Parents who are saving money for their children to attend college said they are earmarking 10 percent of their total savings for that purpose, according to a new report from Sallie Mae, the student lender. But the average amount parents said they have set aside for college has declined by 25 percent since last year, to $10,040 from $13,408.
"Parents are allocating approximately 10 percent of their total savings for their children’s college, a rate that has remained stable over the past three years," said the report. "However, since savings overall are down, the dollar amounts being saved for college are also lower."
This is the fifth installment of Sallie Mae's college saving study, which it first released in 2008. The report found that 4 in 10 of the surveyed parents said they were confident they could pay for the future price of college.