In a disturbing report released this week, data shows that more and more parents are paying off their own student loans while also paying for their own children’s college tuition.
College Ave Student Loans and Barnes & Noble College Insights recently conducted a national survey evaluating 5,416 parents of college students found that 99% of families chip in to pay for some of their childs tuition costs.
But that’s becoming a more difficult task as they continue to foot the bill for their own student loans.
From the press release:
Close to half (44%) of parents are paying off their own student loans, while also paying for a child’s college tuition. Nearly 1 in 3 (32%) find themselves using their credit card more. And approximately three-fourths (74%) have delayed some major purchase, with vacation plans, home renovations and car buying ranking as the top three.
When it comes to retirement, nearly half (46%) say they will retire later than anticipated. And of those who will retire later, more than half (59%) say it will be anywhere from 3 to 7 years.
“Our survey highlights the important value parents place on a college degree as an investment in their child’s future,” said Joe DePaulo, CEO and Co-Founder of College Ave Student Loans. “The cost of obtaining a higher education degree can be one of the biggest expenses a family tackles together. Often the best financial approach requires flexibility and preparation from both parents and students, a willingness to make some sacrifices on each side, and an open door to talk about finances frankly.”
Certified Financial Planner Jeff Rose, founder of GoodFinancialCents.com and author of Soldier of Finance has suggested a number of tips including establishing 529 college saving plans, asking family members to contribute ‘the gift of education,’ seeking additional scholarships, and asking children to assume their own debt.
