Changing Trends in Higher Education - Lower Spending on Higher Ed

If you have a child going off to college next fall, here's some good news. A study* conducted by Ipsos for Sallie Mae, a financial services company specializing in education, found that the average family spent 9% less on college expenses for the 2010-2011 academic year than for the prior year. High-income families reported the biggest drop; middle-income families also spent less.

New Trends?

• Tuition and other college costs continue to rise. So how did families trim their spending? Here are some contributing factors:
• More students lived at home.
• More students started out at two-year public colleges.
• More families filed the Free Application for Federal Student Aid (FAFSA), with middle- and high-income families accounting for most of the increase.
• A larger proportion of families received grants and scholarships, with middle- and high-income families accounting for most of the growth.
• Out-of-pocket spending by middle- and high-income families dropped.

A+ Attitude

The survey also found that 90% of students strongly agreed that college is an investment in the future, up from 84% in 2010. Motivated, enthusiastic students help reduce college costs by spending fewer semesters getting their degrees.

Educate Yourself

Curbing college costs makes sense for you and your child. Be sure to file a FAFSA, make sure you understand the financial aid packages your child receives, and investigate all your financing options.

* How America Pays for College 2011