A new survey of 1,000 teens by Junior Achievement USA and Voya Foundation shows that nearly two-thirds of teens, or 65 percent, believe borrowers are ultimately responsible for paying off their student loans, even if they borrowed more money than they are able to pay off, while 11 percent believe the government should do so. Fewer, 7 percent, believe it is the responsibility of the college and 5 percent think it’s up to the lender to resolve.
The survey was conducted March 1-6 by Opinion Research.
“There has been a great deal of discussion about the implications of the $1.2 trillion in student debt owed by Americans — everything from offering free college to debt forgiveness,” said Jack Kosakowski, president and CEO of Junior Achievement USA. “This survey indicates that today’s high school students are open to the responsibility that comes with student loans, but they need information and resources to ensure that they do not over-borrow for their education.”
Kosakowski notes that a four-year college education is the second largest investment many people will make in their lifetimes, and yet decisions to take on student debt are made by 17 and 18 year olds who have received little to no financial literacy education. This can result in students assuming more debt than they are able to pay off with their expected future income.
One resource available to teens, parents, teachers, and school counselors is JA Influencer, a free online resource that explores the opportunities and challenges associated with student loans. A guide titled “Understanding The Student Loan Explosion: Implications for Students and Their Families,” also investigates the various factors students should take into consideration when exploring opportunities in higher education. These include gaining a better understanding of the real costs of going to college and weighing alternatives to a four-year school, such as community college and technical schools.
JA Influencer is the result of support from Voya to reach students through Junior Achievement. Voya has partnered with Junior Achievement since 2001; the partnership is centered on the shared belief in the need to actively prepare and equip future generations to succeed.
The survey also found that 89 percent of teens who responded expect to attend college. Of those, 40 percent expect help in the form of scholarships and grants; 21 percent believe they will receive financial support from their parents and family members; 17 percent plan to work to earn money for college; and approximately 11 percent anticipate taking on student loans to help pay for their higher education. The results represent the findings of an Opinion Research Youth CARAVAN survey conducted among a sample of 1,000 13-17 year olds. That survey was live March 1-6, 2016.
About Voya Foundation
Voya Foundation’s mission is to improve the quality of life in communities where Voya Financial® operates and its employees and customers live. Voya Foundation provides grants and establishes signature partnerships in the areas of financial literacy and children’s education, and fosters employee engagement to deepen our positive impact on the community. For more information, visit www.voyafoundation.com.
About Voya Financial®
Voya Financial, Inc. (NYSE: VOYA), helps Americans plan, invest and protect their savings — to get ready to retire better. Serving the financial needs of approximately 13 million individual and institutional customers in the United States, Voya is a Fortune 500company that had $11 billion in revenue in 2015. The company had $452 billion in total assets under management and administration as of Dec. 31, 2015. With a clear mission to make a secure financial future possible — one person, one family, one institution at a time — Voya’s vision is to be America’s Retirement Company™. The company is equally committed to conducting business in a way that is socially, environmentally, economically and ethically responsible — Voya has been recognized as one of the 2016 World’s Most Ethical Companies® by the Ethisphere Institute, and as one of the Top Green Companies in the U.S., byNewsweek magazine. For more information, visit voya.com or view the company’s 2014 annual report. Follow Voya Financial onFacebook and Twitter @Voya.
About Junior Achievement USA®
Junior Achievement is the world’s largest organization dedicated to giving young people the knowledge and skills they need to own their economic success, plan for their future, and make smart academic and economic choices. JA programs are delivered by corporate and community volunteers, and provide relevant, hands-on experiences that give students from kindergarten through high school knowledge and skills in financial literacy, work readiness, and entrepreneurship. Today, JA reaches 4.6 million students per year in 112 markets across the United States, with an additional 5.6 million students served by operations in 121 other countries worldwide. Visit www.ja.org for more information.
SOURCE Junior Achievement USA