The use of grants and scholarship to pay for college is on the rise.
According to student loan servicer Sallie Mae, nearly two-thirds of families (65%) used grants and scholarships to pay for college in 2013, up from 61% in 2012 and up from only half of families five years ago. What’s more, 49% of parents say they’re not regularly setting aside money to college savings, and 70% of those parents say the reason they’re not saving is because they simply can’t afford to. In other words: more and more families are counting on grants and scholarships (including tuition discounts from the school itself) to pay for college.
In 2013 32% of students borrowed to pay for college, up from 29% in 2009. Parent borrowing is down over that same time, from 15% in 2009 to 12% in 2013.
- Need-based college financial aid often based on ‘student’s academic merit’ (Cost of College)
- Can the FAFSA hurt a student’s chances of admission or financial aid? (Cost of College)