Many college students don’t plan on paying off student loans, new survey shows
Many college students are not planning on paying their student loans in full, a new study claims.
The survey by EVERFI, sponsored by AIG, polled more than 30,000 students from 440 schools in 45 states. The results suggested that “these adults are suffering from a lack of financial capability long before they enter the workforce and employers will need to be aware of how these attitudes and behaviors may impact their job performance.”
When asked about student loans, 60 percent of those polled said they planned on taking one to pay for school.
However, 65 percent of those students said they planned on paying them off in full and on time. To compare, seven years ago, 88 percent of students said they planned on paying off their loans in full and on time. More than half of the students who took out loans said they were “worried about their debts.” Some 58 percent of those with $50,000 and more in student loans said they had anxiety due to the loans.
Around 42 percent said they planned on consolidating their loans.
The survey also found almost half (46 percent) of the students surveyed said they had at least one credit card and 36 percent of them had more than $1,000 in credit card debt.
Many of the students said their knowledge of financial planning was low. Out of the group, 35 percent said they took a finance course in high school. When it came to planning, 34 percent said they would balance their checkbook and 32 percent would start putting money in an emergency fund.
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The Federal Reserve Bank of New York said student loan debt rose by $79 billion last year.
Some employers have pledged to help those with student loans. Accounting firm PriceWaterhouseCoopers said it would put aside $1,200 a year for six years to be directed toward student loan payments for employees.