Fidelity to parents: Start saving early for college

New research from Fidelity Investments finds that parents of high school seniors expect to have just 13 percent of the estimated $100,000 needed to fund a four–year college education, the Boston mutual funds giant said today.

Additionally, parents anticipate that student loans will cover 17 percent of their child’s total college expenses, "yet loans are projected to become more difficult to secure and may carry higher interest rates and less favorable terms," noted Fidelity, a leading provider of 529 college savings plans as well as a provider of tools and financial guidance to parents looking to invest in their children's education.

“As college tuitions continue to rise year after year, financial aid and loans can be part of the overall savings strategy, but it should not be a substitute for starting to save early and often in a tax–advantaged account, like a 529 plan,” Joe Ciccariello, vice president of college planning at Fidelity Personal & Workplace Investing, said in a statement. “In fact, our research shows that parents of children ages 15–18, who currently utilize a 529 plan, have significantly more savings – and are on track to cover almost half of college expenses.”
(By Chris Reidy, Globe staff)