collages

Not surprisingly, those who borrowed this year were much
more likely to express positive attitudes about borrowing: 65
percent of borrowers strongly agreed6
 that they would rather
borrow than not be able to attend college, compared with 48
percent among those who didn’t borrow. In addition, more
borrowers sought other ways to pay for college than those
who didn’t borrow. Borrowers were more likely to:
• Have filed a FAFSA (89% vs. 78% of non-borrowers)
• Have claimed education tax credits (53% vs. 27% of
non-borrowers)
• Be working students (73%) or have increased their work
hours (47%) compared to non-borrowers (68% and
39%, respectively)
• Be parents who increased their work hours (28% vs.
18% non-borrowers)
More borrowers than non-borrowers also focused on cutting
some types of costs through other actions.
• 35 percent are paying their loans while in school to
reduce the cost of finance charges
• 68 percent of students reduced their personal spending
(vs. 55% of non-borrowing students)
• 50 percent of parents reduced their personal spending
(vs. 42% of non-borrowing parents)
• 67 percent eliminated colleges at some point during
the college selection process (vs. 59% of
non-borrowing families)
Despite taking actions to make college more affordable
and seeking alternative sources of funding, borrowers
often reached in ways that non-borrowing families did not,
ultimately buying a more expensive education. For example:
• Students in borrowing families were more likely to be
pursuing a bachelor’s degree (78% vs. 61% in nonborrowing
families).
• They were more likely to be enrolled in four-year
colleges, particularly private colleges.
• Students in borrowing families were less likely to live
at home (40% live at home vs. 53% of students in
non-borrowing families).
• They were slightly less likely to choose a school close
to home to reduce transportation costs (50% vs. 55% of
non-borrowers).
Income did not appear to be a key factor in whether to
borrow as the proportion of respondents at each income
level was similar between the borrowing and non-borrowing
groups. Borrowers, however, reported being less prepared
to pay for college. Only 33 percent agreed they had a plan to
pay for college before enrolling (vs. 45% of non-borrowers)
and 31 percent agreed they had a contingency plan should
a financial emergency arise (vs. 47% of non-borrowers).
Further, more borrowers worried (56%) schools will raise
tuition next academic year compared with non-borrowers
(42%)