College Ave Student Loans Survey Finds Families Split on Whether a Child Should Help Pay for College
Nearly three-fourths of parents will help their child pay back their student loans
(Wilmington, DE) April 10, 2019
With College Decision Day on May 1, many college-bound high school seniors and their parents are in the exciting process of making their final school choice. As families deliberate during these final weeks, a national survey of 5,416 parents of college students sponsored by College Ave Student Loans and conducted by Barnes & Noble College Insights™ sheds light on what impacts a family’s decision and how they plan to pay for the upcoming school year.
Cost affects the decisions in the mix.
- Nearly two-thirds (64%) said the cost of college impacted their decision on whether to apply to a particular school.
Merit aid is important.
- Two-thirds (66%) said the amount of merit aid (i.e. scholarships, grants, etc.) received was a deciding factor in their final school choice. Nearly the same number of parents (60%) said their child’s student loan debt was also important.
The financial aid award letter is not written in stone.
- Financial aid award letters from colleges arrive in the spring. Each letter features an EFC – or expected family contribution – of what the family should budget toward the cost of college.
- For families surveyed, 43% said they paid more than the EFC. The top three costs were: tuition and fees, housing, and books and supplies. Of those families that received letters, 17% appealed with more than half (58%) of those parents successful in receiving more aid from the school.
Families split on whether children should help pay for college.
- It’s nearly split on whether a child helps pay for the cost of college – 49% said yes, 51% said no. For the parents (51%) who have a child that helps pay, the child contributes up to 10% of the total cost.
Students take out loans, but parents typically help pay them off.
- Around half (55%) of parents said their child took out federal and/or private student loans in his/her name; however, nearly three-fourths (72%) will help pay off some or all of the loans. Of those who have children with loans, 1 in 10 parents said they will pay off the entire loan amount.
Parents send their child off to school on the right financial foot.
- Nearly three-fourths (74%) of parents helped their child set up a budget before they headed off to school.
- Two-thirds of parents (66%) expect their child to work while in school.
“The College Ave Student Loans survey highlights the varying and considerable financial role parents provide as their college-bound senior heads to school,” said Joe DePaulo, CEO and Co-Founder of College Ave Student Loans. “Whether parents are advocating for more financial aid, helping a child create a financial budget, or helping pay off a child’s student loans, parental support serves as a cornerstone in many student’s financial plans for college.”
For more information about ways to plan and pay for college, visit the resources at College Ave Student Loans: https://casl-redesign:8888.
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.