Trend Truth: High-Cost Education


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84% of students depend on some kind of financial aid. What are the implications for the cost of higher education? What impact will this growing trend of debt have on purchasing habits?

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Trend Truth: High-Cost Education

  1. 1. TrendTruth: High-Cost Education 84% of students now rely on financial aid in some capacity. How does this impact the cost of education?
  2. 2. Financial aid is now commonplace.
  3. 3. <ul><li>September ’09: Wall Street Journal reports that student borrowing grew 25% in 2009 </li></ul><ul><li>FGI SmartPanel survey data shows 84% of respondents qualified for, used Financial Aid </li></ul><ul><li>Gender distributions were fairly equal </li></ul><ul><li>Diverse age and ethnic demographics suggest that rising costs of education impact all kinds of students </li></ul>
  4. 4. Where does the money come from?
  5. 5. “ From which of the following sources did you receive aid? Check all that apply…”
  6. 6. Who Uses Financial Aid? <ul><li>All age groups: </li></ul><ul><ul><li>Between 80-90% of students between 18 and 34 </li></ul></ul><ul><ul><li>For those over 35, the number was around 65% </li></ul></ul><ul><li>All ethnic backgrounds seeking aid </li></ul><ul><ul><li>95% of Hispanic respondents </li></ul></ul><ul><ul><li>85% African-American respondents </li></ul></ul><ul><ul><li>85% White respondents </li></ul></ul><ul><ul><li>63% Asian respondents </li></ul></ul><ul><li>83% of men. 85% of women. </li></ul>
  7. 7. Social media is a source of information.
  8. 8. <ul><li>34% learned about financial aid on Facebook </li></ul><ul><li>23% sought info from YouTube </li></ul><ul><li>15% got information from MySpace </li></ul><ul><li>13% used Twitter </li></ul><ul><li>12% read about student loans on blogs </li></ul>
  9. 9. Effects of student debt linger.
  10. 10. <ul><li>“ What is the total dollar amount of the student loans you borrowed to help pay for your education?” </li></ul>
  11. 11. Coping with Debt <ul><li>65% said they changed their small spending habits (i.e. leisure activities, food, etc) </li></ul><ul><li>31% postponed major decisions like marriage or starting a family </li></ul><ul><li>40% cut back on travel </li></ul><ul><li>22% said their choice of employment changed </li></ul>
  12. 12. Other Sources of Aid Work Study 42% qualified and used 18% qualified but did not use 41% did not qualify Grants 62% qualified and used 10% qualified but did not use 31% did not qualify <ul><li>Scholarships </li></ul><ul><ul><li>62% qualified and used </li></ul></ul><ul><ul><li>10% qualified but did not use </li></ul></ul><ul><ul><li>30% did not qualify </li></ul></ul>
  13. 13. Actionable Insights <ul><li>Students change purchasing habits to cope with debt, which impacts businesses </li></ul><ul><li>Marketers must know what will attract their business: pricing, branding, advertising </li></ul><ul><li>Draw data from social media, online research communities, focus groups, surveys to see what certain demographics want, then act on those insights </li></ul>
  14. 14. How do we know this?
  15. 15. Survey Methods <ul><li>Date of Survey: 9/22/2009 </li></ul><ul><li>Respondents: 143 </li></ul><ul><li>Sample Source: FGI SmartPanel </li></ul>This nationally-representative sample consists of adults aged 18 and up and is balanced to the US population using recent census data. One can say with 95% confidence that the maximum margin of sampling error is ±4 percentage points.
  16. 16. Why FGI <ul><li>Custom online panels </li></ul><ul><li>Branded online communities </li></ul><ul><li>SmartPanel: 100,000+ panelists </li></ul><ul><li>SmartPanel Community </li></ul><ul><li>Human experts who handle each step of the process with you and your customers in mind </li></ul>
  17. 17. FGI Research: custom panels, research experts, dynamic approach.
  18. 18. <ul><li>This TrendTruth is produced by FGI Research. Learn more about the market trends online at our TrendTruth blog… </li></ul><ul><li>… or follow us on Twitter! </li></ul><ul><li>@TrendTruth </li></ul><ul><li> </li></ul>