Spending on college expenses was roughly 16% higher for the 2014-15 school term than the year before, according to a new study. The average spent on college, including tuition, room and board, living costs and items such as textbooks and transportation, was $24,164—the most since 2010, when the average was $26,271 after adjustment for inflation.
The report, How America Pays for College 2015, also found that 88% of the respondents would “stretch” their budget to afford college for their kids. The study concluded that parents are increasingly positive about the chances of their children landing jobs and are hopeful about the economy, according to Inc. magazine.
The survey of 800 parents and 800 undergraduates found that economic conditions over the past five years left parents with less money to spend on college. This year’s study showed a surge in spending by high-income parents, while spending by lower-income families stayed nearly the same.
“Traditional economic concerns such as job loss, declining home values, and decreased value of savings are less worrying for parents this year, allowing families greater freedom to concentrate on college,” the author of the report said.