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Can you cover your child's college tuition? Many parents can't

Published: Thursday, Aug. 30 2012 1:40 p.m. MDT

Some parents are reconsidering how to pay for their child's college expenses as they see tuition continue to rise.

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College tuition has continued to rise at unruly costs and parents are realizing their savings plans are coming up too short.

"With college costs increasing an average of 5 percent every year, saving enough for a child's education will continue to be a challenge for many families," said Keith Bernhardt, vice president of college planning at Fidelity Investment.

Most parents only plan to pay 57 percent of their children's college tuition. However, parents realistically only have 30 percent coverage towards their savings goal, according to the survey.

The survey also found that only 31 percent of parents are doing the math on tuition college debt and their child's major.

Of that 31 percent, 61 percent are changing their savings plans to brace potential debt from college. Parents are looking into financial aid and others are looking for a less expensive college, according to the report.

Some even think that a different major for their child will help them become wealthy and quickly pay off the college debt.

"Parents who encouraged a specific major anticipate their child will earn an average of $70,300 upon graduation," said the report. "However, industry reports find the average starting salary for Class of 2012 graduates to be $44,442."

Email: ehong@desnews.com

Twitter: @erinhong

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