Survey Shows Families Borrowing Less for College


August 25, 2009
by Scholarships.com Staff
A new study offers surprising news in an uncertain economy: families are actually borrowing less money to cover college costs.

A new study offers surprising news in an uncertain economy: families are actually borrowing less money to cover college costs.

The study, titled "How America Pays for College," shows that about 58 percent of families did not borrow money for college for the 2008-2009 school year. Despite rising tuition prices of up to 5 percent over the last year, according to the College Board, high unemployment rates and deep budget cuts at schools across the country, it seems more families are relying on their own savings, scholarships and grant funding. While parents paid for about 36 percent of college costs, about 25 percent of students' costs in the year surveyed were covered by grants and scholarhips, and more than half of the respondents received some form of free aid, according to the study. The reliance on grants and scholarships increased by  15 percent over the last year, which could show more of an awareness by students to money available outside of lending in a struggling economy.

The same survey last year showed that about 53 percent of families chose not to take out loans for college. According to the New York Times, the numbers do not suggest that students would rather skip college than take out loans. In fact, fewer students than last year said taking out loans would stop them from pursuing an undergraduate degree, according to the article.

Other highlights of the study showed that:

  • 67 percent said they were confident in their ability to continue to meet the cost of college in the current economy.
  • 5 percent used credit cards to pay for college expenses.
  • 10 percent of costs were covered through students' own savings and employment.
  • 6 percent of costs were covered through students' relatives and friends.
  • 91 percent said that pursuing higher education led to a better life.

Of those who did borrow for the last school year, 25 percent took out federal student loans and 12 percent borrowed private education loans. Those who did borrow also spent about 30 percent more on their educations than those who did not, suggesting a higher cost of education for those who took out federal and private loans.

The study was conducted by Gallup for Sallie Mae last spring with more than 1,600 college-going students and parents of undergraduates responding.

Just because there are millions of college scholarships out there doesn’t mean you have time to go searching, and many won’t even match your profile. We’ve done the work and Scholarships.com is totally free. We have the search algorithms and scholarships database, saving you time in searching, finding and applying to thousands of dollars in college scholarships. Get instantly matched to scholarships that meet your unique talents, skillset and strengths, only those you qualify for. Access a complete list of college scholarships now by conducting a free college scholarship search at Scholarships.com.

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 
First-time community college students in California may be able to get a discounted, or even free college education thanks to a new California College Promise law. The point of the program is to create the environment and alignment that will help students finish college.

Community College Comp'd in California?

October 17, 2017 9:12 AM
by Susan Dutca
First-time community college students in California may be able to get a discounted, or even free college education thanks to a new "California College Promise" law. The point of the program is to

    Students and families who use Scholarships.com as their one-stop shop for free college and financial aid information and opportunities is the reason why we are thankful. As a way of saying thanks, we’ve come up with a way for you the squash student loan debt with these November Scholarships. For even more scholarships in November, click here.

Gobble Up these November Scholarships

October 6, 2017 12:02 PM
by Susan Dutca
Students and families who use Scholarships.com as their one-stop shop for free college and financial aid information and opportunities is the reason why we are thankful. As a way of saying
Warren Wilson College, a school known for attracting liberal students, is seeking to recruit conservative students in effort to broaden [their] appeal to those with all kinds of worldviews. Other college and university leaders claim that the 2016 election serves as inspiration for this initiative and they are also fearful that their institutions are disconnected from conservatives who make up a majority in much of the country.

Liberal School Seeking to Recruit Conservative Students

October 3, 2017 11:17 AM
by Susan Dutca
Warren Wilson College, a school known for attracting liberal students, is seeking to recruit conservative students in effort to "broaden [their] appeal to those with all kinds of worldviews." Other
Parents of boys are more likely to pay the entire cost of college than those who have girls, according to a 
new study from T. Rowe Price. They are also more willing to prioritize saving for their sons' college over their own retirement.

Parents Save More for Sons’ College Education

September 26, 2017 9:39 AM
by Susan Dutca
Parents of boys are more likely to pay the entire cost of college than those who have girls, according to a new study from T. Rowe Price. They are also more willing to prioritize saving for their

    Enjoy a seasonal treat this season with fall scholarships from Scholarships.com to help pay your college tuition bill. Harvest some of the largest dollar scholarships, most prestigious scholarships, and brand name scholarships out there with our list of October scholarships. These autumn scholarships are so good you'll scream! So hurry and apply for these scholarships due in October and don't let them fall by the wayside. For a complete list of scholarships due in October, click here.

Harvest Fall Scholarships for College

September 7, 2017 3:42 PM
by Susan Dutca
Enjoy a seasonal treat this season with fall scholarships from Scholarships.com to help pay your college tuition bill. Harvest some of the largest dollar scholarships, most prestigious
If you're pursuing or thinking of pursuing a career in coding, you may be one of the 75,000 aspiring developers to land an Android Scholarship or Web Development Schoalrship, sponsored by Google and Udacity. Google and Udacity have been partnered over the past two years and doled 1,000 and 10,000 scholarships for coders in 2015 and 2016, respectively.

Google, Udacity Offer 75,000 Scholarships for Coders

September 5, 2017 1:14 PM
by Susan Dutca
If you're pursuing or thinking of pursuing a career in coding, you may be one of the 75,000 aspiring developers to land an Android Scholarship or Web Development Schoalrship, sponsored by Google and
San Diego State University plans to offer a course titled Black Lives Matter: A Focus on Black Boys and Men in Education, which will be open to the public for enrollment this coming October. The course, which will cover topics of how black men are undervalued in the classroom, is under fire for featuring “speakers whose members have been accused of inciting violence.

Black Lives Matter College Course Faces Criticism

August 30, 2017 8:32 AM
by Susan Dutca
San Diego State University plans to offer a course titled "Black Lives Matter: A Focus on Black Boys and Men in Education," which will be open to the public for enrollment this coming October. The