Americans see a college education as a worthwhile investment and many are prepared to take out loans in order to give themselves the best opportunities in the future. According to a new survey by student loan provider Sallie Mae and pollster Gallup, 96% of 2007-08 college students and 94% of their parents believe gaining a degree is a good long-term investment. Furthermore, some 87% of students and 74% of parents are prepared to "stretch" themselves financially to pay for college, with 85% of students saying they would rather borrow than not go to university at all. The survey found that 39% of families who pay for college do so without using any borrowing, relying instead on funds from savings, parents' and students' incomes and scholarships. Another 34% of families take out loans to pay for education, as well as using savings and other income. An additional 14% of families said they pay for college solely through borrowing. Last year, the cost of a college education averaged $14,628, ranging from 27,679 for a four-year course at a private university to $5,263 for a two-year qualification from school. Common forms of student loans and grants include federal Pell grants, which are paid directly to the student; Perkins loans, which are paid directly to a college; and Stafford loans, which offer subsidized and non-subsidized low-interest borrowing.  |