Parent Pop Quiz on Planning for College

When’s the best time to start planning and saving for a child’s college education?

A) As soon as he/she hits high school

B) Middle school

C) Elementary school

D) In utero

With college tuition costs rising beyond the rate of inflation, many of us realists may be inclined to say D (that'd be my plan). But surprisingly, according to a new report released by the Sallie Mae Fund and the Institute for Higher Education Policy, very few parents have started saving for their child’s education by high school (which is almost nearly too late). Even fewer actually know what the true costs of college are by middle school, a time Sallie Mae has identified as a crucial for saving and planning.

Though admittedly coming from a biased perspective—Sallie Mae is the nation’s leading provider of student loans—the report, entitled “From Aspirations to Action: The Role of Middle School Parents in Making the Dream of College a Reality,” presents some very interesting information regarding perceptions many middle school parents have about financing their child’s college education.

For instance, misperception of financial aid abounds: Parents with higher socioeconomic status are more likely to reference scholarships and financial aid as a route to afford college—although they are actually less likely to receive this kind of aid. And, altogether, only 37 percent of parents could name a type of grant or loan—this number was sadly even less in lower income families.

In short, the gap between what parents think they know about preparing for their child’s education and the reality their children will face is vast.

These statistics are discouraging, but what is most discouraging is the fact that, though the report offered a great deal of information about the aspirations students have to go to college (67 percent of middle school students surveyed believed they would go to college, 31 percent said they might go), it gave very few recommendations for how students should get there—other than the financial saving of their parents.

Saving for college is a necessity for parents at all income levels, but if children are not rigorously prepared academically for a college education, they may not be admitted to the schools they desire, much less receive the necessary scholarships and financial aid. Parents should be involved in BOTH the academic and financial aspects of their child’s college planning.

Got a child in middle school? Start a CD. But remember, perhaps the most valuable investment is talking with your child about how they will prepare themselves for college—be it charting college prep classes in high school or getting them thinking about the programs they enjoy most.

To read the full report, visit the Institute for Higher Education Policy website.

To learn more about Washington resources for financing college visit the Higher Education Coordinating Board website.