4.28.2015 Casey Wallen, Manager, Higher Education Partnerships – ASA/SALT
Your perceptions
Realities
Action planning
Your Perceptions
What do you think today’s young adults are saying about their financial challenges?
What are they most concerned about?
Between June and November 2012, 299
community members participated in the
following: 25 research activities
47 community building activities
4,550 contributions
This group has subsequently continued
activities and grown in size/scope.
“Fairly stable, though
I have little money of
my own and have to
rely on loans and
family support.”
“Currently I am financially stable. I am unfortunately
living paycheck to paycheck, during the year that is a
work study paycheck which does not help with my bills
very much. But for right now I am doing alright, making
some money during the summer to save for the future
and for the rest of the year.”
• About half consider themselves “financially stable.” Primary definition: Being able to pay your bills and
cover your necessities.
Goals: Cutting back on spending; Finding a well-paying job.
“…not being afraid of checking the mailbox because you know that it's bill time again, not having to dig inside the
couch and under your car seats for change, never seeing a cut-off notice, not having a panic attack when the kids need new everything, not having to break into the piggy bank when you just started putting something into it last week, not having more numbers of bill collectors on your
caller ID than friends and family, and being able to say the word financially ‘stable’ without laughing.”
Finances are the biggest stressor for many School and family rank as higher priorities
Debt and income are the biggest taboo subjects
Too personal!
Many would change past financial decisions Especially saving more and staying away from credit
cards.
“For me, debt is the biggest taboo to talk about. I
don't like for others to know my business in that
regard because I feel like it's personal. All of my
bills get paid, but being a student sometimes sucks
my bank account dry, leaving me to feel
inadequate if I struggle to know where my next
funds for necessities will come from.”
“I think that people do not want to discuss
debt because yes it means a lack of money,
but it also means that they will always have
that trailing them because they cannot pay it
off. Most people are ashamed that they are
not able to pay it all back right away. It may
not always mean they have a lack of money.
It could mean that they just are not
spending their money in the smartest
way possible.”
“I would tell my former self to SAVE! SAVE! SAVE! I would say save as much as possible and spend as little as possible.”
“I would tell myself to be more responsible and keep track of every dollar earned and spent. I would also say SAVE!!! Save every time you can and it will add up.”
“If I were to write a letter to myself I think the only thing I could honestly say would be to Save. I have never been all that great at saving money, though I am getting better now. But having a savings that equals about 2 months worth of bills is a good thing to have, so I would definitely tell myself to work on savings, because it would come in handy many times.”
1985 2013
Average in-state tuition at a four-year public
institution
$1,3181 $8,6552
Average tuition at a four-year private institution $6,1211 $29,0562
Outstanding student loan debt $35 billion3 $1.1 trillion4
1. U.S. Department of Education, National Center for Education Statistics, Higher Education General Information Survey (HEGIS)
2 College Board Advocacy & Policy Center, 2013
3 The Institute of College Access and Success, Project on Student Debt, 2012
4 Consumer Financial Protection Bureau, 2013
How does student debt affect the daily lives of young Americans?
Source: Life Delayed: The Impact of Student Debt on the Daily Lives of Young Americans. American Student Assistance, 2013.
Survey Logistics
Open invitation survey of young professionals nationwide
1,000 surveys emailed and 259 responses
No incentive to participate
Survey open from May 14, 2013 – May 31, 2013
14%
54%
22%
9%
1% 0%
10%
20%
30%
40%
50%
60%
18 to 24 25 to 30 31 to 35 36 to 40 41+
Age
4%
2%
10%
38%
43%
1%
0% 10% 20% 30% 40% 50%
Professional Degree (JD, MD)
Doctoral Degree
Some Advanced Graduate Work
Master's Degree
4-year College Degree
2-year College Degree
Highest Level of Education
2%
3%
3%
3%
4%
10%
18%
20%
21%
15%
0% 5% 10% 15% 20% 25%
Prefer not to answer
$100,000+
$90,000-$99,999
$80,000-$89,999
$70,000-$79,999
$60,000-$69,999
$50,000-$59,999
$40,000-$49,999
$25,000-$39,999
Under $25,000
Annual Salary
93% of
respondents
had student
loans
Source: Life Delayed: The Impact of Student Debt on the Daily Lives of Young Americans. American Student Assistance, 2013.
“was great and opened
up opportunities for me.
However, student loan
debt has made my life
challenging after,
especially to pursue a
career in the field I want
to. I get by every month,
but it is tough.”
“was valuable and
left me better off,
but the debt is
seriously holding
me back
significantly.”
“was valuable to
my personal
fulfillment, but I
wish I had a job
in the field.”
“was valuable,
however it is NOT
worth the amount
of debt I have.”
“was
transformative,
but I’m not sure
it was worth
the expensive
price tag.”
“was
valuable
to my
personal
fulfillment,
but I wish
I had a
job in the
field.”
“was valuable but
I could have
probably gotten
the same value
going to a
cheaper college.”
Survey Results
27% found it difficult to buy daily necessities.
For 75% impacted their ability or decision to purchase a home.
For 63% impacted their ability or decision to make larger purchases (i.e. car)
For 47% impacted their decision not to start a business
For 30% had considerable impact, on the choice of career field.
For 27%, influenced the decision to move back home
73% have put off saving for retirement or other investments.
29% have put off marriage.
43% have delayed their decision to start a family.
Source: Life Delayed: The Impact of Student Debt on the Daily Lives of Young Americans. American Student Assistance, 2013.
YES
Did your student loan debt factor into your decision of
which state you would live in after leaving school?
28%
Did you intentionally move to a low cost of living state? 31%
My student loan debt played a role in my decision to live
with roommates.
29% - Strongly
applicable
14% - Somewhat
applicable
Source: Life Delayed: The Impact of Student Debt on the Daily Lives of Young Americans. American Student Assistance, 2013.
Yes 46%
No 30%
Unsure 24%
Would you have made the same college
decision?
Yes 58%
No 42%
Has your student loan debt impacted your decision to further
your education?
Source: Life Delayed: The Impact of Student Debt on the Daily Lives of Young Americans. American Student Assistance, 2013.
My need to pay student loan debt is hampering my ability to further my career
Strongly agree
Somewhat agree
Neither agree nor disagree
Somewhat disagree
Strongly disagree31% 18%
16%
14% 21%
91%
32%
23%
18%
0% 20% 40% 60% 80% 100%
I am, I took on the debt in the first place
The school I attended
The student loan lender(s)
The student loan servicer(s)
Who do you feel is responsible for your student loan debt?
Source: Life Delayed: The Impact of Student Debt on the Daily Lives of Young Americans. American Student Assistance, 2013.
YES
Should your alma mater help you manage your debt? 60%
Does your student debt impact your ability to donate to your
alma mater?
77%
Does your student debt impact your willingness to donate to
your alma mater?
72%
Source: Life Delayed: The Impact of Student Debt on the Daily Lives of Young Americans. American Student Assistance, 2013.
I only took out the amount
I NEEDED, so I feel like I
walked away with much
less debt than many do,
but it was a joyous day
when I made that last
payment!
I would not
have taken
more than
the bare
minimum if I
knew what I
know now.
It’s sad and
disheartening that I have
a negative reaction to
my college experience
due to the financial
impact it has had on my
post-graduate life
This is the only
debt I have ever
had. I am very
responsible with
my finances in
every other aspect
of my life, but the
fear of this debt is
crushing.
Student loans
will control
how you are
able to live
your life.
Student debt weighs on
every decision I make,
from food shopping, to
where I choose to live,
how I spend my free time,
to what clothes I wear,
and ultimately, what
career I choose.
Upon graduation
you realize that
you can’t really
begin the life you
imagined having
after college.
How does student debt affect the daily lives of young Americans?
In the process of fielding larger study with significant segments of 4-year public, 4-year private, and community college graduates
Survey criteria: all graduates with at least two years since the last degree obtained, all student loan borrowers
Full study and more detailed findings will
be available by summer 2015
Across degree type, a significant portion of graduates report that they had experienced
difficulty with their ability to pay the requested amount, while nearly half of those
same respondents indicated they had confusion about repayment options.
Key Point: They don’t know their options
when they find themselves short of the monthly payment amount.
Q: Have you/had you ever
run into any of the following
problems with repayment of
your loans?
Across degree type, a majority of graduates report that their current debt load impacted their decision to pursue further education or
choose a particular job.
Key Point: Graduates are delaying additional education or pursuing different avenues of employment due to their loan obligations.
Q: How much of an impact did/does your
student loan debt have on your decisions
regarding the following?
Q: How much of an impact did/does your
student loan debt have on your decisions
regarding the following?
Q: How much of an impact did/does your
student loan debt have on your decisions
regarding the following?
A survey of 16- and 17-year-old high school students by the College Savings Foundation
reported that almost all (94%) were concerned about their potential debt burden at
graduation.
What is the message that your president conveys?
What messaging is provided by your admission and/or financial aid offices?
Source: High School Students Unprepared for Rising Costs of College with Deep Divide Between Funding Plans and Actions. Rep. College
Savings Foundation, 2012. Web.
The bigger problem is that most graduates feel that they did not understand their loans – and that they felt that their schools had failed to provide them with enough helpful and timely
information about them.
How effective is your entrance and exit counseling?
What else are you doing for borrower education?
What are you doing for financial education in general?
Source: Lynch, Jean M. Report on Student Debt and Alumni Giving. Rep. Comp. Margarett Platt Jendrek. American Student Association,
Aug. 2007. Web.
The 1,669 colleges and universities studied collectively lost revenue due to attrition in an amount close to $16.5 billion with the
largest single school losing $102.5 million, the smallest single loss being $10,584, and
the average school losing $9.9 million.
What retention efforts do you have in place? Are you focused on student success? Are you providing holistic well-being
services? Source: Cost of Recruiting an Undergraduate Student: Benchmarks for Four-Year and Two-Year Institutions. Rep. Noel-Levitz, 2011. Web
“The mere fact of taking out a student loan decreases the probability that an individual
will contribute to the university as an alumnus.”
What is your alumni giving trend?
What are you doing to educate students about their debt and how to manage it?
Is proactive financial education a core part of your curriculum for students?
Source: Meer, Jonathan, and Harvey S. Rosen. “Does Generosity Beget Generosity? Alumni Giving and Undergraduate Financial Aid.”
National Bureau of Economic Research. February 2012. Web.
Is everyone on the same page?
Have you conveyed the “WIIFM” to each group?
Short Term Identify three actions you would like to take that
will have an immediate positive impact – for either current students or alumni.
Long Term Consider the ideal state.
What resources do you need to make this happen?
Who do you need to partner with?
What does the final plan look like?