HONOLULU (HawaiiNewsNow) - The information you're about to see is from Sallie Mae, and before we go any further, we should tell you that Sallie Mae is NOT a government agency, it is a for-profit company that charges really high interest rates for college loans and any reasonable person would say they're part of the problem. Sallie Mae estimates only 20% of total money for college comes from loans. More than a third comes from scholarships and grants. Another 34% comes from parents and other family members. Students themselves come up with 12%.
The real problem isn't where the money comes from so much as how much money is needed. Universities have been raising tuition both directly and indirectly. The indirect increase comes from colleges making it difficult to schedule required courses in the freshman year, leading to a surge in people needing five years to get a so-called four-year degree.