Tags: Coronavirus | Education | Financial Markets | Money | Polls | college | savings

Study: COVID-19 Impacting College Savings, Optimism

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By    |   Tuesday, 09 June 2020 04:23 PM

COVID-19 continues to affect students and their parents as they prepare for college, according to a new study by CollegeFinance.com obtained exclusively by Newsmax.

According to the study, one in five parents say lockdowns related to the pandemic are negatively impacting their child's enthusiasm and optimism about attending college in the fall.

Layoffs have left many people with jobs considered "nonessential" who are unable to do their work from home without a paycheck. And almost half of those surveyed their ability to set aside funds for their child's college education has been hindered.

"While we know the pandemic is a financial burden for many parents, we thought it was startling to find that approximately half of our respondents said the virus was hindering their ability to pay for their child’s future college education," Kevin Walker, CEO of CollegeFinance.com, told Newsmax.

The survey spoke to more than 1,000 parents of both college students and those planning to attend college. The average parent of a high school student said they had saved $20,700 for their child's education. That is less than half the national average of $23,000 charged for one semester of college.

High-income parents, with annual incomes of more than $80,000, saved more than twice as much as low-income parents, those earning less than $35,000. High-income parents had saved about $19,000 while low-income parents had saved about $6,500.

Still, the survey found parents across the spectrum set aside about 18% of their income for their children's higher education.

With college costs constantly rising, other areas were sought to help make up the shortfall. These include scholarships, student loans, part-time jobs or selling personal items.

According to the study, nearly 1 in 10 parents don't talk about finances with their children before they begin the college application process, and 1 in 5 have saved nothing for their future education.

Read the full survey here.

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One in five parents say coronavirus lockdowns related to the pandemic are negatively impacting their child's enthusiasm and optimism about attending college in the fall, according to a new study by CollegeFinance.com obtained exclusively by Newsmax.
college, savings, student, loan, debt, covid-19, pandemic
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2020-23-09
Tuesday, 09 June 2020 04:23 PM
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