Americans Clear on Value of College Education But Families Can’t Save Enough to Pay, Loan to Learn Survey Finds

Survey of Americans by Leading Student Lender Shows
Benefits of Higher Education Worth High Cost

WASHINGTON – September 8, 2006 - With classes underway at most colleges and universities this week, nearly three out of every four Americans (74 percent) say it is almost impossible for an average family in the United States to save enough money to pay for a four-year college education, according to a survey today released by Loan to Learn.

The nationwide survey of more than 1000 adults over the Labor Day weekend also found that, despite the high cost of a college education, three out of four Americans (76 percent) believe the benefits of a college education outweigh its cost.

“While a college education can be very expensive,” said Catherine B. Reynolds, chairman of the board and chief executive officer of EduCap Inc., which offers the Loan to Learn program, “not getting an education can be even more expensive.”

According to a U.S. Census Bureau report, a college graduate can expect to earn approximately one million dollars more during the course of his or her lifetime than a person with only a high school diploma.

“It’s fair to say most people in this country today realize that a college education is the best investment in the future, even if they know it often comes with a high price tag.”

Reynolds, who helped create the private education loan market that provides affordable financing for millions of American students by introducing the first asset-backed securitization structure for consumer education loans in the United States, also is a member of the Secretary of Education’s Commission on the Future of Higher Education and a widely recognized philanthropist.

According to the survey, about one in three Americans (32 percent) think the most common method of covering college-related expenses is government loans. According to statistics from the College Board, however, government subsidized loans typically cover less than 20 percent of a student’s expenses at a private four-year college or university, which the College Board estimates at slightly less than $30,000 per year.

When asked if it is better to borrow money to attend a college of one’s choosing, to wait until a student can pay cash for school, or to attend a less expensive school, more than half of those polled (55 percent) said it is better to attend a less expensive college. While one in three Americans (34 percent) said it is better to attend a college of one’s choosing, only six percent of respondents said it’s best to wait until a student can pay cash for college.

Finally, the survey found that nearly nine out of ten Americans (88 percent) think society benefits from its citizens having a college education.

“While there’s no question a college education helps students achieve their dreams, we should never lose sight of the fact that higher education also has the power to transform societies for the betterment of everyone,” Reynolds said.

The findings are based on telephone interviews with 1,014 adult Americans conducted between August 31 and September 3, 2006. At the 95 percent confidence level, the margin of error is plus or minus three percentage points.

About Loan to Learn
Loan to Learn is a program of EduCap Inc. EduCap pioneered the non-government student loan industry in the late 1980s and launched the multi-billion dollar private education financing industry. Under the leadership of financial services entrepreneur Catherine B Reynolds, EduCap has achieved and impressive number of "firsts" in the student lending arena, including the first nationwide credit-based student loan program, the first student loan securitization in Wall Street history, and the first program to provide access to affordable student loans as an employee benefit. For more information about Loan to Learn, visit our Website at www.loantolearn.com