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Financial capability of student loan holders who are college students, graduates, or dropouts

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  • Jing Jian Xiao
  • Nilton Porto
  • Irene McIvor Mason

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.

Suggested Citation

  • Jing Jian Xiao & Nilton Porto & Irene McIvor Mason, 2020. "Financial capability of student loan holders who are college students, graduates, or dropouts," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(4), pages 1383-1401, December.
    • Handle: RePEc:bla:jconsa:v:54:y:2020:i:4:p:1383-1401
    DOI: 10.1111/joca.12336
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    4. Kenneth J. White & Kim Love & Megan McCoy & Miranda Reiter & Desiree M. Seponski & Janet Koposko & Erica Regan, 2022. "Factors associated with the financial strain of transgender and gender diverse college students," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(4), pages 1617-1637, December.
    5. Fan, Lu & Chatterjee, Swarn & Kim, Jinhee, 2022. "Young adults’ personality traits and subjective well-being: The role of perceived money management capability," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    6. Gardenia Silva-Martínez & Marcos Jesús Iglesias-Martínez & Inés Lozano-Cabezas, 2023. "A Qualitative Study on Barriers in Learning Opportunities in Ecuadorian Higher Education," Societies, MDPI, vol. 13(3), pages 1-11, February.
    7. Frank M. Magwegwe & Maurice M. MacDonald & HanNa Lim & Stuart J. Heckman, 2023. "Determinants of financial worry," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 171-221, January.

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