Opportunities to Improve the Financial Capability and Financial Well-being of 

Postsecondary Students

Postsecondary education is essential to the economic health of our nation and to the economic 

opportunity of many Americans. Despite the importance of attaining postsecondary education, 

the cost of higher education may prevent some students and families from obtaining it—

especially those from low- and middle-income households. 

Students and families make important financial decisions regarding higher education, including:

 whether to go to college;

 where and what types of institutions they should apply to;

 what college to attend; and

 how to pay for their education. 

The choices students and their families face are complex, and, for millions of students, financing 

higher education involves taking on debt, especially federal student loans. In addition to making 

choices about college and how to pay for it, young adults make a number of other important 

financial decisions during college, often for the first time, making college an important 

opportunity to address the financial capability of students and their families. Building financial 

capability is an important strategy for promoting not only college access and completion, but 

also lifelong financial health. 

To address these needs, a report, Opportunities to Improve the Financial Capability and Financial 

Wellbeing of Postsecondary Students, has been prepared by the Financial Literacy and Education 

Commission (FLEC) and describes the state of financial education among postsecondary

students. The report describes current efforts to enhance financial education in a number of 

institutions with regards to student understanding of financial aid and financial education topics 

at two critical junctures: 

 Choosing Where to Go and How to Finance Postsecondary Education; and

 Making Sound Financial Decisions When Enrolled and Beyond.

The body of the report describes issues in these two areas and federal government policies and 

resources to address them. Further, in developing this report, we sought to identify programs 

that promote or enhance financial literacy for students, including those that involve partnerships 

between nonprofit organizations. 
The report concludes with a series of recommendations for how institutions of higher education 

can better equip students to make critical financial decisions.

In this report, you can expect to find:

 federal policies and resources to help students make decisions on college choice and 

financing;

 tools for navigating the college search and decision-making process;

 tools for navigating postsecondary education financing and repayment;

 financial decisions facing currently enrolled students;

 financial decisions facing recent graduates;

 institutional efforts for improving the financial capability of enrolled students; and

 suggestions for how to implement effective financial education programs and build a 

culture of financial capability.

Appendices include:

 current college- and university-based programs;

 financial capability programs not based on campuses; and

 widely used financial capability resources and curricula.

As part of a national strategy to increase financial literacy and financial security, institutions of 

higher education have a unique and important role to play. Building financial capability is an 

important strategy for promoting not only college access and completion, but also lifelong 

financial health. 

The Commission hopes and anticipates that higher education institutions and other organizations 

will expand and enhance the delivery of financial education and financial decision-making tools 

and resources that will help students throughout their postsecondary education and lead to a more 

financially secure future.