The federal government uses the information on the form to determine an applicant's eligibility for Pell grants, subsidized Stafford loans and other financial aid. Private organizations often use the information when awarding scholarships.

The survey also found that only 9% of the 1,404 families questioned reported using a 529 savings plan, a state-sponsored investment account that accumulates tax-free earnings. Those with a 529 plan used up to $8,000 toward last year's education costs, which on the average were $14,628, according to the survey.

Meanwhile, 38% of the families surveyed paid for tuition, room and board, and all other college-related expenses with personal income.

Most parents are so committed to sending children to college, seeing it as an investment in their family's future, that they often give little thought to education costs and what happens after graduation, such as paying back loans and what the student's income will be after school ends.