Survey Shows More Parents Looking for
Children to Financially Contribute; Parents More Likely to Fund
Based on Major
The fourth annual survey from Discover Student Loans reveals
that the vast majority of parents continue to see the importance of
their child obtaining a college education, yet fewer are planning
to help pay for it compared to just three years ago – down from 81
percent in 2013 to 75 percent in 2015.
“Parents want their children to earn a college degree; however,
paying for that education can be difficult. Nearly a quarter of
parents surveyed said they cannot afford to help pay for any of
their child’s college education,” said Andrew Hopkins, vice
president of Discover Student Loans. “There are many resources and
tools available to help guide financial decisions and to ensure
responsible borrowing. It’s critical that students are made aware
of and maximize scholarships, grants and other free financial aid.
Student loans can help bridge the gap between the cost of education
and free financial aid.”
When asked how much responsibility their child should have in
paying for college, nearly half of parents, 46 percent, said their
children should fund at least some of the cost, while 45 percent of
parents said they expect their child to pay for most or all of
their education.
To cover college expenses, more parents anticipate that their
child will use student loans compared to three years ago. This
year, 54 percent of parents said their child is planning to take
out student loans, as compared to 50 percent in 2013.
Parents are Becoming More Price
Conscious
The price of college appears to be affecting the decision making
process when choosing schools. Forty-eight percent of parents said
they were limiting which college their child attended based on
price, an increase from 44 percent in 2014.
Parents also are considering additional ways to further reduce
college costs. They ranked attending a public versus private
university or a community college as the most effective options to
keep expenses in check.
“Parents are starting to take note of the increasing cost of a
college education and thinking of ways to reduce the overall cost
of attendance,” said Hopkins. “Not only is it important to look at
the sticker price for a school, but families also should consider
books, meals and transportation as additional essentials when
determining the bottom line.”
Parents Want College Majors to Lead to
Jobs
Parents increasingly are looking at the likelihood of finding
employment and future earning potential when thinking about their
child’s choice of major. In fact, 44 percent said they were more
likely to fund their child’s education if they majored in a field
that has a higher likelihood of employment, an increase from 33
percent in 2014.
When asked whether earning potential or choice of major is more
or less important to their child’s education, 47 percent of parents
in 2015 said earning potential was more important as compared to 40
percent in 2014. Only 19 percent said that earning potential was
less important than the choice of a college major, a decrease from
32 percent in 2012.
While parents consider how college majors will impact employment
and earning potential, they also continue to worry about how debt
from student loans may impact their child’s buying power
post-graduation.
To further explore the costs of college and understand why a
college degree is worth the investment, visit
https://www.discover.com/student-loans/college-planning/degree-investment.html.
For more information about Discover Student Loans, please visit
https://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
April 8-12, 2015, 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 (NYSE: 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
loans, checking and savings accounts, certificates of deposit and
money market accounts 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 1000 adults with
children 16 to 18 years old who have children planning on going to
college
Conducted April 8-12, 2015 By Rasmussen Reports Margin of
sampling error: +/- 3 percentage points with a 95 percent level of
confidence Commissioned by Discover Student Loans 2015
2014 2013 2012
How important is college to your child’s future? 81%
85% 87% 81% Very important 14% 11% 11% 14% Somewhat important 3% 3%
1% 3% Not very important 0% 1% 0% 1% Not at all important 0% 0% 0%
1% Not sure
2015 2014 2013 2012
Beyond tuition, how knowledgeable do you
feel about the entire cost of a college education? 46% 48% 49%
48% Very knowledgeable 39% 42% 39% 39% Somewhat knowledgeable 12%
8% 9% 11% Not very knowledgeable 3% 2% 3% 2% Not at all
knowledgeable 1% 0% 0% 1% Not sure
2015 2014 2013 2012
Will you be
helping your child pay for his/her college education? 75% 77%
81% 74% Yes 16% 16% 12% 15% No 9% 7% 8% 11% Not sure
2015
2014
2013 2012
How worried are you about having enough money to help
pay for your child’s college education? 45% 44% 47% 47% Very
worried 33% 30% 32% 28% Somewhat worried 15% 18% 15% 17% Not very
worried 6% 7% 6% 6% Not at all worried 1% 1% 0% 1% Not sure
2015 2014 2013
2012
How much of your child’s education can you afford? 24%
21% 21% 24% None of it 31% 30% 29% 29% Up to 25% 18% 19% 18% 15% Up
to 50% 8% 11% 12% 10% Up to 75% 9% 11% 11% 13% All of it 10% 8% 9%
10% Not sure
2015 2014 2013 2012
Where will most of the money come
from to pay for your child’s college education? 12% 11% 11% 12%
529 savings plan 25% 29% 27% 24% Family savings 29% 29% 29% 28%
Student loans 5% 5% 6% 5% A second job 3% 2% 3% 3% 2nd mortgage or
refinance 3% 6% 4% 4% Retirement funds 13% 10% 12% 13% Some other
source 9% 7% 10% 11% Not sure
2015
2014
2013
How knowledgeable are you on the difference between federal
and private loans? * 29% 30% 29% Very knowledgeable 37% 40% 39%
Somewhat knowledgeable 26% 22% 24% Not very knowledgeable 7% 7% 6%
Not at all knowledgeable 2% 1% 1% Not sure
2015 2014 2013
Is your child planning to use student
loans to pay for their college education? * 54% 52% 50% Yes 26%
28% 32% No 20% 20% 18% Not sure
2015 2014*** 2013
Does your
child plan to use federal student loans, private loans or a
combination of both? * 38% 38% 32% Federal loans 5% 3% 4%
Private loans 47% 48% 54% A combination of both 9% 11% 10% Not sure
2015 2014
2013 2012
Which do you consider the most reliable source of information on paying for
college?
7% 7% 6% 7% Guidance counselors in high school 43% 44% 47% 47%
Financial aid offices of colleges 4% 3% 3% 3% Banks and other
lenders 14% 14% 13% 11% Personal financial advisors 7% 9% 8% 6%
Friends and family 6% 6% 7% 6% The Internet 9% 8% 8% 8% Some other
source 11% 9% 9% 11% Not sure
2015 2014 2013 2012
How much responsibility
should your child have in paying for their education? 15% 15%
13% 12% All of it 30% 32% 29% 27% Most of it 46% 43% 48% 48% Some
of it 7% 8% 7% 10% None of it 3% 2% 3% 3% Not sure
2015 2014 2013
If you are taking out loans in your
child’s name, does your child understand how much debt they will
graduate with? * 39% 42% 40% Fully understands 32% 32% 32%
Somewhat understands 14% 14% 15% Doesn’t understand 15% 12% 13% Not
sure 2015
2014 2013 2012
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? * 25% 24% 25% 22% Very likely 33% 28% 33%
33% Somewhat likely 28% 30% 25% 28% Not very likely 11% 12% 13% 13%
Not at all likely 4% 6% 4% 4% Not sure
2015 2014 2013 2012
Is earning
potential after graduation more or less important to your child’s
education than his or her major?* 47% 40% 42% 38% More
important 19% 21% 22% 32% Less important 27% 30% 31% 21% About as
important 7% 9% 5% 10% Not sure
2015 2014
2013
Are you limiting your child’s college choice based on
price?* 48% 44% 49% Yes 41% 48% 40% No 11% 9% 11% Not sure
2015 2014 2013
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? * 44% 33% 42%
Yes 43% 53% 44% No 13% 14% 14% Not sure
2015 2014***
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? ** 58% 55% Very worried
25% 30% Somewhat worried 14% 12% Not very worried 3% 3% Not at all
worried 0% 0% Not sure
2015****
When thinking about the options to reduce the cost of college
for your child, which of the following do you think is most
effective? **** 29% Attending a community college 33% Attending
a public university versus a private university 1% Deferring
college for a year 12% Having your child live at home while
attending college 14% Working part-time while attending college 11%
Not sure * not asked in 2012 ** not asked in 2012 or 2013
*** answered by 544 respondents who said their child was planning
to use student loans to pay for their college education **** not
asked in 2012, 2013 or 2014
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150608006741/en/
Discover Financial ServicesRob
Weiss224-405-6304robertweiss@discover.com
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