Flipbook_College_2017 - page 8-9

Student
borrowing
Grants &
scholarships
Parent
borrowing
Parent income
& savings
Student income
& savings
Relatives
& friends
What Funding Sources Will You Use?
Families save for college in many ways, as illustrated in the chart below.
These savings vehicles are described later.
Families typically use multiple sources to pay for college. Although grants and scholarships
may play an important role, the largest percentage of funds usually comes from parents
and students in the form of savings, current income, and loans.
Paying for Higher Education
General savings account
529 savings plan
Prepaid state college plan
Source: Sallie Mae, 2016
Retirement savings
College savings
rewards program
Investments
Coverdell ESA
Trust
The more prepared you are financially, the more options your student
may have when choosing a college. Fifty-five percent of families have
eliminated colleges based on the cost even before they applied.
Source: Sallie Mae, 2016
13%
34%
5%
12%
7%
29%
61%
37%
31%
30%
24%
24%
20%
17%
24%
Percentage
using each
savings vehicle
CD
1,2-3,4-5,6-7 10-11,12-13,14-15,16-17,18-19,20
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