How the Typical American Family Pays for College
August 2, 2024
The typical family uses a combination of income, savings, grant aid, and loans to pay for college. For the past several years, income and savings from parents and students have consistently covered about half of the total cost, with grant aid covering about one quarter of the total cost and loans covering most of the remainder.
Starting a college fund early and aggressively looking for grant aid from colleges can help families reduce the amount they may need to borrow. A net price calculator, available on every college website, can help families estimate how much grant aid a student might receive at a particular college.
How the typical family pays for college, percent of funding sources
- 2019-20
- Parent income and savings: 44%
- Student income and savings: 8%
- Grants and scholarships: 25%
- Family borrowing: 21%
- Relatives and friends: 1%
- 2020-21
- Parent income and savings: 45%
- Student income and savings: 8%
- Grants and scholarships: 25%
- Family borrowing: 20%
- Relatives and friends: 2%
- 2021-22
- Parent income and savings: 43%
- Student income and savings: 11%
- Grants and scholarships: 26%
- Family borrowing: 18%
- Relatives and friends: 2%
- 2022-23
- Parent income and savings: 40%
- Student income and savings: 10%
- Grants and scholarships: 29%
- Family borrowing: 19%
- Relatives and friends: 2%
Source: How America Pays for College 2023, Sallie Mae
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