More parents plan to help with some college costs. In fact, the average parent plans on paying for around 62% of the total cost of college for their kids. And seven in 10 parents are actively saving for college costs. Currently, just 29% of parents plan to fully cover college costs for their kids.
Correspondingly, how much does the average parent pay for college?
On average, parents pay 10% of the total amount due with borrowed funds; students cover 14% with student loans and other debt-forming sources. The remaining 29% of the cost of college is mostly covered by scholarships and grants won by the student: 17% by scholarships and 11% by grants.
should I let my parents pay for college? However, financially, it typically does make the most sense for students to pay for their education (not parents). While student loan debt is a burden, at least students can get loans. Here are some reasons parents shouldn’t help pay for college: Students learn more responsibility and gain more real life skills.
Also to know is, how much do most parents save for college?
Parents are saving more for college this year than in the past, yet their preparedness could still use improvement. The average amount saved is around $18,000, up more than 10% from 2016 — and the highest amount since 2013, according to lender Sallie Mae’s 2018 report, “How America Saves for College.”
What is the best way for parents to pay for college?
The Best Way For Parents To Pay For College The best way to save is through a 529 College Savings Plan, which parents can start at birth. When saving in a 529 plan, the money inside will grow tax free, and can be withdrawn tax free for education purposes.