NEWARK, Del.- The Bank of Mom and Dad is open for business as parent out-of-pocket spending became the No. 1 source of college funding, according to “How America Pays for College 2015,” the national study from Sallie Mae, the nation’s saving, planning, and paying for college company, and Ipsos, a global independent market research company. This year’s report—now in its eighth year—found parent income and savings covered the largest share of college costs, 32 percent, surpassing scholarships and grants (30 percent) for the first time since 2010.

Families covered the balance of college costs using student borrowing (16 percent), student income and savings (11 percent), parent borrowing (6 percent), and contributions from relatives and friends (5 percent).

Families Spend More on College

After four years of relatively stable spending, families spent 16 percent more money on college in academic year 2014-15, for an average cost of $24,164, including tuition, room and board, living expenses, and other direct and indirect costs. At the same time, fewer families were worried that economic factors would affect their ability to pay for college, fewer eliminated colleges from consideration due to cost, and fewer took actions (cost-saving measures) to control college costs.

“The increase in the amount families are spending appears to be less about the rising cost of college and more about the choices parents and students are making about how much they elect to pay for college,” said Michael Gross, vice president and head of the Higher Education practice at Ipsos Public Affairs. “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.”