Attending college is a major financial burden facing millions of families each year in the United States. The cost of obtaining a degree rises on an annual basis at a pace that regularly exceeds all broad inflation rates, and is fueled by lenders passing out student loans like candy. Although most parents believe there is value to be found in a college education, many worry about the long-term effects of graduating with debt.
The days of a college degree virtually guaranteeing material wealth are over. Ninety-six percent of parents see value in a college degree, but 85 percent are very or somewhat worried that student loan debt will hinder their child’s ability to purchase a home, car, or other large purchases after graduating, according to a new survey from Discover Student Loans. Only 3 percent say they are not at all worried about the side effects of debt. A little more than half of parents say they their child plans to use loans to pay for college.
“It is promising to see families recognize the investment in a college education and are considering their children’s long-term financial health beyond graduation,” said Danny Ray, president of Discover Student Loans, in a press release. “We hope that this annual survey brings to light the need for families to review all of their options when going to college. We encourage students to always use free money first when financing a college education and then, if needed, determine what lending options work best for their needs.”