TREND TRUTH
Student Loans have Reached New Heights
According to a recent Wall Street Journal article, “Students Borrow More Than Ever for College” posted September 4, 2009; student borrowing for college has reached a record high. Just last year, the amount of borrowing for educational loans grew nearly 25% where borrowing had once been as low as 1.7%. As students across the nation headed back to school, FGI Research recently conducted a study in response to this trend, where respondents who had borrowed money for a higher degree were asked about their experiences.
Of those who responded, 83.92% said they had qualified and used Financial Aid. Respondents were asked to share all forms of financial aid that they received for their education. The majority of this aid came from Stafford Loans (76.98%), followed by Perkins Loans (36.51%) and then private loans (29.37%). While most respondents were female, compared with male respondents there was an almost equal percentage of both genders who accepted Financial Aid. Also, respondents receiving financial aid were not confined to one ethnicity, gender, or age range, making it apparent that this trend has affected multiple demographics due to the country’s economic downturn.
The subject of student loans has also hit social media outlets. Facebook users are creating various groups, notes, and blogs to discuss the issue with others. Respondents also cited Youtube as being a commonly used source of information concerning student loans. Of those who turned to social media as an educational tool to learn about financial aid, 34.27% of respondents cited Facebook and 23.08% used YouTube. It’s not just students using social media to discuss the issues surrounding Financial Aid. In June 2009, Congresswoman Nancy Pelosi posted a note on Facebook with information to make students aware of the many benefits available to help them manage their student loans.
Approximately half of our respondents are currently still paying off student loans so, not surprisingly, 81.62% of them reported that having the loans has affected their standard of living. According to the survey, 65.03% reported that student loans have affected small spending habits regarding leisure activities, food and household purchases; 39.86% said loans have prevented travel; and 31.47% said they have postponed major milestones such as marriage, starting a family, or purchasing a house. If the economic downturn is prolonged, the question remains as to how to reap the benefits of higher education without being negatively affected by the backlash of student loan payments in the future.
September 24th, 2009 at 2:36 pm
I find this information to be largely accurate and reasonable. I accepted quite a great deal of student loans and my parents bear an even largely burden than I. As a recent grad, I have begun to make payments on my student loans. $250 a month does get in the way of other expenses I have at this age. It is the amount of a car payment. I have a car that thankfully does not require payments, but it does require repairs and when these repairs come up, my student loans do cause a strain. It was a necessity for myself and my family to take out loans to pay for my education, but I do believe it was worth it. Unfortunately, my school did not offer a lot of financial aid and is notorious for being restricted on their aid. I accepted what I could, now I owe what I do, and this is not due to the economic downturn.
October 4th, 2009 at 2:10 am
Indeed, this issue is already very serious, accept student loans to attend school students after graduation, if not in time to find a job, area wages, repayment of loans, put them at great trouble, and because of the financial crisis, work and not easy to find, give the community and students brought more trouble