Parents Report: Saving for College is not Easy

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With tuition costs soaring ever higher, parents have discovered that saving for a college education is tough, much tougher than expected. 

According to a recent Student Loan Hero survey, less than one-third of parents believe they’ll be able to cover the cost.  The vast majority of those polled are finding it tough and more than half wish they had saved more.

The survey found that:

  • Nearly 80% say saving for their child’s education is much harder than anticipated.
  • 43% feel guilty they haven’t been able to save more for their child’s education.
  • Nearly 36% are currently paying off their own student debt while trying to save for their children’s education. (My note – they likely have a mortgage, credit card balances, auto loans, and possibly medical bills as well.)
  • Nearly 57% of parents plan to help their children pay off their student loans.
  • 39% say saving for their child’s education is a bigger priority than saving for retirement (17%).
  • For 57% of parents, their financial support comes with strings attached.

Falling short of goals creates massive feelings of guilt.

How are parents saving? 

  • 73% of parents use savings accounts.
  • 23% are setting aside cash.
  • 17% are using savings bonds.
  • 16% are using 529 Plans. (My note – for the record, there is a safer savings strategy.)

As many parents feel their savings will fall short, they are considering other options…

  • 32% plan to take out a personal loan.
  • 21% intend to co-sign a loan in their child’s name.
  • 19% will use a credit card.
  • 17% intend to utilize a Parent PLUS loan

If and how you choose to support your child and the expected expense of a college education is a personal decision.  If you are trying to save, the goal is to find the means that fit best within your family’s financial situation.

We’re here to assist you with your college planning campaign and we can help identify the means of covering the cost of an education that best fit your family dynamic.

Contact our professional college planners for assistance.  We look forward to hearing from you!

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