Common Student Financial Misconceptions
Avoid misinformation about student finances by exploring this list of common misconceptions students might face in their academic journey.
September 29, 2021

AffordableCollegesOnline.org is an advertising-supported site. Featured or trusted partner programs and all school search, finder, or match results are for schools that compensate us. This compensation does not influence our school rankings, resource guides, or other editorially-independent information published on this site.
Are you ready to find your fit?
Avoid These Financial Misconceptions
Student loans, budgeting, and paying off debt can leave students, recent graduates, and their parents feeling lost. Can you appeal for more financial aid? Should you open a credit card? What repayment options can borrowers use?
Making smart financial decisions in college sets students up for success after graduation. In this guide, we explain some of the most common financial misconceptions to help students make informed choices about their spending, savings, and borrowing.
Why Are Misconceptions So Common?
Financial topics confuse many people, especially complex topics like investing and paying off debt. Most college students receive little financial education and do not know where to find straightforward, accurate financial advice.
Part of the problem comes from the financial system's structure. Companies make money by offering services that people can do for themselves. Marketing tactics might make filing taxes seem complicated, requiring a service like TurboTax to avoid an audit. But many college students can use free services to file taxes or file on their own.
College students deal with complex financial issues like taking out student loans, often at a young age. Lenders, including the federal student loan program and private banks, may not offer the clearest information. General advice might not apply for students' specific circumstances, and as a result, they fall for financial misconceptions.
What Are Some Common Financial Misconceptions?
College students should avoid credit cards, toss out their budget, and sign up for the campus meal plan. These and other common financial misconceptions can hurt a student's financial health for years or even decades after graduation. In this section, we take on student misconceptions about finances.
Question to Ask to Avoid Common Financial Misconceptions
Yes. Students can appeal their financial aid package by resubmitting their FAFSA to update their income or appealing with their college financial aid office.
Students typically spend $4,500 for an eight-month campus meal plan. However, single people typically spend less than $4,000 per year on food. So, campus meal plans cost more for convenience.
Consolidating student loans means one monthly payment instead of multiple payments. Borrowers may also qualify for a lower interest rate by consolidating their loans.
Opening a credit card in college helps students establish their credit history and build a strong credit score. However, credit card holders should plan to pay their balance in full every month to avoid interest charges or fees.
Keep up with the latest
Never miss a detail on the news, trends, and policies that could directly impact your educational path.
What To Do If Your Income is Interrupted
Best Online Budget Apps For College Students
The Importance of an Emergency Fund
Common Questions And Misconceptions About 529 Plans
Starting a 529 savings plan is a great way to ensure students don't need to take out expensive student loans. Learn what to know to get started.
Financial Wellness For College Students
Finances can be a serious point of stress for college students, even causing students to drop out. Make sure you prioritize your financial wellness.
Student Loans The Right Way
Student Loans the Right Way: Expert advice on applying for, managing and paying back college loans and how to apply for a federal student loan.
AffordableCollegesOnline.org is an advertising-supported site. Featured or trusted partner programs and all school search, finder, or match results are for schools that compensate us. This compensation does not influence our school rankings, resource guides, or other editorially-independent information published on this site.
Do this for you
Explore your possibilities- find schools with programs you’re interested in and clear a path for your future.