Educational Lending - US - March 2014

Educational Lending - US - March 2014

Mar 2014 Mintel Education167 Pages Price :
$ 3996
The student loan crisis continues, driven by the escalating cost of college as well as slow recovery, which is hindering graduates’ abilities to repay their loans. The government is beginning to take the problem seriously, and proposals to help solve the problem are being considered both to help students repay their loans and to make lenders more accountable for the loans they make.
Table of Content

Scope and Themes

What you need to know
Data sources
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms
Generations

Executive Summary

The market
Figure 1: Total amount of US student loan debt, Q1 2009-Q4 2013
Figure 2: Percentage of federal vs. private loans disbursed, 2006/07-2012/13
Market drivers
Figure 3: Published tuition and fees for various types of institutions in current dollars, 2003/04-2013/14
Figure 4: Total federal grants and loans, 2007/08-2012/13
Leading companies
The consumer
Figure 5: Amount of outstanding educational loans, by gender, January 2014
Figure 6: Minimum monthly loan payments, by gender, January 2014
Figure 7: Belief in value of college education, by age, January 2014
Figure 8: Attitudes toward educational/student loans, by gender, January 2014
Figure 9: Knowledge of, and attitudes toward, repayment, by gender, January 2014
Figure 10: Most important features of a student loan, by gender, January 2014
What we think

Issues and Insights

How serious is the student debt crisis, anyway?
Issues
Implications
What can be done to lower the default rate?
Issues
Implications
What is the long-term impact of so much student debt?
Issues
Implications

Trend Application

Inspire trend: No Degree, No Problem
Inspire trend: The Nouveau Poor
Mintel futures: Brand Intervention

Market Size

Key points
Rising student debt
Figure 11: Consumer debt, by type, total amount and percentage of all consumer debt, Q1 2009, Q4 2013
Figure 12: Amount of student debt, Q1 2009-Q4 2013
How people are paying for college
Figure 13: Sources of college funds, average percent of total cost paid, 2010-13

Market Drivers

Key points
The cost of college is still increasing, but more slowly
Figure 14: Tuition and fees for educational institutions, by type, in current dollars, 2003/04-2013/14
Figure 15: Percent change in published tuition and fees, by type of institution, 2003/04-2013/14
Figure 16: Change in published graduate tuition and fees, by type of institution, 2102-13, 2013-14
Figure 17: Published and net undergraduate tuition, fees, room and board, 2010/11-2013/14
The cost of not going to college is escalating
Figure 18: Discrepancy in earnings between high school and college graduates, by generation, 2013
Help from the government is slowing
Figure 19: Total federal grants and loans, 2007/08-2012/13
The trend in college enrollment may be changing
Figure 20: Undergraduate and graduate school enrollment, October 2000-October 2012
Figure 21: Percent of high school graduates enrolled in college, 2000-12
Figure 22: Believe taking out a student loan is a good investment, December 2011, January 2014
Decline of college-age students
Figure 23: Projected population by age group, 2015, 2020, and 2030
Legislative changes
Lower interest rates for federal loans
Protect Student Borrowers Act of 2013
CFPB extends its oversight
Fairness for Struggling Students Act 2013

Competitive Context

Key points
Federal vs private lending market
Figure 24: Percentage of federal vs. private loans disbursed, 2006/07-2012/13
Credit unions stepping in

Innovations and Innovators

Key points
SoFi
Sallie Mae uses Facebook to run contest
Wells Fargo film initiative encourages college attendance
Discover offers new scholarships

Marketing Strategies

Key points
Brand analysis: Sallie Mae
Direct mail
Figure 25: Sallie Mae automatic debit direct mail, 2014
Email
Figure 26: Sallie Mae loan disbursement email, 2014
Figure 27: Sallie Mae Smart Option student loan email, 2014
YouTube
Figure 28: Sallie Mae Banking on the Future Sweepstakes video promotion, 2014
Figure 29: Sallie Mae “I Make a Difference” video, 2014
Brand analysis: Wells Fargo
Direct mail
Figure 30: Wells Fargo loan consolidation direct mail ad, 2014
Email
Figure 31: Wells Fargo student loan acquisition email, 2013
Online ads
Figure 32: Wells Fargo double interest rate discount online ad, 2013
YouTube
Figure 33: Wells Fargo financial aid video, 2013
Figure 34: Wells Fargo managing money video, 2012
Brand analysis: Discover
Direct mail
Figure 35: Discover loan acquisition direct mail, 2014
Figure 36: Discover student loan acquisition direct mail, 2013
Email
Figure 37: Discover loan acquisition email to AAA members, 2014

Social Media – Educational Lending

Key points
Market overview
Key social media metrics
Figure 38: Key performance indicators, February 24, 2013-February 23, 2014
Brand usage and awareness
Figure 39: Brand usage and awareness of educational lending brands, January 2014
Interaction with brands
Figure 40: Interaction with educational lending brands, January 2014
Online conversations
Figure 41: Online mentions, selected educational lending brands, February 24, 2013-February 23, 2014
Where are people talking about educational lending brands?
Figure 42: Mentions, by page type, selected educational lending brands, February 24, 2013-February 23, 2014
What are people talking about online?
Figure 43: Mentions, by topic of conversation, selected educational lending brands, February 24, 2013-February 23, 2014
Brand analysis
Driving fan engagement through reward incentives
Empowering borrowers through online education tools
What we think

Consumers – Amount Owed on Educational Loans

Key points
Most don’t have student loans
Figure 44: Total amount owed on educational/student loans, by gender, January 2014
Figure 45: Total amount owed on educational/student loans, by age, January 2014
Figure 46: Total amount owed on educational/student loans, by gender and age, January 2014
Figure 47: Total amount owed on educational/student loans, by household income, January 2014
Figure 48: Total amount owed on educational/student loans, by race/Hispanic origin, January 2014
Figure 49: Total amount owed on educational/student loans, by loan originator but no longer services loan, January 2014

Minimum Monthly Loan Payments Owed

Key points
Minimum monthly payments can be hefty
Figure 50: Minimum monthly loan payments, by age, January 2014
Figure 51: Minimum monthly loan payments, by gender and age, January 2014
Figure 52: Minimum monthly loan payments, by household income, January 2014
Figure 53: Minimum monthly loan payments, by race/ethnicity, January 2014
Figure 54: Minimum monthly loan payments, by employment status, January 2014

Loan Originators and Servicers

Key points
Loan originators
Figure 55: Loan originator, by gender, January 2014
Figure 56: Loan originator, by age, January 2014
Figure 57: Loan originator, by gender and age, January 2014
Figure 58: Loan originator, by household income, January 2014
Figure 59: Loan originator, by race/Hispanic origin, January 2014
Loan servicers
Figure 60: Loan servicer, by gender, January 2014
Important Features of Loan Originator

Key point
Figure 61: Loan originator, by important features of an educational loan, January 2014
Figure 62: Loan originator, by important features of an educational loan, January 2014 (continued)

Attitudes Toward Educational/Student Loans

Key points
Attitudes toward educational/student loans
Figure 63: Attitudes toward educational/student loans, by gender, January 2014
Figure 64: Attitudes toward educational/student loans, by age, January 2014
Figure 65: Attitudes toward educational/student loans, by household income, January 2014
Figure 66: Attitudes toward educational/student loans, by student loan amount owed, January 2014
Figure 67: Attitudes toward educational/student loans, by amount paid monthly, January 2014

Attitudes Toward Employment and Loan Repayment

Key points
Attitudes toward employment and loan repayment
Figure 68: Attitude toward level of employment and loan repayment, by gender, January 2014
Figure 69: Attitude toward level of employment and loan repayment, by age, January 2014
Figure 70: Attitude toward level of employment and loan repayment, by household income, January 2014
Figure 71: Attitude toward level of employment and loan repayment, by student loan amount owed, January 2014
Figure 72: Attitude toward level of employment and loan repayment, by race/Hispanic origin, January 2014
Figure 73: Attitude toward level of employment and loan repayment, by amount paid monthly, January 2014

Important Features of an Educational/Student Loan

Key points
Important features of an educational/student loan
Figure 74: Important features of an educational/student loan, by gender, January 2014
Figure 75: Important features of an educational/student loan, by age, January 2014
Figure 76: Important features of an educational/student loan, by household income, January 2014
Figure 77: Important features of an educational/student loan, by Hispanic origin, January 2014

Appendix – Other Useful Consumer Tables

Amount owed on student loans
Figure 78: Total amount owed on educational/student loans, by generations, January 2014
Loan originators
Figure 79: Loan originator, by generations, January 2014
Loan servicers
Figure 80: Loan servicer, by age, January 2014
Figure 81: Loan servicer, by gender and age, January 2014
Figure 82: Loan servicer, by household income, January 2014
Attitudes toward educational loans
Figure 83: Attitudes toward educational/student loans, by employment, January 2014
Attitudes toward employment and loan repayment
Figure 84: Attitude toward level of employment and loan repayment, by gender and age, January 2014
Figure 85: Attitude toward level of employment and loan repayment, by generations, January 2014

Appendix – Social Media

Brand usage or awareness
Figure 86: Brand usage or awareness, January 2014
Figure 87: Sallie Mae usage or awareness, by demographics, January 2014
Figure 88: National Education Loan Network (NELN) usage or awareness, by demographics, January 2014
Figure 89: Citibank usage or awareness, by demographics, January 2014
Figure 90: Wells Fargo usage or awareness, by demographics, January 2014
Figure 91: Discover usage or awareness, by demographics, January 2014
Figure 92: US Department of Education usage or awareness, by demographics, January 2014
Activities done
Figure 93: Activities done, January 2014
Figure 94: Sallie Mae – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, January 2014
Figure 95: Sallie Mae – Activities done – I follow/like the brand on social media because, by demographics, January 2014
Figure 96: Sallie Mae – Activities done – I have researched the brand on social media to, by demographics, January 2014
Figure 97: US Department of Education – Activities done – I have researched the brand on social media to, by demographics, January 2014
Online mentions
Figure 98: Online mentions, selected educational lending brands, Feb. 24, 2013-Feb. 23, 2014
Figure 99: Sallie Mae key social media indicators, February 2014
Figure 100: US Department of Education key social media indicators, February 2014
Figure 101: Wells Fargo key social media indicators, February 2014
Figure 102: Citibank key social media indicators, February 2014
Figure 103: Discover key social media indicators, February 2014
Figure 104: Nelnet key social media indicators, February 2014

Appendix – Trade Associations

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