Students and families are paying for 85 percent of their college costs and nearly half of these families are borrowing money to cover these expenses, a Gallup poll has found.
Parents are paying about one-third of the total cost of attendance from income and savings, and are borrowing another 16 percent. Students are contributing one-third of the cost, mostly by taking out loans, and friends and relatives chip in 3 percent. Grants and scholarships, money that does not have to be repaid, accounted for just 15 percent.
The report, How America Pays for College is the first study to gather information directly from families on how they are financing college. Gallup interviewed more than 1,400 parents and students who attended college this past academic year to survey their approach and attitudes toward higher education costs.
The report showed that:
- Families earning less than $50,000 annually paid almost $9,000 each year towards college expenses.
- Families earning between $50,000 and $100,000 paid an average of $14,600 per year.
- Families earning more than $100,000 paid an average of nearly $20,000 a year.
- Will you fund college this way? Don’t “shoot from the hip” when financing college, and don’t be one of those families who arbitrarily choose to pay for tuition out of their own pocket and with a few loans. We can show you a better way.
Even if you can afford to write a check for college, you’re crazy to do so. We can help your student get into the school of their dreams and then help you with creative ways to pay for it. Give us a call for your free no obligation consultation!