Survey Underscores Importance of Student Loans
By Ann Anderson, Sallie Mae, Inc.

A recent nationwide survey revealed that student loans are more important than ever to America’s college students.

The survey, conducted by KRC Research on behalf of the Coalition for Better Student Loans, polled approximately 400 students nationwide. Among the survey’s highlights:

• Ninety-two percent felt that the financial assistance provided to low and middle income students and families through the federal student loan program is more important today than it was just a few years ago.
  
  
• Ninety-one percent of college students wanted Congress to increase the amount that they and their families can borrow in federal student loans each year to pay for college expenses.
  
  
• Eighty-four percent agreed that if government has limited resources to fund student loans, it should offer greater financial assistance to current and future students, rather than offering greater financial assistance to individuals who have already graduated from college.

The Coalition for Better Student Loans, a unique coalition of financial aid administrators, parents, loan providers and organizations representing more than 2,000 colleges and universities, recently submitted proposals to Congress designed to increase access to higher education for more low- and middle-income students. The Coalition’s five-part proposal is designed to lower the cost of borrowing when students get to college, ensure funding adequate to meet educational expenses while enrolled, and make it easier to repay loans when they graduate from college.

This poll nearly mirrors the results of another survey conducted in August that showed likely voters also in favor of the student loan program, and of increasing current loan limits.

The Coalition’s members support increases to grant aid for college students. Recognizing, however, that increases in grant aid are not likely to be adequate to meet the financial needs of all students, the Coalition recommends five specific steps:

1. Providing relief from origination fees,
2. Increasing Stafford loan limits,
3. Offering more flexible repayment options,
4. Maintaining a viable loan consolidation program, and
5. Extending loan forgiveness to borrowers in high-need occupations.

The groups composing the Coalition include the American Council on Education, the Association of American Universities, College Parents of America, the Consumer Bankers Association, the Education Finance Council, the National Association of Independent Colleges and Universities, the National Association of State Universities and Land-Grant Colleges, the National Association of Student Financial Aid Administrators, the National Council of Higher Education Loan Programs, and Sallie Mae.

Fuller summaries of the Coalition’s legislative proposals and the surveys are available at www.betterstudentloans.org.