OppenheimerFunds launches ‘CollegeWithinReach’

The American dream of college is alive and well – but could slip beyond the reach of many families, according to the results of a nationwide survey released by OppenheimerFunds, Inc.

Ninety percent of 1,001 parents of pre-college age children surveyed said they view sending their kids to college as an essential part of the American dream — on a par with having a comfortable retirement or owning your own home.

While better than eight of 10 (81%) said that sending their kids to college is an achievable goal, more than half of parents at least somewhat agreed that college is not as achievable today as it once was, and six in 10 strongly believe that if tuition costs keep skyrocketing, college will be unaffordable for most families.

“Despite rising costs, diminished financial resources and the toughest economic climate in decades, the dream of college strongly endures for American families,” said Donna Winn, president and CEO, OFI Private Investments Inc. “Americans remain powerfully committed to helping their kids reach and stay in college.

“At the same time, good intentions won’t be enough,” she said. “In far too many families, there’s a disconnect between college hopes and financial realities.”

The survey reveals that while many parents are reluctant to take on college debt, college savings are well below projected costs. Many parents also assume that scholarship money will pay for a large part of their kids’ college costs.

Hispanic Parents Have Strong College Aspirations

The nation’s Hispanic children also are coming of age in households with deeply held hopes for college, according to the OppenheimerFunds poll, which surveyed a separate sample of 325 Hispanic parents of pre-college age children nationwide.

Ninety-five percent of Hispanic parents said they view sending their kids to college as an essential part of the American dream.

But in some ways Hispanic families are even more optimistic about the dream than non-Hispanics; 72% agreed that college is within reach for everyone who wants to go, compared with 63% of non-Hispanics.

At the same time, Hispanic parents, like parents nationally, are facing challenges saving for college. Nearly nine in 10 (86%) of those surveyed had saved less than $20,000 for college, more than half (54%) had saved less than $5,000, and one-quarter had saved less than $1,000. Twelve percent of Hispanic families had saved nothing at all.

Just 9% of Hispanic families have saved $20,000 or more for college, compared with 20% of non-Hispanic families.

However, more than eight of 10 Hispanic parents agree (and 47% strongly agree, compared with 39% of non-Hispanic parents) that the cost of college
is worth it, given a college education’s value, and most have not cut back on college savings efforts due to the current recession.

To download trends in college CLICK on link below:
http://professionals.collegeboard.com/profdownload/trends-in-college-pricing-2008.pdf>