How most Americans pay for college

Graphic illustrating the different resources families use to pay for college costs. See the link below for a full description.Paying for college. Many families rely on a combination of financial resources - including out-of-pocket payments and loans - to meet their educational expenses. Parent income and savings account for 40% of college funding for the typical family. On average, parents contributed $11,147 from income and savings. Scholarships and grants account for 29% of college funding for the typical family. Total aid available in 2022-23 from grants and federal loans, tax credits and work-study was $240.7 billion. Student income and savings account for 10% of college funding for the typical family. Among college students, 31% hold a job all year, while 23% work only on school breaks and 11% work during school but not breaks. Student borrowing accounts for 11% of college funding for the typical family. There are a number of federal and private student loan options. In families who borrowed, students borrowed $11,337, on average. Parent borrowing accounts for 8% of college funding for the typical family. Federal loans are also available to parents. In families who borrowed, parents borrowed $13,507, on average. Gifts from relatives and friends account for 2% of college funding for the typical family. On average, families used $454 in gifts from others to cover college expenses. Sources: Sallie Mae, "How America Pays for College 2023," and College Board, "Trends in College Pricing and Student Aid 2023."
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