Experience, Inc., the leading provider of career services for students and alumni, today announced the findings from its 2006 “College Life - Finances & Banking” survey. Experience polled more than 4,800 students from colleges and universities nationwide to learn about their use of credit cards and how they choose banks and loans during school.

In addition to measuring immediate financial decisions (listed below), Experience also surveyed students about their overall financial concerns. Twenty-six percent (26%) of respondents reported being worried about long-term savings and 25% are concerned with repaying student loans after graduation. Still, one-fifth (21%) of the student population said paying for school while attending college is their biggest concern, and 13% worry about paying standing monthly expenditures.

High-level findings of the 2006 “College Life - Finances & Banking” survey include:

Credit Cards

While 72% of college students have at least one credit card, 58% report they are managing their debt wisely and 13% receive parental help for paying balances.

Amount of plastic
— 38% of college students say they have only one credit
card
— 34% have two or more cards
— 23% do not have any credit cards
— 5% use a parent’s card

How much is paid each month?
— 58% of college students pay their credit card balance
in full each month
— 24% pay some of the balance each month
— 13% have their parents pay the balance each month
— 5% only pay the minimum balance each month

Parents aren’t paying for school-related credit card purchases
— 62% of college students say their parents do not pay
for school-related credit card purchases
— 38% say their parents do pay

Attraction to credit cards
— 23% of college students select a credit card based on
interest rates
— 22% look first at fees associated with the use of the
card
— 15% focus on the terms of the credit card
— 11% select a credit card based on bank or creditor’s
reputation
— 8% are interested first in the free gift or incentive
for applying

Motivation to use credit cards
— 28% of college students are motivated to use their
credit cards by the reward programs, including free
airfare, free hotel accommodations, etc.
— 24% are motivated by low interest rates
— 22% use their cards for the cash back bonuses
— 8% are motivated by special store discounts

What types of purchases are made with credit cards?
— 41% of college students use their credit cards to
purchase basic necessities including toiletries,
groceries, etc.
— 21% charge restaurant meals and entertainment
— 13% put clothing purchases on their credit cards
— 11% use their cards for school supplies

For purchases $50 or less: cash or credit?
— 52% of college students use a debit card for purchases
of $50 or less
— 26% use a credit card for purchases of $50 or less
— 17% pay cash for purchases $50 or less
— 2% pay by check

Banking

When selecting a bank, college students consider the availability of ATMs and a bank’s fees before signing up.

Attraction to banks
— 18% of college students said they select banks based on
the availability of ATM machines
— 18% look first at a bank’s fees
— 14% are focused on interest rates
— 14% look first at the banks reputation
— 12% choose banks based on where their parents bank
— 8% are focused on terms
— 5% are attracted by a free gift
— 5% select banks based on their recognition of the
institution’s brand

Loans

Out of 58% of college students who own a car, only 22% used a bank or credit union loan to finance the vehicle.

Cars and loans
— 34% of college students who own a car had their parents
or family members pay the loan
— 22% of college students who own a car were given the
car by their parents or family members
— 22% purchased the car through a bank or credit union
loan

School payment method
— 26% of college students pay for school through student
loans
— 24% received a scholarship
— 24% work to pay for school
— 15% of students have loans through their parents

Experience offers career networking and guidance to college students and recent graduates, giving them the resources they need to pursue a career they love. In addition, Experience.com provides tips and advice for college students who want to learn how to manage their finances. More information can be found at http://managingyourmoney.experience.com.

Survey Methodology

Experience’s 2006 “College Life - Finances & Banking” survey was completed on October 31, 2006. College students who opted-in to receive communication from Experience were invited to participate in the online poll; 4,800+ completed the survey. The sample error of this survey is +/- 2%.

About Experience

Founded in 1996, Experience is the leading provider of career services that support students and alumni of the nation’s top universities. Experience’s web-based platform spans more than 3,800 universities, 3 million registered candidates, 100,000 employers, and 800,000 job and internship opportunities. For more information, visit www.experience.com.

Experience is a trademark of Experience, Inc. Other company and product names may be trademarks of their respective owners.

Contact:

Matter Communications
Andrea DiRuscio, 978-499-9250 x225
andrea@matternow.com

Source: Experience, Inc.

This entry was posted on Tuesday, November 21st, 2006 at 11:20 pm and is filed under College Loans, Education. Tags: College, College Loans, Loans, Scholarship, Student, Student Loan. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.