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How to pay for family college after Covid

In the wake of the pandemic, many families are scrutinizing the university and whether it is worth the high cost.

Rooms and boards averaged $ 50,770 in 2020-21, in addition to four-year private university tuition and tuition fees. According to the college board we’re tracking, it was $ 22,180 at a four-year state public university. University pricing and student support trends..

If you add other costs, the Totals tab looks like this: Over $ 70,000 annually For undergraduate students at some private universities or out-of-state students attending four-year public schools.

However, few students and their parents pay the full amount.

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As of last year, the amount actually paid by the family $ 26,373On average, according to Sallie Mae’s annual “How America Pays for Colleges” report. That number hasn’t changed much from the previous year.

Parents’ income and savings cover almost half of college costs, but free money from scholarships and grants accounts for a quarter of the cost. Student loan Sally May found that it made up the majority of the rest.

Scholarships are an important source of funding, but only over half of families still use scholarships, education lenders said.

Six out of ten scholarship recipients received scholarships directly from the student’s school, averaging $ 9,797.

The majority of families who did not use the scholarship said it was because they did not use the scholarship.

“You don’t have to pay everything,” said Howard Hook, a certified financial planner and accountant at EKS Associates Wealth Management in Princeton, NJ.

“There’s nothing wrong with using a combination of resources,” he said, including work research and even some loans.

During ~ COVIDAchieving goals has become an even greater consideration between students and parents.

Currently, nearly two-thirds of parents I’m worried that I have enough money to cover the costAccording to another report by Discover Student Loans.

Still, fewer families are applying for financial assistance.

Free Federal Student Assistance Application, or FAFSA gateway For all federal grants, including loans, labor research and grants, which are the most desirable types of aid.

This year, Sallie Mae found that only 68% of families completed FAFSA, down from 71% in 2019-20 to 77% in the previous year.

“I’m worried about seeing very few families submitting FAFSA,” said Ashley Boucher, a spokeswoman for Sally May. “There is a clear misunderstanding about who FAFSA helps and how it helps.”

Many families mistakenly assume them Not qualified For financial assistance, Boucher said. In fact, “almost everyone who applies will qualify for something.”

Studies show that completing FAFSA also increases the likelihood that students will go on to college and graduate.

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How to pay for family college after Covid

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