Rising college tuition and fear of thousands of dollars in student loans are prompting more parents to save for college.
A Fidelity Investments annual study showed that 69 percent of parents have started to save money for college — the highest percentage since 2007, when 58 percent of parents saved.
Most parents do not want their children to be burdened with debt because “it will set them back financially for years,” said James Di Virgilio, a Gainesville financial planner.
Manuel Fernandez, an 18-year-old UF political science freshman, said his parents pay for all of his and his twin sister’s expenses beyond what Bright Futures and Florida Prepaid covers.
Fernandez said his father is still paying off loans from medical school and that he does not want to graduate with debt that takes years to pay off.
“Coming out of college with $100,000 in debt can take 30 years to pay off on a $35,000 salary,” Di Virgilio said.
Maureen McFarlane, associate director of financial aid at Santa Fe College, said saving for college gives students more flexibility.
“If parents are saving, then they have more opportunities and options available when the child is ready to go to college,” McFarlane said.
Cara Mannion, a 21-year-old UF journalism and English senior, said she is proud to have put herself through college.
Mannion does not have Florida Prepaid and receives minimal help from her parents. Although she receives Florida Bright Futures and merit-based scholarships within her majors, she still works 32 hours a week at the UF Graduate Editorial Office, she said.
“I am way ahead of the game in life, and it won’t be as much of a culture shock to pay for my expenses once I graduate,” Mannion said.
A version of this story ran on page 3 on 9/10/2013 under the headline "As college tuition increases, so does parents’ savings"
