With the cost of private universities now topping $35,000 for tuition, fees, room and board each year, Americans are tapping retirement accounts, asking extended family members to help out with college costs and keeping kids at home for the first few years of school to cut down on living expenses. One worrisome trend: Parents who took money from their retirement accounts withdrew an average of $8,554 in 2010 compared to $5,318 in 2009.
To pay for college, families are also borrowing more heavily from traditional sources including financial aid. And usage of 529 college savings plans is on the rise. ”Families are digging deeper and taking a number of measures to make college more affordable,” says Bill Diggins, senior consultant with Gallup. “They see great value in college. It’s an investment in the future. Most strongly agree that a college degree is more important now than ever.”
The cost of state-sponsored college education is also rising as states provide smaller subsidies. The most economical college education is probably a state school near home, but that will run in Asheville about $1000 a month. An alternative is community college for two years and then two years at a state school nearby.
beware the bubble:
http://pajamasmedia.com/instapundit/?s=bubble