COLLEGE SAVINGS 101

Savingforcollege.com

Parents vs. politicians on cutting college costs
http://www.savingforcollege.com/articles/parents-vs-politicians-on-cutting-college-costs-867

Posted: 2015-11-19

by Kathryn Flynn

One of the few things the 2016 presidential hopefuls agree on is that the cost of higher education and rising levels of student loan debt have become major issues. Five candidates, Chris Christie, Hillary Clinton, Martin O’Malley, Marco Rubio and Bernie Sanders have developed proposals as part of their campaign, covering affordability, applying for aid and tax issues. But how do the voters feel about their ideas? A recent study by MONEY and Kaplan Test Prep asked over 500 parents with children ages 15-18 who are heading to college how they felt about five different approaches to reducing college costs. Some ideas were more popular than others, but no proposal stood out as a clear winner. According to Lee Weiss, vice president of college admission programs at Kaplan Test Prep, “While we’ve heard a lot of policy proposals during this campaign season, our survey results find that no one approach has caught fire with families.”

Yet paying for college is a top concern for families. Recent graduates are leaving school with an average student loan balance of $35,000, and tuition continues to rise. So how far would parents go to help break the cycle? Here’s what MONEY and Kaplan Test Prep found:

RELATED: Where the republican presidential hopefuls went to college

1.Would you give up federal aid for two free years of college tuition?

Variations of this proposal are already gaining support. In fact, Tennessee already offers free community college for residents whose financial aid won’t cover the cost.

Survey results:
45% of parents agree with this proposal
29% disagree
26% undecided

RELATED: Considering community college? Here are the pros and cons

2. Should students who live at home be given a free year of online college?

This was the least popular proposal idea for the 239 high school counselors who participated. Critics argue that low- and middle- income students have historically done poorly with online courses. But to 44% of parents, free college is free college, and they support the idea.

Survey results:
44% of parents agree with this proposal
32% disagree
24% undecided

RELATED: 10 things to know before taking an online course

3. Would you pay higher state taxes if it made college cheaper?

Both Hillary Clinton and Bernie Sanders have proposed raising taxes for the wealthy to be able to provide affordable education for more students. Only a small percentage of parents agree.

Survey results:
40% oppose the idea
22% undecided

4. Should families who make more money pay more for college?

Although this idea would provide more need-based aid and scholarships for low-income students, parents and counselors are not on board.

Survey results:
44% disagree
25% not sure

RELATED: 5 year end tax tips for college savers

5. Would you let an investor pay your child’s tuition in exchange for a portion of their future income?

Purdue University recently announced the launch of new Income Share Agreements (ISA), which will be available to students as early as spring. With the program, students sell shares of their future earnings to investors. That means the amount they will owe will depend on how much their degree is actually worth. Republican candidate Marco Rubio is also in favor of ISAs, and recently submitted a bill to Congress supporting the idea. Parents, on the other hand, mostly oppose ISAs.

Survey results:
23% support the idea
50% don’t agree
27% aren’t sure

RELATED: 10 ways to find scholarships

One of the few things the 2016 presidential hopefuls agree on is that the cost of higher education and rising levels of student loan debt have become major issues. Five candidates, Chris Christie, Hillary Clinton, Martin O’Malley, Marco Rubio and Bernie Sanders have developed proposals as part of their campaign, covering affordability, applying for aid and tax issues. But how do the voters feel about their ideas? A recent study by MONEY and Kaplan Test Prep asked over 500 parents with children ages 15-18 who are heading to college how they felt about five different approaches to reducing college costs. Some ideas were more popular than others, but no proposal stood out as a clear winner. According to Lee Weiss, vice president of college admission programs at Kaplan Test Prep, “While we’ve heard a lot of policy proposals during this campaign season, our survey results find that no one approach has caught fire with families.”

Yet paying for college is a top concern for families. Recent graduates are leaving school with an average student loan balance of $35,000, and tuition continues to rise. So how far would parents go to help break the cycle? Here’s what MONEY and Kaplan Test Prep found:

RELATED: Where the republican presidential hopefuls went to college

1.Would you give up federal aid for two free years of college tuition?

Variations of this proposal are already gaining support. In fact, Tennessee already offers free community college for residents whose financial aid won’t cover the cost.

Survey results:
45% of parents agree with this proposal
29% disagree
26% undecided

RELATED: Considering community college? Here are the pros and cons

2. Should students who live at home be given a free year of online college?

This was the least popular proposal idea for the 239 high school counselors who participated. Critics argue that low- and middle- income students have historically done poorly with online courses. But to 44% of parents, free college is free college, and they support the idea.

Survey results:
44% of parents agree with this proposal
32% disagree
24% undecided

RELATED: 10 things to know before taking an online course

3. Would you pay higher state taxes if it made college cheaper?

Both Hillary Clinton and Bernie Sanders have proposed raising taxes for the wealthy to be able to provide affordable education for more students. Only a small percentage of parents agree.

Survey results:
40% oppose the idea
22% undecided

4. Should families who make more money pay more for college?

Although this idea would provide more need-based aid and scholarships for low-income students, parents and counselors are not on board.

Survey results:
44% disagree
25% not sure

RELATED: 5 year end tax tips for college savers

5. Would you let an investor pay your child’s tuition in exchange for a portion of their future income?

Purdue University recently announced the launch of new Income Share Agreements (ISA), which will be available to students as early as spring. With the program, students sell shares of their future earnings to investors. That means the amount they will owe will depend on how much their degree is actually worth. Republican candidate Marco Rubio is also in favor of ISAs, and recently submitted a bill to Congress supporting the idea. Parents, on the other hand, mostly oppose ISAs.

Survey results:
23% support the idea
50% don’t agree
27% aren’t sure

RELATED: 10 ways to find scholarships

 

Reset email successfully sent.
Please check your inbox.

Close
page loadtime mark

Advertisement


close