sk a Millennial with a college degree, and chances are they’ve got a student loan story to share.
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It’s been so long since graduation that some Millennials have welcomed kids of their own—and yet 56% of such parents are still paying off college debt, according to a new study from Fidelity.
Is it any wonder these parents want something better for the next generation?
First-hand experience with the student loan crisis may be a reason why Millennial parents aim to cover 74% of their children’s college costs. And almost half of them hope tocompletely foot the bill.
Those plans sound all the more ambitious when you consider that back in 2007, only 16% of Gen X parents surveyed by Fidelity planned to pay for all college costs.
In an effort to make their goals a reality, 71% of Millennial parents have started saving for future college expenses. And that puts them at the head of the pack, even as saving for college has generally reached an all-time high, with 69% of families socking away funds.
And among those Millennials still saddled with loans, a whopping 91% plan to reallocate those dollars to their kids’ college funds once they’re out of the hole.
Prioritizing their own loans is the right idea: financial planners typically advise putting debt and retirement savings ahead of saving for future college expenses.
If and when you’re ready, here’s our guide to college savings 101.