Student Loan - Loans and Debt Consolidation

TODAY S CONSUMERS PLACE HIGH PRIORITY IN REPAYING STUDENT LOANS

Todays Consumers Place High Priority in Repaying Student Loans

Press Release: Auriemma Consulting Group Thu, Jan 19, 2012 9:06 AM EST

However, in a striking change in behavior from preceding generations of college graduates, repaying student loans appears to be a very high priority for todays consumers. According to the latest research from CardbeatR a syndicated research report published by the Auriemma Consulting Group, Inc. ACG there has been a dramatic increase in the incidence for recurring payments allocated to repaying student loans during the last few years. The incidence of consumers who say theyve enrolled student loan/school tuition in a recurring payment spiked to 29% in 2011, up from a miniscule 3% who answered the same way when Cardbeat examined the same issue in 2009.

Dr. Patricia Sahm, Managing Director at ACG, says that although Sallie Mae has offered recurring payments for years, it seems that more recent marketing efforts from the giant student loan servicer appear to be yielding results. However, she adds that although there has been growth in awareness of the recurring payment option to 56% compared to just 40% in 2009 the growth in enrollment outpaces the growth in awareness of the option. ACGs research also suggests that encouraging graduates to enroll in a recurring payment for their student loans might help mitigate risk managers concerns about student loan delinquencies.

As a point of comparison, throughout the 1970s, the p...[more]