Survey Reveals More Families Using Federal and
Private Student Loans to Help Fund College; However, Less Than Half
Completed the FAFSA®
The fifth annual survey from Discover Student Loans reveals that
parents are slightly less worried when it comes to having the funds
to pay for college while nearly half, 48 percent, expect their
child to pay for all or most of their education, up from 39 percent
in 2012.
“While a vast majority of parents still report that they want to
help their children pay for college, it’s clear that students are
being asked to take on more financial ownership than in previous
years,” said Danny Ray, president of Discover Student Loans. “With
an increase in responsibility comes the need to be prepared, and we
encourage families to have discussions early and often on how to
pay for college.”
The cost of college is an important factor when deciding on a
school and 43 percent of parents responded saying that they are
limiting their child’s college choice based on price.
Interestingly, this number has decreased since last year, when
nearly half, 48 percent, said price was limiting the choice of
college.
Parents and Students Continue to Turn to Student Loans and
Only Half Completed the FAFSA
To help pay for college, 55 percent of parents say their
children plan to use student loans to pay for college, up from 50
percent in 2012. Parents also appear to be more willing to help
their children if they take out student loans, as 61 percent are
very or somewhat likely to help them pay back loans, up from 55
percent of parents in 2012.
However, the majority of college-bound students appear to be
missing out on an opportunity for federal student aid. According to
the 2016 survey, only 44 percent of families completed the Free
Application for Federal Student Aid (FAFSA).
“We’re happy that 95 percent of parents responded saying they
continue to see the value in their child earning a college degree,
but we want them to be clear on the financial aid and student loan
processes,” said Ray. “Filling out the FAFSA is the first step in
determining college financial aid eligibility, and we provide
useful tools to help families through that process. If families are
left with a gap amount after exploring scholarships and grants,
then we encourage them to review all their options and determine
what works best for their situation.”
When learning about scholarships, grants and loans, students are
turning to a variety of resources. When asked to consider the most
reliable sources of information, eleven percent of families said
high school guidance counselors, up four percent from last year,
and 40 percent of parents said college financial aid offices, which
is a decline from 47 percent in 2012.
Impact of Long-term Student Loan Debt
Parents appear to be slightly less worried about the long-term
financial impact student loans may have on their child’s future.
While half of parents responded saying they were very worried that
student debt may affect their child’s ability to buy a house, car
or other large purchase, the number is down from 58 percent and 55
percent in 2015 and 2014, respectively.
Discover Student Loans offers tools and resources to help
parents and students understand the college financial process. For
more information about Discover Student Loans, please visit
www.discover.com/student-loans.
About the Survey
The Discover national survey of 1,000 adults who have children
16 to 18 years old who are planning to attend college was conducted
March 30-April 3, 2016, by Rasmussen Reports, an independent survey
research firm (http://www.rasmussenreports.com). The margin of
sampling error was +/-3 percentage points with a 95 percent level
of confidence.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and
payment services company with one of the most recognized brands in
U.S. financial services. Since its inception in 1986, the company
has become one of the largest card issuers in the United States.
The company issues the Discover card, America's cash rewards
pioneer, and offers private student loans, personal loans, home
equity loans, checking and savings accounts and certificates of
deposit through its direct banking business. It operates the
Discover Network, with millions of merchant and cash access
locations; PULSE, one of the nation's leading ATM/debit networks;
and Diners Club International, a global payments network with
acceptance in more than 185 countries and territories. For more
information, visit www.discover.com/company.
National Survey of 1,000 Adults With Children
16-18 Years OldWho Have Children Who Are Planning on Going to
CollegeConducted March 30-April 3, 2016 By Rasmussen ReportsMargin
of Sampling Error, +/- 3 percentage points with a 95% level of
confidenceCommissioned by Discover Student Loans
2016
2015 2014 2013 2012
1. How important is college to your child’s
future? 82% 81% 85% 87% 81% Very important 13% 14% 11% 11% 14%
Somewhat important 3% 3% 3% 1% 3% Not very important 1% 0% 1% 0% 1%
Not at all important 1% 0% 0%
0% 1% Not sure
2016 2015
2014 2013 2012
2. Beyond tuition, how knowledgeable do you feel about the
entire cost of a college education these days? 46% 46% 48% 49%
48% Very knowledgeable 40% 39% 42% 39% 39% Somewhat knowledgeable
11% 12% 8% 9% 11% Not very knowledgeable 2% 3% 2% 3% 2% Not at all
knowledgeable 1% 1% 0% 0%
1% Not sure
2016 2015 2014
2013 2012
3. Will you
be helping your child pay for his or her college education? 78%
75% 77% 81% 74% Yes 13% 16% 16% 12% 15% No 10% 9%
7% 8% 11%
Not sure
2016
2015 2014 2013
2012
4. How worried are you about having enough
money to help pay for your child’s college education? 43% 45%
44% 47% 47% Very worried 32% 33% 30% 32% 28% Somewhat worried 17%
15% 18% 15% 17% Not very worried 7% 6% 7% 6% 6% Not at all worried
1% 1% 1% 0%
1% Not sure
2016 2015 2014
2013 2012
5. How much of your
child’s education can you afford? 22% 24% 21% 21% 24% None of
it 29% 31% 30% 29% 29% Up to 25% 18% 18% 19% 18% 15% Up to 50% 10%
8% 11% 12% 10% Up to 75% 11% 9% 11% 11% 13% All of it 10%
10% 8% 9% 10%
Not sure
2016 2015 2014
2013 2012
6. Where will most of the
money come from to pay for your child’s college education? 9%
12% 11% 11% 12% 529 savings plan 27% 25% 29% 27% 24% Family savings
32% 29% 29% 29% 28% Student loans 5% 5% 5% 6% 5% A second job 3% 3%
2% 3% 3% 2nd mortgage or refinance 4% 3% 6% 4% 4% Retirement funds
12% 13% 10% 12% 13% Some other source 9% 9%
7% 10% 11% Not
sure
2016 2015 2014
2013
7.
How knowledgeable are you on the difference between federal and
private loans? * 32% 29% 30% 29% Very knowledgeable 32% 37% 40%
39% Somewhat knowledgeable 26% 26% 22% 24% Not very knowledgeable
8% 7% 7% 6% Not at all knowledgeable 2% 2%
1% 1%
Not sure
2016
8. Did you complete the Free
Application for Federal Student Aid? * 44% Yes 48% No 8%
Not sure
2016
9.
(Answered only by those who said they completed the application)
Using your keypad on a scale of 1 to 5 where five is very easy and
1 is very difficult how would you rate your experience in filling
out the Free Application for Federal Student Aid? * 15% 1 –
Very difficult 26% 2 36% 3 15% 4 9%
5 – Very easy
2016
2015 2014 2013
10. Is your child planning to
use student loans to pay for their college education? * 55% 54%
52% 50% Yes 27% 26% 28% 32% No 18% 20%
20% 18%
Not sure
2016 2015 2014
2013
11. (Answered only by
those who said they were planning to use student loans to pay for
college) Does your child plan to use federal student loans, private
loans or a combination of both? * 34% 38% 38% 32% Federal loans
6% 5% 3% 4% Private loans 50% 47% 48% 54% A combination of both 10%
9% 11% 10%
Not sure
2016
2015 2014
12.
(Answered only by those who said they were planning to use student
loans to pay for college) How worried are you that student loan
debt may affect your child’s ability to buy a house, car or some
other large purchase after graduation? * 50% 58% 55%
Very worried 31% 25% 30% Somewhat worried 16% 14% 12% Not
very worried 3% 3% 3% Not at all worried 0% 0%
0% Not sure
2016 2015
2014 2013 2012
13. If your child had to rely on student loans or other
types of loans for college, how likely are you to help them pay
back the loans? 26% 25% 24% 25% 22% Very likely 35% 33% 28% 33%
33% Somewhat likely 24% 28% 30% 25% 28% Not very likely 10% 11% 12%
13% 13% Not at all likely 5% 4% 6%
4% 4% Not sure
2016
2015 2014 2013
14. If you are
taking out loans in your child’s name, does your child understand
how much debt they will graduate with? * 41% 39% 42% 40% Fully
understands 34% 32% 32% 32% Somewhat understands 12% 14% 14% 15%
Doesn’t understand 13% 15% 12%
13%
Not sure
2016
15. How many times have you had a discussion with your
child about how to pay for their college education? * 12% Never
8% Once 27% 2-3 times 17% 4-6 times 33% More than 6 times 3%
Not sure
2016
16. How
important is including your child in discussions on financial
literacy as it relates to paying for college? * 76% Very
Important 17% Somewhat Important 3% Not very important 2% Not at
all important 2%
Not sure
2016
2015 2014 2013
2012
17. Which do you consider the most
reliable source of information on paying for college? 11% 7% 7%
6% 7% Guidance counselors in high school 40% 43% 44% 47% 47%
Financial aid offices of colleges 5% 4% 3% 3% 3% Banks and other
lenders 14% 14% 14% 13% 11% Personal financial advisors 8% 7% 9% 8%
6% Friends and family 5% 6% 6% 7% 6% The internet 8% 9% 8% 8% 8%
Some other source 9% 11% 9%
9% 11% Not sure
2016 2015
2014 2013 2012
18. How much responsibility should your child have in paying for
their college education? 16% 15% 15% 13% 12% All of it 32% 30%
32% 29% 27% Most of it 40% 46% 43% 48% 48% Some of it 9% 7% 8% 7%
10% None of it 3% 3% 2%
3% 3% Not sure
2016 2015
2014 2013 2012
19. Is
earning potential after graduation more or less important to your
child’s education than his or her major? 43% 47% 40% 42% 38%
More important 21% 19% 21% 22% 21% Less important 30% 27% 30% 31%
32% About as important 6% 7% 9%
5% 10% Not sure
2016 2015
2014 2013
20. Are you
limiting your child’s college choice based on price? * 43% 48%
44% 49% Yes 46% 41% 48% 40% No 11% 11%
9% 11% Not sure
2016 2015
21. When thinking about the options to reduce the cost of
college for your child, which of the following do you think is most
effective? * 30% 29% Attending a community college 31% 33%
Attending a public university versus a private university 2% 1%
Deferring college for a year 11% 12% Having your child live at home
while attending college 14% 14% Working part-time while attending
college 12% 11%
Not sure
2016
2015 2014 2013
22. Are you more likely to help fund your child’s education if
they major in a field that has a higher likelihood of them landing
a job? * 42% 44% 33% 42% Yes 42% 43% 53% 44% No 16%
13% 14% 14%
Not sure * Not asked in all past surveys.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160509005226/en/
Discover Financial ServicesRob
Weiss224-405-6304robertweiss@discover.com@Discover_News
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