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Financial Institutions Can Target College Tuition Payers With Loan Packages

by | 3 minute read

According to the 2018 Allianz Tuition Insurance
College Confidence Index, roughly 40% of families find the Free
Application for Federal Student Aid (FAFSA) challenging to complete; a
troubling statistic considering the growing number of families saving
nothing for college. The index reveals a growing “college savings gap,”
as even parents who have saved have only about a third of what they
think a four-year degree will cost. Both groups expect to tap outside
sources (including those accessible after filing the FAFSA) to cover 40%
of the balance, a significant increase from 2017.

According to AudienceSCAN, College Tuition Buyers are 130% more
likely than other adults to purchase investment properties and 134% more
likely to purchase gold or silver as investments. While meeting with
their wealth financial advisor for these processes, they can easily be
influenced to also seek help with their potential college tuition
financial problems from their advisors.

The index also shows that
parents who seek help with FAFSA and other financing questions place
the most trust in a college’s financial aid officer or their own
financial advisors, while students turn equally to family members and
financial aid officers. 

Allianz Tuition Insurance surveyed 1,000
current and prospective students and 1,000 parents on perceptions and
actions linked to college preparedness and overall confidence. Most
parents surveyed (71%) felt confident in their ability to pay for their
children’s college education, though the 2018 data revealed several
areas in which families seem to fall behind. This also pointed to
opportunities for financial professionals to offer more hands-on
guidance.

Families struggle to complete the FAFSA application.

Thirty-seven
percent of parents and 41% of students found the FAFSA process
confusing. Of those parents who sought FAFSA support, 25% went to
college financial aid officers, and 57% of students consulted their
parents. However, more than 40% of parents and 31% of students did not
seek advice about planning for college costs.

Financial aid officers are the top information source for families planning to pay for college.

Parents
who requested guidance trust financial aid officers (88%) and financial
advisors/planners (86%) over family members. Further, 85% of students
place equal trust in family members and financial aid officers.

The College Savings Gap is growing.

Many
parents (44%) and prospective students (45%) haven’t put aside any
money to finance higher education. Overall, parents saved an average of $12,937 (down 12% from $14,690) and students saved an average of $7,800 (up 17% from $6,678). However, families expect a four-year program will cost more than $61,000.

“This
year’s College Confidence Index draws a clearer picture of how many
people overlook opportunities to manage one of the most important
investments of their lives,” said Daniel Durazo,
Marketing and Communications Director at Allianz Global Assistance.
“The data indicates financial aid officers at higher education
institutions are an important ally for families, especially for those
without access to financial advisors. A college financial aid officer
can serve a critical role, helping families navigate costs, financing,
and, in many situations, options for protecting their investment such as
tuition insurance.”

Both colleges and financial advisors can
promote their ability to aid with College Tuition Buyers’ FASFA process,
as well as any other financial speed bumps they may encounter before
graduation. One good method of outreach is email. According to
AudienceSCAN, 60% of College Tuition Buyers took action after receiving
an email ad last year. This group is also 42% more likely than other
adults to take action after seeing a text link ad on a website and 59.3%
took action after seeing an ad on a daily deals website last year.
Don’t write off traditional though. Good ol’ TV commercials drove 71.2%
of this audience to action last year.

AudienceSCAN data is available for your applications and dashboards
through the SalesFuel API. Media companies and agencies can access
AudienceSCAN data through the AudienceSCAN Reports in AdMall.

Rachel Cagle

Rachel Cagle

Rachel is a Research Analyst, specializing in audience intelligence, at SalesFuel. She also helps to maintain the major accounts and co-op intelligence databases. As the holder of a Bachelors degree in English from The Ohio State University, Rachel helps the rest of the SalesFuel team with their writing needs.

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