Understanding the Impact of Student Loans on College Planning: Insights from the 2024 RNL Survey

Concerns about college affordability and financing are at an all-time high, and this anxiety is having a profound impact on students’ higher education choices. In the 2024 Prospective Family Engagement Survey, Ardeo, Ruffalo Noel Levitz (RNL) and CampusESP, gathered responses from over 11,300 families, shedding light on how debt worries shape college planning. Here’s a look at the key findings from this comprehensive report and how Loan Repayment Assistance Programs (LRAPs) can make a real difference.

Key Statistics from the Report: 

• 67% of families of college-bound students said they have ruled out colleges or universities based on sticker price.
• 71% of families said loan concerns are negatively impacting their students’ college planning.
• 63% of families agreed or strongly agreed, with all other things being equal, they would favor a college that offered their student a Loan Repayment Assistance Program (LRAP).
• 1 in 3 families said they would rather receive an LRAP in lieu of $3,000 in additional annual aid.

The Student Loan Dilemma: How Anxiety & Fear Shapes College Decisions

One of the survey’s most striking revelations is how pervasive the fear of student loan debt has become. A staggering 67% of families have ruled out colleges purely based on their sticker price​​. Even more telling, 75% of families with first-generation students said these loan concerns are negatively influencing their college planning​. This indicates that cost-related anxiety isn’t limited to a single demographic but cuts across socioeconomic and demographic lines.

The Disproportionate Impact on Historically Underserved Communities

Breaking down the data further, the survey shows significant variations by ethnicity and income. For example, 80% of Black families and 83% of Hispanic families reported that student debt concerns are negatively affecting their students’ college planning​. Income disparities are also stark, with families earning under $60,000 a year being particularly wary of taking on educational debt. This demonstrates a critical equity challenge: fear of debt is disproportionately impacting students from historically underrepresented and economically disadvantaged backgrounds.

How LRAPs Are Transforming College Enrollment & Easing Loan Concerns

So, what can be done to address this pressing issue? Ardeo’s Loan Repayment Assistance Programs offer a compelling solution. LRAPs help students pay back their student and parent loans if their income after graduation is low. LRAPs provide students and families with the financial confidence they need to enroll at their preferred college or university. According to the survey, 63% of families said they would favor an institution offering an LRAP over a competing one without the program​​. For first-generation families, this figure climbs to 71%, highlighting the program’s appeal in addressing access and affordability​.

LRAPs vs. Traditional Aid: The Unexpected Preference

One of the survey’s insights found that 1 in 3 families would prefer an LRAP to an additional $3,000 in annual institutional aid. For low-income families, this preference is even more pronounced, with over 50% favoring LRAPs​. The data reveals that a safety net for help post-graduation offers more peace of mind than upfront aid, making LRAPs a powerful tool for colleges seeking to attract and enroll students.

Institutional Benefits: Why Colleges Are Adopting LRAPs

Colleges that integrate LRAPs into their enrollment strategies are seeing tangible benefits. Testimonies from higher education leaders, such as Drew Whipple of MidAmerica Nazarene University, speak volumes: “Over the past four years we’ve worked with Ardeo, we’ve cut our discount rate by 7% and increased net tuition revenue by close to 15%.”​

Why LRAPs Matter

The 2024 Prospective Family Engagement Survey underscores a crucial truth: financial concerns are a significant barrier to higher education. However, LRAPs offer a proven, cost-effective way to turn this obstacle into an opportunity for both students and institutions. By giving families peace of mind, colleges can boost yield, improve access, and make a lasting impact on their communities.

Want to learn more about how LRAPs can transform your institution’s enrollment strategy? Click here to explore how Ardeo’s Loan Repayment Assistance Programs can reshape the way families think about college debt and higher education.