“In Denial” on the Cost of College?

The End Result?

A new study by Sun Financial reports that most parents of college-bound kids are “in denial” about the cost of college.

• 89% of parents believe their kids will go to college; but only 50% have researched the costs
• 32% of parents believe that a scholarship (or two) will offset costs (only 25% of college costs are now covered by scholarships)
• 71% of parents say that it is their responsibility to pay for college; but 62% have not saved for this purpose

Aren’t we all in denial of some sort?  It is hugely unimaginable for most families to consider the tens of thousands of dollars in cost of a college degree.  For many the concept of college  and cost are widely divergent.  It is a lot like buying  the best possible house, the house  of your dreams, and ignoring the 30  year mortgage.  The cost of a house, like the cost of college, is too  large to be managed other than with purposeful ignorance…and loans to  fill the gap.  This disconnect might be excusable  in a 19 year old, but…

…parents need to give themselves (and their kids) a reality check.  I personally know several college grads who have six figure college debts and low, five figure incomes.  They all admit  to not giving much thought to the cost of college, having been encouraged to attend by their parents, and living with the assurances of financial aid and admissions counselors that “this is the way its done (loans)” and that time and glorious guarantees of employment  will see to  the debt.

Here is a vivid description of the flip side of the facts on treating the cost of college casually (from the debtors–our kids):

• 74% have found it “Very” or “somewhat” difficult to pay off college debt
• 60% believe it will take 8-20 years to payoff their loans
• 42% live paycheck-to-paycheck, while 34% sold possessions to  maek ends meet
• 48% report anxiety or sleeplessness; 38% report depression

Well…the  lesson here is pretty clear:   STOP and think about college and your own capacity to pay for  any part of your child’s education.  LOOK at alternatives (starting at community colleges or state universities) and LISTEN to your kid’s concerns around the vast sums of money needed for college…and the hidden cost of long-term debt.

In denial?  Not anymore.

Tagged as: cost of college