Parents may have the best intentions for their kids, but the high cost of college is making it harder and harder to meet their goals.
On average, parents plan to pay for just 57% of tuition, a new survey from Fidelity Investments found.
And even there, they are coming up short. Families have enough savings to cover just 30% of what they plan on paying, the study found.
To make up the difference, they will look to additional funding options such as student loans, grants, scholarships and gifts from grandparents.
Although more than three-quarters of parents said they don’t want to burden their children with hefty student loans, in many cases it may be unavoidable.
Graduates leave school with an average of $25,250 in student loan debt, according to recent reports.
“It’s important for parents to sit down as early as possible with their children to review their college savings goals and make adjustments where it makes sense,” John Eidson, a spokesman for Fidelity Investments, told the Daily News.
For now, many families are not facing up to the big issues.
Less than one-third of parents with college-bound students have considered issues like cost, the burden of graduating with debt or the impact of school selection, the study found.
But of those that are stepping up, 61% are willing to make the changes to help better manage post-graduation debt.
Nearly 40% of families are opting for less-expensive colleges, 28% are planning to rely more heavily on financial aid and 16% are asking their children to change majors to secure better salaries after graduation.