866-997-4948(US-Canada Toll Free)

Educational Lending - US - April 2012

Published By :

Mintel

Published Date : Sep 2012

Category :

Banking

No. of Pages : N/A


Chinas RTD tea market experienced strong double-digit annual growth from 2006-11 with a noticeable slowdown in 2011 due to a combination of factors including unfavourable weather, food safety issues such as the plasticiser incident and high input costs. However, compared to Japan and Taiwan, the two leading RTD tea markets with a per capita consumption of over 40 litres per person, Chinas per capita consumption of RTD tea is still low at 11.5 litres per person, which shows further growth in the market.

RTD tea is seen by many consumers as a healthy and natural beverage. The growing popularity of RTD herbal tea indicates that consumers want more out of their RTD tea and are increasingly looking for functional products that have obvious benefit to health such as slimming.

Apart from functionality, consumers adventurousness in taste provides opportunities for foreign tea and well-known domestic tea varieties to drive consumer engagement. Opportunities for RTD tea can also be found in meeting the beverage requirements of an increasingly mobile population. As a beverage that draws most of its sales during warm weather and the risk stemming from a cooler than usual summer, making RTD tea suitable for off-season consumption has become increasingly imperative to ensure a healthy growth of the sector.
TABLE OF CONTENT

SCOPE AND THEMES
What you need to know 
Data sources 
Consumer study data 
Advertising creative 
The following is a list of abbreviations used in this report. 
Terms 
Companies mentioned in this report: 

EXECUTIVE SUMMARY
Industry overview 
The consumer 
Marketing strategies and product innovations 

INSIGHTS AND OPPORTUNITIES
Key points 
Lenders, educators should target older students as population ages 
Grad students make better, more satisfied customers 
Hispanics are growing strongly, but need special attention 

INSPIRE INSIGHTS

TREND: NO DEGREE, NO PROBLEM
What we\'ve seen 
Industry application 

TREND: EXTEND MY BRAND
What we\'ve seen 
Industry application 

MARKET SIZE AND FORECAST
Key points 
Student debt is fastest-growing consumer loan segment 
Figure 1: Total consumer debt outstanding by type of loan, Q4 2011 
Figure 2: Per capita consumer debt by type of loan, Q4 2011 

COMPETITIVE CONTEXT
Key points 
Federal government now dominates the student loan market 
Figure 3: New student loans, Uncle Sam versus private lenders, 2007-08 and 2010-11 
Figure 4: Total cost of a college education, 2010-11 academic year 
Average cost of college drops in most recent year 
Figure 5: Average cost of a college education, 2007-11 academic years 
Grants & scholarships pay a larger share, but student debt holds steady 
Figure 6: How America pays for college, 2010 versus 2011 
About one third of families use student loans, mostly from the U.S. 
Figure 7: Funding sources for college, 2010-11 versus 2009-11 

IS THERE AN EDUCATIONAL LOAN CRISIS?
Key points 
Student loan borrowers are in crisis 
Student loans not dischargeable in bankruptcy 

MARKETING CHANNELS
Key points 
Sallie Mae is one of few companies with a presence in social media 

MARKET DRIVERS
Key points 
College age population is expected to shrink in coming decades 
Figure 8: U.S. population projections by age groups, by percent share of population, 2010-50 
Figure 9: U.S. population projections by age groups, total numbers, 2010-50 
Hispanics are likely to make up a larger share of student loan borrowers 
Hispanics are an underserved niche, but lenders need to be cautious 

LEADING COMPANIES
Key points 
Sallie Mae 
Discover 
Citigroup 
Wells Fargo 
J.P. Morgan Chase 
First Marblehead Corporation/Union Federal 
SunTrust 
U.S. Bancorp 

PNC Financial Services
Citizens Financial Group/Charter One 

BRAND QUALITIES
Key points 
Brand name means relatively little to student loan customers 
Figure 10: Importance of factors in satisfaction with student loan originator and servicer, December 2011 
Brand recognition is slightly more important to men than women 
Figure 11: Importance of factors in satisfaction with student loan originator and servicer, by gender, December
2011 
Brand name is more important to college-age respondents 
Figure 12: Importance of factors in satisfaction with student loan originator and servicer, by age, December
2011 
Higher income people less interested in brand recognition 
Figure 13: Importance of factors in satisfaction with student loan originator and servicer, by household income,
December 2011 
Brand name less important to those with advanced degrees 
Figure 14: Importance of factors in satisfaction with student loan originator and servicer, by education,
December 2011 
Brand name is more important among Hispanics, other races 
Figure 15: Importance of factors in satisfaction with student loan originator and servicer, by race/Hispanic
origin, December 2011 

INNOVATION AND INNOVATORS
Key points 
U.S. Bank offers incentives for good grades and graduating 
Sallie Mae launches suites of insurance services for students 
Discover offers new loans for graduate students 
Discover donates $10 million to get financial education into schools 
Sallie Mae offers mobile access for banking customers 

MARKETING STRATEGIES
Key points 
Student loan lenders do very little marketing 
Figure 16: Student loan marketing pieces, January 2011-January 2012 
Representative direct and email advertising 
Figure 17: Sallie Mae email ad, December 2011 
Figure 18: Citibank email ad, January 2012 
Figure 19: Wells Fargo email ad, December 2011 
Figure 20: Sallie Mae email ad, December 2011 
Figure 21: Fastweb email ad, September 2011 
Figure 22: PrivateStudentLoans.com email ad, November 2011 
Figure 23: Alliant Credit Union direct mail ad, August 2011 
Figure 24: Discover/AAA direct mail ad, August 2011 
Figure 25: PNC email ad, August 2011 
Figure 26: Chase Select Private Student Loan direct mail ad, August 2011 
Figure 27: CharterOne direct mail ad, August 2011 

THE CONSUMER AND STUDENT LOANS
Key points 
About one in five respondents have some student debt 
Figure 28: Total amount owed on student loans, December 2011 
Figure 29: Total amount owed on student loans, by gender, December 2011 
Youngest group has the most loans 
Figure 30: Total amount owed on student loans, by age, December 2011 
Middle income households have the most debt
Figure 31: Total amount owed on student loans, by household income, December 2011 
Blacks, Hispanics are more likely to have student loans 
Figure 32: Total amount owed on student loans, by race/Hispanic origin, December 2011 
Graduate students are the most indebted 
Figure 33: Total amount owed on student loans, by education, December 2011 
Full- and part-time workers have the most debt 
Figure 34: Total amount owed on student loans, by employment, December 2011 

THE CONSUMER—HOW BIG IS THE BURDEN OF MONTHLY PAYMENTS?
Key points 
Figure 35: Monthly payment for student loans, December 2011 
Figure 36: Monthly payment for student loans, by gender, December 2011 
Youngest respondents have lowest payments 
Figure 37: Monthly payment for student loans, by age, December 2011 
Highest earners have the biggest monthly payments 
Figure 38: Monthly payment for student loans, by household income, December 2011 
Graduate students have big monthly loan payments 
Figure 39: Monthly payment for student loans, by education, December 2011 
Hispanics, other races tend to have lower monthly payment loads
Figure 40: Monthly payment for student loans, by race/Hispanic origin, December 2011 

THE CONSUMER—STUDENT LOAN PROVIDERS
Key points 
Figure 41: Institution for origination of student loans, December 2011 
Figure 42: Institution for origination of student loans, by gender, December 2011 
Sallie Mae is most popular lender among 25-34 age group 
Figure 43: Institution for origination of student loans, by age, December 2011 
Middle-income group favors government loans 
Figure 44: Institution of student loans, by household income, December 2011 
Sallie Mae is favored by other races/ethnicities 
Figure 45: Institution of student loans, by race/Hispanic origin, December 2011 
Sallie Mae is most common loan servicer, followed by U.S. DoE 
Figure 46: Current student loan servicer, December 2011 
Figure 47: Current student loan servicer, by gender, December 2011 
Sallie Mae is more likely to service loans for 25-34 age group 
Figure 48: Current student loan servicer, by age, December 2011 
A quarter of grad students pays their bills to other lenders 
Figure 49: Current student loan servicer, by education, December 2011

THE CONSUMER—SATISFACTION WITH ORIGINATORS AND LENDERS
Key points 
Figure 50: Level of satisfaction with student loan originator and servicer, December 2011 
Figure 51: Level of satisfaction with student loan originator and servicer, December 2011 
Middle-income earners are most satisfied with their loan originators 
Figure 52: Level of satisfaction with student loan originator and servicer, by household income, December 2011 . 64
Hispanics, other races rate lenders and servicers higher than other groups 
Figure 53: Level of satisfaction with student loan originator and servicer, by race/Hispanic origin, December
2011 
Figure 54: Level of satisfaction with student loan originator and servicer, by race/Hispanic origin, December
2011 
The higher the degree, the higher the satisfaction level 
Figure 55: Level of satisfaction with student loan originator and servicer, by education, December 2011 

THE CONSUMER—MANY ARE WORRIED THEY CAN’T PAY DEBT
Key points 
25% of student borrowers are behind on their payments 
Figure 56: Percentage of respondents behind on student loan payments, December 2011 
Figure 57: Percentage of respondents behind on student loan payments, by gender, December 2011 
Older borrowers are just as likely to be delinquent as younger borrowers 
Figure 58: Percentage of respondents behind on student loan payments, by age, December 2011 
Likelihood of default drops with income, but is still quite high 
Figure 59: Percentage of respondents behind on student loan payments, by household income, December
2011 
40% of Hispanic borrowers say they are late on payments 
Figure 60: Percentage of respondents behind on student loan payments, by race/Hispanic origin, December
2011 
Higher education correlates with better payment record 
Figure 61: Percentage of respondents behind on student loan payments by education, December 2011 
But having a job doesn’t necessarily mean you’re not in trouble 
Figure 62: Percentage of respondents behind on student loan payments, by employment, December 2011 

THE CONSUMER—ATTITUDES ABOUT STUDENT DEBT
Key points 
Figure 63: Attitudes concerning student loans and current life situation, December 2011 
Figure 64: Attitudes concerning student loans and current life situation, by gender, December 2011 
Young more worried about paying loans, but think it’s worth the cost
Figure 65: Attitudes concerning student loans and current life situation, by age, December 2011 
Having money doesn’t reduce worries about student debt 
Figure 66: Attitudes concerning student loans and current life situation, by household income, December 2011 
Hispanics, other races more worried about their debt 
Figure 67: Attitudes concerning student loans and current life situation, by race/Hispanic origin, December 2011. 76
Highly educated still worried about their student loans 
Figure 68: Attitudes concerning student loans and current life situation, by education, December 2011 
Having a job doesn’t reduce worries about paying loans 
Figure 69: Attitudes concerning student loans and current life situation, by employment, December 2011 

APPENDIX—TRADE ASSOCIATIONS

APPENDIX: RESEARCH METHODOLOGY

CONSUMER RESEARCH
Primary Data Analysis 
Sampling 
Global Market Insite (GMI) 
Secondary Data Analysis 
Experian Simmons National Consumer Studies 
Statistical Forecasting 
Statistical modelling 
Qualitative insight 
The Mintel fan chart 
Weather analogy 

APPENDIX: WHAT IS MINTEL?
Mintel provides industry-leading market intelligence 
Mintel Solutions: 
Mintel Oxygen Reports 
Mintel GNPD 
Mintel Inspire 
Mintel Beauty Innovation 
Mintel Menu Insights 
Mintel Research Consultancy 
Mintel Comperemedia

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company *
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *

Upcoming Reports

  • Sugar and Gum Confectionery - UK - January 2015

    Rising dental health concerns can create an opportunity for chewing gum brands. Currently much of the marketing for sugar-free gums centres around fresh breath, however, the dental health benefits, particularly for children, could warrant more focus. Though explored internationally, tooth-friendly gums tailored for children remain rare in the UK market....