WASHINGTON–Many college students do not plan on paying back their student loans in full, according to a new survey.
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,” according to the company.
When asked about student loans, 60% of those polled said they planned on taking one to pay for school. Just 65% of those students said they planned on paying them off in full and on time. To compare, seven years ago, 88% of students said they planned on paying off their loans in full and on time, EVERFI reported.
More than half of the students who took out loans said they were “worried about their debts.” Some 58% of those with $50,000 and more in student loans said they had anxiety due to the loans, the survey found.
The Findings
Among the other findings:
- Approximately 42% said they planned on consolidating their loans.
- 46% of students surveyed said they had at least one credit card and 36% 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% said they took a finance course in high school. When it came to planning, 34% said they would balance their checkbook and 32% would start putting money in an emergency fund.
Findings On Credit Cards
The survey also polled respondents for behavior around credit cards. Among the findings:
- 46% reported currently having credit cards, and 61% of those students acquired their first card when they were 18 or younger, “suggesting many of these young adults are starting their credit card experiences around the same time they transition to higher education.”
- Of those students with credit cards, 55% have only one card (22% have two cards) and 78% have never been late paying their bill. For these students with credit cards, 36% already have more than $1000 in credit card debt.
- The percentage of students using credit cards in college has increased from 28% in 2012 to 46% today as has the percentage of students with more than one card from 25% to 45%. “It is clear that students in higher education are increasingly likely to have already established a credit history and we can also see from the graph below that their total credit card debt is increasing,” EVERFI said.
- Students who never paid a credit card bill late decreased from 91% in 2012 to 78% today. “Some of these differences may simply be due to variation in the college population, and consequently our nationally representative sample, over time. However, this does still mean that credit card usage is becoming an increasingly critical part of the higher education experience,” according to the survey.