President Obama has proclaimed April to be Financial Capability Month, and what better time to focus on the range of tools available to students and their families to make smart financial decisions around postsecondary education?
In his proclamation, President Obama noted the new tools released by the Department of Education that give students and families clear, transparent information on college costs so they can make good choices when they invest in higher education. One of these tools—the College Scorecard—is part of President Obama’s continued efforts to hold colleges accountable for cost, value and quality. The Scorecard highlights key indicators about the cost and value of institutions across the country, helping students choose a school that is well-suited to meet their needs, is priced affordably, and is consistent with their educational and career goals.
The Obama administration has also simplified the FAFSA, the free application for federal student aid, which is the first step in determining eligibility for federal grants and loans. In addition, ED is empowering high school counselors and local leaders through the FAFSA Completion Project to help ensure that students get all of the aid for which they qualify by giving them a resource to monitor FAFSA completion rates of their students.
Furthermore, ED recently released a suite of new tools to help students and families make informed and wise decisions around college financial decisions. The Financial Aid Shopping Sheet is an individualized financial aid award letter in a standardized format that helps students understand their costs and compare financial aid packages from different institutions so they can make smart decisions on investing in higher education. ED has also improved the financial education tools available to students, and within the last year we have revamped entrance and exit loan counseling and introduced a financial education tool for students in college.
President Obama has set a goal that the United States will once again lead the world in college completion. We will reach this goal only if we ensure that all students have the opportunity to access and complete postsecondary education—and are equipped to make the important financial decisions that will lead to a strong middle class. The US Department of Education stands committed to providing ladders of opportunity to make this a reality for all students, starting with sound financial knowledge and tools.
Martha Kanter is the Under Secretary of Education