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Using a random sample of college students, this study identifies the factors that significantly affect the probability a college student is financially at risk for mismanaging/misusing credit. Financially at‐risk students are more likely to be financially independent, to receive need‐based financial aid, to hold $1000 or more in other debt, and to have acquired their credit card(s) by mail, at a retail store, and/or at a campus table. Students having difficulty making credit card payments are also more likely to be female, black, and/or Hispanic. Campus administrators and financial professionals can use this information to better allocate their resources and develop materials that specifically target those students who need them most.

Many financial education providers still do not have a basic level of evaluation capacity and are unable to identify program outcomes and design effective evaluation instruments. It is difficult to propose a national evaluation strategy without a basic understanding of current evaluation capacity and of the critical gaps in program evaluation. In addition, there has been little discussion about the challenges facing financial professionals and educators who are on the “front lines” delivering and evaluating programs. The purpose of this survey article is to address these critical gaps in the literature and to provide an overview of the current state of financial education and program evaluation. Using qualitative and quantitative data collected from financial professionals and educators nationwide, this study provides insight into what can be done to build national evaluation capacity and conduct more effective program evaluations.

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The financial industry made a number of efforts throughout the 1990s to provide additional borrowing opportunities to households traditionally constrained by the credit markets. Using data from the Survey of Consumer Finances (SCF), this study investigates the degree to which household liquidity constraints relaxed between 1983 and 1998. The gap between actual and desired borrowing is estimated. The findings indicate that the ability of all households to obtain their desired debt levels increased after 1983 and most dramatically between 1992 and 1998. The findings hold true across all households regardless of permanent earnings, age, gender, or race. Those experiencing the greatest gains in credit access were black households and households with low permanent earnings.

College students are facing a number of financial challenges, including rising college costs and subsequent escalation in student borrowing to finance their education. Financial aid has not kept pace with rising college costs, and fewer parents are helping to cover these costs, because they overextended themselves with debt during the 1990s. The end result is that an increasing number of students are turning to credit card debt to help finance their education. The growth in credit card usage among college students has generated concern that students' credit card behavior is putting them at greater risk for high debt levels and misuse and/or mismanagement of credit after graduation. The main objectives of this report are to 1) provide greater insight into the credit practices and financial education needs of Midwest college students and 2) to identify ways in which campus administrators and financial professionals can help students better manage their credit and avoid future misuse of credit down the road.

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