As Student Debt Triples, College Becomes a True Team Effort
August 06 2019 - 7:30AM
Business Wire
TD Ameritrade survey sheds light on the modern
college experience
As college expenses continue to rise1 and student debt is
reaching record highs,2 a new survey conducted by The Harris Poll
for TD Ameritrade reveals that the modern college experience is
undergoing major shifts for both young Americans and their
parents.
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The Modern College Experience (Graphic:
TD Ameritrade)
Student debt accelerates Student debt is becoming more
prevalent, as nine in 10 (94%) young millennials incurred some debt
through their college education – up 36% from when it was measured
in a 2017 survey conducted for TD Ameritrade, with the average
student debt tripling from $10,205 to $31,370.
- The number of young millennials with $20,000 to $50,000 in
student debt increased by 35%, while those shouldering over $50,000
went up 14%.
- Six in 10 young Americans are stressed about their student loan
debt (63% Gen Zs, 59% young millennials).
- Young millennials expect to pay off their student debt at age
37, up from 35, though Gen Zs are more optimistic and hoping to
tackle theirs by 33.
Many are considering cost-effective pathways Young
Americans are concerned about college costs, as most are covering
at least half of it (on average, Gen Zs are covering 50%, and young
millennials 66%). To manage college expenses, young generations are
exploring their options:
“Young Americans are starting to realize that to tackle their
worries over potential student debt they need to take some action,”
said Dara Luber, senior manager of Retirement at TD Ameritrade.
“They’re willing to opt for a less expensive school, double down on
work while studying, and save to help manage this continuously
growing expense.”
College today is a team effort Nearly all parents (94%)
expect their child(ren) to attend college or trade school, compared
to 83% of Gen Zs and 81% of young millennials who plan to do so.
But along with high expectations, parents are offering financial
support:
- 84% of parents are currently saving or have already saved for
their child’s college.
- Grandparents are chipping in too, with a quarter of them saving
to pay for their grandkids’ college.
- Seven in 10 young Americans (69%) have spoken to their parents
about paying for college.
While in college, parents go well beyond helping with tuition,
as many of them:
- Text their college student at least once a day (56% Gen Zs, 51%
young millennials).
- Call at least once a day (41% Gen Zs, 35% young
millennials).
- Question grades (47% Gen Zs, 32% young millennials).
- Do laundry (31% Gen Zs, 37% young millennials).
- Help with studying (25% Gen Zs, 19% young millennials).
- Edit papers (10% Gen Zs, 13% young millennials).
“The rising college tuition1 and debt levels do weigh on the
college experience of today, and with parents and grandparents
chipping in to cover expenses, it has truly become a team effort,”
said Luber. “But as young generations and their families adjust to
the new financial reality, planning ahead and staying on the same
page have become increasingly important.”
About TD Ameritrade Holding Corporation TD Ameritrade
provides investing services and education to more than 11 million
client accounts totaling approximately $1.3 trillion in assets, and
custodial services to more than 7,000 registered investment
advisors. We are a leader in U.S. retail trading, executing an
average of approximately 800,000 trades per day for our clients,
more than a quarter of which come from mobile devices. We have a
proud history of innovation, dating back to our start in 1975, and
today our team of 10,000-strong is committed to carrying it
forward. Together, we are leveraging the latest in cutting edge
technologies and one-on-one client care to transform lives, and
investing, for the better. Learn more by visiting TD Ameritrade’s
newsroom at www.amtd.com, or read our stories at Fresh
Accounts.
Brokerage services provided by TD Ameritrade, Inc., member FINRA
(www.FINRA.org)/SIPC (www.SIPC.org).
Source: TD Ameritrade Holding Corporation
About The Harris Poll The Harris Poll is one of the
longest-running surveys in the U.S., tracking public opinion,
motivations and social sentiment since 1963. It is now part of
Harris Insights & Analytics, a global consulting and market
research firm that strives to reveal the authentic values of modern
society to inspire leaders to create a better tomorrow. We work
with clients in three primary areas; building twenty-first-century
corporate reputation, crafting brand strategy and performance
tracking, and earning organic media through public relations
research. Our mission is to provide insights and advisory to help
leaders make the best decisions possible. The Harris Poll is
separate from and not affiliated with TD Ameritrade, which is not
responsible for their services or policies.
Survey Methodology This survey was conducted online
within the United States by The Harris Poll on behalf of TD
Ameritrade from February 28 to March 14, 2019, among 3,054 U.S.
adults and teens ages 15 and older. Key populations include: Gen Zs
(n=1027, ages 15 to 21), young millennials (n=1026, ages 22 to 28)
and parents (n=1001, ages 30 to 60). The parents had more than
$25,000 in investable assets.
1
https://trends.collegeboard.org/college-pricing/figures-tables/average-published-undergraduate-charges-sector-2018-19
2
https://www.federalreserve.gov/releases/g19/current/default.htm
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version on businesswire.com: https://www.businesswire.com/news/home/20190806005145/en/
For Media: Becky Niiya, 402-574-6652 Director, Corporate
Communications rebecca.niiya@tdameritrade.com @TDAmeritradePR
For Investors: Jeff Goeser, 402-597-8464 Managing Director,
Investor Relations jeffrey.goeser@tdameritrade.com
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