A report from Sallie Mae shows how families from different income levels have been paying for college over the last five years.
HOW THE TYPICAL FAMILY PAYS FOR COLLEGE, AVERAGE AMOUNT PAID FROM EACH SOURCE, YEAR-OVER-YEAR *
High-income families have cut down on their college spending.
Overall, parents are contributing less toward their children’s college education, but from these charts it’s clear the decline has mainly occurred among higher income families. Over the last five years, parent contributions have actually increased 43% for low-income families while decreasing 10% for high-income families.
Low-income families receive more grants.
Even with the recent rise in merit aid, lower-income families continue to received relatively generous amounts of grant and scholarship awards.
* For the purposes of this study, low-income families have been defined as those with an annual household income of less than $35,000, middle-income are families with an annual income from $35,000 to less than $100,000, and high-income families are those with an annual income of $100,000 or more.