November 4, 2019 By College Ave Student Loans
Student Loan Statistics: How Families Are Paying for College
Did you know that students worry as much about their grades as they do about college costs and affordability? Thousands of students take out loans every year to help cover education costs. In fact, nearly one-third of people under age 30 have student loan debt. From federal and private loans to scholarships and work-study, there are a lot of funding options to help families pay for college.
Here we will take a closer look at key student loan statistics and how undergrads, grads, and parents are covering the cost of college.
Free Application for Federal Student Aid (FAFSA) Statistics1
- 1,108,852 students completed the Free Application for Federal Student Aid (FAFSA) in 2018
- Less than 1% of students complete the FAFSA via paper
- 33% of FAFSA applicants were first-year students who never attended college before
- 62% of applicants were over the age of 25
- 25 Minutes: The average time it takes to complete the FAFSA
Average Cost of College 2018-20192
- Private (Nonprofit): $35,830 Tuition & Fees2
- Public (Out-of-State, 4-year): $26,290 Tuition & Fees
- Public (In-State, 4-year): $10,230 Tuition & Fees
- Public (In-District, 2-year): $3,660 Tuition & Fees
While nearly all students expect to have loans after they graduate, many are surprised at the actual amount they end up with. The College Ave survey conducted by Barnes & Noble College InsightsSM found that even though for 76% of students, the cost was a deciding factor, most still didn’t know what their payments would be ahead of time. To prepare yourself for managing your student loans, make sure you work with your lender to understand what you’ll be responsible for each month.
- 93% of students expect to have student loan debt when they graduate3
- 63% said they did not look at the average amount of student loans before committing to a college
- 76% said that cost was a deciding factor in choosing a college
- 86% understand that when they repay loans, they will pay back more than they borrowed
- 69% do not know what their monthly payment will be after graduation
- 82% of students said paying for college is stressful
- 61% said college was more expensive than they expected
- 30% of students said the cost of college was at least $10,000 more than they expected
- 16% are not confident that they will be able to repay their student loans
- 30% are not comfortable with the financial terms and paperwork associated with student loans
College costs are on the rise, and students might be caught off guard by the price tag. Most undergrads find that costs are higher than they expected and end up having to find more funding or pick up extra work to cover it. Need some ideas? Here are 10 Good Ways to Save Money in College.
Average Cost of Additional College Expenses4
- Room & Board: $11,140 (Public, 4-year, in-state)4
- Books & Supplies: $1,240
- Travel & Other Expenses: $3,280
- Total: $15,660
It’s easy to overlook some college expenses. Applicants get so tied up in tuition numbers that they forget to factor in the cost of textbooks or transportation. Keep a running list of your expected expenses and include that in your forecasted budget.
Who Pays for Student Loans?3
- 55% of students will pay back their loans on their own
- 34% of students expect their parents to help pay back loans a little
- 4% of students will split the bill with their parents
- 7% of students expect their parents to pay most or all of their loans
Anyone paying for college can agree it gets stressful at times. Whether you’re a student paying back student loans or a parent making payments after graduation, it’s a huge responsibility and commitment. More than half of the students from the College Ave survey are repaying loans on their own. If you’re just getting started, check out these tips on managing your student loans and preparing for the end of your grace period.
The Research Process in Hindsight3
- 80% would have researched more scholarships
- 34% would have reached out to the financial aid office to ask for more aid
- 19% would have investigated different student loan options
- 81% would not have chosen a different school
Of course, it’s easier to see what you could have done differently in your education and how you paid for it. The biggest takeaway? Research more scholarships before going off to school. It’s a lot of work upfront but can save you money and reduce your total costs. Learn from other students and speak with your financial aid office to discover the best options for you.
It’s important to become familiar with the different costs and implications before signing on the dotted line. For more information on managing the cost of college, start with the basics of student loans or get some techniques for talking about college costs with your family.
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