Here's how a typical family financed a college education in2016-2017 according to the latest annual report, How AmericaPays for College, from Sallie Mae:

• Scholarships & grants: 35%
• Parent income & savings: 23%
• Student loans:

  19%

• Student income & savings: loans: 11%
• Parent loans:

  8%

• Relatives & friends: 4%

There was little change in the breakdown from last year – just a1 percentage point difference up or down in all categories exceptfor parent income and savings, which fell by six percentage points,and student loans, which rose by six percentagepoints.

Neither saving less nor borrowing more is good news, and theyare related.

“When parent income and savings are less available, the fundinggap appears to be bridged by borrowing, more student borrowing thanparent borrowing,” according to the study, which is based ontelephone interviews with 800 parents of undergraduates, ages 18 to24, and 800 undergraduate students, ages 18 to 24, conducted byIpsos Public Affairs.

Forty-two percent of families surveyed borrowed money to helppay for college this year, according to the report. The typicalloan amount was just over $9,600 for students and almost $3,900 forparents, and federals loans were the most popular for both.

Borrowers were more likely than non-borrowers to attend collegefull-time and in a four-year program, and more likely to ventureout of state, attend a private school and choose one based on itsacademic program.

The study also found a disconnect between parents and childrenconcerning loan repayment.

While 84% of student borrowers expect to be solely responsiblefor repaying their loans, only 58% of parents concurred with thatand 12% of parents expect to repay those loans. In contrast,41% of parent borrowers expect to be solely responsible forrepaying their loans while 21% of students expect theresponsibility lies with them

Despite the decline in savings and increase in borrowing,families and students are focused on college affordability,according to the report. Not only are they seeking scholarships – 7in 10 families did but only 49% reporting using them – but most arecompleting the Free Application for Student Aid (FAFSA) (86%)needed to qualify for student aid, and 73% report choosing anin-state schools.

In addition, 50% of students were living at home in the2016-2017 academic year, 26% were enrolled in an acceleratedprogram to graduate early (and spend less), 76% were working tohelp pay for college – working year-round or during schoolbreaks—and 26% were enrolled in accelerated programs to graduateearlier (and save money). Many families were also reducing personalspending and working longer hours to help pay for college.

One action many families aren't undertaking, however, isdeveloping a plan to pay for college. Even though nine in 10surveyed said they anticipated college attendance since their childwas in pre-school, less than half (42%) said they made a plan topay for it.

The survey covered families across the U.S. and found that thosein the Northeast stood out from families in other regions of thecountry. Families in the Northeast spend about 70% more on college,and finance that with more borrowing and a larger contribution fromparents. Enrollment in private school and on a full-time basishigher among those families as is academic programs as a key reasonfor college choice.