Parents Worried About Being Able to Afford College
May 18, 2009
Half of the parents that OppenheimerFunds recently surveyed don’t believe that college is as affordable as it once was, and 43% have saved less than $5,000 for their children’s college education, and another 13% have saved nothing at all. Only 20% have save $20,000 or more.
Nonetheless, 56% think that scholarship money will pay a substantial portion of the child’s college education, which is not always the reality, according to OppenheimerFunds. In the 2008-09 school year, aid in the form of grants and tax benefits averaged $3,700 for in-state students and public four-year colleges, while the annual cost was $14,333. At a private university, it’s even more” $34,132.
And most parents highly value college, with 80% saying the cost of a college education is worth it, given how it can boost a graduate’s earning power and ability to find a job.
“It’s not surprising that Americans value college so highly,” said Donna Winn, president and CEO of OppenheimerFunds Private Investments. “A college degree is still seen as a difference-maker, delivering a lifetime’s worth of benefits. At the same time, good intentions won’t be enough. In far too many families, there’s a disconnect between college hopes and financial realities.”
To help parents begin saving for their children’s college education through college savings 529 plans, OppenheimerFunds has launched a special educational website, www.collegewithinreach.com.
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