Upromise Survey Reveals Stormy Economy is Increasing Parental Anxiety over Saving for College

NEWTON, Mass.--(BUSINESS WIRE)--As prices of gas and groceries increase alongside tuition bills, American parents are focusing their efforts on paying for everyday expenses rather than saving for future costs, such as their children’s college education. Of 1,000 parents who participated in a Upromise survey conducted by e-Rewards, nearly 80 percent said they didn’t think they were saving enough for college and 58 percent credited this to the rising prices of gas, groceries and utilities. More than 75 percent think the government needs to do more to make college more affordable and roughly 67 percent said the presidential candidates’ stances on this issue will influence their voting decision in November.

“Our survey reveals parents are concerned about the growing cost of college and finding it increasingly difficult to save for it,” said David Rochon, President, Upromise, the largest private source of college funding contributions in America. “Even in a tough economy, we want people to know there are still ways to save. Using free programs like Upromise to earn money back on daily expenses, regularly setting aside some of their own money and rolling those savings into a 529 college savings plan can make a real impact over time.”

Other significant survey findings include:

• 82 percent agree or strongly agree with the statement that they are concerned with the growing cost of college.
• More than half (52 percent) say the main reason for people dropping out of college is lack of affordability.
• 88 percent agree or strongly agree with the statement that a college education is necessary to compete in a global economy.
• 79 percent agree or strongly agree that America is falling behind other countries in quality of education and 67 agree or strongly agree it is falling behind other countries in terms of access to education.
• Just one year ago, parents responded to a Upromise survey question asking what they would do with an extra $10,000 and 41 percent said they would save it for college. This year, Upromise asked the same question and a mere 14 percent opted to allocate the money to college, while 44 percent would use it to pay down daily expenses and reduce debt.

Despite worries about the economy, parents are expected to increase their spending on back to school items this fall. According to the National Retail Federation, the average family with school-aged children will spend $594.24 on back-to-school purchases, compared to $563.49 last year. What many parents don’t realize is that when they join Upromise and shop hundreds of retailers, each purchase can boost their college savings.

Back-to-School Savings Opportunities

Upromise helps consumers get a jumpstart on saving by offering a percentage back on items they need such as school supplies, new clothes, a laptop or dorm room necessities. By taking advantage of key shopping seasons such as back-to-school, rolling these earnings into a 529 college savings plan and contributing as little as $25 of their own money each month, parents will see how small steps can lead to substantial savings over time. To provide even more help this fall, Upromise is offering ten winners the chance to earn $10,000 for college as part of its $100,000 College Dreams Sweepstakes. No purchase is necessary to enter or win. For more information, visit www.upromise.com/dream.

About the Survey

The e-Rewards, Inc. Consumer Online Omnibus is fielded weekly to 1500 U.S. Consumers 18 and over using a U.S. census sample framework. It has an approximate margin of error of +/- 3%.

About e-Rewards, Inc.

e-Rewards, Inc., based in Dallas, TX, is the largest “by-invitation-only” online research panel, serving over 700 research firms. With millions of panelists, the e-Rewards Opinion Panels provide research firms with quality respondents – enabling them to interact with real consumers and business decision-makers. Launched in 1999 e-Rewards was named in 2007 by Inc. magazine as one of America’s fastest growing companies. Recognized in 2008 by the Society of HR Management and the Great Place to Work Institue as one of the 25 Best Medium Sized Companies to work for in America, e-Rewards employs over 325 professionals located in Dallas, London, Los Angeles, New York, San Francisco, Chicago, and Seattle. For more information, visit www.e-rewardsresearch.com.

About Upromise

Launched in April 2001, today Upromise is the largest private source of college funding contributions in America, with more than 9 million members and $425 million in member rewards. Membership is free and can help families save money for college while making everyday purchases of products and services at more than 21,000 grocery and drug stores, 14,000 gas stations, 8,000 restaurants, as well as thousands of retail stores, and more than 600 online shopping sites. Upromise partners include Citi®, ExxonMobil Corporation, Bed Bath & Beyond®, McDonald’s®, JCPenney.com, LandsEnd.com, Sears.com, and hundreds of others. Upromise also makes it easy for families to start their own college savings strategy through tax-advantaged 529 college savings plans offered through Upromise Investments, Inc. or by using Upromise contributions to help pay down eligible student loans. Upromise is a wholly owned subsidiary of SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, the nation’s leading provider of saving-and-paying-for-college programs. Upromise is headquartered in Newton, Mass., and has more than 350 employees. For additional information, visit www.Upromise.com.