Economics and Finance Faculty Publications and Presentations

Student Loans and their effect on Parental Views of Education Financing

Document Type

Article

Publication Date

6-2020

Abstract

  • College costs are increasing, and most students need to save or borrow to pay for education. Outstanding parental debt may affect the decision about how to fund their children’s education.
  • The purpose of this research is to investigate whether parents’ own student loan balances affect their decision to save for their child(ren)’s college education via tax-advantaged education saving vehicles and if their debt affects their decision to take out loans on behalf of their child(ren) for educational purposes.
  • According to this study, parents who are paying off their own student loan debt are less likely to invest in tax-advantaged accounts for their children’s education.
  • For financial planners, this research highlights the importance of advising parents who may have their own student loan debt to start saving in tax-advantaged vehicles early.

Comments

Original published version available at https://www.financialplanningassociation.org/article/jun20-effect-student-loans-parental-views-education-financing

First Page

46

Last Page

57

Publication Title

Journal of Financial Planning

DOI

10.2139/ssrn.3041486

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