More Than Half of Families Plan to Use Student Loans to Help Pay for College

WILMINGTON, Del., July 26, 2021 /PRNewswire/ -- For many families tackling upcoming college costs this fall, borrowing student and parent loans is an important piece of their financing strategy. More than half (55%) of families will use student loans, according to a recent national College Ave Student Loans survey of 1,045 parents conducted by Barnes & Noble College Insights^™. Of those who expect their child to borrow, around half (53%) anticipate they will take on between $10,000 to $40,000 worth of loans.

Parents who financially contribute to their child's college education overwhelmingly agree (85%) that obtaining a college degree is more important than ever. Perhaps this is why many of the parents surveyed are also willing to take on the full responsibility of borrowing for their child's education. More than 1 in 4 (28%) expect to borrow a parent loan. The data on how much was split – 23% plan to borrow anywhere from $10,000 to $25,000 while just as many (23%) plan to borrow $75,000 or more to help their child pursue their college degree.

While more than half of parents saving for college were comfortable with their savings plan (53%), overall, the cost of college was still higher than many anticipated. Nearly three-fourths of families (72%) were surprised by the total cost. For around 1 in 3 (34%) families, the cost of college fell outside of their original budget. To help manage the extra expenses, 48% took on student loans to cover the gap while 30% relied on parent loans.

"Like other major investments we make in our lifetime, paying for college can come with additional costs that may not have been anticipated or have changed since the initial planning stages," said Joe DePaulo, Co-Founder and CEO of College Ave Student Loans. "As the survey indicates, student and parent loans are an important source of funding for families who need immediate financing to cover education costs. With student or parent loans from College Ave Student Loans, families can stress less about financing and focus on their child's bright future ahead."

When shopping for student or parent loans, College Ave Student Loans offers the following tips:

• Borrow federal student loans in the student's name first as these come with benefits and protections not typically offered by private lenders. To access these, fill out the Free Application for Federal Student Aid (FAFSA). Federal student loans do have borrowing limits, which is where private student or parent loans can help cover the gap.
• Find a trusted lender to help you cover college expenses. As the survey pointed out, the average family will need to borrow more than $10,000 in student loans and it's important to borrow these funds from a trusted, reliable lender. College Ave has been named best in student loans and parent loans by leading financial news sites. The site offers helpful tools, such as a pre-qualification tool to estimate interest rates without a credit check, a three-minute application and a resource page to make the student loan process simple and easy.
• Understand rates, repayment terms and fees and how they affect the total of cost of your loan. Some lenders may offer a lower interest rate if the repayment term is shorter or if you make payments while in school. Fixed rates for College Ave student loans and parent loans start at an APR of 3.34% with the auto-pay discount and variable starts at an APR of 1.04% with the auto-pay discount. The College Ave student loan calculator can help you estimate monthly payments depending on amount and length of time borrowed.
• Save money with the right parent loan. With no application or origination fees, qualified borrowers of the College Ave parent loan can save money over the federal parent PLUS loan. In addition, College Ave gives parents the option to get up to $2,500 of the loan delivered straight to the parent's account to help control spending on education expenses like books, electronics or dorm supplies.
• Repaying while in school can reduce the cost of the loan. Paying back as little as $25 a month can help save money over the total cost of the loan. In addition, with College Ave's auto-pay discount, qualified borrowers can receive a 0.25% interest rate reduction.

To find and learn more about the best student or parent loan option for you, visit collegeavestudentloans.com.

*Rates valid as of 6/10/2021. Variable interest rates may increase after consummation.

About the Survey
The College Ave Student Loans survey was and conducted by Barnes & Noble College Insights^TM. The national online survey of parents of undergraduate students who attend a 4-year college or university at one of the campuses served by Barnes & Noble College had 1,045 respondents and was fielded in May 2021. Last year, Barnes & Noble College Insights conducted more than 50 research studies and 100+ survey polls of students, faculty and parents that interact with one of its more than 700+ campus bookstores across the nation.

About College Ave Student Loans
College Ave Student Loans started with a big vision and a simple mission – take the stress out of paying for college so students can focus on preparing for a bright future. Now a leading fintech lending company, College Ave remains committed to using best-in-class technology and deep industry expertise to deliver practical and personal solutions that give young adults a running start on their roads to financial success. We offer best in class products with competitive rates and a customer-friendly experience from start to finish. Visit: www.collegeavestudentloans.com

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SOURCE College Ave Student Loans