Despite Overwhelming Debt Frustration, Only Five Percent of Americans Name Paying Their Student Loan Debt their Top Priority
NEW YORK — American college graduates may have put the right foot forward with their education, but they are off to a rough start where personal ambitions are concerned. Student Loan Hero’s 2015 Student Loan Burden Report revealed that one in seven Americans have delayed marriage due to student loan debt, which does not forecast a promising romantic future.
College-educated Americans with student loans are giving up more than just “I dos” as a result of debt from their education. Key highlights from the report include:
- 44% of have postponed traveling the world
- More than one in three (41%) have postponed buying a house or apartment
- One in four (25%) have had to postpone moving out of their parents’ homes
- One in nine have delayed their plans to move to New York, one in 11 to Los Angeles and one in five to another major city
- 47 percent of Americans have put off purchasing a car
- One in five Americans have put off running their own business
- Another one in five have been unable to work in their field of study
As 43 million Americans carry student loans, in order to decipher what Americans have given up due to this debt, and what they would do to cancel it, Student Loan Hero commissioned research firm YouGov to poll the attitudes of Americans.
Additional top findings from the report include:
- To reclaim their ambitions by saving money and pay off their student debt sooner, many Americans would go so far as to risk their health, social lives and even love. Of those willing to take action to pay off their debt quicker:
- Over one in three would cut back on their gym memberships, while 32 percent would elect to have only one haircut per year.
- Sacrificing their wellness, 31 percent would eat only traditional student staple ramen for weeks (one in nine would eat a tarantula), and one in four would go sleepless for two days.
- Further cutting out love from their diets, nearly half (46%) would go on fewer dates, and 44 percent would stop partaking in social activities with their friends, for example cancelling trips to the movies.
- Additionally, 24 percent of Americans would stop wearing makeup in the name of decreasing their student debt. One in four (27%) would stop shaving.
- Despite their willingness to go to such lengths due to overwhelming loan frustration, in reality Americans rank their student loan debt low on their financial priorities list.
- Only five percent of Americans with student loan debt name paying off their student loan debt as their number one financial priority.
- Conversely, more than half of Americans with student loans (53%) rank paying their rent most important.
- Rent is followed by saving money and paying credit card bills—as one in nine Americans with student loans name putting money into their savings most critical, and one in 11 paying their bills—followed by one in 12 Americans who prioritize paying into a retirement account, such as a 401K.
- When pitting one financial obligation against the other, 54 percent of Americans with student loan debt prioritize their rent, 44 percent their credit card bill, 34 percent saving money, and 29 percent their retirement account over their student loan repayment.
- Americans also place precedent on entertainment and relationship expenses, over their student loan debt—
- Compared to their student debt payments, one quarter of Americans with student loans prefer to pay for their Netflix accounts and other home entertainment.
- Also, nearly a quarter (23%) prefer to pay for social activities with friends and one in five Americans with a student loan (20%) prefer to take cool vacations.
- With an eye towards relationships, in actuality one in six (16%) would rather use their spare change to go on dates, with one in 14 (7%) preferring to pay for a dating website subscription and 20 percent for nights out.
“Americans are fed up with their student debt, as evidenced by their delayed life plans and the lengths they would go to in order to get rid of it, if they could,” said Andrew Josuweit, CEO and president, Student Loan Hero. “While a burden, student loans are nevertheless a reality for most Americans. To effectively pay down their debt, students must be knowledgeable of all repayment options available to them. We also encourage starting the loan conversation early – before school even begins. Students must turn college planning from idealistic to realistic, focusing on budget, potential ROI and expected debt upon graduation. If planning correctly, Americans have a better chance of reclaiming their ambitions.”
Student Loan Hero commissioned YouGov PLC—a third party, professional research and consulting organization—to poll the views of a representative sample of 1,427 adults, 505 of that 1,427 with student loans. Fieldwork was undertaken between July 10 – 13, 2015. The survey was carried out online.
About Student Loan Hero:
Student Loan Hero combines easy-to-use tools with financial education to help the millions of Americans living with student loan debt manage their student loans smarter. Student Loan Hero has helped over 20,000 borrowers manage and eliminate over $1 billion in student loan debt since 2012 and helps over one million people become financially healthy every year. Student Loan Hero offers both current and former students free loan calculators, unbiased personalized advice and repayment plans through a easy to use interface and dashboard to manage their owns loans, inline with their own budget.
Founded in 2012 by CEO Andrew Josuweit, who himself had over $100,000 in student loans, Student Loan Hero believes that all loan advice and recommendations should come with no hidden agenda and should be honest and unbiased.
Student Loan Hero has offices in New York, Austin and Portland. For more information visit https://studentloanhero.com.
Diffusion PR for Student Loan Hero
Megan Hartwick, 646-571-0120
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 6.97% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.30% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.47% – 6.30%1||Undergrad & Graduate|
|2.51% – 8.09%4||Undergrad & Graduate|
|3.02% – 6.44%2||Undergrad & Graduate|
|2.69% – 7.21%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|