May 9, 2016 9:04 AM | 55 min read | Make a Comment
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RIVERWOODS, Ill.--(BUSINESS WIRE)--
The fifth annual survey from Discover
Student Loans reveals that parents are slightly less worried when it
comes to having the funds to pay for college while nearly half, 48
percent, expect their child to pay for all or most of their education,
up from 39 percent in 2012.
"While a vast majority of parents still report that they want to help
their children pay for college, it's clear that students are being asked
to take on more financial ownership than in previous years," said Danny
Ray, president of Discover Student Loans. "With an increase in
responsibility comes the need to be prepared, and we encourage families
to have discussions early and often on how to pay for college."
The cost of college is an important factor when deciding on a school and
43 percent of parents responded saying that they are limiting their
child's college choice based on price. Interestingly, this number has
decreased since last year, when nearly half, 48 percent, said price was
limiting the choice of college.
Parents and Students Continue to Turn to Student Loans and Only Half
Completed the FAFSA
To help pay for college, 55 percent of parents say their children plan
to use student loans to pay for college, up from 50 percent in 2012.
Parents also appear to be more willing to help their children if they
take out student loans, as 61 percent are very or somewhat likely to
help them pay back loans, up from 55 percent of parents in 2012.
However, the majority of college-bound students appear to be missing out
on an opportunity for federal student aid. According to the 2016 survey,
only 44 percent of families completed the Free Application for Federal
Student Aid (FAFSA).
"We're happy that 95 percent of parents responded saying they continue
to see the value in their child earning a college degree, but we want
them to be clear on the financial aid and student loan processes," said
Ray. "Filling out the FAFSA is the first step in determining college
financial aid eligibility, and we provide useful tools
to help families through that process. If families are left with a gap
amount after exploring scholarships and grants, then we encourage them
to review all their options and determine what works best for their
situation."
When learning about scholarships, grants and loans, students are turning
to a variety of resources. When asked to consider the most reliable
sources of information, eleven percent of families said high school
guidance counselors, up four percent from last year, and 40 percent of
parents said college financial aid offices, which is a decline from 47
percent in 2012.
Impact of Long-term Student Loan Debt
Parents appear to be slightly less worried about the long-term financial
impact student loans may have on their child's future. While half of
parents responded saying they were very worried that student debt may
affect their child's ability to buy a house, car or other large
purchase, the number is down from 58 percent and 55 percent in 2015 and
2014, respectively.
Discover Student Loans offers tools and resources to help parents and
students understand the college financial process. For more information
about Discover Student Loans, please visit www.discover.com/student-loans.
About the Survey
The Discover national survey of 1,000 adults who have children 16 to 18
years old who are planning to attend college was conducted March
30-April 3, 2016, by Rasmussen Reports, an independent survey research
firm (http://www.rasmussenreports.com).
The margin of sampling error was +/-3 percentage points with a 95
percent level of confidence.
About Discover
Discover Financial Services DFS is a direct banking and payment
services company with one of the most recognized brands in U.S.
financial services. Since its inception in 1986, the company has become
one of the largest card issuers in the United States. The company issues
the Discover card, America's cash rewards pioneer, and offers private
student loans, personal loans, home equity loans, checking and savings
accounts and certificates of deposit through its direct banking
business. It operates the Discover Network, with millions of merchant
and cash access locations; PULSE, one of the nation's leading ATM/debit
networks; and Diners Club International, a global payments network with
acceptance in more than 185 countries and territories. For more
information, visit www.discover.com/company.
National Survey of 1,000 Adults With Children 16-18 Years Old Who
Have Children Who Are Planning on Going to College Conducted March
30-April 3, 2016 By Rasmussen Reports Margin of Sampling Error, +/-
3 percentage points with a 95% level of confidence Commissioned by
Discover Student Loans
2016
2015
2014
2013
2012
1. How important is college to your child's future?
82%
81%
85%
87%
81%
Very important
13%
14%
11%
11%
14%
Somewhat important
3%
3%
3%
1%
3%
Not very important
1%
0%
1%
0%
1%
Not at all important
1%
0%
0%
0%
1%
Not sure
2016
2015
2014
2013
2012
2. Beyond tuition, how knowledgeable do you feel about the entire
cost of a college education these days?
46%
46%
48%
49%
48%
Very knowledgeable
40%
39%
42%
39%
39%
Somewhat knowledgeable
11%
12%
8%
9%
11%
Not very knowledgeable
2%
3%
2%
3%
2%
Not at all knowledgeable
1%
1%
0%
0%
1%
Not sure
2016
2015
2014
2013
2012
3. Will you be helping your child pay for his or her college
education?
78%
75%
77%
81%
74%
Yes
13%
16%
16%
12%
15%
No
10%
9%
7%
8%
11%
Not sure
2016
2015
2014
2013
2012
4. How worried are you about having enough money to help pay for
your child's college education?
43%
45%
44%
47%
47%
Very worried
32%
33%
30%
32%
28%
Somewhat worried
17%
15%
18%
15%
17%
Not very worried
7%
6%
7%
6%
6%
Not at all worried
1%
1%
1%
0%
1%
Not sure
2016
2015
2014
2013
2012
5. How much of your child's education can you afford?
22%
24%
21%
21%
24%
None of it
29%
31%
30%
29%
29%
Up to 25%
18%
18%
19%
18%
15%
Up to 50%
10%
8%
11%
12%
10%
Up to 75%
11%
9%
11%
11%
13%
All of it
10%
10%
8%
9%
10%
Not sure
2016
2015
2014
2013
2012
6. Where will most of the money come from to pay for your child's
college education?
9%
12%
11%
11%
12%
529 savings plan
27%
25%
29%
27%
24%
Family savings
32%
29%
29%
29%
28%
Student loans
5%
5%
5%
6%
5%
A second job
3%
3%
2%
3%
3%
2nd mortgage or refinance
4%
3%
6%
4%
4%
Retirement funds
12%
13%
10%
12%
13%
Some other source
9%
9%
7%
10%
11%
Not sure
2016
2015
2014
2013
7. How knowledgeable are you on the difference between federal
and private loans? *
32%
29%
30%
29%
Very knowledgeable
32%
37%
40%
39%
Somewhat knowledgeable
26%
26%
22%
24%
Not very knowledgeable
8%
7%
7%
6%
Not at all knowledgeable
2%
2%
1%
1%
Not sure
2016
8. Did you complete the Free Application for Federal Student Aid?
*
44%
Yes
48%
No
8%
Not sure
2016
9. (Answered only by those who said they completed the
application) Using your keypad on a scale of 1 to 5 where five is
very easy and 1 is very difficult how would you rate your experience
in filling out the Free Application for Federal Student Aid? *
15%
1 – Very difficult
26%
2
36%
3
15%
4
9%
5 – Very easy
2016
2015
2014
2013
10. Is your child planning to use student loans to pay for their
college education? *
55%
54%
52%
50%
Yes
27%
26%
28%
32%
No
18%
20%
20%
18%
Not sure
2016
2015
2014
2013
11. (Answered only by those who said they were planning to use
student loans to pay for college) Does your child plan to use
federal student loans, private loans or a combination of both? *
34%
38%
38%
32%
Federal loans
6%
5%
3%
4%
Private loans
50%
47%
48%
54%
A combination of both
10%
9%
11%
10%
Not sure
2016
2015
2014
12. (Answered only by those who said they were planning to use
student loans to pay for college) How worried are you that student
loan debt may affect your child's ability to buy a house, car or
some other large purchase after graduation? *
50%
58%
55%
Very worried
31%
25%
30%
Somewhat worried
16%
14%
12%
Not very worried
3%
3%
3%
Not at all worried
0%
0%
0%
Not sure
2016
2015
2014
2013
2012
13. If your child had to rely on student loans or other types of
loans for college, how likely are you to help them pay back the
loans?
26%
25%
24%
25%
22%
Very likely
35%
33%
28%
33%
33%
Somewhat likely
24%
28%
30%
25%
28%
Not very likely
10%
11%
12%
13%
13%
Not at all likely
5%
4%
6%
4%
4%
Not sure
2016
2015
2014
2013
14. If you are taking out loans in your child's name, does your
child understand how much debt they will graduate with? *
41%
39%
42%
40%
Fully understands
34%
32%
32%
32%
Somewhat understands
12%
14%
14%
15%
Doesn't understand
13%
15%
12%
13%
Not sure
2016
15. How many times have you had a discussion with your child
about how to pay for their college education? *
12%
Never
8%
Once
27%
2-3 times
17%
4-6 times
33%
More than 6 times
3%
Not sure
2016
16. How important is including your child in discussions on
financial literacy as it relates to paying for college? *
76%
Very Important
17%
Somewhat Important
3%
Not very important
2%
Not at all important
2%
Not sure
2016
2015
2014
2013
2012
17. Which do you consider the most reliable source of information
on paying for college?
11%
7%
7%
6%
7%
Guidance counselors in high school
40%
43%
44%
47%
47%
Financial aid offices of colleges
5%
4%
3%
3%
3%
Banks and other lenders
14%
14%
14%
13%
11%
Personal financial advisors
8%
7%
9%
8%
6%
Friends and family
5%
6%
6%
7%
6%
The internet
8%
9%
8%
8%
8%
Some other source
9%
11%
9%
9%
11%
Not sure
2016
2015
2014
2013
2012
18. How much responsibility should your child have in paying for
their college education?
16%
15%
15%
13%
12%
All of it
32%
30%
32%
29%
27%
Most of it
40%
46%
43%
48%
48%
Some of it
9%
7%
8%
7%
10%
None of it
3%
3%
2%
3%
3%
Not sure
2016
2015
2014
2013
2012
19. Is earning potential after graduation more or less important
to your child's education than his or her major?
43%
47%
40%
42%
38%
More important
21%
19%
21%
22%
21%
Less important
30%
27%
30%
31%
32%
About as important
6%
7%
9%
5%
10%
Not sure
2016
2015
2014
2013
20. Are you limiting your child's college choice based on price? *
43%
48%
44%
49%
Yes
46%
41%
48%
40%
No
11%
11%
9%
11%
Not sure
2016
2015
21. When thinking about the options to reduce the cost of college
for your child, which of the following do you think is most
effective? *
30%
29%
Attending a community college
31%
33%
Attending a public university versus a private university
2%
1%
Deferring college for a year
11%
12%
Having your child live at home while attending college
14%
14%
Working part-time while attending college
12%
11%
Not sure
2016
2015
2014
2013
22. Are you more likely to help fund your child's education if
they major in a field that has a higher likelihood of them landing a
job? *