1 Department of Agricultural and Applied Economics, University of Georgia. USA.
2 Department of Decision Science and Applied Statistics, Western Illinois University, USA.
Review Article
World Journal of Advanced Research and Reviews, 2024, 24(02), 868-891
Received on 01 October 2024; revised on 09 November 2024; accepted on 11 November 2024
The increasing burden of student debt in the United States has become a significant economic challenge, affecting millions of borrowers and influencing broader economic trends. With over $1.7 trillion in student loan debt, many borrowers struggle with understanding complex repayment plans, managing interest rates, and avoiding default. This paper explores the potential of AI-powered financial tools in transforming student debt management and enhancing financial literacy. It examines how artificial intelligence (AI) can provide personalized solutions to borrowers, helping them navigate loan repayment options, optimize debt management strategies, and improve their financial decision-making. By analysing the key AI tools currently in use—such as budgeting apps, refinancing platforms, and debt consolidation services—this paper demonstrates how AI can simplify and automate the often overwhelming process of student debt management. Furthermore, the paper discusses the role of AI in improving financial literacy, particularly by offering borrowers real-time insights into their financial status and providing customized advice. This integration of AI with financial education helps to build a more financially literate population, better equipped to manage student debt and achieve long-term economic stability. The paper also addresses ethical considerations, such as data privacy and the risk of bias in AI algorithms, and proposes strategies for mitigating these challenges. By focusing on AI-driven innovations, the paper argues that these tools have the potential to revolutionize the way student debt is managed in the U.S., ultimately enhancing economic mobility and reducing the long-term financial strain on borrowers.
AI-Powered Tools; Student Debt Management; Financial Literacy; Economic Stability; Artificial Intelligence; Debt Repayment Strategies
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Amos Abidemi Ogunola and Adriana N Dugbartey. AI-powered financial tools for student debt management in the U.S.: Enhancing financial literacy and economic stability. World Journal of Advanced Research and Reviews, 2024, 24(2), 868-891. Article DOI: https://doi.org/10.30574/wjarr.2024.24.2.3441