Report says Americans borrowing less, paying tuition out of pocket

Report says Americans borrowing less, paying tuition out of pocket

CAPE GIRARDEAU, MO (KFVS) - Paying for college is easier said than done.

A report released on Thursday shows Americans are borrowing less and paying more out of pocket to cover college costs.

Derieck Hodges at Financial Planning Advisors in Cape Girardeau said the report surprised him, but believes there are several factors that may contribute to it.

Some of those include:

  • Enrollment at junior colleges being very high
  • Scholarships
  • Placing an importance on college education

Hodges said he's seen things firsthand that point to people putting more emphasis on college.

"You know the stock market has been good for the last several years," he said. "Maybe people are using investment money, or I've got a lot of clients and friends who are simply tightening their belt, who have sacrificed in other parts of their lives to help pay for their kid's education so they are just paying for it out of cash flow."

The report showed eight out of 10 families were willing to stretch their finances to pay for college.

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