A recent study has found that 25 percent of parents and one in three high school students are unaware of the true cost of attending college.
According to the Vice President of Retirement and College Leadership at Fidelity Investments, Rita Assaf, one in four parents think that a year of attending college will cost them less than $5,000. In reality, she said, the average cost of attending in-state colleges for one year is $26,000.
She suggested that parents should thoroughly research and understand the real cost of sending their kids to colleges. She said this is an essential element in avoiding any misguided financial decisions.
“They’re benchmarking against when they went to school. What we’re saying is, take the time now to look at what the costs are through free tools and calculators that are out there, so you can plan ahead,” Assaf explained to WTOL 11.
When planning, Assaf said it is important for families to initiate a conversation to identify the expenses associated with studying at a college or university. Families must also think of ways they can afford tuition if they want their kids to graduate with a degree.
‘Concerned About the Cost’
The study by Fidelity Investments shows that a great number of current generation high school students are concerned about the cost of college. Forty percent of the respondents said the “cost” is the most important factor to consider when going into college.
Meanwhile, around 60 percent of students have stated that the COVID-19 pandemic has reshaped their view of college. They also admit to seeing other generations struggle with student debt.
Colleges Engineering ‘Own Meltdown’
The American Council of Trustees and Alumni (ACTA) conducted a study to find out the major cause of tuition inflation among many colleges in the country.
The organization found that higher education institutions have spent excessively on “bloated administration and student services programs,” causing them to increase tuition. This, ACTA said, is causing colleges to engineer their own “meltdown.”
“It’s wonderful to spend money on programs and to have new offices, but they have to ask what will be the impact of this,” ACTA stressed in a press release.