1. Brittany Baker
Life Delayed 2017 Study

2. Agenda
Methodology
Demographics
Survey Results
Summary
Questions

3. Methodology

4. A broader reach and more comprehensive questions than the 2015 study
Methodology
A broader reach and more comprehensive questions than the 2015 study
2,000 respondents distributed across the following populations:
Community College grads
4 year Public and 4 year Private grads
Graduate degree holders
Withdrawn segment (20% of respondents have withdrawn)
All participants currently have student loan debt
Questions on choice of college
Questions on college decision progress
Questions on impact of student loan debt
Withdrawn segment N = 399

5. Demographics

6. Majority working full time and making <60K a year
Q. Which of the below best describes your current state of employment?
Q. What is your annual income?
68% making less than 60K, 58% employed full time
Q3. Which of the below best describes your current state of employment?
other options:
- military - 1%
- volunteer - 0%
- student - 3%
- retired - 3%
Q4. What is your annual income?

7. More than 84% completed a Bachelor’s degree or less
Q. What is the highest level of education you completed?
44% completed Bachelor’s
20% of the people (some college but no degree) withdrew from their schools (N=399)
Q5. What is the highest level of education you completed?
other options:
- some advanced graduate work but no degree – 4%
- doctoral degree – 1%
- professional degree (JD, MD) – 2%

8. Type of College Attended
Q. Which best describes the 2-year college you attended?
Q. Which best describes the 4-year college you attended?
81% attended community college, 56% attended a private school, 44% attended a public school
Community college – N=329
Online school – N=75
Public school – N=668
Private school – N=527

9. Q. Which of the following types of student loans do you have?
84% have Stafford federal student loan debt from their undergraduate studies
Q. Which of the following types of student loans do you have?
Q. Please select from where you have student loan debt.
Q16. Which of the following types of student loans do you have?
Q19. Please select from where you have student loan debt.

10. 73% report current balance of debt in excess of 10K
Q. Would you please tell us the approximate current balance of your student loan debt?
All others = more than 40K
Q18. Would you please tell us the approximate current balance of your student loan debt?
less than 10K – 27%
10-20K – 17%
20-30K – 17%
30-40K – 14%
40-50K – 9%
50-60K – 7%
60-70K – 6%
70-80K – 5%
90-90K – 3%
90-100K – 2%
100K+ - 6%

11. Findings: Choosing a College

12. Specific major or program of interest Financial aid received
The big factors that were important while deciding where to apply and attend
Q. What were the main factors that went into deciding…
…where to apply
…where to attend
Location of school
73%
(n=1454)
50%
(n=993)
Specific major or program of interest
61%
(n=1216)
41%
(n=828)
Cost of attendance
52%
(n=1045)
36%
(n=719)
Financial aid received -
43%
(n=858)
Q32. Thinking back to when you were applying to college, what were the main factors that went into deciding which undergraduate schools to apply to?
Ease or cost of application - 10%
SAT/ACT scores and GPA - 6%
Diversity of the student body – 3%
Where friends were applying – 4%
Suggestions from guidance/college counselor – 5%
Name brand/public recognition of the school – 9%
Family connections – 3%
Q. Ranking
43% of the people who selected specific major ranked it as the most important factor
36% of the people who selected cost of attendance ranked it as the most important factor
30% of the people who selected location ranked it as the most important factor
Q36. After you received the admission decisions from schools where you applied, what factors went into deciding where to attend?
It was the only school I applied to or got into – 9%
Where friends were going – 4%
Suggestions from guidance/college counselor – 4%
Name brand/public recognition of the school – 8%
41% of the people who selected specific major ranked it as the most important factor
36% of the people who selected financial aid received ranked it as the most important factor
31% of the people who selected cost of attendance ranked it as the most important factor
26% of the people who selected location ranked it as the most important factor
When asked to rank, specific major or program of interest was the most important.

13. Academic fit is the biggest deciding factor
Q. Was your final choice of college primarily due to…
Only 29% said good financial fit
Q39. Was your final choice of college primarily due to:
None of the above – 7%

14. Findings: Student Loan Debt

15. “Student Debt” is associated with negative things
Q. When you hear the term ‘student debt’ what is your initial reaction?
As we’ve seen over and over before, student debt is still associated with negative things. These words confirm past findings.
Q20. When you hear the term ‘student debt’ what is your initial reaction?

16. >50% find it difficult to make their monthly student loan payments
Q. How easy or difficult is it for you to make your monthly student loan payments?
Q70. How easy or difficult is it for you to make your monthly federal student loan payments?
Q72. How easy or difficult is it for you to make your monthly private student loan payments?

17. Almost 30% only used student loans to finance their education
Q. Besides student loans, what other means of paying for your undergraduate education did you have?
Everyone used student loans, but almost 30% only used student loans to finance their education!
Majority used student loans + other things, such as working while attending school, scholarships, etc.
Q73. Besides student loans, what other means of paying for your undergraduate education did you have? Select all that apply.
Credit card – 11%
My parents/family took out student loans on my behalf – 11%
Tuition reimbursement from my employer (including military) – 5%

18. Only 26% tried to borrow as little as possible
Almost 50% borrowed the maximum amount available in their package each year
Q. When deciding how much money to borrow for each school year, I…
Q: While not surprising, what are you doing to engage students in a dialogue about student loan borrowing?
Q74. When deciding how much money to borrow for each school year, I… (select all that apply)
Do people even know about the option of not using the entire package???
Considered the total amount of debt I would graduate with – 12%
Considered the amounts I borrowed in the past – 6%
Only 26% tried to borrow as little as possible

19. Findings: Other Debt

20. Q. When did you take out your first credit card?
72% own credit card(s) and 74% of them took them out before or during college
Q. How many credit cards do you have?
Q. When did you take out your first credit card?
Not only respondents have student loan debt, they also took out credit cards.
Remember that majority make less than 60K
Q66. How many credit cards do you have?
Q67. When did you take out your first credit card?

21. Findings: Financial Knowledge

22. 44% had no or minimal understanding 28% had some understanding
Knowledge on cost of attendance is lacking while deciding where to apply or attend
Q. How much did you know about the cost of attendance before deciding…
…where to apply?
…where to attend?
44% had no or minimal understanding
28% had some understanding
29% had a good understanding
38% had no or minimal understanding
29% had some understanding
33% had a good understanding
Remember that for their final choice of college, only 29% said a good financial fit was their deciding factor
Q34. and Q38.
I didn’t know anything about the cost of attendance
I knew a minimal amount but had a feeling it ‘might be expensive’ or ‘might be cheap’
I had a good understanding of tuition costs, but little understanding of all other costs (fees, housing, etc..)
I had a cost range of total expenses in my head (“it might cost about $xx-$xxx pear year”)
I had a good understanding of all the costs including tuition, fees, housing, etc.

23. Financial or loan repayment education can be beneficial, especially if provided prior to taking out first student loan
Q. At what point would a financial education/loan repayment counsel would be most valuable?
Q: Clearly, there is a need (or perceived benefit) from students for this information at multiple touch points. Does anyone do year over year loan counseling sessions?
Q44. At what point would this type of financial education/loan repayment counsel would be most valuable? Select all that apply.
Junior year of college – 6%
Sophomore year of college – 4%
At any point – 7%

24. Findings: Looking Back at College Choice

25. Knowing what they know now about student loan repayment…
40% say they would not make the same decision about their choice of college
Q40. Knowing what you now know about student loan repayment, how likely is it that you would make the same decision about your choice of college?
23% not at all likely
17% not too likely
23% somewhat likely
22% very likely
15% extremely likely

26. Explored additional scholarship options 47%
Q: Instead of making the same decision about college, what would you have done differently?
Considered a different path such as starting at a more affordable school and finishing at a school of my choice
49%
Explored additional scholarship options
47%
Learned to budget or budget better
33%
Delayed entering college to work and save more money to pay for college
28%
Lived more frugally while an undergraduate
25%
Finished degree in less time to take on less debt
24%
Q42. You indicated that you would not have likely made the same decision about your choice of college. What would you have done differently? Select all that apply.

27. Although ~50% would consider a different path, these options were not discussed
Q. When you were thinking about college, did family members or guidance counselors ever talk to you about the following alternative means of getting a degree from a 4-year school?
Q35. When you were thinking about college, did family members or guidance counselors ever talk to you about the following alternative means of getting a degree from a 4-year school?

28. Q. Would you have done any of the following differently?
Ones who would make the same decision about college still wish they were better prepared financially
Q. Would you have done any of the following differently?
60% would make the same decision – these are their answers about what they would have done differently
Remember that only 29% really cared about a good financial fit, however all of these “what if”s are about financial things and actions…
Q41. You indicated that you would have likely made the same decision about your choice of college. However, would you have done any of the following differently? Select all that apply.

29. Findings: Impact of Student Loan Debt on Career Choice

30. 23% neither agree nor disagree 26% disagree
Student loan debt impacts choice of career field and ability further career
Q. How much of an impact does your student loan debt have on your decisions regarding your choice of career field?
9% deciding factor
32% considerable impact
41% of respondents’ choice of career field was impacted by student loan debt
“My need to pay student loan debt is hampering/has hampered my ability to further my career…”
Q51. How much of an impact, if any, does your student loan debt have on your decisions regarding the following?
choice of career field – other options:
- neutral – 15%
- minimal impact – 15%
- no impact – 29%
Q50. “My need to pay student loan debt is hampering/has hampered my ability to further my career…”
Strongly disagree – 8%
Disagree – 18%
Neither agree nor disagree – 23%
Agree – 29%
Strongly agree – 21%
50% agree
23% neither agree nor disagree
26% disagree

31. Working a job that pays more instead of a job of interest
Q. Can you please describe how your student loans affect your career choice?
Working a job that pays more instead of a job of interest
- “I was making more money outside of my degree as a waiter than getting a job in my field…”
- “Instead of seeking out entry level positions in my field of study, that did not pay well, I was forced to take the best paying jobs, even though they did not interest me nearly as much.”
Can’t further education
- “They have impacted my ability to attend graduate school, which may have limited my career options”
- “My student loans prevent me from pursuing further education to reach the career of my choice”
Working any job instead of something of interest
- “Had to take what I could get to pay the bills”
- “I was so stressed about my debt that I just wanted any job I could get and found myself unhappy with my decisions.”
Concerned about immediate financial gains
- “I de-railed from my ‘career track’ and became mired in minimum or near- minimum wage service jobs because of the need to earn money immediately”
- “I needed to take any job I could get immediately”
Q52. You indicated that your student loans affected your career choice. Can you please describe how in more detail?
“Took a job to have a job”

32. Findings: Impact of Student Loan Debt on Employment Decisions

33. Student loan debt significantly impacts employment decisions
Q. How much of an impact, if any, does your student loan debt have on your decisions regarding…
No/Minimal Impact
Significant Impact
Taking a job outside of your field to be able to pay your student loans
36%
49%
Taking a job you were not interested in, but which paid more than one you were interested in, in order to pay your loans
34%
50%
Q51. How much of an impact, if any, does your student loan debt have on your decisions the regarding the following?
Choice of career field
- 44% no/minimal impact
- 41% significant impact
Private sector employment rather than a job in the public sector
- 48% no/minimal impact
- 29% significant impact

34. Student loan repayment assistance from employers is highly valued
Q. How much would a student loan repayment assistance benefit from an employer impact your decision to take a job?
Q53. All other things being equal, how much, if at all, would a student loan repayment assistance benefit from an employer impact your decision to take a job?
64% say that this assistance would impact their decision to take a job

35. Monetary contributions towards the loan is the most appealing form of assistance
Q. How appealing would the following employee benefits be if they were offered by your employer?
Top 2 boxes (very appealing + appealing):
Monetary contribution towards the loan – 90%
Monetary contribution towards retirement – 88%
Monetary contribution towards a college savings plan – 71%
College planning services such a counseling and self-paced content about student loans – 60%
Monetary contribution towards the loan (62%), followed by
Monetary contribution towards retirement (52%), followed by
Monetary contribution towards a college savings plan (35%), followed by
College planning services such a counseling and self-paced content about student loans (18%)
Q54. How appealing, if at all, would the following employee benefits be if they were offered by your employer?

36. Findings: Views on Financial Value of College Education & Savings

37. 25% believe their college experience left them worse off
Only 29% think their college experience left them better off despite the debt they incurred
My college experience…
Q47. Please complete this thought. "My college experience...“
5% has had little impact on my life for the better or worse.
1% other.
25% believe their college experience left them worse off

38. Student loan debt negatively impacts ability to save for retirement
60% of respondents say that student loan debt negatively impacted their ability to save for retirement
Of this 60%...
61%
30%
17%
haven’t been able to afford to contribute anything to a retirement account (401k, IRA, etc.)
have been able to afford to contribute to a retirement account but at a reduced amount
had to borrow against retirement savings
Q62. Has student loan debt negatively impacted your ability to save for retirement?
Q63. In the past, how has your student loan debt negatively impacted your ability to save for retirement? Select all that apply.
other options for the funnel:
-none of the above 11%
-other 5%

39. Summary

40. Key Takeaways
Academic fit plays the biggest role in deciding which college(s) to apply and attend
Financial savviness is lowest before college, improves a little while an undergraduate, and is highest after college
Only 26% tried to borrow as little as possible each school year
30% only used student loans to finance their education
Majority find it difficult to make their monthly student loan payments
A significant portion say they would not have made the same decision about their choice of college and would have considered a different path
However, majority say these alternative options were not discussed with them
Understanding the debt being taking on plays a role in people’s views on the value of college education and the perceived impact of student loans
Such as, higher understanding of debt being taken on is related with…
Lower perceived effect of debt on hampering career
Higher valuing of college experience, both financially and generally
Lower perceived impact of debt in purchasing decisions and power
Higher the degree, higher the perceived financial benefits of college
Student loan debt impacts career choice and employment decisions, such as taking jobs outside of interest or career field
A significant portion have not been able to contribute anything to their retirement accounts due to their student loan debt

41. What are you doing (right now) on campus to address these concerns?
So What. Now What?
What are you doing (right now) on campus to address these concerns?
Do you think your alumni and career services offices are aware of these trends?
Has this information changed your recruitment efforts and/or presentation of financial aid award packages?

42. Thank You Learn more: www.asa.org