New Survey Says Millennials Don’t Mind Soaring College Tuition And Debt
Value Outweighs Price Tag When it Comes to Higher Education Today
Mountain View, Calif. – July 14, 2015 – Credit Sesame, the leading consumer credit and personal finance company, today announces the results of a new survey of Gen X and Millennial university graduates asked about how soaring tuition and debt have altered their perceptions of higher education.
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Millennials (individuals born between 1981 and 2004) may be spending more for college than Gen X (those born between 1964 and 1980) and racking up record debt, but they have a more positive opinion of higher education, according to the survey, which is part of a Credit Sesame financial research series. Many young people recognize the tremendous value of a four-year degree in the workforce today and, as such, are paying closer attention to what they study.
An infographic on the survey results can be found here.
Selected survey results:
- Follow the Money: Just over 10 percent of Millennial parents made more than $150k a year, compared to a paltry 3 percent of Gen X parents. Over 25 percent of Millennial parents made over $110k a year, as opposed to just 4 percent of Gen X parents. Not surprisingly, at the other end of the pay scale, nearly a third of all Gen X parents made less than $32k a year, compared to 16 percent of Millennial parents.
- Pay Up: Over 25 percent of Millennials went to a university where the tuition was $25k or more, compared to only 6 percent of Gen X. By contrast, half of Gen X paid less than $10k a year at university, whereas only 27 percent of Millennials paid under $10k.
- For the Love of Learning: With tuition prices up, Millennials are taking a more pragmatic approach to choosing a major. Compared to Gen X, more than twice as many Millennials said salary was an important factor in selecting a major (33 percent vs. 14 percent).
- How Do You Really Feel About It?: When asked if college is worth the price, 76 percent of Millennials said yes, whereas only 68 percent of Gen X agreed.
Edvisors claims the class of 2015 is the most indebted class in American history, and yet, Millennials continue to defend higher education. It makes sense, given that “Americans with four-year college degrees made 98 percent more an hour on average in 2013 than people with a degree,” according to an analysis of Labor Department statistics by the Economic Policy Institute.
“Loans are unavoidable for many students, but it’s important to remember that they don’t have to run your life,” said Adrian Nazari, Founder and CEO of Credit Sesame. “There are many ways to manage student loans and resources to help.”
In order to make managing student loan debt easier, Credit Sesame has partnered with iontuition to help users view all of their student loans in one place, as well as receive personalized analysis and repayment recommendations. Within the Student Loan Dashboard, users will soon be able to view their current student loan balance, average interest rate, current monthly payment, credit score and more.
About Credit Sesame
Credit Sesame is the best way for consumers to monitor their credit and score, manage their student loans, borrow smartly and protect their identity—all in one place for free. As a personal credit advocate and loan expert, Credit Sesame helps people make smart financial decisions to save money and live richly. In 2010, Credit Sesame assembled an all-star team of engineers, data scientists and serial entrepreneurs with deep expertise in credit, bank-level loan analytics and security to empower consumers with the best financial tools and information to make smart, educated decisions about their finances.
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