Finances vs. Academic Performance

Natasha Dixon, Mrs. Breen, HHS 4U0

Thesis

Lower income students will naturally struggle with maintaining their academic performance in comparison to high income students, due to their higher stress levels.

Important Questions

  1. What psychological effects are there for students from lower income households entering post secondary institutions
  2. What psychological and emotional differences are there between students from lower and higher income households
  3. What long term affects are there in the scope of jobs available for students who are from lower income households
  4. What physical effects are there for students from lower income households?

Costs of Post Secondary School // Direct vs. Indirect

  • DIRECT

    • Tuition = credits

    • Boarding/residence = living expenses

    • Meal plan = food

  • INDIRECT COSTS

    • Vary from person to person

    • Medical supplies

    • Transportation (commuting, going back home, buses)

    • Books and supplies

    • Food , clothing , entertainment

Relationship between academic performance and parenting styles

"Unfortunately, in impoverished families there tends to be a higher prevalence of such adverse factors as teen motherhood, depression, and inadequate health care, all of which lead to decreased sensitivity toward the infant (van Ijzendoorn et al., 2004) and, later, poor school performance and behavior on the child's part."-

http://www.ascd.org/publications/books/109074/chapters/How-Poverty-Affects-Behavior-and-Academic-Performance.aspx

Rich Kids, Poor Kids by Tiger Todd

HOW TO BRIDGE THE GAP

Importance of Financial Literacy

  1. Understand the availability of financial aid (especially for students from subsidized housing and priority areas)
  2. Get familiar with your school's financial aid office
  3. Start getting reference letters and letters of recommendation early (often mandatory for scholarships)
  4. Access free counselling services (local hospital, in school counselling office)
  5. Apply for OSAP (For Ontario students only)
  6. Consider going to a local university instead of living on campus
  7. Ask for scholarships from your parent(s) workplace
  8. Contact your bank for financial advice// emergency aid

OSAP- Student Financial Assistance

  • Financial assistance provided for students entering or already in post secondary school
  • Financial aid is provided once per a semester
  • Amount of aid given depends on parents income, personal income and other earning

Hypothesis

  • If lower income students are taught how to exaust all of their financial outlets, they will not only become more financially literate, they will also be more prepared in the work place. Make a better transition into adulthood and learn how to cope with social and personal issues.

  • If students from lower income households are not taught how to use all of their resources, they will struggle to pay off their debt and will experience a lot of difficulty transitioning into adulthood comfortably

  • May have to move back in to live with their parents ”boomerang generation”

  • The boomerang generation can transition into the sandwich generation

Important Loan Terms

  1. Grace period: The time between graduation and the date the student is expected to begin repaying the loan.

  2. Interest: The cost of borrowing money, expressed as a percentage of the loan amount.

  3. Loan default: Failure to repay the loan.

  4. Loan deferment: An arrangement that allows the loan amount to be repaid at a later date. The government pays the interest payments on subsidized loans for a set time.

  5. Loan fees: Extra costs associated with taking out a loan, including administration and application fees.

  6. Loan forgiveness: Canceling part of an education loan because the student has met specific requirements.

  7. Forbearance: A postponement or reduction of loan payments for a specified time. Interest still accrues during this period.

  8. Monthly payment: The amount of money that the student is expected to pay each month.

    Source:

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Data on University Students (Macleans)

"They’re saying last year was the worst they’ve ever seen,” says psychologist Gail Hutchinson, director of Western University’s student development centre in London.

“The past few years, it’s been growing exponentially.” Fully a quarter of university-age Canadians will experience a mental health problem, most often stress, anxiety or depression." Source: http://www.macleans.ca/education/uniandcollege/the-mental-health-crisis-on-campus/