1 in 3 Parents Plan to Work Past Retirement Age to Pay for Child’s College Education
According to a study from Discover Student Loans, 31% of parents plan to work longer or retire at a later date in order to pay for their child’s college expenses. Another 31% of parents said they do not have as much in their retirement funds as they would like because of their children’s school expenses.
Paying for college comes with its challenges, but only 18% of parents said they limited their child’s college choices based on price. Thankfully, a number of the most expensive colleges in the United States meet 100% of the demonstrated financial need. This means they provide scholarships and grants to cover the cost of education when a student’s family cannot afford those expenses.
The survey also revealed 25% of parents plan to delay vacations and other entertainment plans because of college expenses. A separate study from TD Ameritrade showed that 71% of young Millennials planned to work in the summer; 56% said they would use their summer earnings to save, but 41% said their earnings would go toward education costs.
If you are the parent of a college-bound student, explore your child’s financial aid options in detail. Apply for as many scholarships and grants as possible before dipping into your retirement savings, and consider a low-interest student loan to pay for extra expenses.