NEW YORK (BankingMyWay) -- American families are still convinced that college is a good investment, but they’re just as convinced that paying for college calls for what amounts to extreme financial measures, according to a report from Sallie Mae.
Americans are cutting back on their basic household budgets to send their sons and daughters to a good school.
The study, completed in collaboration with the data analysis firm Ipsos, finds that 83% of Americans believe that college is an “investment in the future,” and that finding ways to pay for higher education is a huge priority.
Paying for college is increasingly proving to be a high mountain to climb for U.S. families with costs escalating far faster than the rate of inflation.
According to InflationData.com, the total cost of paying for four years at a public college or university will rise to $120,000 by 2015. The web site also notes that the total amount of outstanding student loan debt stands at $40 billion.
Furthermore, tuition costs have increased by a staggering 498% since 1986, as the overall inflation rate has only risen by 115%.
That has U.S families up against a wall in paying for college, yet it’s a fight they’re willing to engage in to increase their children’s chances of succeeding in life, Sallie Mae notes.
Some study highlights:
Clearly, American families want that college education. But paying for it is proving to be a task that upends the entire household budget process.
“This is really a tale of the resilient American family who still see the extreme value of a college education and are finding new and creative ways to pay for it,” noted Clifford Young, managing director at Ipsos Public Affairs, in a release.
“New and creative” is one way to put it.
Increasingly, Americans are working overtime to pay for college, apparently, no matter how high the cost.
More on college finances:
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