06/24/2025

New Citizens Survey Reveals the Emotional and Financial Toll of Paying for College

Majority of parents admit to financial shortfalls, sacrifice retirement and major life goals to fund education

PROVIDENCE, R.I. (June 24, 2025) — As economic pressures mount, a new survey from Citizens reveals growing challenges for American families highlighting that paying for college is more financially and emotionally demanding than many parents anticipated. While 59% of parents reported feeling confident about managing college costs when their child was accepted, just 21% said they felt prepared for the actual expenses once tuition bills arrived. The findings highlight a widening “confidence gap” between expectations and the complex financial reality of higher education.

Though many parents start the process with optimism, confidence quickly erodes under the weight of rising costs. Over half (58%) of parents say the soaring cost of living has compromised their ability to pay for their child’s college costs. Compounding the economic concerns, nearly 40% are also struggling with credit card or other debt, further straining their savings efforts.

Parents Sacrifice Financial Stability for Children's Education

This financial “reality check” has parents making difficult decisions, with many sacrificing long-term goals like retirement, investing, and financial stability to fund their child’s education.  According to the survey of more than 1,000 U.S. parents, 61% of parents report needing to go above and beyond typical financing options, such as 529 plans and federal loans, to bridge the financial gap. These unexpected financial burdens are forcing parents to make difficult choices, leading to a host of additional sacrifices, such as:

  • 19% took on a second job
  • 30% borrowed against 401k or liquidated personal funds
  • 26% paused investing entirely
  • 66% cut back on major purchases or vacations
  • 62% expect a delay in retirement, with nearly 40% anticipating a delay of 1–5 years

Another challenge families face is the disconnect between college admissions and financial planning. One in 5 parents admitted they focused on getting their child into college without thinking about how to pay for it. And once they do consider the cost, many are reluctant to talk about it.

  • 47% would rather talk to their kids about drugs and alcohol than discuss the cost of college
  • 30% would prefer a conversation about politics than discuss the cost of college
  • 74% of families fell short by at least $5,000, some by more than $30,000

Citizens College Match Tool and New Guide to Paying for College: Bridging the Planning Gap with Trusted Resources

There is a widespread planning gap, and the urgent need for trusted resources and advice. Citizens is committed to helping families close that gap, before and after college decisions are made. Through tools like Citizens’ College Match, parents can evaluate financial fit early in the process by understanding real costs alongside academic considerations.

For those navigating next steps or facing unexpected shortfalls, Citizens Guide to Paying for College, parents can explore everything from early planning tips and financial aid options to student loan strategies and budgeting advice. Whether you are just starting the conversation or searching for last-minute solutions, Citizens is here to help families move from uncertainty to action.

“You don’t need to be a financial expert to make smart choices,” said Chris Ebeling, Citizens’ Head of Student Lending. “One of the most important pieces of advice we give parents is to understand the real, out-of-pocket cost, the net price, during the college selection process. With the right guidance early on, parents can support their child’s education and protect their own future, and Citizens is proud to be that trusted advisor every step of the way and we are committed to ensuring that your family’s financial future is secure.”

To explore Citizens’ full suite of college planning resources and start planning today, visit CitizensBank.com/learning/college/overview

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Methodology
The report results are from an online survey conducted by Researchscape of 1,072 parents of children aged 13 to 29 who are either planning on attending or have some experience with college, which was fielded from April 29 to May 7, 2025. The top-line results presented in this report were weighted to be representative of the overall population.

About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $220.1 billion in assets as of March 31, 2025. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a full-service customer contact center and the convenience of approximately 3,100 ATMs and approximately 1,000 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com or visit us on X, LinkedIn or Facebook.