Business
No Gap Year Here: Vast Majority of College Students Planning to Return to School in the Fall, According to ‘How America Pays for College 2020’
Just 7% of Students Have Decided to Take Time Off or Enroll at a Different School Due to COVID-19 When It Comes to Paying for College, Parents Continue to
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[{"type":"text","content":"\nJust 7% of Students Have Decided to Take Time Off or Enroll at a Different School Due to COVID-19 \n\n\nWhen It Comes to Paying for College, Parents Continue to Cover Majority of the Bill and Most Rely on Income and Savings vs. Financial Aid; 71% Say They Completed the FAFSA\n\n NEWARK, Del.--(BUSINESS WIRE)--\nSeventy-eight percent of students are planning on returning to their current school, and 68% are comfortable returning to campus this fall, according to “How America Pays for College”, the national study from Sallie Mae® and Ipsos. Just 7% of students have decided to take time off or enroll at a different school. Sixty-one percent of families believe COVID-19 will not have a long-term impact on their higher education.\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200728005588/en/\"How America Pays for College 2020\" Infographic (Graphic: Business Wire)\n\n“While families are concerned about COVID-19, their commitment to higher education is unchanged and they don’t expect it to have a long-term impact on the student’s education.” said Jennifer Berg, Director, Ipsos, “However, it has clearly created some challenges for families. Seven in ten students found the instant transition from in-person to online in March difficult and six in ten families are concerned about how COVID-19 will impact the affordability of college next year.”\n\n\nFamilies spent an average of $30,017 on college in academic year 2019-20. Parents covered 44% of costs, or $13,072, using income and savings. More parents used income this year to help pay (70% in 2019-20 vs. 55% in 2018-19), and significantly more used a dedicated college savings account like a 529 plan (37% in 2019-20 vs. 21% in 2018-19).\n\n\nScholarships and grants covered 25% of college costs, or $7,626, and were used by 73% of families. Student and parent borrowing covered 13% and 8% of costs, respectively, totaling $6,581. Half of families (50%) reported borrowing money to help pay for college and roughly half of families with student loans are making payments on them while in school. Of students who used federal student loans, which is the largest source of borrowed money, 35% expect them to be forgiven.\n\n\nSlightly more than half of families (52%) have a plan to pay for all years of college, up from 44% in 2018-19 and...