WILMINGTON, Del.--(BUSINESS WIRE)--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.