Tuesday, July 17, 2012

Parents Push Back on College Costs

Parents are pushing back on the cost of college, according to Sallie Mae's latest survey. In 2012, parents with children in college spent an average of $5,955 from their income and savings on college costs--32 percent less than in 2010. Only 47 percent of parents now strongly agree that they would rather borrow than have their children not go to college, down from 59 percent who felt that way in 2010.

So far, their children have not gotten the message. Fully 62 percent of students strongly agree that they would rather borrow than not go to college. Thirty-four percent used federal student loans in the 2011-12 school year, up from 28 percent in 2009-10. They borrowed an average of $7,874 through the federal program in 2011-12, up from $5,807 in 2009-10.

So how does America pay for college? Sallie Mae has the breakdown for 2011-12...
  • Parents: 37% (down from 47% in 2009-10)
  • Students: 30% (up from 23% in 2009-10)
  • Grants and scholarships: 29% (up from 23% in 2009-10)
  • Relatives: 4% (down from 7% in 2009-10) 
Source: Sallie Mae, How America Pays for College: 2012

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