Growing number of parents unable to pay for college: study
Posted August 9, 2012 5:27 pm.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – A new TD Bank survey says many parents are falling behind in their child’s post-secondary education savings. As a result, students are taking on more debt – averaging $27,747 for a graduating university student.
TD Bank Vice President Shahz Beig says putting any small amount of cash into your child’s Registered Education Savings Plan can make a huge difference.
“The savings grow on a tax-deferred basis, and even when they’re withdrawn, they’re taxed in the hands of the student which is generally at a lower rate.”
He says bursaries, scholarships and grants can also take a big burden off parents.
“It’s really important for the student to do the research on what’s available, and most importantly, apply for everything you can because you never know what you might be able to get your hands on.”
The study says 88 per cent of parents plan to help their children go to college.
“Ironically enough, eighty per cent of those same parents tell us they will not have saved enough money by the time their children have reached post-secondary.”
Beig explains if after this the gap simply can’t be filled, a student line of credit can be taken out with low interest rates.
