Parents’ Salaries Cannot Keep Up With Rising College Costs

College expenses are part of major decisions about which schools to attend, what to study, and even where to live, according to a report from loan firm Sallie Mae.

college cost

Parents paying for college

Parents no longer foot the biggest part of the bill, according to the lender’s annual survey. That role goes to grants and scholarships, with student loans coming in third as fewer students borrow money for school.

While the economic decline has largely passed, worries have not and many families are making college decisions, which include fear of tuition hikes and job losses.

“Parents are willing to stretch themselves,” said Sarah Ducich, Sallie Mae’s senior vice president for public policy. “It’s not that they’re not willing to pay. It’s that their income is not keeping up.”

Relying on grants, scholarships, and loans

The annual survey of student financial assistance found students who earned around $6,300 in grants and scholarships to pay for tuition in 2012, have taken the top spot from parents.

In terms of figures, the typical family depends on scholarships and grants for up to 30 %, and parents’ income and savings for 27%.

The survey by Sallie Marie highlights student who borrow money accumulated to 18% while the remaining came from student income and savings, parent borrowing, relatives, and friends.

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