New Initiatives Help Students
Reduce Consumer Debt

September 23, 2009

By Christine Clark

UC San Diego junior Maranda Maroe

UC San Diego junior Maranda Maroe was worried she would end up like thousands of college and grad-school students who get heavily into debt after relying too much on credit cards.  However, through UC San Diego’s new initiatives to help students avoid consumer debt, Maroe will graduate with the knowledge of resources that will help fund her education and living expenses in tough economic times.

UC San Diego’s Wellness Center and the Financial Aid Office have created a financial wellness website which lists tools and techniques including a new, free, online cash course designed to provide students with information that will help them make informed financial decisions throughout their college years and into their professional lives.

“I have the financial wellness site bookmarked on my computer as one of my top sites,” Maroe said. “It has helped me learn how to budget and understand credit.”

Maroe works as a wellness intern and receives financial aid in the form of federal grants, work study jobs and loans, but she has managed to stay out of consumer debt, she said. 

“Our office is dedicated to working with students and their families to help them meet college costs and to make informed financial decisions,” said Ann Klein, director of UC San Diego’s Financial Aid Office.  “We also want to help students learn about good debt versus bad debt. Financial aid ensures that students are able to secure low cost educational loans in spite of the economic down turn and tighter credit.”  

More than half of UC San Diego’s students receive need-based financial support and one-third of undergraduates receive federal Pell Grants. UC San Diego’s Financial Aid office advises students on budgeting for college and teaches them how to apply for financial aid. 

Junior Kevin Lee is a financial aid recipient who receives federal grants and low-interest loans, such as the Stafford loan. He said he has been able to avoid consumer debt, but is thankful he was able to secure an emergency loan through UC San Diego’s Financial Aid office. “The emergency loan allowed me to move into a great place before my financial aid check arrived,” Lee said.

Students can get basic tips on saving money and making wise consumer choices by meeting with a financial aid counselor or going to the financial wellness website. The financial wellness website also gives students free access to online budgeting tools and calculators. Undergraduate and graduate students can calculate the average annual starting salary for the field of their major with the “reasonable educational debt calculator.”

“Financial issues can take a toll on health and wellbeing,” said Jerry Phelps, acting director of the Wellness Center. “Studies show that college students with over $1,000 in credit card and consumer debt are more likely to have increased stress, be overweight, not get enough exercise, over use alcohol and drugs and watch excess TV.”

Klein said her counselors have encouraged students who are stressed about finances to avail themselves to some of the free services offered at UC San Diego. Those resources include:

• Counseling and Psychological Services (CAPS) -- Students who are stressed about their finances or concerned about their families’ financial situation can receive free, confidential counseling from CAPS. A variety of workshops and forums are also available on topics like managing stress or family conflict.
• OASIS—Through OASIS students can find tutors, peer mentors, workshops, and study groups that will help them improve their academic performance.
• Career Services Center-- Students have access to a variety of services that will help them obtain an on campus or off-campus job, plan for their career or prepare for graduate or professional school through the Center. The Career Services Center hosts dozens of career workshops, fairs and other events during the academic year. Last June, the Center gave 2009 alums free access to their resources throughout the summer and as a result the center had 1,700 unique visits from the recent graduates.
• Student Legal Services (SLS) – SLS provides free and confidential counseling and legal education to all currently registered UC San Diego students. SLS can meet with students to discuss credit concerns, identity theft, rental dilemmas and other issues related to financial wellness
• Recreation Services -- Students who are feeling stressed and overwhelmed can avail themselves of free and low cost recreation services.
• Student Health Services – Offers free or low cost health services to all registered students.
• Center for Student Involvement – Provides a variety of free clubs, organization and service opportunities for students to find community and belonging.

Media Contact: Christine Clark, 858-534-7618 or ceclark@ucsd.edu