CFPB Director Richard Cordray said on Wednesday that earning a college degree could leave some students with unmanageable debt, adding that some universities encourage students to use financial products that are not best-suited to their needs.
Cordray highlighted the agency’s efforts to help young consumers choose financial products as they decide how to pay for their education, including the Financial Aid Shopping Sheet—a form that details the total cost of attendance and the options available for student loans and grants.
“The form can help students understand how much debt they may have after graduation and what their monthly payment could look like,” Cordray said. “In doing all of this, it enables prospective students to compare one college offer to another.”
Cordray said the agency hopes to see financial education tops integrated into school curricula, adding that financial education should start early and continue through graduation.
“Through our efforts with these programs and others, we plan to reach a larger segment of the vulnerable youth population at a critical time when they are receiving a paycheck, many for the first time,” Cordray said. “Our ongoing work will focus on developing best practices and providing technical assistance to communities that want to implement these programs.”