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Families Continue to Invest in Higher Education and Majority Eager to Return to Campus, According to “How America Pays for College 2021”
Families Spent $26,373 on College in 2020-21; Family Income and Savings Cover Majority of the Bill Families with a Plan to Pay for College at an All-Time
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[{"type":"text","content":"\nFamilies Spent $26,373 on College in 2020-21; Family Income and Savings Cover Majority of the Bill \n\nFamilies with a Plan to Pay for College at an All-Time High, Yet FAFSA® Completion Rates Reach the Lowest Point in the 14-Year History of the Report\n\n NEWARK, Del.--(BUSINESS WIRE)--\nWhile the pandemic created challenges for students and families, nine in ten families continue to believe college is an important investment in their future. Eighty nine percent believe a degree will create new opportunities, and 81% believe it will yield higher earnings, according to “How America Pays for College 2021,” the national study from Sallie Mae® and Ipsos. In addition, the majority of families are eager for students to get back to campus. In fact, just 17% report they prefer online learning versus on campus or a hybrid model.\n\n“Despite the turmoil caused by the COVID-19 pandemic in 2020, Americans still believe in the value of college and say the investment in higher education is worthwhile,” said Jennifer Berg, Research Director, Ipsos. “Many believe that a college degree creates opportunities that the student would not have access to without it, but 2020 has also highlighted the need for personal growth, with a growing number of families saying they value the intellectual and social experience of college regardless of the potential increase in income.”\n\nFamilies spent $26,373 on college in AY 2020-21, a 12% decrease from the year prior. Students and parents continued to use a combination of resources to cover college costs with strategies similar to pre-pandemic:\n\n\nFamily income and savings, used by 91% of families, covered 53% of college costs.\n\n\nScholarships and grants, used by 72% of families, covered 25% of college costs.\n\n\nBorrowed funds, including student loans, used by 47% of families, covered 20% of college costs.\n\n\nThis year, more families (58%) had a plan to pay for college than ever before. That said, the percentage of families who completed the Free Application for Federal Student Aid (FAFSA®), 68%, represents the lowest level of completion in the study’s 14-year history. Of those who didn’t file, 44% said they didn’t think they’d qualify for aid, while 34% said they missed the deadline, found the application too complicated, or didn't have the time. In addition, of those who didn’t use scholarships, 74...