Forty-six percent of investors said they were very concerned about the costs of college, according to a recent Spectrem study.
Only 34 percent of investors were currently involved in paying for a child or grandchild to go to college. The investors with higher net worth were more involved, as 41 percent of investors with net worth of between $1 million and $5 million said they were paying or planned to pay for college, while 43 percent of those with a net worth of over $5 million said they were paying or going to pay for someone’s college education.
Similar differences were noted in terms of household income. Only 22 percent of investors making less than $100,000 were paying or planning to pay for college, while 39 percent of those with income between $100,000 and $200,000 said they were involved and 45 percent of those with household income of $200,000 or more said they were paying or planning to contribute to a college education.
Also more involved than most investors were business owners (44 percent) and corporate executives (49 percent).
In discussion about costs, 46 percent of investors who are going to pay for someone’s college or already did said they were very concerned (or were very concerned in the past ) about the financial end of the college deal, while 32 percent said they were “concerned” and 17 percent said they were “somewhat concerned”. Only 5 percent said they had no concern at all.
There was very little range regarding the professions of those who were “very concerned’’. Only 33 percent of corporate executives said they were “very concerned” but 49 percent of business owners chose “very concerned.”
Age did affect the numbers slightly, as only 35 percent of those under the age of 40 reported being “very concerned’’ about the costs of college. Forty-six percent of those under 40 said they were “concerned”. Over almost all segments, approximately 75 percent of respondents admitted to at least being “concerned” about the costs of college.