Citizens Survey Shows That Affordability Concerns Remain Top of Mind for Students and Families

After spending more than two semesters in flux, students and families alike are looking forward to a return to normal this fall on college campuses. However, the continued rising costs of college have both students and parents alike concerned and wary.

In its fourth annual Student Lending Survey, which surveyed current college students and high school juniors and seniors, Citizens found that a majority of both high school (69%) and current college students (70%) said that concerns around college affordability had an impact on their plans post high school and for Fall 2021 college enrollment.

The research also showed that concerns around public health and safety still exist, although significantly down from 2020. Less than 4 in 10 (37%) of prospective students said that concerns about public health and safety had a high impact on their post high school plans, with a nearly identical 36% of current college students said such concerns had a high impact on their Fall 2021 plans. This is down from a majority of both high school (55%) and current college students (53%) in the 2020 survey.

“Our annual survey has consistently shown that young adults are worried about their future and the cost of college,” said Christine Roberts, head of Student Lending at Citizens. “We are seeing families embracing discussions around the cost of college earlier and it remains critical for financial institutions to continue to support their customers as they navigate these difficult family conversations.”

More than half (56%) of those who previously spent a semester in college expected to see their overall cost of attendance increase this fall. When factoring in tuition, room and board, meal plans, travel costs to and from campus, and on campus events and activities, families expected to pay $8,700 more on average in the fall of 2021 compared with prior semesters. In the face of these rising costs, students and families are always looking for additional tools to help stay on budget. For example, nearly 2 in 3 respondents (65%) ranked having no overdraft fees as one of their top three features in a potential student checking account.

Nearly half (43%) of all families had specific discussions regarding paying for college in the wake of Covid-19, up from 40% in 2020. Exactly half of respondents said they had conversations in the first two years of high school or earlier, with 20% saying they had those discussions in 8^th grade or prior. Families who were financially impacted by COVID-19 were far more likely to have discussed paying for college in recent months, with 58% saying COVID-19 prompted recent conversations. Only 6% of respondents said they never had family discussions about the cost of college education.