Major New Student Borrower Survey Shows Startling Lack of Consumer Information on Financial Aid

Young Invicibles:

Young Invincibles and NERA Economic Consulting released a report today entitled "Lost Without a Map: A Survey About Student Experiences Navigating the Financial Aid Process" detailing the results from a survey of nearly 13,000 college students and recent graduates with high levels of student debt. Strikingly, over 40% of respondents with federal student loans reported that they had not received federally mandated student loan counseling. The results suggest that students across the country are not receiving adequate information about the financial aid process - particularly students who need it most.

"This survey sheds light on a key failing of our federal financial aid system. Too many students are confused by the FAFSA, lack adequate counseling, and do not understand basic student loan terms," said Rory O'Sullivan, Policy Director at Young Invincibles and co-author of the report. "Clearly colleges are not doing enough to provide meaningful student loan counseling, as required by law. Our survey also shows broad student support for the Department of Education's recent initiative to promote a standardized financial aid letter. Students badly need this information and see their schools as trusted sources."

Posted by Jim Zellmer at October 14, 2012 2:32 AM
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