Families Doing Whatever It Takes to Pay for College

NEW YORK (TheStreet) -- American families are still convinced that college is a good investment, but they're just as convinced that paying for college now requires some extreme financial measures.

That's the conclusion of an annual report from Sallie Mae, which says Americans are cutting back on their household budgets to send their sons and daughters to a good school. The 2012 study, completed in collaboration with the data analysis firm Ipsos, finds that 83% of Americans believe that college is an "investment in the future," and that finding ways to pay for higher education is a huge priority.

Paying for college is increasingly proving to be a high mountain to climb for U.S. families as cost have escalated far faster than the rate of inflation.

The total cost of paying for four years at a public college or university will rise to $120,000 by 2015, according to InflationData.com. Furthermore, tuition costs have increased by a staggering 498% since 1986, as the overall inflation rate has only risen by 115%. The web site also notes that the total amount of outstanding student loan debt stands at $40 billion.

That has U.S families up against a wall in paying college costs, but it's a fight they're willing to engage in to increase their children's chances of succeeding in life, Sallie Mae concludes.