More US parents expect their children to help pay for college

More US parents expect their children to help pay for college
A survey of U.S. parents with college-bound students finds three-quarters are at least somewhat concerned about their child's education costs.
JUL 29, 2019
By  Bloomberg

When parents take their children out to dinner, more often than not it's expected that Mom or Dad will pick up the tab; when it comes to college, it's a trickier question. (More:College costs can sink parents, too) A survey of U.S. parents with college-bound students by Discover Student Loans found 38% expect their child to pay for most of higher education, a 7% increase from 2018. Just 28% are willing and able to cover the entire cost of college, a 6% slide from last year. U.S. student debt hit $1.6 trillion in the first quarter of 2019, according to the Federal Reserve. As of September 2018, over 11% of student debt was more than 90 days delinquent or in default. In the final quarter of 2017, over 44.5 million Americans had some form of outstanding student loans and almost 8 million Americans had a balance of $50,000 or more, according to the Federal Reserve Bank of New York. https://www.investmentnews.com/assets/docs src="/wp-content/uploads2019/07/CI120347729.PNG" Paying for college is a worry for most parents. Three-quarters of those surveyed are at least somewhat concerned about how their child's education costs will affect their own financial situation. Almost a third said they'll have to delay retirement to pay for it, the survey found. Despite those concerns, 70% of parents said they will not limit their child's college choice based on price. More than half said they're planning to rely on scholarships and grants to help cover the cost. The survey of about 1,500 parents of college-bound students (ages 16-18) was carried out online in June 2019 with a 2.5% margin of error.

Latest News

Stocks will rise in 2025, predict four-fifths of advisors
Stocks will rise in 2025, predict four-fifths of advisors

Post-election poll unpacks expectations around the S&P 500, odds of a correction, and strategies to navigate market risks.

Fidelity to move RIA clients' sweep balances to in-house product
Fidelity to move RIA clients' sweep balances to in-house product

"Cash options are in use because people don't know that there's a better option," one fintech CEO said.

Fed officials prefer a shallow rate-cut path, meeting minutes show
Fed officials prefer a shallow rate-cut path, meeting minutes show

Notes from the November meeting indicate broad support for a gradual approach as a cloudy view on the neutral rate complicates policymaking efforts.

Morgan Stanley courted AML risks as it wooed wealthy clients, says WSJ report
Morgan Stanley courted AML risks as it wooed wealthy clients, says WSJ report

Amid its aggressive global push, lax procedures at the firm led to one-fourth of international accounts being flagged as high-risk for money laundering, according to a 2023 document.

40-year-old Boston BD closes doors after losing investor complaint
40-year-old Boston BD closes doors after losing investor complaint

Ages Financial Services had about 60 financial advisors registered under its roof.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound