FINANCIAL LITERACY IN COLLEGE STUDENTS AND ITS RELATIONSHIP TO THE USE OF EDUCATIONAL CREDIT

Education is one of the fundamental pillars for the develo-pment of countries, especially if they are in a situation of poverty. The Educational Credit is an economic and social mechanism, which consists of a loan, with which the stu-dent covers all or part of the costs involved in their studies This article aims to determine the relationship between the use of credit and financial education among university stu-dents. For this purpose, it is based on a non-experimental design with quantitative techniques, which allow us to re-cognize the factors of this relationship. Based on the re-sults obtained in the surveys, we found three problematic factors that were generated in the recovery of values: the first is related to the destination of the credits; second, with the reduction of the debtors' income; third, a deficien-cy in the notifications of overdue payments is visible. In this way, delinquency in the portfolio has been identified, making it necessary to provide exhaustive follow-up by loan managers in both the granting and recovery of loans. Finally, the research will help higher education institutions, both private and public, to make decisions to reduce cre-dit risk and generate adequate financial education.