Nearly One-in-Four Millennials Believe Their College Loans Will Be Forgiven, According to Research from JA and PwC
By Sarah Ford on February 13, 2015
Source: Junior Achievement
Colorado Springs, Colo. – "Millennials & College Planning," a new report from Junior Achievement USA (JA) and PwC US, prepared by New York-based research firm YPulse, shows that nearly one-in-four Millennials (24 percent) believe their student loan debt will ultimately be forgiven. The research also found that only one-in-five (21 percent) Millennials between the ages of 18 and 29 believe that student loans are still a good investment, down from nearly half in 2012.
Other key findings include:
- For 60 percent of Millennials, financial aid is a deciding factor in their school choice. Among those not attending their first choice school this year, 62 percent said it was because they couldn't afford it.
- College tuition and loans top the list of money matters that are worrying Millennials ages 18-29, with one in five (21 percent) claiming it as their family's main financial problem.
- One-third of those students with loans are shelling out over $300 per month and five percent are actually paying more than $1000 per month.
- Notably, in April 2013, 40 percent of those with student loans were "very confident" in their ability to pay off their student loans. In 2014, that number rose to 50 percent.
"Rising college expenses and growing student debt are obviously having an impact on Millennials' perception of the value of a college education," said Jack E. Kosakowski, President and CEO of Junior Achievement USA. "It's important that we give young people the tools necessary to make informed choices about higher education and to better understand that student loans, when used responsibly, are an important means of achieving the 'American Dream'."
For many young Americans, college will be the second largest expense they will have in life behind owning a house. Before making this important life decision, students and parents can more deeply analyze their education options and consider their return on investment through tools such as JA Build Your Future.