How Over 3k Parents Plan to Pay for College: Answers from College Ave Student Loans Survey
5 in 10 families plan to borrow to help cover expenses
(WILMINGTON, DE) May 30, 2018
With college tuition bills on the horizon, now is when many parents decide how to pay for the upcoming school year and determine how much will come from grants and scholarships, savings and income, or loans. Twice as many parents (69%) found this time – figuring out how to pay for college – more stressful than the college selection process (30%), according to a survey of 3,510 parents of college students from College Ave Student Loans conducted by Barnes & Noble College InsightsSM. And, four times as many parents (35%) are worried more about college costs and affordability than their child living away from home (9%). For 1 out of 10 families (14%), the stress during this time also includes parents who carry personal student loan debt along with the cost of their child’s college tuition.
For the 3,510 parents surveyed, here is a snapshot of how they plan to pay for the upcoming school year:
- 67% scholarships and grants
- 67% savings and income
- 47% federal student loans
- 15% federal parent loans
- 11% work-study program
- 11% private student loans
- 8% other family member contributing
- 7% credit card
- 5% private parent loan
- 3% home equity loan
And, of the parents who are using savings to pay for college, the source of savings is:
- 46% bank account
- 27% 529 savings account
- 6% brokerage account
- 5% retirement account
Overall, the majority of parents (59%) said college was more expensive than they had anticipated, with the cost of tuition, housing and books and supplies ranking as the top three surprises in terms of costs.
“Our survey highlights the stress parents feel about how to pay for college, and the variety of resources parents rely on to put together a financial plan for their child’s higher education,” said Joe DePaulo, CEO and Co-Founder of College Ave Student Loans. “While 67% of parents plan on using grants and scholarships and/or savings for payment, almost half still plan on using some kind of parent or student loan to close the gap. At College Ave, we’re here to help provide options for overwhelmed parents who are looking for financing options. We’ll make it fast and easy, and give you the options to create a personalized payment plan that works with your family’s budget.”
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 InsightsSM. The national survey had 3,510 parent respondents and was conducted April 13 – April 17, 2018.
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 781 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.