Debt Management

College Students Experiencing More Financial Stress Than Last Year

Uncertainty over what 2023 will hold for borrowers has college students feeling increasingly overwhelmed and financially anxious

Study of 16,000 college students from Corebridge Financial and EVERFI highlights concerns over student loan debt

HOUSTON–(BUSINESS WIRE)– Corebridge Financial and EVERFI today announced findings from a newly released survey of more than 16,000 college students nationwide.

Several key survey findings show college students with increased levels of financial anxiety:

  • 57% are stressed about finding a job after graduation, an increase from 50% last year

 

  • 44% feel stress about the amount of student loans they will be taking out, compared to 40% last year
  • 44% are stressed about not having enough money to get through the semester, a rise from 38% last year

Additional survey findings highlight that more students will be looking for assistance, even as they enter the workforce. Almost half of college students (45%)—an increase from 30% last year—expect to rely on support from their family until they can provide for themselves. Nearly one-third (33%) expect to move home at some point in the future to live with their family, an increase from 23% last year.

“Going through tough economic times can be stressful for college students,” said Terri Fiedler, President, Retirement Services at Corebridge Financial. “Talking to someone you trust, like a family member or financial professional, can put your finances in perspective and help you take action in securing your financial future.”

Student Loans Contributing to Financial Pressures

Students are expressing greater uncertainty when it comes to their ability to pay back their college student loans. College students who expect to make their student loan payments on time fell to 69%, a drop from 77% last year. Those who expect to pay off their student loans in full decreased to 67%, from 75% the year before.

Students are looking for information to help them handle their student loans. When asked what would help them feel less stressed and better prepared to pay off their student loans, the top three choices were easy access to their outstanding balance (38%), a better understanding of loan repayment options (36%) and having a plan to pay off loans (36%).

“Our message to those with student loans is seek guidance, be patient and plan accordingly,” said Fiedler. “It can be challenging for borrowers because they have so much to keep their eye on. Fortunately, more employers are providing student loan information and tools to their employees, and these programs can become a valuable resource for graduates making the transition from campus to career.”

Talking to someone you trust, like a family member or financial professional, can put your finances in perspective and help you take action in securing your financial future...

Corebridge is working with many employers to help their employees take control of student loan debt. Corebridge has engaged Savi, a social impact technology firm, to help public service employees determine their eligibility for federal repayment and forgiveness programs and identify potential savings.

Students Taking Healthier Approach with Credit Cards

In this year’s survey, college students reported they are practicing better habits when it comes to their credit cards. Eight in ten (83%) say they pay their credit card bills on time, an increase from 69% last year, and more than two-thirds (68%) are likely to pay their entire credit card bill each month, rising from 62% last year. Students who say they have multiple credit cards decreased from 25% last year to 19% this year. Only 13% say it is normal to have multiple cards at one time.

Finding the Right College Fit

Corebridge has partnered with bestselling author Jeff Selingo to create a two-part College Search guide for students and families that breaks down how to find the right fit, prioritize needs and detail costs, and includes conversation starters and key terms. The guides also explain what matters most in the admissions process and how to handle essays, recommendations and outside-the-classroom activities.

“Making the decision about where to go to college—or even whether to go to college—can become one of the most important choices a person makes,” said Fiedler. “We hope that students and families benefit from the College Search guide we developed with college admissions expert Jeff Selingo.”

 

 

 

Study Methodology
This survey from Corebridge Financial and EVERFI, fielded from September 2021 – March 2022, is a nationally representative sample of 16,951 college students from 371 higher education institutions located in 42 states.
For more than half a century, Corebridge’s group retirement segment—formerly known as AIG Retirement Services—has served as a leading provider of retirement plans and services to employees of tax-exempt and public sector organizations, including K-12 schools, healthcare, government, higher education and other non-profit institutions. The Retirement Services business works with approximately 2 million individuals through in-plan and out-of-plan products and services, as of September 30, 2022.
About Corebridge Financial
Corebridge Financial (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $345 billion in assets under management and administration as of September 30, 2022, Corebridge is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit corebridgefinancial.com and follow us on LinkedIn, YouTube, Facebook and Twitter.
About EVERFI, Inc.
EVERFI from Blackbaud (NASDAQ: BLKB) is an international technology company driving social impact through education to address the most challenging issues affecting society ranging from financial wellness to mental health to workplace conduct and other critical topics. Founded in 2008, EVERFI’s Impact-as-a-Service™ solution and digital educational content have reached more than 45 million learners globally. In 2020, the company was recognized as one of the World’s Most Innovative Companies by Fast Company and was featured on Fortune Magazine’s Impact 20 List. The company was also named to the 2021 GSV EdTech 150, a list of the most transformative growth companies in digital learning. Blackbaud, the world’s leading cloud software company powering social good, acquired EVERFI in December of 2021. To learn more about EVERFI please visit everfi.com or follow us on Facebook, Instagram, LinkedIn, or Twitter @EVERFI.

 

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