Parents are less worried about college fees, and some still rely on student loans, according to the survey.

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Parents feel more confident paying tuition in 2021, from a “tuition shock” to college savings, according to a new study. (iStock)

The pandemic has cast a shadow over the finances of many American families, and rising college tuition costs remain a barrier for young people looking to graduate. But despite the challenges, according to a recent survey, parents are more confident in funding higher education for their children in 2021.

Fewer families feel overwhelmed by the cost of college this year compared to last year – 55% in 2021 versus 71% in 2020, according to a survey of 1,045 parents conducted by the company. Student Loans College Ave and Barnes & Noble College Insights found.

“The results of this survey show how determined students and their families are to pursue higher education degrees, despite the unforeseen circumstances of the past year.”

– Joe DePaulo, co-founder and CEO of College Ave Student Loans

Parents use several ways to fund their children’s college education, from savings accounts to student loans. If you are considering getting a private student loan for your college student, you can pre-qualify for Credible to see approximate rates and conditions without affecting your credit rating

STUDENT LOAN RATES HAVE SET NEW RECORD LOWS: HOW TO KNOW IF YOU SHOULD REFINANCE

One in four parents will take out a student loan to pay for college tuition

The first step to funding college tuition usually begins by filing a FAFSA form to determine if your student is eligible for financial aid. After that, about a third (34%) of parents will cover their expenses through savings, while 16% will use investment assets and 10% plan to appeal their financial aid letter. Almost a quarter (24%) said they would take student loans on behalf of their children.

The good news is that a private student loan interest rates remain at an all-time low… Interest rates on 10-year fixed rate loans averaged 3.50% among borrowers with a credit rating of 720 or higher who chose a lender on the online loan marketplace Credible during the week of June 14, 2021.

Make sure you get the lowest rate on a private student loan for your child by buying from multiple lenders on an online marketplace like Credible.

ON STUDENT LOANS, RATES TO GET THE NEAREST RECORDS, HOW TO CALCULATE YOUR SAVINGS

Many parents are surprised at the cost of tuition, room and board.

The survey showed that many parents were “shocked” by the cost of university education. But in 2021, they were less surprised than in 2020.

While it is common knowledge that college is expensive, this suggests that it is more expensive than the parents intended.

Between FAFSA forms and scholarship and grant applications, you may still not receive the money you need to fund your child’s education. In this case, you may want to consider obtaining a student loan. You can use Credible’s student loan repayment calculator to estimate your monthly payments.

WHY COLLEGE STUDIES AND FEE GROWS FASTER THAN FINANCIAL ASSISTANCE

How to know which type of student loan is right for your child

Student loans are divided into two categories – federal and private. Federal student loans include protections such as income-based repayment plans, loan forgiveness, and adversity tolerance. However, federal loans may not fully cover the cost of college tuition.

If you still need to borrow more money to pay your school fees, consider private student loans. It’s a good time to borrow since interest rates are low and you can search for the lowest price for private loans using an online marketplace such as Credible.

HAVE $ 100,000 STUDENT DEBT? 5 WAYS TO HELP PAY

Have a financial question but don’t know who to contact? Write to the Safe Money Specialist at moneyexpert@credible.com and your question can be answered by Credible in our Money Expert column.

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