Majority of undergraduates have a plan to afford college, but lack knowledge on how to pay for it
(Wilmington, DE) May 19, 2015 – College Ave Student Loans, a student loan marketplace lender focused on funding higher education costs, announced today the results from their “Financing Your Education” report. The report highlights the complex picture of financial literacy among undergraduate students, from pre-, during and post-college decisions. Students enter college with a plan to afford it: 81 percent say they understand the cost of education and more than half say that the cost of college impacted where they chose to attend school. However, many feel they lack knowledge on how to pay for it: 80 percent report they do not have a plan to pay off their student loan debt when they graduate. College Ave commissioned the national online survey of 1,077 undergraduate students, which was conducted via Chegg, the Student Hub’s, proprietary panel of more than 18,000 high school and college students. The report also finds about half (47 percent) of college students are concerned about their financial situation going forward, despite the majority’s belief (85 percent) that a college degree will lead to better career opportunities. Three out of four undergraduates wish there was more helpful financial information available to them.
“This survey highlights the real need for clear information and resources to help students become better informed about financing and paying for their education,” said Joe DePaulo, CEO and Co-Founder of College Ave Student Loans. “At College Ave Student Loans, our goal is to help simplify the student loan process, offer borrowers competitive rates and the most choices for repayment plans so our customers won’t pay more than they need to or should.”
The survey highlights that while students start out confidently in their plan to afford college and make smart financial decisions during college, paying for college is complicated for many.
Confident about financial decisions pre-college
- Cost of college counts. 45 percent only applied to in-state schools because of cost. 28 percent did not choose their first choice because of cost.
- Many understand the steps to financial aid. 91 percent filled out the FAFSA. 50 percent understood they needed a co-signer for a student loan. 67 percent say their financial aid packages were easy to understand.
Financially-savvy during college
- Students understand their cash flow. 88 percent know how much money they have available in checking accounts, school accounts, etc.
- Students are fiscally responsible. 74 percent (and 81 percent for first generation undergraduate students) report they have bills outside of school that they pay on a regular basis.
- Students maintain budgets. 60 percent report they manage their spending to a weekly or a monthly budget.
Yet, financing is more difficult
- Interest rates are confusing. Only 25 percent are comfortable understanding interest rates and payment plans. 59 percent do not understand how credit scores impact interest rates.
- Debt is scary for many. 69 percent are concerned about the amount of debt they will have when they graduate (74 percent for first-generation college students).
Because of its sole focus on student loans, College Ave Student Loans is able to offer one of the best private student loan options for families:
- Low rates for undergraduate and graduate loans
- No origination fees or pre-payment penalties
- The most choices for repayment options and loan terms
- Covers up to 100% of school-certified expenses ($2,000 minimum loan)
College Ave also kicked off the #CollegeGoals Instagram scholarship contest today. Now through June 30, 2015, Instagram users can share their college goals with College Ave for a chance to win prizes, including a $5,000 college scholarship and $50 Chegg textbook credits. For details on how to enter, visit: http://blog.chegg.com/collegegoals
About the Survey
The College Ave Student Loans “Financing Your Education” survey was conducted online by Chegg in April 2015 among 1,077 panelists within the United States from Chegg’s proprietary national panel of 18,000 students.
About College Ave Student Loans
College Ave Student Loans is simplifying the student loan experience so students can get on with what matters most: preparing for a bright future. As an online marketplace lender with a sole focus on private student loans, we’re using technology and our deep industry expertise to connect families who need to cover education costs with lenders who can provide that funding. By specializing in student loans, we are able to give our customers the attention they deserve and deliver loans that are simple, clear, and personalized for the individual. Competitive rates, the most repayment options, and a customer-friendly experience from application through repayment. For more information, visit: hhttps://www.collegeavestudentloans.com/.