Parents are less worried about funding their child’s education than they were in 2020
(Wilmington, DE) June 22, 2021 – Families are notably more confident about funding higher education costs in 2021, according to a new College Ave Student Loans survey of 1,045 parents conducted by Barnes & Noble College InsightsTM. While around half (51%) of those parents paying for college agree that the pandemic has negatively affected their finances, compared to 2020, fewer families need to cover the shortfall by dipping into savings (34%, down from 51% in 2020) and borrowing student loans (24%, down from 45% in 2020). Double the number of families plan to use investment assets (16% up from 8% in 2020), while 1 out of 10 (10%) plan to appeal their financial aid award letter. Perhaps this is why less families report feeling overwhelmed by the cost of college this year, down to around half from nearly three-fourths of respondents in 2020 (55% vs. 71%).
“The uncertainties that resulted from the COVID-19 pandemic created financial challenges for so many families,” said Joe DePaulo, Co-Founder and CEO of College Ave Student Loans. “However, this new research assures us that there is light at the end of the tunnel, with more families feeling optimistic about their college financing plans. The findings of this survey prove just how determined students and their families are at getting that college degree regardless of last year’s unforeseeable circumstances.”
The survey results also highlight that the “sticker shock” felt by many parents last year is also down in 2021. Less families were surprised by the cost of:
With tuition payments on the horizon, College Ave encourages college-bound students and their families to explore all their college financing options. There is no “one size fits all” approach. When creating a college funding plan, consider:
- Filling out the FAFSA form to determine how much financial aid you qualify for. If your household income has changed as a result of the COVID-19 pandemic, reach out to your financial aid office and see if you may be eligible for adjustments regarding your financial aid package.
- Continue to apply for scholarships, like the $1,000 monthly scholarship sweepstakes from College Ave.
- Figure out how much you can contribute from current income and savings, and be creative. According to the survey,14% of families plan to use their stimulus checks and 10% plan to find a side hustle or second job.
- Consider asking your child to contribute. Half (51%) of parents expect their child to find a job while in college. Also check to see if your school offers a tuition payment plan to help break out the cost of into smaller installments instead of one lump sum.
- If you find you still have a gap, student loans are one option and a way to get immediate financing for college. Use federal loans in the student’s name first as those come with certain protections and benefits typically only found through the federal program. If you still have a gap, private loans like those offered by College Ave Student Loans can help cover the reaming costs. Make sure to identify a lender, like College Ave, that offers good rates and flexible repayment terms to fit your family’s budget.
For more information on how to plan and pay for school, visit collegeavestudentloans.com.
About the Survey
The College Ave Student Loans survey was and conducted by Barnes & Noble College InsightsTM. The national online survey of parents of undergraduate students who attend a 4-year college or university at one of the campuses served by Barnes & Noble College had 1,045 respondents and was fielded in May 2021. Last year, Barnes & Noble College Insights conducted more than 50 research studies and 100+ survey polls of students, faculty and parents that interact with one of its more than 700+ campus bookstores across the nation.
About College Ave Student Loans
College Ave Student Loans started with a big vision and a simple mission – take the stress out of paying for college so students can focus on preparing for a bright future. Now a leading fintech lending company, College Ave remains committed to using best-in-class technology and deep industry expertise to deliver practical and personal solutions that give young adults a running start on their roads to financial success. We offer best in class products with competitive rates and a customer-friendly experience from start to finish. Visit: www.collegeavestudentloans.com.
Emily Hollenbeck, Duffy & Shanley, Inc., [email protected], (401) 278-4432