Earlier today, Sallie Mae released its 2013 How America Saves for College Report. This report focuses on the many ways in which families plan, save and cobble together the sometimes staggering amount of money it takes to send a child to college. It’s a report College Parents of America always looks forward to reading, as it is a good indicator of how families are approaching collegiate financing.
Conducted via phone survey with Ipsos Research, there were a handful of surprising statistics.
The Stats You Should Know:
- Half of families are not saving for college at all.
- Despite rising college costs, fewer American families with children under age 18 save for college (50%) than did just two years ago (60%).
- 38 percent of parents are confident in their ability to meet the future costs of college.
- When asked how they feel about saving for college, parents were twice as likely to say “overwhelmed” than they were to say “confident.”
- Among non-saving families, 29 percent plan to begin saving within the next year and an additional 12 percent plan to begin within the next five years.
- Not all families have set a savings goal for themselves. Among those families who have set a savings goal for themselves, families plan to save close to $39,000 for each child’s college education costs.
From Where Will the Money for College Come?
- The average family expects that 32 percent of the cost of college will come from grants and scholarships, and that 32 percent will come from parent income and savings. The rest is expected to be paid through a combination of student borrowing (16%), parent borrowing (7%), student income and savings (8%), and relatives and friends (5%).
- Only 9 percent of families are expecting to pay the full cost of college from their savings.
Sallie Mae also put together this brilliant, brief infographic. It’s a nice quick source to get the heart of the report.