Poll: Almost Half of American Parents Can't Afford College Tuition

According to a national poll commissioned by Bankrate, 47% of American parent surveyed do not have the resources to put their children through college. Average tuition at a public 4-year university rose more than 35% in the last 5 years, increasing the tuition burden parents carry substantially. The increase in tuition is affecting everything from debt management to savings and retirement.

Most parents - 85% - expect their children to go to college. The feeling that undergraduate college degrees have become a basic requirement for success has led to such a high rate of expectation for parents. 78% of those parents responded that they were willing to sacrifice financially. However, 76% of the parent's polled said they have at least one financial concern that is higher than paying college tuition. Over a third expect to take a second job to pay for their children's higher education.

Many parents expect take loans, co-sign on student loans, or borrow on the equity in their houses. The possibility of financial aid in the form of grants or scholarships make it a "hope for the best, plan for the worst" case scenario.

"The findings of our poll show that the great majority of parents want their children to go to college and are willing to sacrifice to make it happen," said Ellen Cannon, managing editor of Bankrate.com. "From advice on saving strategies to guidance on 529 plans, Bankrate's college financing offering will help them through this process."

The poll was conducted for Bankrate by GfK Roper Public Affairs & Media. Over 1,000 households were randomly called nationwide called between August 25 and 27, 2007. A reliable representation of American households was achieved by weighting for demographic factors such as gender, race, education, and race.
Out of the households called, 280 interviews were completed by parents of children under the age of 18. Slightly more mothers responded than fathers, 153 vs. 127. The margin of error is +/- 6 points, and higher for subgroups. The complete results of the poll can be found online in Bankrate's Financial Literacy 2007 Guide to Maximizing Your College Fund.

Bankrate is a consumer banking marketplace, and offers guides and advice on banking, credit cards, investing, college tuition and retirement. Many financial calculators are available on their site. Bankrate belongs to a network that includes The New York Times, Yahoo, America Online and The Wall Street Journal. The college savings advice Bankrate recommends includes contributing to a 529, and using the financial calculators so parents can estimate how much financial aid they can expect.

SOURCE:

Bankrate, Inc., College Tuition Crunch, PR Newswire