Half of Parents Unsure How to Fund College Education for Children

Half of parents report having no clear plan for how they will finance their children's college education, according to recent research. The survey, which polled 500 parents of high school seniors planning to attend a four-year university and 500 parents of current four-year university students, highlights the substantial financial challenges families face.

Parents expressed greater concern about their children graduating with debt (33%) or carrying that debt into adulthood (29%) than about accumulating more debt themselves (27%). On average, parents have saved approximately $36,680 for their child's education, but only 32% have managed to save enough to cover the full cost. A majority (51%) had expected to save sufficiently, underscoring a disconnect between expectations and reality, as 65% were surprised by the actual expenses.

Collectively, parents are only able to fund about 31% of their child's college education, despite 82% agreeing that parental financial support for college is important. To bridge this gap, many parents are planning for their children to contribute through various means. Common strategies include the student obtaining a job while attending university (41%), taking out federal student loans (41%), or working during school breaks and summer vacations (37%).

Additionally, nearly one in five parents (17%) are considering taking on a second job. A smaller but significant portion will rely on parent loans, with 16% planning to use federal parent loans and another 16% opting for private parent loans as the primary borrower. These strategies are consistent with what current college students and their parents are experiencing, as 21% of current students have taken out private loans and 33% have federal loans.

Financial strain is a significant concern, with 72% of parents worried about managing college costs alongside other financial obligations. "The survey highlights that paying for college is a ‘team effort’ for most families," said Dan Kennedy, Chief Marketing Officer at College Ave, the organization that commissioned the survey. "So many financial strategies are used to achieve this next major life stage – everything from savings, the child working, and even loans. The survey highlights how committed families are to investing in a college education."

Parents of current college students offered advice to those preparing for their children's higher education. Recommendations include supporting children while also encouraging their self-reliance in paying for some of their education. They also advised preparing for the significant mental and financial adjustments involved and emphasized the benefits of early savings, seeking scholarships and grants, and fostering early independence.

Despite the financial sacrifices, many parents feel a sense of pride in contributing to their child's education. Four in 10 parents surveyed (41%) expressed pride in their ability to help fund their child's schooling, and 36% view the financial sacrifice as a source of pride, underscoring the value parents place on supporting their children's aspirations.

The survey was conducted by Talker Research between April 30 and May 5, 2026, among 1,000 parents of current or prospective four-year college students.