Teenage students and their parents are looking to outside sources such as grants and scholarships rather than solely family savings to pay for college, according to a new survey.
With the cost of college jumping over 20 percent in just the last decade, the average cost to of attend a four-year, public school is now at around $80,000. With the national economy still slogging along, families are relying more on scholarships or grants to pay for school, according to a TD Ameritrade survey released today.
About 60% of teens say they expect their families to rely on scholarships or grants to help to pay for college, compared to 37% of adults who relied on the same when they went to college.
Only 20% of teens surveyed say they will be relying on family savings to foot the bill.
Roughly 25% of teens said their parents have a 529 College Savings Plan, but 66% of teens and 54% of adults say they've never even heard of such a plan.
"A tough economy impacts everyone-not just those who are nearing retirement, but those who are just starting out as well," said Lule Demmissie, managing director of investment products and retirement at TD Ameritrade Inc. "Faced with rising tuition costs and potentially less means, getting a head start on saving for college has never been more important."
For with an imminent need to subsidize college costs, Demmissie suggests looking at the following resources:
Research available scholarships . While applying for scholarships takes a little research and time, taking advantage of online resources like www.scholarships.com can help identify scholarship opportunities and save you money down the road.
Explore student loan opportunities. Sites like the U.S. Department of Education's Federal Student Aid (FSA) Web site www.fafsa.ed.gov offer parents and students explanations of federal student aid programs, which are not just for low-income students.
Take advantage of work-study programs. Work-study programs are often needs based. Students should apply early because funding is often limited and on a first-come, first-served basis. The application is part of the Free Application for Student Aid (FAFSA).