Worthley 1

John Worthley
Professor Raman
CAS 138T
April 6, 2015
To our Department of Education
One day is all it took for me to amass over $120,000 in debt by
accepting my invitation to attend Penn State University. This shouldn't have
happened because throughout my entire life, Ive been told that I simply
can't buy what I can't afford. So how did I end up buying the one thing I
definitely could not afford? How did I end up buying a college education if I
didnt have the money for it? If I had been properly educated on how to
handle my personal finances in secondary education, maybe I wouldn't have
been as naive as I started applying to colleges. I would like to bring to your
attention the need for a personal finance class in every American high school
that educates all American high school students about personal finance
before they think about applying to any college. A brief personal history
about my financial education during high school may enable you to see how I
could have made better financial decisions before attending college. If
students receive financial education early in high school, they can be more
responsible with their money throughout their lives so that they have control
over their life rather than feeling like a pawn of society. This education
should come before entering college, their first financial burden. The solution

Worthley 2

is a personal finance class in every high school which can be initiated

through a competitive grant formed by the Department of Education.
I had this illusion in high school that if I got good grades, then I could
go to any college I wanted. I did all I could to get good grades and I expected
life to take care of the second part allow me to go to any college which I
preferred. Senior year came and I, still sticking with the thought that I could
go to any college, applied to any college that I wanted to without looking at
the price tag. The price tags of colleges never bothered me because nobody
told me I couldnt apply to a college I couldnt afford. As a matter of fact, I
was told to apply to as many colleges as possible because thats what I was
supposed to do according to society. I falsely believed that I could go
anywhere I wanted to because everyone always told me that with good
grades, I could go anywhere I wanted to for college. I now wish that someone
drilled into me, No John, you cant go to any college you want because you
cant afford to go to any college you want. Even though that phrase may
sound like the worst statement to say to a teen, it would have saved me from
so much debt and stress. I didnt need motivation then, I needed reality.
I had no financial education in high school and I know that many other
students who have graduated from American high schools have also never
had any financial education. I was never instructed on how to choose
between credit cards based on APR, the importance of the credit score, how
to choose between banks when looking to open a banking account, or how to

Worthley 3

invest in a savings account. How am I expected to go to college when I cant

even understand how to put money into a bank account? How am I supposed
to pay taxes when my own government doesnt even teach me? Does society
really think Im going to learn about personal finance on my own? I tried
asking my bank about my college loans but they assured me not to worry
about the debt and that they would take care of all the financial aspects of
college for me. Now THAT is a problem. I need to be the one who oversees
every financial transaction involved with college expenses rather than my
bank. My bank really knew how to help me with spending money, but didnt
help me with keeping money. The bulk of my financial education before
college was surrounded by the impression that it was ok to amass debt since
that was the norm. The norm needs to change.
You think that making the ill decision to go to a college which put me
back $120,000 was entirely my fault? Think again. I am not the only one who
is so deep into debt by going to college. Yes, I know that I have made a
mistake. However, when millions of other students also make the same
mistake, then there must be something in society causing those millions of
students to go into debt in the first place. The 1.2 trillion dollar student debt
currently facing our American people is a nationwide disaster affecting many
people from all fifty states and isnt just the effect of a few lapses of
judgement in a few individuals (Strangling Debt: Congress Must Reform the
Student Loan System). Current estimates state that about two-thirds of
students graduating from American colleges are in some form of debt and

Worthley 4

that the percent of student loan borrowers who are more than 90 days
delinquent is at 17 percent and increasing (Lindsay). The government offers
many options to relieve student debt through initiatives such as tax relief
deductions up to a maximum of $2,500 a year and income-contingency plans
to relieve debt for direct-loan borrowers (Garnet). This really helps many
students but yet, should the government be doing more to help students
financially? I believe it should because along with mitigating the nationwide
student debt crisis, the government should also be preventing it. A personal
finance class in high school can be that form of prevention. The time it takes
to pay back student debt and the amount of student debt even taken up in
the first place could be reduced for every individual if they had financial
education in high school. Many students don't take into consideration the
fact that they won't be able to pay for college. The idea that they will
eventually pay off college costs and that it is "no big deal" to go into debt
does not apply with today's rising cost of college.
The policy that would work would have to be administrated by a
national organization to ensure that every American high school student
would receive financial education before college. The American Student
Assistance (ASA) nonprofit organization currently runs programs in colleges
all throughout the United States. The American Student Assistance
organization is partnered with 250 colleges and universities throughout the
nation through an online program called SALT that teaches students about
personal finance (Money Knowledge for College-and Beyond). The ASA is the

Worthley 5

best suited organization to run the SALT program in every high school
because they already provide student assistance for college students.
Although students could better learn about finance in college, they are never
too young to start learning about sound financial skills. High school is the
optimal time to teach students about personal finance because this is the
time when they are getting serious about going to college and buying
expensive necessities such as cars. Through the SALT program in the finance
class, students will be able to learn how to choose a college based on
affordability in addition to the traditional criteria such as program availability
and major selection. Students will have to opportunity to learn about loans,
debt and equity financing, scholarships, and federal student aid. The ASA will
be able to provide the resources, educators, and support for this education
because of their current nationwide establishment. They know how to get
students from high school to college as financially smart as possible.
The nationwide SALT program in personal finance classes needs to be
brought about through a federal grant formulated by the Department of
Education because a personal finance class is too important of a class to
leave in the hands of every individual state. The problem is that its the
states and not the government that controls the schools curriculum. We
cannot trust that every state will properly install their own personal finance
class. However, the government can have influence over the states with a
federal grant which will reward states with funding after they adopt a
nationally recognized personal finance class administrated by the ASA. In

Worthley 6

exchange for allowing the SALT program through personal finance classes in
their high schools, schools will receive funding from the federal government.
In addition, states wouldnt have to do much work because the ASA would be
running the entire program. States would only have to find a way of
guaranteeing space for finance classes during the school day. The
government does have the power to create a grant since it was able to offer
billions of dollars to states that would conform to specific assurances through
the American Recovery and Re-Investment Act (ARRA) in 2009 during the
recession (Morrin). This act is what allowed the Department of Education to
spur reform in K-9 education with the Race to the Top grant in 2009. The
grant calling for the SALT program in personal finance classes can be similar
to the Race to the Top grant.
Since student debt is a national problem, our entire country should be
looking to fix this since our children are our future. We cannot maintain a
national debt of 18 trillion dollars which we plan to pass down to our children
while also burdening them with debt as soon as they are old enough to go to
college. So what is the United States doing right now?
Currently, there are only four states which have enacted personal
finances classes for their high school students. Virginia, Missouri, Utah, and
Tennessee currently require their students to take one semester of personal
finance (Koebler). Those schools use a program laid out by the Jumpstart
Coalition. Although this program is a suitable program to get students

Worthley 7

started with financial education, it isnt as tied into college as the ASA. The
ASA is better suited to meeting the needs of high school students than the
Jumpstart coalition because it already has the resources and the expertise to
meet college demands such as loan repayments and debt education (Money
Knowledge for College-and Beyond). High school personal finance classes
would be able to take advantage of the ASAs online networks, college
connections, and long term plans that can match students with the amount
of years they should plan to be in college based on some form of plan.
A nationwide personal finance class supported by the SALT program
run by the ASA can provide many advantages students can immediately take
away while in their high school years. Imagine if all students coming out of
high school knew how to pay taxes, how to invest money, how to seek loans,
how credit works, and how the government plays a role in college funding.
Students only really learn about these topics by doing their own research or
if theyre lucky enough, through their parents who can teach a thing or two
about college funding. Parents who do try to teach their kids about college
funding find themselves to be just as clueless as their children. Many of
these parents either never went to college or attended college at a time
when tuition rates were much lower. The advice they would give would be
obsolete in todays world. Personal finance classes in our high schools would
be able to keep up with the rapidly evolving college financial world and
create equally strong citizens with sound financial skills.

Worthley 8

The main impact a personal finance class would have is a reduction in

the mistakes future college students will makethe same mistakes current
college students such as I are making now. A personal finance class in high
school would be able to show students their exact limitations. One huge
mistake that students like I are making is going to a college that is too
expensive. This mistake is a result of a series of misconceptions students
have about college while in high school. A personal finance class would be
able to bridge the gap between high school and college. Current surveys run
by the ASA point out how those with student debt are delaying decisions to
get married, buy a home, have children, and enter desired career pathways.
Student debt is essentially ruining the lives of our citizens who could
otherwise be happy and more productive in our society. Personal finance
classes would be able to pinpoint exactly how much money students would
have during every year for the foreseeable future so that they can have an
idea of what colleges they can afford. If personal finance classes are so
beneficial, then why dont we have them in more than just four states?
Personal finance class opponents and proponents both agree that while
such classes could alleviate the nationwide student debt crisis, there are
disadvantages to implementing such a mandatory class. A personal finance
class would take away school time for core classes such as math, history,
science, and art. There is also a lack of qualified teachers who are able to
teach such a technical course. If the ASA will provide educators for courses
how will they be paid? How can a school know if they can trust these ASA

Worthley 9

educators in their school? Schools would have to invest more time into
insuring they get the right people for the right jobs. Do cash stripped schools
really have the time and money to spend in ensuring an additional class gets
implemented the right way?
Overall, there is a lack of effervescence throughout the nation when it
comes to programs mandated by outside influences. A nationwide personal
finance class would unease many school administrators and political figures
due to the extra work necessary to ensure such a nationwide program, but
its not what should upset us. As a nation, are we going to care if a personal
finance class may be too much trouble to implement nationwide or are we
going to care about the fact that our nations future currently faces 1.2
trillion in student debt? There may be more work and logistical thinking to be
done throughout the entire country, but this is what must be done to make
sure that the ASAs SALT program will be able to reach every American
student and give everyone an equal opportunity to fund their college
education for generations to come.
There are enough people throughout this entire country that will
support the ASAs SALT program through a personal finance class. There are
many students, teachers, parents, and leaders who do not desire a student
debt crisis. The Department of Educations ability to enact the nationwide
policy of a personal finance class through the ASAs SALT program will be

Worthley 10

strongly favored and can be done because millions of Americans are already
in extreme financial sinkholes due to student debt that can be avoided.

Works Cited
Garnet, Grace. Paying For College Without Breaking The Bank. N.p.: JLB
International Trading, 2014. Print.
Koebler, Jason. "States Push to Teach Personal Finance in Schools." US News.
U.S.News & World Report, 26 Aug. 2011. Web. 04 Apr. 2015.
Lindsay, Tom. "A Texas Solution to the Nation's College Debt Crisis?" Forbes.
Forbes Magazine, 05 Apr. 2015. Web. 05 Apr. 2015.
"Money Knowledge for College-and Beyond." American Student Assistance.
N.p., n.d. Web. 04 Apr. 2015.
Morrin, Brian. "Is the Federal Government in Control of Your Child's
School?" KBOI 2 News. N.p., 4 Nov. 2013. Web. 06 Apr. 2015.
"Strangling Debt: Congress Must Reform the Student Loan System."
Pittsburgh Post-Gazette. N.p., n.d. Web. 05 Apr. 2015.