Financial capability of student loan holders who are college students, graduates, or dropouts. Issue 4 (21st October 2020)

• Record Type: Journal Article
• Authors: Xiao, Jing Jian; Porto, Nilton; Mason, Irene McIvor
• Is Part Of: Journal of consumer affairs. Volume 54:Issue 4(2020)
• Page Start: 1383
• Page End: 1401
• Publication Date: 2020-10-21
• Subjects: financial capability -- financial literacy -- financial behavior; Consumer education -- Periodicals; Consumers -- Periodicals; 381.33
• DOI: 10.1111/joca.12336
• Languages: English
• ISSNs: 0022-0078

Abstract

Abstract: Effective consumer financial education provides relevant information to meet special needs of targeted audiences. The purpose of this study is to examine differences in financial capability among student loan holders who are college students, graduates, and dropouts. Using data from the 2015 U.S. National Financial Capability Study, the results show that student loan holders who have completed their education program have higher scores in all financial capability indicators than college students and dropouts. Further analyses show differences in specific financial knowledge items among college students, graduates, and dropouts. In addition, college graduates are more likely to perform several specific desirable financial behaviors than college students and dropouts. The findings suggest that financial educators should emphasize action taking when they provide financial education for student loan holders who are college students and dropouts.