Free Online Course Helps Students Plan College Financing

A big hurdle to getting a college education is finding a way to pay for it. It also helps if you choose the right school. Where do you turn to for advice?

Wichita State University has launched a free online course for prospective students that teaches personal financial management topics for students who are new to college and or considering college. 

Choosing the right college

Part one of the course helps students and families make wise decisions about which college to attend and how to pay for it. Lisa, of Owensboro, Ky., might have benefited from such a course.

“I had talked to an advisor that sugar coated everything to do with University of Phoenix,” Lisa told ConsumerAffairs.com. “Once I started taking the classes on line, if I needed help, the instructors weren't there to help. I had a sick granddaughter I was raising. It got to the point where I couldn't get on line to take the classes. I've ended up with $11000 in student loans.”

Luana, of Newark, N.J., enrolled in a for-profit college to pursue an associates degree, when a community college would have been a fraction of the cost.

“I was happy looking forward to get my associates degree with a technical course and avoided the idea of going to a regular county college for the same credits,” Luana said. “Turns out, no institution accepts my credit and at 24 I have to start over, from scratch, as if I had just graduated high school and attend a county college which is something I should have done from the get-go and saved $35,000 tuition that I paid to attend Gibbs College.”

Using money wisely

Part two of the free website helps students wisely manage money while in college and beyond. The course includes "game-ification" features and also allows users to post status updates about their progress in the course to Facebook and Twitter.

Money for the website comes from the federally funded College Access Challenge Grant, the purpose of which is to promote college completion by providing financial literacy education.

"Given the growing public concern with the cost of attending college and the fact that financial difficulties force many students to discontinue their studies, financial literacy education is critical to national efforts to educate more students," said Keith Pickus, interim provost at Wichita State.

Financial literacy is key

Liz Weston, a nationally syndicated personal finance columnist, agrees that financial literacy is necessary for a student's future. She says a college education is an essential first step for a person who wants to build a secure future.

"But the value of that degree is undermined when students and their families go too far into debt to get it," Weston said. "Students and their families need to make smart choices about getting an education they can afford. Students also need to make sure they manage their money wisely while they're in college so they don't graduate with piles of credit card or other debt. Financial literacy courses can help people make good decisions in college and afterward."