Survey: Scholarships, Grants Cover More of College Cost, Allow Families to Pay Less
Quick Takeaways:
- Thirty-four percent of the total cost spent on college comes from scholarships and grants, compared to only 13 percent that comes from student borrowing.
- Two in five families have created a plan to pay for college, which helps them save three-and-a-half times more than those who do not have a plan.
- Ninety-eight percent of students are taking steps to make college more affordable, including 77 percent who work at least part of the year and 62 percent who reduce their personal spending.
By Brittany Hackett, Communications Staff
Scholarships and grants now cover more of the cost of college allowing families to pay less out of pocket, according to new data from Sallie Mae.
The data comes from Sallie Mae’s "How America Pays for College 2016" report conducted in partnership with Ipsos. The annual report examines how undergraduates’ families feel about college, how much it costs, and how they pay for it.
The data show that, on average, 34 percent of the total cost spent on college comes from scholarships and grants. Twenty-nine percent comes from parent income and savings, 13 percent comes from student borrowing, and 12 percent comes from student income and savings. Only 7 percent comes from parent borrowing and 5 percent comes from relatives and friends.
The data also show that two in five families have created a plan to pay for college, which helps them save three-and-a-half times more than those who do not have a plan. Students from these families also borrow one-third less than those from families that do not have a plan.
Ninety-eight percent of students are taking steps to make college more affordable, including 77 percent who work at least part of the year and 62 percent who reduce their personal spending. Forty-nine percent say they live at home and 27 percent are working toward earning their degree faster. Four in five students choose to attend college in their home state to make college more affordable and one in three are attending a community college as a first step towards obtaining a bachelor’s degree.
When determining factors for choosing a college, cost ranked third (27 percent) behind academic program (31 percent) and personal choice (31 percent). The survey also looked at the expectations parents have for their students’ college goals, with an overwhelming 90 percent saying they expect their student to earn at least a bachelor’s degree. Thirty-six percent said they expect their student to earn a bachelor’s degree, 54 percent said they expect their student to earn a graduate degree, and 10 percent said they expect their student to earn an associate degree or certificate.
Publication Date: 6/30/2016
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