Does Teaching Amortization Tables Affect Student Loan Repayment Choices?
Date
2021
Authors
Lugtu, Alma
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oregon
Abstract
As of 2020, student loan debt in the United States has grown to approximately $1.6 trillion. Private companies, non-profits, and governmental agencies have created different programs in an attempt to reduce these debt burdens. Personal finance education is a key component in combating this problem, and amortization tables are a fundamental tool to understanding debt. A survey of financial education programs indicate they do not emphasize teaching amortization tables. This study shows that teaching amortization tables caused a statistically significant change in behavior among participants. Participants made positive changes regarding student loan repayment choices and learned how to understand the amount of monthly and total interest paid on a student loan.
Description
1 page.
Keywords
amortization table, loan table, student loan, student debt, financial education