A recent annual survey conducted by Discover Student Loans found:
- Fifty percent of parents with college bound children have saved less than $15,000 for their child’s education
- Fifty-five percent of parents believe their ability to pay for college has not improved over last year; fears of uncertainty and potential recession drive financial concern for parents.
- 66% of parents with kids aged 16-18 planning to go to college are worried about paying for their child’s education.
- Of parents worried about paying for college, 55% are concerned about rising tuition while nearly half say inflation is straining their savings (42%) and 28% noted that fears of an impending recession caused them concern about paying for college, up 14 percentage points from last year.
- Nearly a third of parents (32%) feel they did not start saving early enough.
- Of parents planning to help pay for their child’s college, 41% aim to take out student loans, and 43% will dip into their savings. The number of parents intending to fund their child’s education through scholarships increased 7 percentage points from 2021 to 2022, to 54%.
As college costs continue to rise it is a great time to have conversations with your students about how they plan to pay for college. Here is a link to the release with more information about the survey – https://www.businesswire.com/news/home/20220623005289/en/Fifty-Percent-of-Parents-With-College-Bound-Children-Have-Saved-Less-Than-15000-for-Their-Child%E2%80%99s-Education