Saving for college in the U.S. - Statistics & Facts

With the costs of a college education skyrocketing in the United States and an ever increasing rate of college enrollment it is never too early to start planning ahead for a child’s college education. However many parents cannot afford to save for their children's college education. Almost 20 percent of the parents surveyed plan to rely on student loans, which means that future generations of graduates will have to bear the financial burden.

It is estimated by some experts that a college education can lead to a lifetime earnings increase of around 250,000 U.S. dollars, however the rate of saving for college differs between generations. In 2016, Millennial parents’ average saving for college tuition fees amounted to 20,155 U.S. dollars, which is arguably a significant proportion of their income. In contrast, Generation Xers saved only 12,428 U.S. dollars.

The government offers some benefits for those who save for future college costs. One such example are 529 plans, which give tax advantages to savers. However more work is needed on the publicity side of this program, because a 2017 survey demonstrated that only 30 percent of the Millennial respondents were aware of 529 college saving plans.

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Saving for college in the United States - Important statistics

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Saving for college in the United States
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