College Financing
How will students pay for their college education? Parents (60%) and students (61%)
are in agreement when they both are most likely to report that parents will pay.
However overall, both parents (88%) and students (86%) are most likely to mention
one or more options based on the student paying (Exhibit 8.2). These sources include
scholarships, student loans, the child's working their way through and the child's sav-
ings. However, parents and students differ in their reliance on these various types of
options. Parents are more likely to mention student loans (56% vs. 46%). Students
are more likely to mention scholarships (70% vs. 58%), their own savings (47% vs.
25%) and working their way through college (52% vs. 46%).
Exhibit 8.2
Paying for College Education
Q410/Q510 How will you/your child pay for [your/his/her] college education? Please check
all that apply.
Student Base: Plan to attend college
Parent Base: Secondary school parent and child plans to attend college
Students
Parents
Base: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3810 . . . . . . . . .751
%
%
Student pays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86 . . . . . . . . . . .88
Student loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 . . . . . . . . . . .56
Scholarships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70 . . . . . . . . . . .58
Child's own savings, trust funds or inheritance . . . . .47 . . . . . . . . . . .25
Working way through . . . . . . . . . . . . . . . . . . . . . . . .52 . . . . . . . . . . .46
Others pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68 . . . . . . . . . . .63
Parents will pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 . . . . . . . . . . .60
Other relatives will pay . . . . . . . . . . . . . . . . . . . . . . .15 . . . . . . . . . . .9
Loans from parents or other relatives . . . . . . . . . . . .12 . . . . . . . . . . .9
Some other way . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 . . . . . . . . . . .12
Don't know . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 . . . . . . . . . . . .1
In terms of current savings plans, two-thirds of parents (65%) report that they
are saving money so their child can go to college (Exhibit 8.3). While four in ten stu-
dents (42%) report that they are saving money, only one-quarter of parents (24%)
think their child is saving money so they can go to college.
OBSERVATION:
Teens and parents may need to talk more about their
plans to pay for their college education. One-quarter of parents (23%)
report that no one in their family is saving money so that their child can go
to college. This may come as a shock for students: only 15% say that no one
is saving money in their family.
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