44% of parents are paying off their own student loans, while also
paying for a child’s college tuition
WILMINGTON, Del.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/FAFSA?src=hash” target=”_blank”gt;#FAFSAlt;/agt;–With high school graduation on the horizon, many families will soon be
facing their first college tuition bill. Fortunately for soon-to-be
college freshmen, nearly all parents (99%) chip in to pay for some of
their child’s tuition costs, according to a national survey of 5,416
parents of college students sponsored by College
Ave Student Loans and conducted by Barnes & Noble College Insights℠.
However, with the commitment to their child’s education also comes
difficult financial decisions and tradeoffs.
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.”
To help families balance the cost of college among a list of important
financial obligations, College Ave has teamed up with Certified
Financial Planner Jeff Rose, founder of GoodFinancialCents.com and
author of Soldier of Finance. Rose offers these tips:
-
Ask for the gift of education. If there’s anything a child does
not need, it’s more stuff. Don’t be afraid to ask relatives to give
your child the gift of education and ask them to contribute to your
child’s 529 or college savings plan. -
Have a candid discussion about debt. Before parents consider
co-signing for student loans or taking out a parent loan, sit down
with your high school student and discuss what debt means and how it
impacts the family. -
Make a plan how to pay and be creative. The more planning that
parents do with their kids on the costs of college, the more creative
they can be in paying for college. For example, have a “scholarship
hunt” and together, scour all of the possible scholarship options to
help pay for school. -
Don’t feel obligated to pay for the entire cost of your child’s
college. Especially if you have student loans, pay for your own
loans first before paying for a child’s college tuition costs. Help
teach your child the fundamentals of money management so they can
borrow smart. -
Don’t skimp on your retirement. Your child has years to plan,
prepare and save for their financial future. You do not. Make sure you
set yourself up for success first and show your family a pathway to
financial independence and security.
For more information about ways to plan and pay for college, visit the
resources at College Ave Student Loans: https://www.collegeavestudentloans.com.
About the Survey
The College Ave Student Loans survey was conducted by Barnes & Noble
College Insights(SM). The national survey had 5,416 parents of college
students respondents and was fielded in March 2019.
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 (NYSE:BNED), is a leading operator of college bookstores
in the United States. Barnes & Noble College currently operates 773
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.
Contacts
Katherine Jacobs, College Ave Student Loans, [email protected],
(302) 684-6066
Emily Hollenbeck, Duffy & Shanley, Inc., [email protected],
(401) 278-4432
