April 2010
Prepared for/Présenté à :
Human Resources and Skills Development Canada -
Ressources humaines et Développement des compétences Canada
Supplier Name: Phoenix Strategic Perspectives Inc.
POR Number: 083-09
Cost (including GST): $125,988.03
Award Date: 2010-01-02
End of Field: 2010-03-31
For more information please contact HRSDC at: nc-por-rop-gd@hrsdc-rhdcc.gc.ca
«Ce sommaire est disponible dans l’autre langue officielle.»
Prepared by:
Phoenix Strategic Perspectives Inc.
1678 Bank Street, Suite 2
Ottawa, ON, K1V 7Y6
T 613-260-1700 F 613-260-1300
info@phoenixspi.ca
http://www.phoenixspi.ca
Phoenix SPI is a ‘Gold Seal Certified’ Corporate Member of the MRIA
Phoenix Strategic Perspectives Inc. (Phoenix) was commissioned by Human Resources and Skills Development Canada (HRSDC) to conduct client satisfaction research related to the Canada Student Loans Program (CSLP). This study, which tracks data from similar surveys conducted in 2008 and 2009, was undertaken to track experience and satisfaction with CSLP service delivery among its borrowers. The telephone survey was completed by 1,853 CSLP clients between February 17 and March 31, 2010. The final response rate for the survey was 42%.1 Based on a sample of this size, the overall findings are accurate to within ± 2.3%, 19 times out of 20.
Methodological Note: This year’s research design differed from what has been used in past years. Only borrowers who had contact with the National Student Loan Service Centre (NSLSC) were included in past iterations of this research. However, this year the target audience was expanded to include both borrowers who had and did not have contact with the NSLSC.
Overall, clients are satisfied with the quality of service they received in the past year in relation to their Canada Student Loan, and specifically, with the services received from the National Student Loans Service Centre (NSLSC)2. Most clients think the CSLP application process is easy to complete (and very easy to understand) and two-thirds were satisfied with the length of time between submission of their loan or grant application and notification of the result. Few clients experienced service-related problems when dealing with the NSLSC, while a majority feel that the priority of service agents is to help them with repayment. In addition, most would contact the NSLSC if they found themselves in a situation where they could not make a payment on their student loan.
There was widespread satisfaction with CSLP services. Almost four in five clients (78%) said they were satisfied with the quality of service they received regarding their Canada Student Loan in the past year. The mean score is 4.1. Overall satisfaction has improved slightly since 2008 and 2009 when 74% of clients expressed satisfaction with the quality of CSLP services. The vast majority (82%) said that the quality of service has remained more or less the same over the past two years. Of those who reported a change, 10% feel that service has improved and 2% that it has worsened. Over time, there has been little change in the proportions of clients who feel the quality of service has changed over the past two years.
More than three-quarters (77%) of borrowers were satisfied with the overall quality of service they received from the NSLSC with respect to their student loan in the past year. The mean score for overall satisfaction is 4.1. Satisfaction levels have remained steady since 2008 – 78% in 2008, 76% in 2009 and 77% in 2010 were satisfied with the overall quality of service. Underscoring overall satisfaction with the NSLSC, more than half the clients surveyed were satisfied with various aspects of NSLSC service. Clients were most likely to be satisfied with their access to service in the official language of their choice. Satisfaction was near unanimous (97%). Following this, the vast majority were satisfied that they got what they need from staff (88%), that staff were courteous (88%) and competent (82%), and that the service was provided in a fair manner (86%). Borrowers were least satisfied with the amount of time they had to wait to speak with a customer service representative (57%). Compared to 2009, positive assessments of all aspects of service have increased and most ratings are higher now than they were in 2008.
In addition to high satisfaction scores, most clients offered positive assessments of NSLSC service. Clients were most likely to agree that the information they received was accurate (88%), and that the service representative was responsive (85%) and easy to understand (84%). The aspect of service that received the least positive rating was the perception that service representatives went the extra mile. Approximately two-thirds (63%) felt that this was the case. Compared to 2009, positive assessments of all aspects of service have increased and all ratings are the same or higher than they were in 2008.
Relatively few (17%) experienced service-related problems when dealing with the NSLSC. There has been little change over time in this area. The types of problems encountered tended to fall into two broad categories: receipt of information (e.g. timeliness, accuracy, clarity) and access to service (e.g. getting bounced around, unhelpful staff, having to call multiple times). Exactly half (50%) said their difficulty was resolved to their satisfaction (down from 55% in 2009, but higher than 2008 [42%]).
Just over half (54%) of clients in repayment who had been in contact with the NSLSC feel that the agents’ priority is to help them with repayment. Compared to previous years, perceptions of the service agents’ priority are more positive. Most borrowers in repayment would certainly (60%) or probably (27%) be inclined to contact the NSLSC if they found themselves in a situation where they could not make a payment on their student loan. Over time, there has been little change in clients’ inclination to contact the NSLSC (87% in 2010 vs. 90% in 2008 and 2009).
Most (63%) recalled receiving a loan repayment agreement with a consolidation form from the NSLSC (recall continues to increase over time: 63% vs. 61% in 2009 and 49% in 2008). Of those who recalled receiving their agreement with a consolidation form, 83% said the repayment options were clear to them. Over time, there has been little change in this area.
One-third of clients in repayment experienced difficulties paying their student loan in the last year. The incidence of repayment difficulties continues to be lower than it was in 2008. Six in ten (63%) are aware that the NSLSC offers options in the event that they cannot make their scheduled loan payments. Awareness has declined since 2009, but it is still higher than it was in 2008.
Those who claimed to be aware of the NSLSC’s repayment assistance programs were most likely to point to Interest Relief (45%) when asked about the forms of assistance available. Knowledge of repayment options has changed slightly over time. While Interest Relief was cited by 51% of respondents in 2009, only 45% pointed to this program in 2010 (which is still higher than the 35% recorded in 2008). The decline in borrowers’ awareness of Interest Relief may be due to the fact that Interest Relief was replaced by the Repayment Assistance Plan in August 2009. When asked where they would go to obtain or confirm information regarding assistance, the NSLSC was, by far, the most frequently cited source. Twenty-seven per cent and 26% said they would contact the NSLSC call centre and the NSLSC website respectively. Significantly more borrowers in repayment reported that they would use the NSLSC call centre (27%) compared to previous years (18% in 2009 and 23% in 2008).
Clients currently in study hold positive perceptions of the CSLP application process. In total, 91% said that the loan or grant application process was very (39%) or somewhat (52%) easy. In addition, 75% agreed that the process was very easy to understand (up 7% from 2008 and 2009) and 73% felt that it was very easy to find information about applying for a government-funded student loan (down from 77% in 2008 and 75% in 2009). Two-thirds of in-study clients, moreover, were satisfied with the length of time between submission of their loan or grant application and notification of the result. Over time, satisfaction in this area has increased, from 58% in 2008, to 63% in 2009, to 66% in 2010.
Just over half the in-study clients surveyed would have had to change their study plans if they had not received a Canada Student Loan: 17% would have abandoned their post-secondary studies and 39% would have delayed their studies. The rest (42%) said they would have studied anyway. Compared to 2008 and 2009 when 64% of in-study clients said they would have changed their study plans if their Canada Student Loan had not been approved, fewer clients (56%) reported this to be the case in 2010. There has been a corresponding increase in the proportion of clients who would have studied anyway had they not received their student loan: 42% in 2010 compared to 34% each in 2008 and 2009.
The current gross monthly income of individual borrowers in repayment is generally higher now than it was nine months ago. While a variety of income levels were reported, just over half (56%) reported monthly incomes ranging from $800 to $3,299. Turning to debt load, 60% of borrowers owed less than $20,000 in government student loans upon finishing school. Currently, 71% have outstanding balances of less than $20,000. Conversely, the amount owing to banks and other financial institutions tends to increase after graduation. Upon finishing school, 66% owed money to banks or other financial institutions. Currently, 85% said they owe money to banks or other financial institutions.
More borrowers in repayment think that not making their credit card payments would have a big impact on their credit rating (84%) than those who think that not making student loan payments would have a big impact (62%). However, there is little difference in the perceived consequences of stopping these payments.
Student loans (government followed by bank loans) are the first loans borrowers would stop paying if they could not afford to repay all their loans. Close to half (46%) said they would stop paying their government student loan. This was followed at a distance by their credit card (22%), car loan (13%), student loan from a bank or financial institution (6%), and finally, by their rent or home mortgage (2%).
Just over half (53%) the borrowers surveyed said that the current economic downturn in the country has affected them financially. By far, the biggest impact observed has been in the area of employment. Almost half (49%) lost their job or could not find one and 23% found that they are working fewer hours or that their pay has decreased. Nearly one-quarter (24%) of borrowers said the economic downturn has affected their post-secondary plans. The most frequently cited impact, mentioned by 29% of borrowers, is that they are less likely to take more post-secondary education.
I hereby certify as a Senior Officer of Phoenix Strategic Perspectives that the deliverables fully comply with the Government of Canada political neutrality requirements outlined in the Communications Policy of the Government of Canada and Procedures for Planning and Contracting Public Opinion Research. Specifically, the deliverables do not contain any reference to electoral voting intentions, political party preferences, standings with the electorate, or ratings of the performance of a political party or its leader.
Stephen Kiar
President of Phoenix
1: The response rate was calculated using the Marketing Research and Intelligence Association’s (MRIA) Empirical Method of Response Rate Calculation.
2: The NSLSC administers the disbursement and repayment of Canada Student Loans and integrated student loans (in Ontario, New Brunswick, Newfoundland and Labrador, and Saskatchewan).
Supplier Name:Phoenix Strategic Perspectives Inc.
POR Number: POR 083-09
PWGSC Contract Number: G9178-090002-001-CY
Cost (including GST): $125,988.03
Award Date: 2010-01-02
End of Field: 2010-03-31
Contact Person: Jeremy Plaunt