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Parents are main source of education funding survey finds

on Thursday,March 05,2009 03:03

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As students get ready to enter postsecondary schools and seek funding for tuition, new research has revealed that the most common source of financing are parents'' own assets.

The survey conducted by Visa, a retail electronic payments operator, found that 23 percent of students rely on their parents as the primary source of funding for college expenses. Government grants are the most popular source for 15 percent of students.

Fourteen percent of those polled rely on government-backed loans to cover the costs, while jobs and academic/sports scholarships are used by 11 and 10 percent of students, respectively.

Parents in San Francisco, Cincinnati, New York City and Austin were the most likely to be the primary source of funding, according to the survey, while in Philadelphia and Orlando sports and academic scholarships came first.

Government grants were the main funding options in San Antonio, Springfield, Missouri and Springfield, Illinois.

There are some signs that student financing may become easier in the coming years. Congress passed the American Recovery and Reinvestment Act on February 13 which includes provisions to enhance Section 529 college savings and raise the minimum level of the Pell grant beginning July 1.
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