economy
College Can Cost $100,000 a Year. Here's How Families Are Covering the Tab
Because families struggle to pay for school, many students and their parents increasingly depend on federal and private aid to help foot the bill.
TL;DR
- Nearly half of families borrow money to pay for college, with tuition increasing faster than other household expenses.
- Colleges are receiving less financial support from state and local governments, leading to higher tuition costs.
- Cost is the biggest barrier for prospective students, and many Americans question if they can afford higher education.
- Families increasingly depend on federal and private aid, scholarships, grants, and student loans to cover college expenses.
- Savings alone play a smaller role in education funding, with families relying on a mix of sources including loans and credit cards.
- Parents who saved for college reported a significant decline in the amount set aside, with fewer feeling prepared to cover total costs through savings alone.
- New limits on federal student loans have been established, and two-thirds of families surveyed support these limits.
- Deep cuts in state funding in recent decades have contributed to sharp tuition increases, transferring more costs to students and families.
- Tuition costs have increased much faster than any other household expense due to decreased state financial support and increased reliance on tuition revenue.
- At the current rate of increase, more students and families may consider the cost and return on investment of earning a degree.