Cash-Strapped Students Use More Grants, Live At Home

More students than ever are living at home, not applying to colleges they can't afford, utilizing grants and scholarships, and switching to more lucrative majors, according to a new study by student loan giant Sallie Mae. "We have moved into a post-recession reality in how people pay for college," the company's senior vice president, Sarah Ducich proclaims.

She's not exaggerating. These days, students are predominantly using money from grants and scholarships, rather than funds from the Bank Of Parents. And the number of students living with their families to cut back on costs has peaked: more than half of students are now doing it, up from 41 percent last year.

When it comes to the steep price tags on private colleges, students aren't wondering if they can make it work — two-thirds are just not applying to those colleges at all. A fifth of students from low-income families transferred to cheaper schools last year, and the same amount switched to a more lucrative major.

The average student takes out $8,815 in federal loans. The Bipartisan Student Loan Certainty Act, which would lower student loan interest rates, is set for a vote this week.

(Image: Wikimedia Commons)