Parents with Student Loans Are “Significantly More Likely” to Have Credit Card Debt
Parents who have student loans are “significantly more likely to have credit card debt” than those without student loans, according to the 2016 Parents, Kids & Money Survey from T. Rowe Price.
The survey found 67% of parents with student loans carried balances on their credit cards, compared to 54% of parents who did not have student loans.
The study primarily focused on how children between the ages of 8 and 14 expected to pay for their college expenses. 62% of the children surveyed said they expected their parents to pay for whatever college they wanted to attend, but only 65% of parents actually had the financial means to cover a portion of their child’s potential college expenses. Only 35% of parents believe they can cover most of the cost of college, and just 12% believe they can cover the total cost.
49% of parents who already have student loans of their own were more likely to lose sleep thinking about their child’s college expenses, compared to 40% of parents without student loans.
Despite the stress of paying for college, many parents said they are already saving for their children’s college funds (58%). 68% of parents said they believed they should start saving before their children turn 10, while 47% said they should start saving before the child turns five. More than three in four parents (76%) said they were willing to put off their retirement to help pay for their child’s college education.