According to an excellent article in the Suntimes, many parents putting away less savings for their children’s college education. Based on a survey by the College Savings Foundation, parents have saved less this year than last year, and a great number of parents saved nothing.
Some of the highlights of the survey include:
Parents who saved less than $5,000 per child for college totaled 65%. This includes 43% who saved $0. Savings rates were higher in the prior year.
63% of parents expect their kids to shoulder debt
70% of parents expect their kids to still be paying back loans beyond five years out, and 29% beyond 10 years out.
Student loans will be the top aid source for 37 percent of parents.
Many college applicants may only be offered admission at mid-year, instead of the fall. This is an increasing trend at colleges and universities.
Many schools are facing an increase in the number of qualified applicants. One of the reasons they offer the mid-year admission is smooth out campus populations. For example, to fill open spaces left by students who may have dropped out in December or graduated mid-year.
Some students may be disapointed that they were only offered admission in the mid-year semester. Faced with this situation, many students take fall classes at community colleges, which can transfer to their university. The delayed admission also provides time to save more tuition money by working at a full time job during the fall.