Friday, July 29, 2011

Senator Akaka Introduces Federal Financial Literacy Bill

While reading this column on CBS Marketwatch about a financial literacy program at Champlian College in Vermont, we came across a nuggest about a new bill Senator Akaka of Hawaii introduced last month that would offer financial literacy counseling to those who take out student loans.

Information on the Akaka plan can be found here.

It is certainly an interesting idea. In many cases, those who are taking out student loans are making their first major financial decision. It can't hurt to make sure they have information that will empower them to make wise choices.

As Senator Akaka put it:

The increase in federal educational lending and student debt can be interpreted positively. I am happy to see young people continuing on to college in numbers that I would never have imagined when I graduated from the University of Hawaii in 1952. For our best and brightest, college continues to be a stepping stone on their paths to becoming future leaders. For millions of others today, however, college simply and rightfully represents an opportunity for better lives for themselves and their families. But, the ever-rising cost of education is a reality that we must address. We are allowing - and even encouraging - students to become borrowers and consumers. It is our responsibility, therefore, to ensure that these young adults have the knowledge, skills, and capability to manage the consequences that come with their financial decisions. Unfortunately, we are not doing enough.