

Appendix B. Interviewees

Appendix C. Federal Student Aid

References

The Financial Literacy and Education Commission Opportunities to Improve the Financial Capability and Financial Well-being of Postsecondary Students Submitted by The U.S. Financial Literacy and Education Commission 2015 This report was prepared by the US Department of the Treasury on behalf of the Financial Literacy and Education Commission. The report is based in part on research and analysis conducted by the Urban Institute for the US Department of the Treasury. Opportunities to Improve the Financial Capability and Financial Well-being of Postsecondary Students CONTENTS Introduction ................................................................ 2 Section I . Choosing Where to Go and How to Finance Postsecondary Education .......... 4 Section II . Making Sound Financial Decisions While Enrolled in College and Beyond ..... 8 Section III . Conclusions and Recommendations ................................... 14 Appendix A . Financial Education Programs & Resources ............................ 17 Appendix B . Interviewees .................................................... 33 Appendix C . Federal Student Aid .............................................. 34 References ................................................................. 36 Opportunities to Improve the Financial Capability and Financial Well-being of Postsecondary Students INTRODUCTION Postsecondary education is essential to the economic health of our nation and to the economic opportunity of many Americans . Despite the importance of attaining postsecondary education, the cost of higher education may prevent some students and families—especially those from low-and middle-income households—from obtaining it . Students and families make important financial decisions regarding higher education, including whether to go to college, where and what types of institutions they should apply to, what college to attend, and how to pay for their education . The choices they face are complex, and, for millions of students, financing higher education involves taking on debt, especially federal student loans . In addition to making choices about college1 and how to pay for it, young adults make a number of other important financial decisions during college—from opening a bank account to using credit cards to making a variety of spending decisions—often for the first time, making college an important opportunity to address the financial capability of students and their families . The number and complexity of these decisions underscores the need and provides an important “teachable moment”to increase the financial capability of young people by equipping them with the information, resources and tools they need to make sound financial decisions before, during, and after college . Building financial capability is an important strategy for promoting not only college access and completion, but also lifelong financial health . Non-traditional students, including working adults, face many similar challenges and opportunities in navigating higher education decisions, as well as additional challenges in managing their more complex financial lives . 1 In this report, we use the terms college, higher education, and postsecondary education interchangeably, and are intended to include a range of postsecondary educational institutions, including all programs eligible to accept and distribute Title IV or Federal Student Aid, including less-than-two-, two-and four-year programs . The link between education and economic mobility is clear . Children born in bottom quartile of the income distribution have a four times greater likelihood of moving into the top quintile if they have a college degree (Haskins et al . 2009) . Yet the cost of college and the amount of student loan debt have risen substantially in recent years . As of the end of March 2015, outstanding federal student loan debt stood at over $1 .1 trillion and there were more

FAQs

Why is postsecondary education tied to economic opportunity in the report?

The report explains that education strongly influences economic mobility, noting higher likelihood of moving to the top income quintile for those with college degrees.

What financial pressures are emphasized for postsecondary students and families?

It highlights rising higher-education costs and substantial federal student loan debt, along with additional private loan debt for many borrowers.

What kinds of decisions does the report address beyond paying tuition?

It covers decisions students face during and after college, including budgeting, managing credit and spending, opening and using financial accounts, securing insurance, and saving for retirement.

Oct 15, 2026

Uploaded by นรินทร์