Relationships Between College Savings and Enrollment, Graduation, and Student Loan Debt

Abstract

children’s savings accounts—are positively associated with college enrollment and graduation, (b) having savings designated for school is more strongly related to educational outcomes than having basic savings, and (c) if children’s savings (school-designated or basic) are associated with college graduation.3 We also review a study of the association between parents’ college savings and children’s college loan debt. Based on evidence from the research, we suggest that policies and programs clearly state their goals. For example, if the goal is to improve expectations for attending and graduating from college, promoting small-dollar children’s savings accounts might make a difference. However, if the goal is to reduce college debt, policies must help children and parents accumulate enough savings to pay college costs and reduce reliance on loans.