RESTON, Va., Jan. 29, 2008—More than 60 percent of parents of incoming college freshmen began discussions about the best way to pay for college after the student entered high school, and 32 percent said the thing they would do differently would be to begin saving for college earlier. These are some of the key findings of the 2007 Survey of Parents of College-Bound Freshmen released today by Sallie Mae, the nation’s leading saving- and paying-for-college company.

The study, conducted by Aspen Media and Market Research and previously known as the AMS College-Bound Freshman Survey, found that more than half (56 percent) of parents believe that college is not affordable, a trend that persisted across low-, middle- and high-income categories. Despite this finding, 82 percent of all respondents believed that a college education is worth the cost.

These findings come as students who plan to attend college next fall begin to apply for financial aid. As of Jan. 1, families may submit their Free Applications for Federal Student Aid (FAFSA) for the 2008-09 academic year. The FAFSA is required to qualify for federal financial assistance for college, as well as some state and institutional aid. The survey revealed that while 80 percent of parents have submitted a FAFSA, 10 percent have not submitted one and do not intend to do so. That may be a costly decision, as much financial aid is available to only those who apply.

While the vast majority of parents surveyed (81 percent) discussed tuition payment with their students at least twice during the summer before it was due, 11 percent never discussed the tuition bill.

“There are many tools available to help you pay for college, and it is important to develop a game plan that is right for your family’s financial situation,” said Martha Holler, spokesperson, Sallie Mae. “Finances can be a sticky subject for parents and children, but the earlier the dialogue starts, the better off you’ll be when it comes time to pay the tuition bill.”

The study demonstrated that paying for college is a family affair, with expectations of shared responsibility. Almost three-quarters (73 percent) of survey respondents think paying for college is the responsibility of both the parent and the student. In addition, location of school was identified by 34 percent of respondents as the top priority when their student was applying for college (the most frequently selected choice) while “cost of school” was the top concern of 15 percent of respondents (the fourth most popular choice).

Among other findings, the 2007 Survey of Parents of College-Bound Freshmen revealed:

• The college payment option most frequently used by respondents was cash/savings (54 percent), followed by federal loans such as Stafford or PLUS (40 percent). Twenty percent of all respondents reported using private loans.
• Over all income groups, 68 percent of respondents say their student will work during the school year, but 70 percent of that group said their student would work to 20 hours per week or less.
• Cash-strapped lower-income students are more likely to work during school than their higher-income peers. Eighty-seven percent of parents in the lowest income group reported their students would work compared to 59 percent of those in the highest income group.

Key findings of the 2007 Survey of Parents of College-Bound Freshmen are available online.

Methodology
The 2007 Survey of Parents of College-Bound Freshmen was conducted via telephone interviews from Sept. 4-10, 2007 using software designed to assure appropriate sample management and data collection accuracy. A total of 400 surveys were completed with an “adult head of household” in homes with one or more family members entering college as freshmen in 2007.

For more information contact:
Beth Guerard (703) 984-5621