Sallie Mae’s 2015 report on How America Pays for College says that this year parent income and savings are covering the bulk of college costs surpassing scholarships and grants for the first time since 2010.
As one of the nation’s leading lenders for college education, Sallie Mae for its annual report surveyed 1,600 undergraduate students ages 18-24 and parents of undergraduate students in that age range. It found that 32 percent of the cost of college in the last academic year from July 1, 2014 to June 30 2015 year was paid out of students’ and parents’ pockets. Grants and scholarships covered 30 percent.
The report says families spent an average of $24,164 on college, including tuition, room and board, which is 16 percent more than the previous year, and the most significant increase in five years.
The report has several other high points including that six in 10 families did not borrow for college, 74 percent of students worked during the year to help cover college costs, all indicating that students and parents may be less likely to take on debt to pay for their higher education.