The Bank of Mom and Dad is open for business as parent out-of-pocket spending became the No. 1 source of college funding, according to “How America Pays for College 2015,” the national study from Sallie Mae - US based planning, and paying for college company, and Market Research firm Ipsos.
The report found parent income and savings covered the largest share of college costs, 32 percent, surpassing scholarships and grants (30 percent) for the first time since 2010.
Families covered the balance of college costs using student borrowing (16 per cent), student income and savings (11 per cent), parent borrowing (6 per cent), and contributions from relatives and friends (5 per cent).
After four years of relatively stable spending, families spent 16 per cent more money on college in academic year 2014-15, for an average cost of $24,164, including tuition, room and board, living expenses, and other direct and indirect costs.
Also, 62 per cent of families did not borrow any of the money they used to pay for college during academic year 2014-15. Among those who did, the responsibility for borrowing fell primarily to the student, with students signing for nearly three-quarters of the funds borrowed.
Working students are now a norm in the US as 74 per cent of students worked during the year to help cover costs. Most worked year-round, found employment in food service or retail and worked an average of 22 hours per week.
Read the whole report here .