Report: Many families don’t borrow for college

Despite the rough economy, 58 percent of families with college students paid the tab without borrowing last year, according to a study released Thursday

The Sallie Mae and Gallup report — "How America Pays for College" — found that the 42 percent of families who borrowed spent, on average, 30 percent more on education than those who did not.

That finding suggests that "many (families) appeared to use borrowed funds to reach for a desired school of their choice."

The study was based on interviews with 1,600 college students and their parents.

Some highlights:

- Parents funded 45 percent of the cost of their child's education, either directly from their own resources or by borrowing.

- The second-largest funding source was grants and scholarships, which funded about 25 percent of all college costs.

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