Parents, students dig deeper to pay for college

[marmar]

By April H. Lee, MarketWatch

NEW YORK (MarketWatch) -- Faced with rising college expenses, families dug deeper into their own pockets and borrowed more money to pay tuition bills in the 2009-10 school year, according to a survey by Sallie Mae and Gallup released Tuesday.

Both parents and students dipped deeper into their savings and current income, borrowed more and took more scholarships and grants to pay for higher education this year, as the cost of attendance went up 17% on average.

Seventy-three percent of families said they reduced spending, 48% said they increased work hours or earnings, and 43% of families said their student lived at home to cut costs, according to the survey in March and April of 801 college students and 823 parents of students.

As in previous years, the survey found that parents bore almost half of the college-cost burden, with 37% of the total cost of attendance paid from parents' income and savings - the bulk of that, or 21%, was from current income -- and 10% through parent loans.

Student borrowing paid for 14% of college costs, and student income and savings covered 9%. Grants and scholarships were 23% -- the second-most important source of funding for college, the survey found. ...........(more)

The complete piece is at: http://www.marketwatch.com/story/families-dig-deep-cut-costs-to-pay-for-college-2010-08-10