Contraband Editorial: University, students should take steps toward personal finance education
Issue date: 10/22/07 Section: Opinion
- Page 1 of 1
The recent breach of security of the Louisiana Office of Student Financial Assistance (LOSFA) serves as a wake-up call to students that identity theft and personal credit are serious issues that should be addressed.
Many students, especially those recently relinquished from their parents' grips, are not aware of personal credit or identity theft. Personal credit is the backbone for the financial system we as Americans use today. Having good credit can lead to lower interest rates on car loans, student loans and credit cards. Having bad credit can have an adverse effect on those interest rates. Many students do not realize the importance of credit and often accumulate large amounts of debt as college students-debts that they cannot pay. This can lead to serious problems down the road. As students begin their professional careers, it becomes difficult to acquire funding, which students may use to buy homes, new cars and other things that are necessary to "become settled."
Identity theft is also a widespread problem. As technology advances are made and we become more of an interconnected society, information flows in instants. Many of us make purchases daily with our credit cards, whether online or in a store. It is important to only buy from reliable sources. If you must use your credit card in a convenience store, for example, do not leave your credit card with the attendant while you go fill up with gas. These incidents are open opportunities for dishonest people to obtain your credit card number.
It is important, in order to maintain good credit, to guard against identity theft. Credit agencies offer credit reporting, and many financial institutions offer some opportunity to guard against identity theft, such as a fraud alert or credit freeze. Students should take advantage of these opportunities.
The university might also consider taking steps to assist students in this endeavor. The university should offer seminars or online personal finance training. Another option the administration should consider is a free credit-monitoring service for students. Many universities offer this service free of charge. According to Chief Information Technology Officer Mike Graham, there are many avenues that can be looked into to make this a reality. TASC, a student-funded committee, could choose to partner with a credit-reporting organization to offer this service. The Contraband would like to see the university fund this service in part. The university claims to be committed to certain values, one being student success. Personal fiscal responsibility is key to a student having success in life, and the university, in its continuing goal, should encourage students' educations in this matter.
Many students, especially those recently relinquished from their parents' grips, are not aware of personal credit or identity theft. Personal credit is the backbone for the financial system we as Americans use today. Having good credit can lead to lower interest rates on car loans, student loans and credit cards. Having bad credit can have an adverse effect on those interest rates. Many students do not realize the importance of credit and often accumulate large amounts of debt as college students-debts that they cannot pay. This can lead to serious problems down the road. As students begin their professional careers, it becomes difficult to acquire funding, which students may use to buy homes, new cars and other things that are necessary to "become settled."
Identity theft is also a widespread problem. As technology advances are made and we become more of an interconnected society, information flows in instants. Many of us make purchases daily with our credit cards, whether online or in a store. It is important to only buy from reliable sources. If you must use your credit card in a convenience store, for example, do not leave your credit card with the attendant while you go fill up with gas. These incidents are open opportunities for dishonest people to obtain your credit card number.
It is important, in order to maintain good credit, to guard against identity theft. Credit agencies offer credit reporting, and many financial institutions offer some opportunity to guard against identity theft, such as a fraud alert or credit freeze. Students should take advantage of these opportunities.
The university might also consider taking steps to assist students in this endeavor. The university should offer seminars or online personal finance training. Another option the administration should consider is a free credit-monitoring service for students. Many universities offer this service free of charge. According to Chief Information Technology Officer Mike Graham, there are many avenues that can be looked into to make this a reality. TASC, a student-funded committee, could choose to partner with a credit-reporting organization to offer this service. The Contraband would like to see the university fund this service in part. The university claims to be committed to certain values, one being student success. Personal fiscal responsibility is key to a student having success in life, and the university, in its continuing goal, should encourage students' educations in this matter.
Be the first to comment on this story