Families Reduce College Spending

07/16/2012 09:20 am ET | Updated Sep 15, 2012

-- RECOGNIZING REALITY: Families are adjusting to economic challenges by choosing less expensive colleges and having more students live at home, according to a new study by student lender Sallie Mae.

PRICE-CONSCIOUS PARENTS: The average amount spent on college by families declined by 5 percent in the 2011-12 school year. Parents spent an average of $5,955 from their income and savings, down from $8,752 two years earlier.

DILIGENT STUDENTS: Students picked up more of the burden, spending an average $2,555 on college from their savings and income compared with $1,944 the previous year.