67.98 F
New York
September 17, 2019
Home » Blog » Americans spent an average of $26,226 on college last year
CNBC Business

Americans spent an average of $26,226 on college last year

logo
Spread the Love!!

For most families in the U.S., paying for college requires a complex combination of scholarships and grants, savings and loans.

As part of its annual How America Pays for College report, Sallie Mae and Ipsos surveyed 1,000 undergrads and 1,000 parents of undergrads about their college costs for the 2018 – 2019 academic year. They found that the average amount paid for college was $26,226 and broke down the complex ways American families cover these costs.

Here’s how the typical family pays for college:

ONE TIME USE HANDOUT: How america pays for college

Source: “How America Pays For College 2019”, Sallie Mae | Ipsos

According to the report, 82% of college students receive “free financial aid,” which includes scholarships and grants that do not need to be repaid. Scholarships and grants covered 31% of costs, about or $8,177, for families on average — making it the largest source of funding for students.

Three-quarters of families said they received financial aid directly from their student’s school. The average amount of college financial aid was $10,006, while the average financial aid package provided by the government was $2,805.

Students and families covered the remaining costs through a combination of parental income and savings ( 30% of costs), student borrowing (14% of costs), student income and savings (13% of costs), parent borrowing (10% of costs) and borrowing from friends and family (2% of costs).

Like this story? Subscribe to CNBC Make It on YouTube!

Don’t miss:

https://www.cnbc.com/2019/08/24/sallie-mae-americans-spent-an-average-of-26226-on-college-last-year.html

Related Articles

PBOC sets RMB midpoint at 7.0312 per dollar Aug. 14

CNBC

Trump risking recession over trade to force Fed to cut rates

CNBC

In your 50s? How to get serious about planning for retirement

CNBC

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Click whichever is suitable. Accept Read More