National Survey Says 74% of Parents Are Willing to Help Pay for
College;
75% Worry about Having Enough Money to Help Out;
87% Think Their Children Should Cover at Least Some of the Cost
RIVERWOODS, Ill.--(BUSINESS WIRE)--Jul. 23, 2012--
Seventy-four percent of adults with teens considering college want to
help finance their child’s education in some way, but just as many are
worried about how they will pay for it, according to a survey
commissioned by Discover Student Loans.
In an independent survey of U.S. parents with college-bound teens 16 to
18 years old, 81 percent of parents reported that college was very
important to their child’s future. However, 75 percent are very or
somewhat worried about being able to offer enough help. Another 17
percent are not very worried about having enough money to pay for
college, and 6 percent are not worried at all.
“Parents overwhelmingly agree that a college education is an important
investment in their children’s future,” said Carlos Minetti, president
of consumer banking and operations at Discover. “We see that families
want to help their children receive a college degree and are
knowledgeable about the funding options available.”
Parents and Children to Share the Cost of
College
Parents were asked how much of their child’s education they can afford
and 29 percent reported they can pay up to a quarter, while 15 percent
can pay half and 23 percent can pay up to three quarters or all of
college costs. One in four families responded saying they can not afford
to pay for any of their child’s education.
When it comes to sharing the cost, 39 percent of parents expect their
children to take responsibility for all or most of tuition costs, while
another 48 percent expect their children to be responsible for some of
the cost, and 10 percent do not expect their children to pay anything.
More than half of parents expect to help their children repay student
loans: 22 percent said it is very likely they will help, 33 percent were
somewhat likely, 28 percent were not very likely, and 13 percent are not
likely at all to help pay off loans.
Financing Education with Family Savings
The main source of funds for many families will be savings, but a
considerable amount of parents think student loans are an inevitability
to cover the remaining cost of college.
When asked to choose from a list of options, 36 percent of parents said
most of the money to pay for their children’s educations will come from
savings accounts – 24 percent from family savings and 12 percent from
529 savings plans, followed by:
|
|
28%
|
|
|
5%
|
|
|
4%
|
-
Second mortgage or refinance
|
|
3%
|
|
|
13%
|
|
|
11%
|
Most parents feel like they know what funding sources are available,
with 42 percent feeling somewhat knowledgeable about their options, 29
percent feeling very knowledgeable, 24 percent not very knowledgeable,
and 4 percent not at all knowledgeable.
Financial Aid Offices Trusted Most for
Information about Paying for College
The survey found that parents put a significant amount of trust in
financial aid officers, many of whom are attending the National
Association of Student Financial Aid Administrators convention in
Chicago July 22 to 25.
When asked to choose from a list of the most reliable sources of
information on paying for college, 47 percent of parents put their trust
in financial aid officers, followed by:
-
Personal financial advisors
|
|
11%
|
-
Guidance counselors in high school
|
|
7%
|
|
|
6%
|
|
|
6%
|
|
|
3%
|
|
|
8%
|
|
|
11%
|
The national survey of 800 adults who have children 16 to 18 years old
that are planning on going to college was conducted July 2 to 8, 2012,
by Rasmussen Reports, an independent survey research firm (http://www.rasmussenreports.com).
The margin of sampling error was +/-4 percentage points with a 95
percent level of confidence.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and payment
services company with one of the most recognized brands in U.S.
financial services. Since its inception in 1986, the company has become
one of the largest card issuers in the United States. The company
operates the Discover
card, America's cash rewards pioneer, and offers home loans, private
student loans, personal loans, online savings accounts, certificates of
deposit and money market accounts through its direct
banking business. Its payment
businesses consist of Discover
Network, with millions of merchant and cash access locations; PULSE,
one of the nation's leading ATM/debit networks; and Diners
Club International, a global payments network with acceptance in
more than 185 countries and territories. For more information, visit www.discoverfinancial.com.
|
National survey of 800 adults with children 16 to 18 years old
who have children planning on going to college
|
Conducted July 2-8, 2012, By Rasmussen Reports
|
Margin of sampling error: +/- 4 percentage points with a 95
percent level of confidence
|
Commissioned by Discover Student Loans
|
|
A.
|
|
How important is college to your child’s future?
|
|
|
81%
|
|
Very important
|
|
|
14%
|
|
Somewhat important
|
|
|
3%
|
|
Not very important
|
|
|
1%
|
|
Not at all important
|
|
|
1%
|
|
Not sure
|
|
B.
|
|
Will you be helping your child pay for his or her college
education?
|
|
|
74%
|
|
Yes
|
|
|
15%
|
|
No
|
|
|
11%
|
|
Not sure
|
|
C.
|
|
How worried are you about having enough money to help pay for your
child’s college education?
|
|
|
47%
|
|
Very worried
|
|
|
28%
|
|
Somewhat worried
|
|
|
17%
|
|
Not very worried
|
|
|
6%
|
|
Not at all worried
|
|
|
1%
|
|
Not sure
|
|
D.
|
|
How much of your child’s education can you afford?
|
|
|
24%
|
|
None of it
|
|
|
29%
|
|
Up to 25% of it
|
|
|
15%
|
|
Up to 50% of it
|
|
|
10%
|
|
Up to 75% of it
|
|
|
13%
|
|
All of it
|
|
|
10%
|
|
Not sure
|
|
E.
|
|
Where will most of the money come from to pay for your child’s
college education?
|
|
|
12%
|
|
529 savings plan
|
|
|
24%
|
|
Family savings
|
|
|
28%
|
|
Student loans
|
|
|
5%
|
|
Take second job
|
|
|
3%
|
|
Second mortgage or refinance
|
|
|
4%
|
|
Retirement funds
|
|
|
13%
|
|
Some other source
|
|
|
11%
|
|
Not sure
|
|
F.
|
|
How knowledgeable are you about the funding options available for
financing your child’s college education?
|
|
|
29%
|
|
Very knowledgeable
|
|
|
42%
|
|
Somewhat knowledgeable
|
|
|
24%
|
|
Not very knowledgeable
|
|
|
4%
|
|
Not at all knowledgeable
|
|
|
1%
|
|
Not sure
|
|
G.
|
|
If your child had to rely on student loans or other types of loans
for college, how likely are you to help them pay back the loans?
|
|
|
22%
|
|
Very likely
|
|
|
33%
|
|
Somewhat likely
|
|
|
28%
|
|
Not very likely
|
|
|
13%
|
|
Not at all likely
|
|
|
4%
|
|
Not sure
|
|
H.
|
|
How much responsibility should your child have in paying for their
college education?
|
|
|
12%
|
|
All of it
|
|
|
27%
|
|
Most of it
|
|
|
48%
|
|
Some of it
|
|
|
10%
|
|
None of it
|
|
|
3%
|
|
Not sure
|
|
I.
|
|
Which do you consider the most
reliable source of information on paying for college?
|
|
|
47%
|
|
Financial aid offices of colleges
|
|
|
11%
|
|
Personal financial advisors
|
|
|
7%
|
|
Guidance counselors in high school
|
|
|
6%
|
|
Friends and family
|
|
|
6%
|
|
The Internet
|
|
|
3%
|
|
Banks and other lenders
|
|
|
8%
|
|
Some other source
|
|
|
11%
|
|
Not sure
|
Source: Discover Financial Services
Discover Financial Services
Rob Weiss, 224-405-6304
robertweiss@discover.com