As the cost of higher education continues to climb, families are feeling the financial strain more than ever. A recent survey reveals that families are now spending approximately 9 percent more on college compared to the previous year. This increase highlights the ongoing challenges many face in funding their children’s education.
Understanding the Financial Landscape
The survey, conducted by Ipsos, involved around 1,000 undergraduate students and an equal number of their parents between April 8 and May 8. The findings are part of the annual report titled “How America Pays for College,” which explores various aspects of college financing, including the reliance on federal student loans.
Average Spending Trends
Families reported an average expenditure of $30,837 on college, a figure that mirrors pre-pandemic spending levels. For context, during the 2019-20 academic year, the average spending was $30,017. Consistent with previous years, families predominantly utilize their own resources, with personal income and savings contributing to 48 percent of the total funding, while scholarships and grants make up 27 percent.
Missed Opportunities for Financial Aid
Despite the rising costs, a significant 40 percent of families did not pursue scholarships to alleviate their financial burden. Many cited a lack of awareness regarding available opportunities or a belief that they would not be successful in securing aid. Interestingly, about three-quarters of those who did receive scholarships acknowledged that this financial support was crucial in making college accessible.
Perceptions of Value vs. Cost
While a majority of families still view college as a worthwhile investment, the cost remains a significant concern. Approximately 79 percent of respondents indicated that they had ruled out at least one institution based on its price. However, nearly 47 percent reported paying less than the advertised tuition. This trend is particularly pronounced among families with students attending private four-year universities, where 54 percent paid less compared to 45 percent at public institutions.
Conclusion
The financial landscape of college education is evolving, and families are navigating a complex web of expenses and funding sources. As the costs continue to rise, it is essential for families to explore all available options for financial aid and to remain informed about the changing dynamics of college financing.