A new national survey finds families are overwhelmed and saving less for college than they were two years ago.
Sallie Mae's most recent "How America Saves for College" survey, released today, shows half of American families with children younger than 18 reported in 2012 that they were saving for college, compared with 60 percent in 2010. Researchers note the decline is likely a response to a protracted, weak economy and other priorities. "Families are focusing on 'rainy day' savings, general nondedicated savings, and retirement rather than college-specific savings," the report says.
When parents were asked why they aren't saving for college, responses varied. Top answers: Parents assume that financial aid will cover the cost of college; they think children are too young or too old to be saving; families are uncertain about which savings option to use; and others are merely procrastinating or feel it is up to the student to pay for college.
