Business
Just Released ‘How America Pays for College 2024’ Report Finds College Spending Stable with Family Out-of-Pocket Contributions Covering the Largest Share of Cost
Just 29% of Families Who Completed the New FAFSA® Found it Easier to Complete NEWARK, Del.--(BUSINESS WIRE)-- Families reported spending $28,409 on college
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[{"type":"text","content":"\nJust 29% of Families Who Completed the New FAFSA® Found it Easier to Complete\n\n\n NEWARK, Del.--(BUSINESS WIRE)--\nFamilies reported spending $28,409 on college for academic year 2023-24 — in line with $28,026 in 2022-23 — and covered nearly half (48%) of expenses with income and savings, according to new data in “How America Pays for College 2024,” the annual study from Sallie Mae and Ipsos, released today.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240806388079/en/\nAbout 3 in 4 families (74%) reported completing the Free Application for Federal Student Aid (FAFSA®) for the 2023-2024 academic year, but of those who reported completing the new FAFSA® for the 2024-2025 academic year, just 29% found it easier to complete. In addition, of those who experienced a delay, 44% reported experiencing stress waiting for financial aid decisions, 21% sought out additional financial aid options, 14% considered switching to a lower-cost school, and 10% transferred schools. When it comes to financial aid offers from schools, 71% of families said they support a simplified, standardized letter.\n\n\nDespite FAFSA® confusion and delays, nearly all families (88%) believe college is an investment in their child’s future, and 79% are willing to stretch financially to get there. Six in 10 families (59%) had a plan to pay for college before the student enrolled, matching an all-time high. Families also reported using artificial intelligence (AI) technology in the college planning process. About one-quarter of students (23%) and 18% of parents used AI in the college application or decision-making process. Three in 10 families (29%) who used AI utilized it to research financial aid or scholarship options.\n\n\n\"The study reveals a significant trend: families are increasingly recognizing the importance of financial planning for college,” said Jennifer Berg, vice president, Ipsos. “Nearly 6 in 10 families now create a comprehensive plan to cover all years of college before enrollment, a notable increase compared to five years ago. This proactive approach not only boosts confidence in their financial decisions but also equips them to navigate economic uncertainties more effectively.\"\n\n\nRoughly half of families (49%) reported borrowing for college up from 41% last year. Borrowing...