Student Loans Continue To Delay Spending Dreams
NEW YORK, Oct. 14, 2015 — With the election “season” well under way, education in general and student loans in particular continue to surface as major topics of discussion. It should come as no surprise that this topic looms on the agenda for many candidates, considering a majority of Americans (60%) believe the government should regulate college programs to help make sure that graduates can get jobs and repay college loans.
Over one third of Americans (36%) say they are currently paying or have paid student debt in the past, which is on par with 2013 counts (37%).
Among these debtors, 65% say they have delayed other spending/saving due to their student debt. Some of the things they’ve put off include:
- Saving towards retirement (39%);
- Buying or leasing a new car (30%);
- A “dream” vacation (30%);
- Buying a home (30%); and
- Among parents of children under 18, setting up a college fund for their children (31%).
Smaller percentages indicate they have delayed getting married (14%), having children (13%), or having a cosmetic procedure (5%).
Many of these deferments are on the rise when compared to just two years ago, including a 9 point increase in delaying saving for a child’s education, a 6 point jump in holding off on home ownership and a 4 point increase in putting off retirement savings.
These are some of the results of The Harris Poll® of 2,273 U.S. adults surveyed online between July 15 and 20, 2015. Full results of this study, including data tables, can be found here.
The majority of Americans feel the maximum amount of an individual’s salary that should go toward paying off student debt should be 10 percent or less (5 percent or less: 28%; 6-10 percent: 36%), and on average a maximum of roughly 16 percent is seen as the most that should be put toward loans.
So, is it worth it?
It’s worth noting, though, a large majority of debtors across all institution types say they are satisfied with the return on their investment. Satisfaction is highest among those who incurred student debt attending private, not-for-profit colleges (69%), followed by public colleges (64%), online colleges (61%), and private, for-profit colleges (58%).
Looking beyond just those who have incurred student debt, do Americans overall think college is worth it? Nearly two thirds of Americans (65%) believe a college education is worth the cost, and a nearly equal amount (63%) say the same of an advanced degree. Furthermore, an even larger majority of Americans agree both an advanced degree (77%) and an undergraduate degree (72%) make graduates competitive in the global economy.
To see other recent Harris Polls, please visit our new website, TheHarrisPoll.com.