When it Comes to the Cost of College, Should Students Hit the Books?
College Ave Student Loans survey finds the majority of students believe they have a good understanding of their student loans, but can’t predict how much they’ll need to pay each month
(Wilmington, DE) January 7, 2019
As the new year finds many college-bound teens meeting final college application deadlines, now is also a good time to take a closer look at the costs of the colleges selected. For the majority of students (81%), the cost of college is a deciding factor on their final school choice, according to a national survey of 1,307 college students by College Ave Student Loans conducted by Barnes & Noble College Insights. Yet when it comes to researching the details behind the cost of college, only 1 in 3 (34%) looked at the average student loan amount borrowed at the schools they selected.
The College Ave survey finds students confidence about how much they will borrow and pay back differs from reality of the actual monthly payments. Nearly two-thirds of students (62%) say they have a good understanding of how much they owe in student loans. However, three out of four (75%) are unsure what the amount will be on their first monthly bill.
“Our survey highlights when it comes to the college selection process, parents and students need to have an open discussion about what costs to expect,” said Joe DePaulo, CEO and Co-Founder of College Ave Student Loans. “Parents and students should also discuss what portion of expenses the student and parent would consider borrowing, if any, and how much and who is paying it back.”
To help parents and students begin to navigate the student loan process, DePaulo offers the following tips:
- Understand the basics. As you sit down with your child and discuss the cost of college, explain how interest rates work, what deferment means and how that affects the total cost of the loan.
- Know the monthly payment ahead of graduation. Helping your child understand how much he or she will need to pay each month in student loans is a fundamental first step for smart financial planning, and the sooner the child knows it, the better. Students should think about their eventual monthly payment during school before they borrow. As they graduate and enter the workforce, everything from planning a monthly budget to negotiating their first salary can be better informed if they know what that bill will be each month.
Student loan debt is stressful for college students. According to the College Ave survey, student loan debt ranks as one of the top three issues that worry students (behind getting good grades and making new friends). At the bottom of the list? Feeling homesick (sorry, mom and dad!).
Laying the right financial foundation before they arrive on campus sets your child up for good money habits during school and beyond. For more tips to take the pain out of paying for college, visit the College Ave Student Loans blog.
About the Survey
The College Ave Student Loans survey was conducted by Barnes & Noble College Insights. The national survey had 1,307 student respondents and was fielded in October 2018.
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 a fintech lending company 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: we help you find your perfect fit. We offer competitive rates, a wide range of repayment options, and a customer-friendly experience from application through repayment. Visit: www.collegeavestudentloans.com.
About Barnes & Noble College
Barnes & Noble College, a Barnes & Noble Education company (NYSE:BNED), is a leading operator of college bookstores in the United States. Barnes & Noble College currently operates 781 campus bookstores and the school-branded e-commerce sites for each store, serving more than 5 million college students and faculty nationwide. General information on Barnes & Noble College can be obtained by visiting the Company’s website: www.bncollege.com.