College Ave Student Loans Survey Finds Majority of Parents are Saving for College; Nearly 75% With Up to $40,000 in College Savings Accounts
WILMINGTON, Del., Dec. 18, 2019 /PRNewswire/ -- If you are a parent of a high school senior, get financially organized in the new year for the next stage of your child’s education. The good news: more than two-thirds (68%) of parents with at least one child enrolled in college have saved or are currently saving to help pay for their child’s education, according to a national survey of 1,072 parents of current college students by College Ave Student Loans conducted by Barnes & Noble College InsightsSM*. For those setting aside money, nearly 3 out of 4 (71%) of these parents had up to $40,000 accumulated by their child’s freshman year. And for the rare 1 out of 10 families (11%), there was more than $100,000.
Parents rely on a mix of savings options to save for their child’s college, according to the survey. More than half use a savings or checking account (53%) or a 529 account (53%). Investment accounts are used by 1 out of 5 (20%); savings bonds about 1 out of 10 (9%). Some parents are using their retirement as college savings accounts: 401Ks (9%) and traditional IRAs (5%).
But there’s always room for improvement: Despite regularly setting aside money for their child’s education monthly or bi-monthly (42%) or weekly or bi-weekly (18%), less than half of parents (44%) feel good with the amount they have saved. Regardless if they have saved money or not, the cost of college feels overwhelming to the majority of all parents (68%), according to the College Ave survey. And it’s easy to see why: in 2018-2019, tuition and fees and room and board at a public in-state school was more than $21,000 and more than $48,000 at a private university, according to The College Board.
“The survey highlights that the majority of parents are saving and saving regularly. By making these money moves, parents should feel good that they are taking the right steps for their child’s education,” Joe DePaulo, Co-Founder and CEO of College Ave Student Loans. “As your child enters their last year of high school, it’s a good idea to reassess your college savings and get a plan started now of how you will pay for four years of college.”
While savings is an excellent place to start, you can make more financial moves in the new year to make sure you have a smart money strategy plan in place. To help, DePaulo offers the following financial checklist for parents of high school seniors:
For more ideas on how to help your child get ready for their first year of college, visit the resources and tools at collegeavestudentloans.com.
About the Survey
*The College Ave Student Loans survey was conducted by Barnes & Noble College InsightsSM. The national online survey of parents with at least one child currently in college had 1,072 respondents and was fielded in September 2019. In the past year, Barnes & Noble College Insights has conducted more than 50 research studies and 100+ survey polls of students, faculty and parents that interact with one of its 772 campus bookstores across the nation.
About College Ave Student Loans
College Ave Student Loans is simplifying the student loan experience so students can get on with what matters most: preparing for a bright future. As a fintech lending company with a sole focus on private student loans, we’re using technology and our deep industry expertise to connect families who need to cover education costs with lenders who can provide that funding. By specializing in student loans, we are able to give our customers the attention they deserve and deliver loans that are simple, clear, and personalized for the individual: we help you find your perfect fit. We offer competitive rates, a wide range of repayment options, and a customer-friendly experience from application through repayment. Visit: www.collegeavestudentloans.com.
About Barnes & Noble College
Barnes & Noble College, a Barnes & Noble Education company, is a leading operator of college bookstores in the United States. Barnes & Noble College currently operates 772 campus bookstores and the school-branded e-commerce sites for each store, serving more than 5 million college students and faculty nationwide. General information on Barnes & Noble College can be obtained by visiting the Company’s website: www.bncollege.com.
View original content: http://www.prnewswire.com/news-releases/college-ave-student-loans-survey-finds-majority-of-parents-are-saving-for-college-nearly-75-with-up-to-40-000-in-college-savings-accounts-300977048.html
SOURCE College Ave Student Loans