In our travels as counselors, we often hear, “how are families paying for college?”  The short answer is actually really simple, every family does it differently.  There is no “standard” way that every family manages the cost.  It’s usually like a puzzle, where families do a little bit of this and a little bit of that to make it work.  And they can change their strategy from year to year.  But if you want a breakdown of what families on average did across the country in 2009 (the last year they have data for, it always runs a year behind), here are the results from the national survey conducted by Gallup and Sallie Mae.  

Parent Income and Savings: 36%
Grants and Scholarships: 25%
Student Borrowing: 14%
Student Income and Savings: 10%
Parent Borrowing: 9%
Friends and Relatives: 6%

And if you are looking for ways to cut down on the cost of education, here is an article that explains how paying on the interest accruing on a loan while the student is in school (even though it may not be required) could help save thousands of dollars over the lifetime of that loan.  It also discusses other ways students are trying to cut back on expenses, such as living at home and commuting to school to save on the expense of room and board.  You will also find a link to a tool that can help you determine how much will be needed per year in out of pocket expenses depending on your student’s college of choice.  It can help the student that has already chosen their college better plan for the year ahead, as well as give valuable information to the student narrowing down his or her college choices as they decide which ones to apply to.

Our office can help you navigate these options and give you the information you need before you make the decision that works best for your family.  Call 888.7.GRADUATE, ext. 119 to speak with one of our College Counselors or to schedule an appointment.

Best,
Val