Graduate-Level College Students Need Financial Education
Nellie Mae, a top national originator of federal and private education loans, and a recognized leader in debt education and financial management for students released in 2007 "Graduate Students and Credit Cards: An Analysis of Usage Rates and Trends." In summary, Nellie Mae study points to need for credit education among graduate and professional students.
Of the graduate student survey respondents, 93%would have liked more information on financial management topics before they started school and would like financial management education made available to them now.
In 2006, 92% of graduate students have at least one credit card. This is a 4% decrease from the 96% who had credit cards in 2003.
The average outstanding balance on graduate student credit cards is $8,612, an increase of 10% from the 2003 average of $7,831.
On average, older graduate students (age 30?59) carry $12,593 in credit card debt, almost twice as much as their younger counterparts (age 22?29) who carry an average debt of $6,479.
Ninety-four percent of graduate student survey respondents used credit cards to pay for some portion of their direct education expenses, primarily textbooks. Twenty-eight percent admitted paying for some portion of their tuition with credit cards.
As has been true in previous studies, students attending school in the Midwest region of the country tend to carry the highest credit card debt.
The majority of graduate students, 67%, said they took out their first credit card as an undergraduate student.
Although 93% of graduate student survey respondents try to keep their credit card debt under control by making at least the required minimum monthly payments, only 20% said they pay off their cards in full each month.