Parents Are More Worried about Their Children’s College Expenses
According to a new study from Discover Student Loans, parents have become increasingly worried about how their children will pay for college. A staggering 65% of parents feel they may not have enough money to pay for their child’s education, up from 55% last year.
Only 28% of parents say they plan to pay for their child’s education in full. This is down from 34% last year. A separate study from Barnes & Noble College Insights showed 99% of parents contribute to college tuition in some way. Moreover, 44% of parents help their children pay for college while paying off their own student loans.
Discover found 75% of parents are worried about how the cost of education will affect their own finances. One in three parents plan to delay retirement to pay for their child’s education. This is consistent with last year’s study.
Despite these financial concerns, 70% of parents are not limiting their children’s college choices based on price. Instead, 58% are turning to grants and scholarships to help with expenses, and 38% are looking to student loans. Only 41% of parents plan to use their savings for tuition and fees, down from 51% last year.
It’s important for parents to talk to their children about the financial commitments that come with higher education. Nicole Straub, vice president for Discover Student Loans, says, “The good news is that these conversations are already happening. Eighty percent of parents say they have discussed paying for college with their child, and more than one-third of parents said these conversations first started at the beginning of high school.”