Are Students Really Borrowing for a Brighter Future?

Concord, NH- The NHHEAF Network Organizations released the Borrowing for a Brighter Future survey earlier this month. The survey inquired about student loan borrowers’ attitudes about borrowing and methods of financing education, and to gauge the effectiveness of default prevention measures taken by student loan guarantors and colleges themselves.

The gap in understanding about the serious consequences of default was just one reason for the launch of the NHHEAF Network Organizations’ Campaign for Financial Literacy, which reached over 1,000 students at New Hampshire college campuses last year. “Though we have one of the lower default rates nationally, we recognize the need to do more to build student awareness of the importance of managing finances responsibly,” said Tori Berube, Vice President, Product Marketing. “Data like this is essential in determining the needs of New Hampshire students and providing them with the support to attain their educational goals.”

New Hampshire student loan borrowers are a notable group, as college graduates from the State have the second highest debt burden in the country. Notably, 82% of the 1,500 borrowers surveyed said that without student loans, attending college would not have been possible. However, managing the high costs of higher education often leaves students worrying about how to pay for life after college including rent, car payments, dependent care expenses and student loan bills. Borrowing for a Brighter Future brought forth eye-opening statistics about how students fund their education and the effects of borrowing on life decisions after college.

Highlights include:

• Twenty-eight percent of borrowers were forced to look beyond the available student loan options and use a credit card to pay for tuition costs.
• Student loan debt was cited as one major reason graduates were holding off on buying homes, participating in retirement plans and pursuing graduate school.
Something else;
• Thirty-two percent of borrowers reported they knew nothing or very little about the consequences of default.

The NHHEAF Network Organizations are comprised of four 501(c) (3) nonprofit organizations that provide students and families with the resources and funding to pursue higher education aspirations. Funds generated by the Organizations make their charitable mission possible as student loan earnings are reinvested in programs and services that benefit citizens of New Hampshire. For more information, visit www.nhheaf.org.