CNN.com recently wrote an article on How to pay for college. According to the Student Loan Marketing Association, the average tuition, room and board at a private college is $43,921. Public tuition for in-state students at state colleges amounted to $19,548, with out-of-state students paying an average of $34,031.
- 34% of tuition bills are paid from scholarships and grants that donâ€™t have to be paid back. That is they come from the college itself or the state or federal government, often based on need and academic performance.
- 29% of the total bill (an average of $7,000) out of parent’s savings or income.
- Grandparent, aunts and uncles paying another 5%.
- Students pay, on average, 12%.
- 20% of the total is made up of loans.
Here’s the breakdown of how loans are funded:
Low-interest loan program offered by the federal government
- Up to $5,500 a year for freshmen
- $6.500 during the sophomore year
- $7,500 for the junior and senior years.
Private lendersÂ fund the rest of loans.
Students borrow 13% of their total tuition costs. Parents borrow the other 7%.
The big question is whether it’s all worth it. Check out my next article on College Grads and Unemployment.