For parents looking at the rising cost of college, there’s a reality that keeps some of them up at night: 71% expect to take on debt to help their children pay for higher education.

Nearly half — 46% — expect to use education loans. Another 21% of parents say they may turn to credit cards or cash advances. Eleven percent of parents anticipate borrowing against their savings, while 9% say they will likely tap the equity in their homes.

“When it comes to funding their children’s future, families can face tough decisions,” said Chris McGee, chair of the Washington, D.C.-based College Savings Foundation. “While savings may not cover everything, we know that every dollar saved is debt avoided.”

For all the talk about whether college is still worth the price, the debt parents are willing to shoulder suggests that families still believe the answer is yes.

The College Savings Foundation’s 20th Annual State of Higher Education Savings survey found 84% of parents say higher education is a good investment in their children’s future.

But what parents consider “higher education” is changing.

Keeping up with AI

The survey of 1,000 parents in their 20s, 30s, 40s, and early 50s — whose children range from preschool to age 25 — comes at a time when the traditional four-year college path is facing more scrutiny.

Consider an elevator installer, an HVAC technician or a plumber.

Skilled workers in those fields can earn solid six-figure incomes without spending four years in college — and those jobs bring a sense of security in that they are way harder for artificial intelligence to replace.

As the cost of college climbs and AI reshapes the white collar workforce, many parents have wondered whether a bachelor’s degree is still the automatic ticket to a better future that it once was.

“Parents see the value of higher education, especially as they embrace skilled professions for their children, from HVAC to healthcare technicians,” McGee said.

“As the workforce shifts to keep up with AI, career and technical schools and certifications will play a big role in higher education of the future,” he said.

Considering other career paths

Ninety-three percent of parents plan to help fund their children’s postsecondary education, according to the survey.

But more parents are being open-minded about what higher education looks like. The menu of possibilities has broadened to include not only four-year colleges and universities, but also other forms of education and training that can lead directly to a career.

“As the workplace changes dramatically over time, the very best way to prepare for it is through ongoing education and skills building,” McGee said.

Still, the traditional four-year college experience isn’t disappearing from parents’ radar.

More than half — 53% — of parents anticipate their children will attend traditional four-year public and private colleges, while 12% say their children will attend two-year programs like community college. A cumulative 13% say their children will go for career and technical schools, certifications and apprenticeships.

The willingness to consider other career paths comes at a time when student debt has become one of the biggest financial burdens facing U.S. households.

For families trying to avoid being part of the $1.8 trillion student loan debt pile, community colleges and other skills-based education paths generally cost far less than four-year colleges.

Technical schools, certificates and apprenticeships can prepare students for immediate placement in the job market without them starting their adult lives under a mountain of student loan debt.

Parents still plan to help pay

For parents who still believe higher education is worth the investment, the next question is how will they pay for it?

More than half of the 93% of parents who plan to help pay for their children’s education say savings is their primary funding strategy, according to the survey. Roughly one-quarter expect grants, scholarships or other forms of direct financial aid.

The College Savings Foundation pointed out a generational ripple effect from 529 plans — a savings tool created three decades ago to encourage families to save for education.

The survey found that 41% of parents said that money from a 529 account helped pay for their own education. And among those parents, 77% said that experience has motivated them to use a 529 plan for their own children.

“Today we are seeing the benefits of Congress’ vision 30 years ago to encourage savings through 529 plans,” McGee said. “By expanding their use to a variety of career and technical training, we are fueling a more competitive workplace.”

The College Savings Foundation is a nonprofit trade organization that advocates for state-run 529 plans and the financial services industry that manages them. 529 plans allow families to put money into tax-advantaged accounts and withdraw it tax-free when it’s used for qualified educational expenses.

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