New UA Program Helps Students Become Better Money Managers

TUSCALOOSA, Ala. — With the launch of the Student Financial Success Program, The University of Alabama is one of the first campuses in the country to offer a program designed to help college students avoid problems with excess debt and learn to manage their money.

A part of UA’s Healthy Campus Initiative, the new Student Financial Success Program was created to increase students’ financial literacy about debt management, credit, financial aid and budgeting.

The UA Student Financial Success Program, through the Healthy Campus Initiative and the Financial Health Work Team, is offering presentations to student groups, one-on-one counseling, and has an educational Web site for students to access at www.sfs.sa.ua.edu.

The presentations and counseling are facilitated by graduate assistants, Serena Bassett and Corey Phillips, who hold bachelor’s degrees in finance and business. In the event that a student has problems that are beyond the graduate assistants’ qualifications, the student will be referred to outside consultants. Sherrelle Hudson, UA Healthy Campus coordinator, notes, “If we can’t meet their needs, we’ll find someone who will.”

National statistics show that the average student accumulates $4,300 in loans every year and seniors average $17,600 of debt on graduation day. These numbers are increasing, as cost of attendance is on the rise.

Other current statistics on college students and credit usage show that:

-Some 78% of college students have credit cards

-Some 32% of college students have four or more credit cards

-The average credit card debt of these students is $2,748

-Nearly one in four college students owes more than $3,000

-College students owe almost 50 percent of the nation’s $285 billion credit card debt.

Information on the UA Student Financial Success Web site cites the following as warning signs for students who need help managing their money:

-You’re stressed every month that you can’t pay your payments

-You have more than one credit card and can only afford minimum payments

-You have maxed out the limit on one or more cards

-You pay other bills by taking cash advances against your card

-You are unsure of how much combined debt you actually have

-You live from paycheck to paycheck and can’t afford to save

-Even a small emergency would wipe out your savings

-You shop compulsively

-You lie about how you spend money

-You hide or throw away receipts and credit card statements

-You have been denied credit

-You think your indebtedness will not affect your ability to land a job

If you agree to 3 or more of the above statements, then chances are you are in or on your way to being in debt.

The UA Student Financial Success Program is free and available to all students.

To sign up for counseling or a presentation, students can either fill out a form on the Web site www.sfs.sa.ua.edu or visit the office in 230-E Ferguson Center.

Web site: www.healthycampus.ua.edu