[Natfinwellness] FLEC - February 4th, 2016 Summary

[Ashton, Bryan]

Hello all – please see below for a summary of the Financial Literacy and Education Commission hearing from our friends at the US Dept of Ed:

On Thursday, February 4, 2016, the U.S. Treasury Department hosted a public meeting<https://www.treasury.gov/press-center/Video-Audio-Webcasts/Pages/Webcasts.aspx> of the Financial Literacy and Education Commission (FLEC).  Treasury Secretary Jacob J. Lew delivered opening remarks, and additional speakers included Director of the Consumer Financial Protection Bureau Richard Cordray, and U.S. Department of Education Acting Secretary John B. King, Jr.

Acting Secretary King addressed the topic of financial capability and the importance of ensuring that young Americans have the financial awareness and tools to be successful in today’s global economy.

The choices students and families are making about where to go to college, how to pay for it emphasize the importance of financial capability for not just college access but also college completion and lifelong financial health. The Financial Literacy and Education Commission released a report<http://www.treasury.gov/resource-center/financial-education/Documents/Opportunities%20to%20Improve%20the%20Financial%20Capability%20and%20Financial%20Well-being%20of%20Postsecondary%20Students.pdf> that describes the state of financial education among postsecondary students and efforts to enhance their financial well-being.

Acting Secretary King outlined some of the steps the Department of Education (ED) has taken during the Obama administration to make college more attainable and accessible to all Americans. He stated that there were a million more African-American and Latino students in college now than before the current administration. He spoke of the need to fully prepare students realistically for the costs and commitment of college and careers.

Acting Secretary King reiterated that the biggest threat to managing student loan debt is not finishing the degree program for which the debt was accrued, or by receiving a degree that is not competitive in the 21st century. “The most expensive degree remains the one you don’t get,” he stated, before saying that the biggest reason those with student loans default is because they don’t have the job the degree would have allowed them to get if they had finished.

An important part of improving college completion is to improve the financial capability of college students – so that they fully understand the costs and benefits to working while in school, compared to taking out a loan to finance their studies, and so they can understand the benefits available to them and better manage their debt after graduating.  Acting Secretary King suggested that improving the financial literacy in K-12 would give students the foundations necessary to consider their long-term futures.

A panel of speakers presented leading practices to promote financial capability among young people seeking higher education.

Many students are faced with financial pressures during their postsecondary experience which can affect their academic success and impact the performance metrics of their schools including graduation rates, enrollments, and cohort default rates. Financial literacy services for students in college for can help them succeed in managing their money during school, repaying their loans, prepare them to participate in our global economy and contribute to their overall financial well-being.


February 4, 2016 Public Meeting materials are available here:  https://www.treasury.gov/resource-center/financial-education/Pages/flec02042016.aspx and the webcast is here:  https://www.treasury.gov/press-center/Video-Audio-Webcasts/Pages/Webcasts.aspx.


[The Ohio State University]
Bryan Ashton
Assistant Director
Office of Student Life Student Wellness Center
B130 RPAC, 337 Annie and John Glenn Ave, Columbus, OH 43210
(614) 230-8190 Office
ashton.53 at osu.edu<mailto:ashton.53 at osu.edu> swc.osu.edu<http://swc.osu.edu/>

Join us June 15th-17th for The National Summit on Collegiate Financial Wellness<http://www.nscfw.org/>

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Scarlet and Gray Financial Coaching is an educational service only. We do not provide investment, legal, debt consolidation, debt management or tax advice. The information provided is for general educational purposes only, and is not intended to substitute for the advice of your investment, legal, tax advisors and/or credit counselors or to be the basis of specific trading, investment or debt consolidation and management activities. If you need investment, legal, tax advice, and/or credit counseling, please consult with one of these professionals.

The links to third-party financial resources are provided as a convenience for informational purposes only.  Neither The Ohio State University or its Student Wellness Center endorses or approves any of the products, services or opinions of the entities or individuals associated with these links.  The Ohio State University and its Student Wellness Center bear no responsibility for the accuracy, legality or content of any external site associated with the links provided or any subsequent links.


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