4.28.2015 Casey Wallen, Manager, Higher Education ......25 research activities 47 community building activities ... spending their money in the smartest way possible. ... Some Advanced

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


“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.


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


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?


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?


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%


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?







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?

Casey Wallen

336.416.9636

[email protected]

asa.org

Documents

4.28.2015 Casey Wallen, Manager, Higher Education ......25 research activities 47 community building activities ... spending their money in the smartest way possible. ... Some Advanced