Paying for college gets increasingly difficult as tuition rises
On Tuesday, April 8, 2025, JANSS is stepping into Westwood UCLA in CA.
Myung J. Chun | Los Angeles Times | Getty Images
The fall period is an extremely painful point for most students and parents.
A recent report Citizens found a “confidence gap” by Financial Group. 59% of the parents said they were sure to manage the college expenses when their children are accepted, while only 21% said they were prepared for real cost when tuition invoices arrived.
“We know that the cost of participation continues to grow and many federal loans and grants and grants and grants and help.” He said.
“Families felt good, but when these tuition bills arrived, this number fell.” He said.
In April and May, citizens, more than 1000 parents between the ages of 13-29, either plans to participate or gained some experience at the university.
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In recent years, college costs have increased significantly, an average of education has increased by 5.6% in the year, since 1983 – inflation and other households have left behind the expenses. JP Morgan Asset Management.
A growing share of schools now $ 100,000 threshold For the participation of total annual cost and education is still rising roughly 5% per year.
How much family pays for the college
To be sure, a small number of families pays the price of a school. As of 2024-25 academic years, the amounts spent for families’ education costs were close to an average of $ 31,000. How does America pay for university The report – but this figure is still approximately 10% compared to the previous year.
Sallie Mae destroyed 1,000 undergraduate students and 1,000 undergraduate students between the ages of 18-24.
In most cases, the main income and savings cover about half of university costs. Training lending, free money from scholarships and grants constitutes more than a quarter of costs and student loans.
According to Sallie Mae, scholarships are a key source of financing, but only 60% of families use them. On average, approximately 8,000 dollars.
“Every dollar is important when it comes to payment for the college,” Sallie Mae spokesman Rick Castellano said. He said. “The last thing you want to do is leave free money on the table.”
Castellano said other “stubborn statistics” that contradicts the increasing cost awareness between families.
For example, only 71% of families have applied for federal student assistance or FAFSA, which served as a gateway for all federal aid money, including loans, business work and grants. This fell from 74% in the previous academic year.
And although most consultants say 529 University Savings Plans According to Sallie Mae, when it comes to financial planning for the college-because of a large extent due to tax advantages-less than one-third of the family uses them.
“I think there is a lack of awareness around the 529 plan.” He said.
End data Credit painted an equal picture from Karma: He said that the parents participating in the survey have 529 accounts for their children, and 43% never heard 529.
He said that they did not contribute to 18% because they did not realize that funds could be used for education costs beyond the university such as K-12 private school mortar or trade and professional programs. Tax and Expenditure Package In addition to other costs for students starting in kindergarten, 529 qualified education costs to include educational therapies and private lessons.
Most experts say that the 529 plan is often misunderstood and overlooked. However, even among the families who have a university plan and who have saved for years, very few have been enough to meet the entire cost.
“Even the families that are really well prepared, most families will have a financial gap.” He said.
Another discussion is the increasing share of young adults who completely rethink their education. Increased participation cost and the cost of bubbles of student credit balances have played a major role in the change of views on the Higher Education System, and students decide to make more decisions.
“As parents or students, the last thing you want as parents or students is to feel that higher learning is the ultimate goal and that you are ready to pay, and this is not possible.” He said.
