Sallie Mae’s national study of college students and parents, How America Pays for College 2019, has been released. The annual study conducted with Ipsos Public Affairs, compiled some interesting statistics regarding the costs of higher education, including how students and families perceived the cost of their education compared to the amount they paid.
According to the report, “family savings and income alone don’t cover the cost of college for most families. More than 8 in 10 families use scholarships and grants, and more than half of families borrow to cover college costs. While financial aid use is widespread, it is not ubiquitous. Three quarters of families filed the Free Application for Federal Student Aid (FAFSA), but gaps in awareness persist. Fewer than one in five families said they researched financial aid eligibility early in the college planning process. Among families who received a financial aid award offer, one in five didn’t feel confident they understood it. One-fifth of families do not feel confident in the decisions they made about how to pay for college.”
Interestingly, paying less does not equate to higher satisfaction. On average, those who considered their education to be “appropriately priced” paid $22,744, whereas those who considered their higher education to be an “excellent value” and “worth every penny” paid $24,396.
$26,226 was the overall average amount that was paid for college. The funding of which is spread out as follows: 31% from scholarships and grants, 30% from parent income and savings, 14% from student borrowing, 13% from student income and savings, 10% from parent borrowing and 2% from friends and family gifts.
Not surprisingly, the study found that cost is the number one factor for deciding what college to attend. “More families weigh financial considerations than academic considerations when choosing a school.”
Helping students and families understand how your institution’s financial aid office can assist in paying for college needs to be a top focus for your enrollment team and marketing strategy.
Download the full 98 page report here: How America Pays for College 2019