Your clients are likely to be concerned about supporting their kids through college

The start of a new school year inevitably means thoughts about costs, not just for the current cohort of students and their parents, but for those considering their future education.

Two studies released this week show how finances are a key pressure for families, impacting choices and potentially putting pressure on long-term stability with debt a major challenge for many.

First, from Fidelity Investments, a study revealing that the cost of college is considered the “most important” factor when choosing how or where to pursue higher education by 47% of college-bound respondents. This is up from 40% in 2021.

The 2025 College Savings & Student Debt Study also discovered what students are focusing when deciding on their education journey. While getting a job in a field they’re interested in/passionate about remains the priority (65%), two practical elements are not far behind: getting a job that pays enough to support them and their long-term goals (61%) and setting themselves up for a solid/stable career (61%).

But respondents underestimate the debt burden that college is likely to leave them with. On average, students believe they will graduate with just $17,000 in loans – and their parents are more optimistic at $16K – but in reality covering half of the cost of a typical four-year course at a public university with loans is estimated to mean $50,000 in debt.

For parents, 60% say they’re concerned about market uncertainty impacting their ability to finance their child’s college education, but nearly three quarters are staying the course when it comes to saving for college while making changes to how they are doing so including reducing the amount they’re saving (45%), rebalancing or reallocating investments to manage risk (31%), and starting to use other savings methods in addition to a 529 (29%).

A separate report from National Debt Relief highlights the cost of parenting can be crippling well before higher education with 59% of parents saying they have gone into debt to provide for their children and 48% of those in debt say it's becoming "unmanageable."

American parents are most likely to have credit card debt (42%, averaging $14,556), medical bills (27%, averaging $12,316), and personal loans (25%, averaging $15,294) and 48% say they worry more about their debt than whether they're a good parent.

Healthcare costs are among the main reasons for parents taking on debt to provide for their children, including prescriptions, doctor visits, and dental care. A third of respondents are concerned that they would not be able to cover the cost of their child’s future medical emergencies.

The study also covers college costs with 50% of parents in debt worrying that they won't be able to afford their child's college education with those with their own student loan debt (averaging $22,896) the least able to save for their child's future schooling.

More than one in four parents with student loan debt believe the burden of higher education's cost outweighs its value.

"Parents are doing everything they can to give their kids a better life, and for many, that means taking on debt that nowadays too easily snowballs over time," said Dasha Kennedy, financial activist, founder of The Broke Black Girl and member of National Debt Relief's Financial Wellness Board. "This pressure doesn't just affect parents today; it follows families into the future, shaping their children's experience with money and financial security. The good news is trusted guidance and resources are available to help parents get out of debt, and with support and a plan, families can boldly break that pattern and move toward lasting stability."