With education students are more likely to understand college loans and their consequences. Despite entrance and exit counseling on loans, many students don't grasp the process and how it works. For example, FAFSA can help by providing loans with low, fixed interest rates where the interest can be paid off as it accumulates rather than have it be capitalized and added onto the principal balance later. Students might not understand that skipping student loan payments and entering bankruptcy does not release them from eventually paying off the loans anyway. Education needs to happen before loans are taken out so that students know how to responsibly settle loans. To spark financial literacy education, the U.S. Department of Education ran its
