"According to a survey of 1,000 parents from Citizens Bank, respondents say they are taking on a second job (19%), borrowing against their 401(k) or liquidating personal funds (30%), pausing investing entirely (26%), and cutting back on major purchases or vacations (66%). And more than 60% of parents reported they expect to delay their retirement in order to pay for their kids' college education."
"That's led more than 60% of parents to need to go "above and beyond" typical financing options like 529 plans and federal loans, according to the Citizens survey data. "Compared to just a few years ago, the pressure has increased due to rising tuition, inflation, and greater uncertainty around future costs," Tony Durkan, vice president and head of 529 college savings at Fidelity, told Fortune. "Many families are still underprepared, often relying on rough estimates rather than clear savings goals.""
College costs have risen dramatically, increasing financial pressure on parents who are sacrificing their own finances to cover tuition. A survey of 1,000 parents found 19% took a second job, 30% borrowed against 401(k) or liquidated funds, 26% paused investing, and 66% cut major purchases or vacations. More than 60% expect to delay retirement to pay for college. Tuition is roughly 40 times higher than in 1963, and four-year public university tuition rose over 36% from 2010 to 2023, with average annual college costs near $40,000. Many families lack clear savings goals and may make risky financial choices.
Read at Fortune
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