College costs shifting to students, Sallie Mae survey finds

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http://www.washingtonpost.com/business/economy/college-costs-shifting-to-students-sallie-mae-survey-finds/2012/07/15/gJQA8ZScnW_story.html

Students are shouldering more of the burden of paying for college, increasing their borrowing and out-of-pocket contributions, according to a study from Sallie Mae to be released Monday.

In its annual survey, the nation’s largest private student lender found that undergraduates covered 30 percent of the cost of college themselves during the most recent academic year — the largest share in four years. They spent an average of $2,555 from their income and savings and took out $3,719 in loans, the report showed.


Meanwhile, parents struggled to maintain their level of financial support. Though they still paid for more than a third of their children’s college costs, they relied more heavily on borrowing, according to the study. The portion covered by parents’ out-of-pocket contribution fell to 28 percent, down nine percentage points from its peak two years ago.

The report called the changes a “major shift in spending” that occurred across all income levels. It comes amid a national debate over the $1 trillion student debt burden and the rising number of borrowers who have fallen behind on those loans. The Sallie Mae study provides a window into how families are factoring those costs into their college choices.