Parents Shell Out Less Money for Their Kids’ College

Jul 23, 2013 by

Broke-Wait until Obamacare kicks in!

Parents are giving their children less cash to pay for college amid continued economic weakness, adding to pressure on students to borrow money, rely more on grants and scholarships—and in many cases, live at home.

Parents shelled out an average of $5,727 from their income and savings for each child’s college costs in the 2012-2013 academic year, down more than a third from $8,752 in 2009-2010, according to an annual report on college funding by student loan provider Sallie Mae to be released on Tuesday. The share of college costs paid by parents out of income and savings fell to 27% from 37% three years ago. The figures don’t include borrowing by parents, which also declined slightly in the period.

“Parents are still willing to stretch themselves financially, but their incomes just haven’t kept up,” said Sarah Ducich, senior vice president for public policy at Sallie Mae.

 

To defray the cost of college, families are leaning more heavily on university scholarships, even as many schools are struggling with their own financial difficulties. Last year, 30% of college costs were covered by institutional grants, up from 23% in 2009-2010, the new report said. For the third year in a row, that was the largest source of funds for college costs.

 

At the same time, more students are rejecting college dormitories. In 2013, 57% of families reported a student living at home or with a relative, up from 43% three years ago. Students from low-income households have traditionally lived at home in larger numbers, but among families with incomes over $100,000, the share of students staying at home has doubled to 48% since 2009-2010.

 

Among that group are the three sons of the Pawlisz family of suburban Chicago. All three, now aged 20 to 27, pursued post-secondary education while living at home, said Christine Pawlisz, their mother. The youngest recently finished his fourth semester at community college.

Along with 17% of families putting children through col

via Parents Shell Out Less Money for Their Kids’ College – WSJ.com.

Print Friendly, PDF & Email

Related Posts

Tags

Share This

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.