With the cost of college continuing to rise amidst a pandemic that’s causing many Americans’ wallets to take a hit, are parents still preparing to pay for their children’s college education? Fidelity’s College Savings Indicator Study has tracked savings habits for over a decade, and while this year’s study finds more parents saving than ever before, 71% are concerned about COVID-19’s impact on their ability to save.
Nearly one-third (32%) are not even sure what college will cost by the time their children enroll.
Parents and children share anxiety about educational disruptions this fall, with two-thirds agreeing that in-person instruction is the best way for their children to learn, an unlikely scenario for many students this year. If distance learning becomes more common down the road, 36% of parents say they will have their child attend a less expensive college since they would not want to pay full tuition for virtual classes.
Despite these concerns, the study reveals 77% of parents agree college is worth its cost. John Boroff, director of retirement and college leadership at Fidelity Investments, discusses the findings of this year’s study, including how COVID-19 is impacting parents’ savings priorities.
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