Saving for college remains a top priority

05.19.09
By Nicholas Storie

Although parents of pre-college age kids are juggling a number of different financial burdens, many remain committed to saving for a college education.

Survey results released by OppenheimerFunds reveal that while debt management is affecting a number of American families, saving for college - an increasingly daunting future expense for many parents - has remained a top priority for most households.

A reported 60 percent of survey participants have not put saving for college on hold and the identical percentage continue to contribute the same amount to saving plans dedicated to college costs.

The overwhelming majority of those surveyed - 92 percent - have not withdrawn money from already established savings plans despite facing other economic hardships.

But parents are concerned about the skyrocketing cost of college and their ability to meet future financial obligations in order for their kids to receive a higher education.

"These are particularly challenging times for families," said Donna Winn, president and CEO of OFI Private Investments. "As admirable as these savings efforts are, the reality is that many families just aren't saving as much as they should - especially if they want to preserve as many college options for their children as possible."

Student loans remain a viable financial tool to help reduce the burden of a college education, but the OppenheimerFunds survey shows that many parents are worried about their children carrying debt after school.

Parents largely want to pay or help pay for their child's schooling. The survey results show that 80 percent of respondents want to be able to pay for 50 percent or more of expenses and 24 percent want to be able to pay for everything.

Over 65 percent of American parents say they are trying to help pay for college so their children graduate with as little debt as possible.

More Credit & Debt Articles | News Home | Discuss in our Forum

College education costs are a stressor for some families