by Jeff Sovern
Allison posted yesterday about the National Financial Capability Study. GW Business School professor Annamarie Lusardi has a Wall Street Journal essay titled So Much Student Debt, So Much Ignorance, about what the Study, which she co-authored, shows about student debt. An excerpt:
The latest NFCS data find that about one-in-five loan holders do not know the terms of their student loans. For example, they can’t say whether their monthly payments are determined by their income. And the majority (54%) of borrowers did not calculate their monthly payments when they took out their most recent loan.
Her remedy is to increase financial literacy education. Personally, I'm skeptical about whether that would work.
It won’t work.