College Students and Parents Agree: It Costs More Than They Planned
Both say on-campus spending is much higher than they thought it would be—Huge difference of opinion on who picks up the tab

Survey from Key Education Resources

CLEVELAND, April 27, 2006 – A word of caution to college-bound students and their parents. There’s a lot more to the cost of a college education than just tuition, fees, room and board. A nationwide survey conducted by Key Education Resources®, the education financing arm of KeyCorp (NYSE: KEY), found the cost of living on campus far exceeds expectations.

Sixty-nine percent of students who live away from home and 66 percent of parents are surprised by how much money is eaten up by ancillary expenses like books, utilities, groceries, entertainment, cell phones, computer software, transportation and travel.

Thirty percent of students and 52 percent of parents listed having and insuring a car on campus as their top expense. Next down the list for students was food; for parents it was health and medical costs.

As for what expense shocked the most, students and parents were unanimous—textbooks. Thirty percent of students and 25 percent of parents said they had no idea textbooks would cost as much as they do. According to the National Association of College Stores (NACS), the average cost of books and supplies for the 2004-05 academic year ranged from $770 to $870, depending upon the type of institution the student attended and the courses studied.

While both groups shared in the sticker shock, the survey also showed significant discrepancies regarding the perception of who’s footing the bill for all of these unanticipated expenses. Nearly eight in ten parents (79%) believe they absorb these costs, while only 42 percent of students say their parents provided support.

Perceptions also differed when it came to estimating the amount of additional money required to live on campus. One in four parents said it costs $3,000 or more a year to send their child away to school. Only one in six students thought it took that much. Students were twice as likely as parents to say it takes $1,000 or less each year.

“We found a real generation gap when it comes to estimating the true cost of college,” said Rick Vonk, president of Key Education Resources. “For example, 74 percent of parents say they and their kids agree on the amount of spending money the student should have, whereas only 43 of students say they’re in agreement with their parents.

And while nearly half of students say they pay for all of their on-campus spending; only 17 percent of parents say their students do.”

Despite the differences, it’s obvious parents and students could use more help when planning for the expense of living on campus. Key Education Resources offers these tips:

So as students and parents scratch their heads over how to pay for the escalating cost of higher education, do they think it’s worth it? Here again, it depends who you ask. Nearly half of parents (49 percent), but only 32 percent of students, say the cost of a college education is worth it, regardless of what type of job the student ends up with. More students (43 percent) than parents (38 percent), on the other hand, feel the cost of an education will only have been worth it if they land a good-paying job.

Survey Methodology
The survey, conducted by the independent polling and public opinion research firm Zogby International in March 2006, randomly surveyed parents of college students living away from home and college students. Parents were interviewed both by telephone and online, and students were interviewed online.