Posts Tagged ‘Debt Relief’

Does Parents’ Divorce Translate Into More Student Loan Debt

November 14th, 2022

The study,Guest Posting which examined 2,400 dependent undergraduate college students, concludes that students of divorced and remarried parents have to pay more of their own college expenses and may require more student loans and/or personal income to remain in school.

The researchers found that divorced parents contribute only about one-third of what married parents contribute to their children’s college costs. Parents who divorced and remarried contribute about half of what parents whose marriages remained intact provide for their college-age children. The drop in student financial support was apparent even though family incomes among the study groups were similar.

Married parents contributed about 8 percent of their annual income to their college-age students and met more than three-fourths of their students’ financial needs, either through income, college savings, parent loans, or other means.

Divorced parents contributed about 6 percent of their income to their children’s college expenses, but met only 42 percent of their student’s financial needs. Remarried parents contributed about 5 percent of their income and met 53 percent of their student’s college expenses.

The study also examined the impact of divorce agreements that call upon parents to contribute to their adult children’s college expenses. Based on their analysis, the researchers conclude that college students who come from states where these types of divorce agreements are permitted do not benefit in a meaningful way from the added potential financial support once they reach the age of majority.

Reduced family financial contributions may or may not result in more grant-based tuition assistance from a school, depending on the family’s financial circumstances. Families with more than one child in college or with parents who are returning to school at the same time as their children may qualify for more need-based financial aid, but often, this extra need-based assistance comes in the form of additional student loans.