WASHINGTON — The U.S. Department of the Treasury is recommending that college students take a mandatory financial literacy course.
The department made this recommendation in a report they released on behalf of the U.S. Financial Literacy and Education Commission.
The report asserts that 43 million Americans owe more than $1.5 trillion in student loan debt. The department says borrowing, on average, comes out to $33,000 per person.
The department is reportedly concerned that families are taking on student loans without understanding the long-term impact of their debt.
The report makes the following recommendations to colleges and universities:
- Provide clear, timely and customized information to inform student borrowing.
- Engage students in financial literacy and education.
- Target different student populations by use of national, institutional and individual data.
- Communicate the importance of graduation and major on repayment of student loans.
- Prepare students for financial obligations upon graduation.