AllianceBernstein's College Savings Crunch Initiative

Although higher education is aimed at setting students off on the right foot, rising tuition costs and college debt are leaving students a step behind.

In May 2006 AllianceBernstein launched a program initiative aimed to combat the detrimental, and at times lifelong, effects of college debt, while drawing attention to the need for timely college planning. AllianceBernstein commissioned Tiller to conduct a survey of over 1,500 college graduates ages 21-35 to gain insight into how their college finances and choices have shaped their current circumstances and lifestyles.

Key findings of the survey highlighted the profound impact college debt plays on financial security, well-being and life choices for years to come. Among those graduating college in debt, 34% reported selling possessions to make ends meet, while 42% admitted to living "paycheck to paycheck."

The survey findings received impressive media coverage including stories in BusinessWeek, MONEY Magazine, Wall Street Journal, The Associated Press, Dallas Times and Chicago Tribune with additional coverage including CNN, MSNBC and MTV News.

In October 2006 AllianceBernstein released a second phase of bilateral research among 1,358 parents with pre-college age children and 200 financial aid administrators at public and private colleges to learn about families' misperceptions and missteps when it comes to meeting college costs. The research uncovered families' unrealistic expectations when comes to financial aid and over-reliance on debt to pay for college. This second phase of research has attracted widespread national media interest including the Associated Press and Today Show.

To provide further strategies for funding a college education, AllianceBerstein created a website for both parents and students alike: www.collegesavingscrunch.com.

The site includes additional key findings of the survey, learning tools and a slide rule, which estimates the monthly cost of paying off a student loan and how much those same payments could grow if invested.

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