Parents Say College Is Important, Increase Financial Help

10/1/2013

More parents in 2013 say college is “very important” to their children’s futures than parents who said this in 2012 (87% vs. 81%), according to Discover Financial Services.

Parents in 2013 are also more likely than parents in 2012 to plan to help pay for their children’s college education (81% vs. 74%). However, parents in 2013 are also more likely than parents in 2012 to be worried about having enough money to contribute (79% vs. 75%).

Almost three in 10 parents in 2013 (29%) say that most of the money to pay for college will come from student loans, while 27% will use family savings, and 11% will use a 529 savings plan.

Two in three parents (68%) believe they are “very” or “somewhat” knowledgeable about the differences between federal and private student loans. And among families that plan on using student loans, 54% expect to use a combination of federal and private, 32% will just use federal, 4% will just use private, and 10% are unsure.

More than half of parents (58%) plan to help their children pay back any loans they use for college, up from 55% who felt this way in 2012. Four in 10 parents (40%) say their children fully understand the amount of debt they will graduate college with, though 32% think their children are only somewhat knowledgeable, and 15% think their children have no clue.

Slightly less than half of parents (47%) say college financial aid offices are the most trusted place for financial aid information, while 13% place their trust in financial advisors, and 8% trust friends and family.

SOURCE: Discover Financial Services, Rob Weiss, 2500 Lake Cook Rd., Deerfield, IL 60015; 224-405-6304; robertweiss@discover.com; www.discovercard.com.

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